Energy Management Systems Market Size 2024-2028

The  Energy Management Systems Market size is forecast to increase by USD 57.7 billion, at a CAGR of 17.97% between 2023 and 2028. The market experiences rapid expansion driven by several pivotal factors. Firstly, there's a mounting demand solutions across industries and households, spurred by a collective effort to optimize resource usage and reduce environmental impact. Additionally, escalating concerns regarding greenhouse gas emissions and climate change propel a shift towards sustainable practices and technologies. This heightened awareness prompts industries and consumers alike to seek cleaner, more environmentally friendly alternatives. Furthermore, the increasing adoption of renewable sources contributes significantly to market growth, reflecting a broader commitment to transitioning towards greener systems. Collectively, these factors underscore a paradigm shift towards sustainability and drive the accelerated growth of the market, emphasizing the imperative of addressing environmental challenges through innovation and responsible resource management.

What will be the size of the Market During the Forecast Period?

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Market Segmentation

In the dynamic landscape of energy management system, IoT based solutions are revolutionizing how we manage power consumption, leading to energy efficient homes and significant reductions in GHG emissions. The focus on decarbonization and optimizing power generation is essential, especially with the ongoing trend of urbanization. Emphasizing the hardware segment and innovations in smart building management and Building Energy Management solutions are pivotal in achieving sustainable energy and power utilization while combating greenhouse gas emissions.

By Deployment

The on-premises segments are estimated to witness significant growth during the forecast period. The on-premises segment of the EMS market is experiencing significant growth in recent years. The increasing demand for efficient solutions in a number of sectors, such as manufacturing, health care, retail, and others, may contribute to this trend. On-premises offer several benefits over cloud-based solutions, especially when it comes to data security and privacy.

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The on-premises segment was the largest segment and was valued at  USD 18.60 billion in 2018.  Control is one of the most significant advantages of implementing on-premises. All of their data is under complete control by the companies operating on-premises systems. This means they are better equipped to address data breaches and other security threats. Similarly, on-premises systems allow them to customize their protocols, which is not possible with cloud-based solutions. This helps companies optimize their consumption profile and fine-tune their operations.

By Region

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North America is estimated to contribute 36% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the EMS market during the forecast period. The North American region has been witnessing a substantial surge in demand for energy-efficient solutions and technologies in recent years. The need to address the growing concerns pertaining to energy scarcity, environmental sustainability, and rising costs has fueled the adoption of management systems across industries and households in the regional market in focus.

Market Dynamics

The market is pivotal in addressing GHG emissions through decarbonization efforts. It plays a critical role in optimizing power generation amidst urbanization, particularly in the hardware segment. Leveraging IoT-based solutions and smart building management, it ensures efficient energy and power utilization. With smart meters and IoT devices, it enables building energy management and home energy management, while software components monitor carbon emission rates and carbon footprints to promote energy-efficient homes and support manufacturing facilities in their Go Green initiative. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Market Driver

The growing demand for energy-efficient solutions in industries and households is driving market growth. The worldwide market for energy management systems in both industries and households has been experiencing an increase in demand for energy efficiency solutions. This trend can be attributed to the increasing awareness among consumers about the need to reduce energy consumption and adopt sustainable practices such as turning off lights and electronic devices when not in use, replacing traditional light bulbs with energy-efficient LED bulbs, and several other practices.

However, the demand for efficiency solutions is not restricted to developing countries, but to emerging economies as well. Advanced technologies, e.g. AI and ML machine learning, in order to increase the efficiency of power consumption. These technologies enable the management system to analyze large amounts of data and make informed decisions about usage, resulting in increased efficiency and cost savings. Therefore, it is anticipated that demand will increase in light of these factors, which will fuel the growth of the market during the forecast period.

Significant Market Trends

The advancements in technology are a primary trend in the market. The way in which they are approached is revolutionized by technological progress. Among these advancements are the Internet of Things (IoT) and AI, which have made it possible to create more advanced and accessible systems for various industries and consumers. Energy management systems have also become more accessible to consumers using smart home devices. Smart home energy monitors give users real-time insight into their energy usage and provide recommendations on ways to reduce their consumption and save money on their bills.

However,  by using the Internet of Things and artificial intelligence technologies, renewable energy consumption has also been made easier. By incorporating sensors and data analysis into renewable power systems such as solar panels and wind turbines, operators can optimize their performance and predict output more accurately. This will make renewable energies more affordable and effective, with a view to increasing their uptake and reducing dependence on fossil fuels. Thus, the above-mentioned factors are expected to propel the growth of the market in focus during the forecast period.

Major Market Challenge

The high initial costs for the installation and implementation are a major challenge in the market.  As the global shift to renewable sources and power efficiency becomes more pronounced, they become increasingly relevant. However, the initial costs of installing and implementing such systems can be high. Depending upon the size of the plant, its type of management system, the level of integration needed, and the number of buildings located on-site, the cost may differ significantly.

Moreover, personnel costs can also become a significant factor in implementing a power management system. The operation of the system shall be overseen by a special power manager. The manager will typically be responsible for analyzing and interpreting the data generated by these systems, identifying the areas where energy can be saved, and developing and implementing power-saving strategies. Thus, the above-mentioned factors are expected to hinder the growth of the market in focus during the forecast period.

Market Customer Landscape

The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market forecasting report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Market Customer Landscape

Who are the Major Market Companies?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Carrier Global Corp. - The company offers energy management such as eco reports energy management package which helps to take information from an existing building and makes the data meaningful.

The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:

• Cisco Systems Inc.
• Comcast Corp.
• eco bee, Inc.
• General Electric Co.
• Honeywell International Inc.
• Intel Corp.
• Johnson Controls International Plc
• Lennox International Inc.
• Liricco Technologies Ltd.
• Panasonic Holdings Corp.
• Resideo Technologies Inc.
• Robert Bosch GmbH
• Schneider Electric SE
• Siemens AG

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Segment Overview

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion " for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

• Deployment Outlook
  • On-premises
  • Cloud

• Application Outlook
  • Manufacturing
  • Power and Energy
  • Telecom and IT
  • Residential and commercial
  • Others

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa
  • South America
    • Chile
    • Argentina
    • Brazil

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Market Analyst Overview

The market is witnessing rapid growth across various sectors, including automotive, industrial, commercial, and residential. With a rising focus on sustainable energy and cost-cutting measures, organizations are increasingly adopting digital technologies to optimize energy usage. Technologies such as smart thermostats, smart lighting, and connected appliances are revolutionizing in homes and buildings. Additionally, advancements in demand-side responses and energy efficient technologies are reshaping the electricity infrastructure landscape. Despite the potential for growth, factors like energy waste and competitive pressures pose challenges. However, with prominent companies investing in automation technology and hydropower plants, alongside favorable policies and benefits, the market is poised for significant expansion. As industries prioritize energy conservation and optimization, the demand is expected to soar, driving innovation and sustainability across sectors.

Further, the market spans across diverse sectors, including the automotive sector, industrial sector, commercial sector, and residential sector. Businesses are keen on cost-cutting measures and are making significant investments in technologies to optimize operations. The emergence of autonomous cars and 3D printing technologies underscores the importance of power efficiency in modern industries. Demand-side responses play pivotal roles in managing electricity consumption, aided by energy monitoring devices. While the market exhibits a high potential growth rate, certain restraining factors like rising power cost cut and complex building operations pose challenges. However, with the integration of on premises deployment and cloud based choices, alongside innovative solutions for sectors like data centers and hotels and hospitals, the market is poised for substantial expansion. 

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What are the Key Data Covered in this Market Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2024 and 2028
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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