Energy Management System Market - Forecast 2021 - 2026
Overview
Energy Management System (EMS) Market is forecast to reach $53.46 billion at CAGR of 14.69% during 2020-2025. The increasing focus on managing energy consumption, optimizing the use of renewable energy sources, reducing the carbon footprint and greenhouse gas emissions are creating demands for EMS. The growing usage of smart grid services in industrial sector and increasing demand for EMS from developed countries and government policies and incentives are some of the factors will further enhance the overall market demand for Energy Management System market during the forecast period.
Report Coverage
The report: “Energy Management System Market – Forecast (2020-2025)”, by IndustryARC, covers an in-depth analysis of the following segments of the Energy Management System Market.
Key Takeaways
- North America dominates the Energy Management System market owing to increasing investments and government initiatives for energy management.
- Growing trend for smart homes and high adoption of energy management system for smart homes and buildings set to create ample opportunities for the EMS market.
- Adoption of smart grids for energy management in power and energy sector set to boost the energy management system market.
- Rapid advancements in technology such as IoT, AI have further led to greater insights into energy procurement and energy usage and help in gaining competitive advantage, increase productivity at a reduced energy cost.
Type - Segment Analysis
Building energy management system segment held the largest share in the Energy Management System market in 2018. Building management systems are generally used to automate all services and functions within the building, which include energy management. Building energy management system connects building components with a central computer to enable the control of different variables and parameters within the building. In 2018, ABB had launched new energy building management system in which metering devices are used to connect with a building’s cloud-based system and acquire, store and analyze the information to drive efficiency for the long term. Growing research and development activities of energy management for buildings in developing countries set to create opportunities for building energy management system.
Application - Segment Analysis
The power and energy sector is growing at a highest CAGR of 10.5% in the forecast period. The process of electricity generation undergoes various transformations due to the little presence of primary energy, which is directly convertible into electricity. This requires a high amount of energy that rises the consumption, thereby increasing the need for EMS. The demand for electricity in the non-residential sector has been rising over the last few years owing to new entrants in the manufacturing industry, increasing production activity from various industries such as chemical, automotive, and electronics which is expected to propel the market growth. High adoption of smart grids in utility sector is driving the market as they act as an electric power distribution system to share information between energy providers and utility consumers by using technology such as smart meters. With this system, it is possible to introduce renewable energy in large quantities and utilize the energy efficiently, thereby fueling the energy management system market.
Geography - Segment Analysis
North America dominated the Energy Management System market share with more than 35%, followed by Europe and APAC. The factors such as rising energy costs, federal policy directives, stringent regulations concerning greenhouse gas emissions, and growing awareness about the benefits of automation, are the major factors driving the EMS market in the U.S. The evolution of new concepts such as IoT, artificial intelligence and major technological contributions, are further fueling the demand for these EMS in North America. In the U.S., in 2019, the building technologies office has announced about its investment up to $19.5 million in 19 projects that will drive innovation in research and development activities for advanced building technologies and systems that will serve as a future technological developments and reductions in building energy consumption. These technologies help in improving the efficiency of U.S. buildings and help American consumers and businesses in saving energy and money on their utility bills. High investments for energy management systems in smart buildings and smart grids set to drive EMS market in North American region during forecast period.
Drivers – Energy Management System Market
· Growing trend of smart buildings
Smart home technology help communities and become more energy efficient. Trend toward smart homes have been driving the energy management system. EMS is able to collect and process big data into useful analytics. Researchers are focusing towards EMS in order to help smart home owners and to reduce energy consumption, while improving the effectiveness of the power grid. An EMS helps electric utility grid operators in monitoring and optimizing energy transmission. However, current systems are unable to collect enough data to create energy use comparisons between a large numbers of households. Furthermore, smart home technologies are not interoperable with today’s EMS. As more homeowners invest in devices that are network-connected to control functions like lighting, temperature, security and entertainment systems. Hence there are ample opportunities for EMS to gather much more data about a home’s energy use and helps in creating safer home energy management system. Hence these kinds of developments propel the market in the forecast period.
· Integration of IoT Technology with energy management devices
These IoT energy devices such as smart meters and other energy devices connect consumers directly to the power distribution station, allowing for a two-way communication. With this, during real time, they can send critical operation information to the utility agencies. This helps utility agencies in easily addressing of any performance issues, including outages, and helps in reducing the system downtime. Smart grids that connect in a single network create smart energy grids. This signifies another way the internet of things can be used in energy management. For instance, Duke Energy, which is a Florida-based company, has introduced a self-healing grid system which can automatically re-calibrate itself after a power outage and as a result minimize the downtime. Tennessee was one of the first cities to implement smart grid technology in the U.S. This has resulted in over 50% shorter outages and helped the community in saving over $1.4 million in operating costs during a single storm. Integration of IoT technology is set to fuel energy management system market.
Challenges – Energy Management System Market
· Lack of skilled personnel, lack of awareness among stakeholders, lack of finance and non-standardized guidelines have served as main challenge hindering the growth of the market.
As energy costs continue to rise and the levels of statutory obligations related to emissions and climate change increase, effective energy management has become a challenge for many organizations. One of the most common challenge that many companies face is choosing the right energy management system to support their business objectives. Many companies depend on their energy third party people to intervene and find an appropriate solution for them due to lack of skilled personnel, lack of awareness and guidelines.
Market Landscape
Technology launches, and R&D activities are key strategies adopted by players in the Energy Management System market. In 2018, the market of Energy Management System industry outlook has been consolidated by the top five players accounting for 52% of the share. Energy Management System top 10 companies include Eaton Corporation, Honeywell International Inc., Siemens, Schneider Electric, Emerson Electric Co, C3 Energy, Delta Electronics, Inc, General Electric Company, Honeywell International Inc., and DEXMA among others.
Technology Launches
- In May 2018, ABB had launched first turnkey digital low voltage power distribution system. Installation of this system with smart power technologies enables energy management, grid management and asset management, thereby driving the energy management system market.
- In March 2019, Honeywell International Inc had launched a new platform called INNCOM INNcontrol 5 (IC5) for energy management and guestroom control. The new system allows operators to monitor and manage guestroom controls across an entire hotel property in real time to identify and resolve issues before they affect guests, track energy usage, and deliver better operational efficiency. Development of new platforms is set to drive energy management system market.
