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The Energy Management Systems Market size is expected to reach US$ 105.2 billion by 2031 from US$ 49.5 billion in 2024. The market is estimated to record a CAGR of 11.4% during 2024–2031. The growing technological developments in energy management systems are likely to bring new trends to the market in the coming years.
Energy Management Systems Market Analysis
Energy management systems are increasingly adopted by various industries such as manufacturing, automotive, telecom & IT, residential & commercial, and energy & utilities. A smart energy management system (SEMS) is one such technology that leverages Internet of Things (IoT) connectivity to track, measure, control, and optimize energy consumption in a building or office complex which helps in efficiently managing energy consumption in various industries. The rise in initiatives by government and private companies toward energy conservation, sustainability goals, and incentives towards carbon emission reduction for industry players and other residential & commercial customers across the globe is expected to encourage the companies operating in the EMS market toward the adoption of key strategic developments such as product development, mergers, partnerships, and collaborations. For instance, In May 2024, Siemens Smart Infrastructure and Emporia introduced a home energy monitoring solution named “Inhab Energy Monitor. This new energy monitoring solution reduces energy consumption in home settings by continuously monitoring power usage. In April 2024, Powerley (a home energy management company) launched Powerlay Live to help utilities establish virtual power plants at the household level, empowering customers to monitor usage by the appliance and enabling precise load forecasting and control.
Energy Management Systems Market Overview
An energy management system is an overall solution for monitoring, controlling, and optimizing energy consumption within a facility, organization, or across multiple locations. This system integrates hardware, software, and analytics tools to provide real-time insights into energy consumption patterns, identify improvement opportunities, and implement strategies to improve energy efficiency and sustainability. Core features of energy management systems include data acquisition, monitoring, automation & control, demand response & load management, energy consumption analysis & reporting, and distributed energy resource integration. Key end users of energy management systems across the globe include manufacturing, residential & commercial buildings, energy & utilities, data centers, retail, hospitality, and industrial facilities (beyond manufacturing).
Sensors and measuring devices are core components of every energy management system. These tools provide precise energy consumption data at the site, building, room, and facilities, enabling detailed analysis to identify inefficiencies and target areas for improvement. Advanced sensors measure variables such as temperature, humidity, and device performance to provide a holistic view of energy consumption. State-of-the-art EMS platforms use artificial intelligence (AI) and machine learning algorithms to predict energy needs, identify trends, and highlight inefficiencies. These technologies also predict energy consumption patterns, enabling smarter decision-making.
The key factors fueling the energy management systems market growth include government initiatives toward effective energy utilization in the growing data center industry, increasing adoption of these systems to improve energy efficiency and the growing renewable energy industry. However, barriers to executing energy management system projects are expected to hinder the market's growth. Technological developments in energy management systems are projected to create opportunities for companies operating in the market during the forecast period. Further, the increasing trend toward home energy management systems is expected to influence the market’s growth trajectory from 2024 to 2031.
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Energy Management Systems Market: Strategic Insights
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Customize Research To Suit Your Requirement
We can optimize and tailor the analysis and scope which is unmet through our standard offerings. This flexibility will help you gain the exact information needed for your business planning and decision making.
Energy Management Systems Market: Strategic Insights
Naveen
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Naveen will walk you through a 15-minute call to present the report’s content and answer all queries if you have any.
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Energy Management Systems Market Drivers and Opportunities
Increasing Trend of Adopting Home Energy Management Systems
An energy management system for the home monitors and optimizes the energy flow within a house to achieve a given goal. Ambitious regulations toward energy consumption in the residential sector are increasingly driving HEMS. For example, the EU standard for solar roofs, such as the Energy Performance of Buildings Directive, was introduced in early May 2023 and is expected to Install 150-200 GW of additional rooftop solar in the EU between 2026 and 2030 – enough to power 56 residents Millions. This means that the full potential of PV on roofs will gradually be exploited in the coming years..
Growing Renewable Energy Industry
Power generation using fossil fuels is a key contributor to greenhouse gas (GHG) emissions that lead to climate change. Hence, several governments across the globe are focusing on reducing their carbon footprints and transitioning toward clean energy, propelling them to invest in green energy production. The utilization of solar and wind energy is increasing due to rising focus on using clean and green energy, increasing climate change concerns, and rising government initiatives toward encouraging the usage of renewable energy. As per the International Energy Agency (IEA), global renewable electricity generation is forecast to rise to over 17,000 terawatt hours (TWh) by the end of this decade, an increase of almost 90% than 2023; this is expected to meet the combined electricity needs of China and the US in 2030. Several renewable energy milestones are expected to be achieved over the next five years. In 2025, electricity generation from renewable energies is expected to overtake coal-fired power generation. In 2026, wind and solar power generation is expected to exceed nuclear power generation. Then, in 2029, electricity generation from solar PV is expected to surpass hydropower generation and become the world's largest renewable energy source – and similarly with the wind power generation which is expected to surpass hydropower by 2030.
Energy Management Systems Market Report Segmentation Analysis
Key segments that contributed to the derivation of the energy management systems market analysis are component, system type, and end-use industry.
- In terms of component, the market is categorized into hardware, software, and services. The hardware segment dominated the market in 2024.
- Based on system type, the market is divided into industrial energy management system, building energy management system, and home energy management system. The industrial energy management system segment dominated the market in 2024.
- Based on the end-use industry, the market is divided into energy and utilities, manufacturing, telecom and IT, residential and commercial, and others. The manufacturing segment dominated the market in 2024.
Energy Management Systems Market Share Analysis by Geography
The energy management systems market is segmented into five major regions: North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South & Central America. North America dominated the market in 2024, followed by Europe and Asia Pacific.
Europe has a well-established manufacturing industry that uses cutting-edge technologies, such as automation, robotics, the Industrial Internet of Things (IoT), and Industry 4.0. In Europe, technological advancements have created a highly competitive market for energy management systems. Europe is one of the most important automobile manufacturers in the world. The presence of world-leading automobile manufacturers such as Volkswagen AG, Stellantis NV, Mercedes-Benz Group AG, Bayerische Motoren Werke AG, and Renault SA is driving the industry's growth. These manufacturers require electricity or energy for smooth operations, which fuels the adoption of energy management systems. Germany is the largest economy in Europe and houses several leading industry verticals, including automotive, aviation, electronics, chemical, and food processing. According to the European Automobile Manufacturers Association (ACEA), new car registrations in Germany reached approximately 2.84 million units in 2023 from 2.65 million units in 2022, representing a growth of ~7%. The country is the largest automotive hub in Europe, accounting for over 25% of all passenger car production and ~20% of all new vehicle registrations in 2023. Germany was Europe's leading passenger vehicle producer in 2023; manufacturing plants in the country recorded the manufacturing of nearly 3.10 million units at a ~17% annual increase. This data indicates that Germany has a well-established ecosystem for automobile manufacturing, fueling the demand for electricity in manufacturing or processing operations, which, in turn, is boosting the adoption of energy management systems.
Energy Management Systems Market Report Scope
Energy Management Systems Market News and Recent Developments
The Energy Management Systems Market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the key developments in the Energy Management Systems Market are listed below:
- Schneider Electric, a leader in the digital transformation of energy management and next-gen automation, has formed a strategic partnership with Noida International Airport to introduce building and energy management solutions. Through this collaboration, Schneider Electric will roll out complete building management solutions, comprising Electrical SCADA and Advanced Distribution Management System, aimed at boosting the airport's operational efficiency and sustainability. (Source: Schneider Electric, Press Release, October 2024)
- ABB launched ABB Ability OPTIMAX® 6.4, the latest version of its flagship digital energy management and optimization system, to provide coordinated control of multiple industrial assets and processes, for improved energy efficiency, to reduce emissions, and to support decarbonization. (Source: ABB, Press Release, June 2024)
Energy Management Systems Market Report Coverage and Deliverables
The "Energy Management Systems Market Size and Forecast (2021–2031)" provides a detailed analysis of the market covering the areas mentioned below:
- Energy Management Systems Market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
- Energy Management Systems Market trends as well as market dynamics such as drivers, restraints, and key opportunities
- Detailed PEST and SWOT analysis
- Energy Management Systems Market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
- Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the Energy Management Systems Market
- Detailed company profiles
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
This text is related
to segments covered.
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
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to country scope.
Frequently Asked Questions
The energy management system market is expected to reach US$ 105,154.28 million by 2031.
Increasing Trend of Adopting Home Energy Management Systems are one of the major future trends
The key players operating in the energy management system market include ABB; Schneider Electric SE; General Electric Company; Honeywell International Inc.; Siemens AG; IBM Corporation; Johnson Controls, Inc.; Emerson Electric Co.; Eaton Corporation; and Mitsubishi Electric Corporation.
The energy management system market was valued at US$ 49,498.32 million in 2024; it is expected to register a CAGR of 11.4% during 2024–2031.
Rising Government Initiatives for Effective Energy Utilization in Growing Data Center Industry, Increasing Adoption of Energy Management Systems (EMS) to Improve Energy Efficiency, Growing Renewable Energy Industry are some of the major drivers
The List of Companies - Energy Management Systems Market
- ABB
- Schneider Electric SE
- General Electric Company
- Honeywell International Inc.
- Siemens AG
- IBM Corporation
- Johnson Controls, Inc.
- Emerson Electric Co.
- Eaton Corporation
- Mitsubishi Electric Corporation
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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