Energy Management Systems Market by Component (Software, Hardware, Services), Type (HEMS, BEMS, IEMS), Deployment (On-premises and Cloud-based), End-use industry, & Region - Global Forecast to 2029
[270 Pages Report] The global energy management systems market in terms of revenue was estimated to be worth $44.19 billion in 2024 and is poised to reach $84.34 billion by 2029, growing at a CAGR of 13.8% from 2024 to 2029. The energy management system (EMS) is a software system that monitors, optimizes, maintains, and records the consumption of energy resources by any industry. It uses data from various energy measuring devices to provide trend analysis and annual consumption forecasts. EMS applications use real-time data to make changes to the system, such as frequency, actual generation, tie-line load flows, and plant units’ controller status. The EMS aims to reduce energy consumption, identify areas of wastage, predict electrical system performance, and optimize energy usage to reduce the cost of electrical loads on-premises. EMS can centrally monitor devices, such as Heating, Ventilation, and Air Conditioning (HVAC) units and lighting systems across multiple locations using a central/remote server or over Cloud IoT. Using energy management systems reduces operating costs and improves productivity while meeting the automation requirements of energy equipment and operation management to reduce the input of human resources.
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Energy Management System market Dynamics
Driver: Rising Energy cost and Shift to Renewable Energy
The global shift from conventional energy sources to renewables has introduced new challenges in energy management. This transition is particularly evident in Europe, where countries like Germany and Spain have aggressively pursued renewable energy targets. However, the intermittent nature of renewable sources like wind and solar has increased the complexity of energy management, making EMS indispensable in balancing energy loads and ensuring efficient energy use.
Restraint: Data Privacy and Security Concerns
As the global Energy Management System (EMS) market increasingly relies on digital platforms, cloud computing, and Internet of Things (IoT) devices, concerns over data privacy and security have emerged as significant barriers to market growth. These concerns are particularly relevant as EMS solutions often involve the collection, transmission, and storage of vast amounts of sensitive data, making them prime targets for cyberattacks and data breaches.
The integration of IoT devices within EMS creates multiple entry points for potential cyberattacks. Each connected device, from smart meters to sensors, represents a potential vulnerability. A successful attack on any of these devices can compromise the entire EMS, leading to unauthorized access, data theft, or even control over critical systems.
Opportunity:Fiscal Incentives and Tax Policies for Carbon Reduction and Energy Efficiency
Governments worldwide are increasingly leveraging subsidies on carbon and electricity tax policies as strategic tools to promote energy efficiency and reduce carbon emissions. These fiscal measures are critical in driving the adoption of Energy Management Systems (EMS) as they provide financial incentives and create a regulatory environment conducive to energy-efficient practices. Electricity taxes are another critical policy tool used by governments to promote energy efficiency. These taxes often vary based on energy consumption levels, encouraging businesses to adopt EMS to optimize their energy use and reduce tax liabilities. For instance, Germany’s Renewable Energy Sources Act (EEG) imposes a surcharge on electricity consumption, which is used to fund renewable energy projects. Companies that implement energy management practices and achieve significant reductions in energy consumption can benefit from tax reductions or exemptions. Similarly, in Japan, the Global Warming Countermeasures Tax levies additional costs on electricity generated from fossil fuels, encouraging the adoption of EMS to minimize energy usage and associated costs.
Challenge : Awareness Deficit Among SMEs
Small and medium-sized enterprises (SMEs) play a crucial role in the global economy, yet their adoption of Energy Management Systems (EMS) remains limited due to a significant lack of awareness about the benefits of these systems. Governments worldwide recognize this challenge and have initiated several programs to increase awareness and support the adoption of energy-efficient technologies among SMEs
ENERGY MANAGEMENT SYSTEM Market ECOSYSTEM
Prominent companies in this market include well-established, financially stable manufacturers of Energy Management System Market and components. These companies have been operating in the market for several years and possess a diversified product portfolio, state-of-the-art technologies, and strong global sales and marketing networks. Prominent companies in this market include ABB (Switzerland), Siemens (Germany), Schneider Electric (France), General Electric Company (US), Emerson (US), and Eaton (Ireland),
The hardware segment by component holds the largest segment in 2023
The hardware subsegment of the global Energy Management Systems (EMS) market is a crucial component that underpins the effectiveness of energy management strategies across various industries. This subsegment includes a range of physical devices and equipment such as smart meters, sensors, controllers, energy storage systems, communication devices, and networking hardware. These components are essential for collecting, transmitting, and processing energy-related data, which is then used by software systems to optimize energy usage, enhance operational efficiency, and reduce costs.
IEMS segment by type is estimated to be the largest segment for Energy Management System market
Industrial Energy Management Systems (IEMS) occupied a 72.76% share of the global energy management systems market in 2023. The Industrial Energy Management Systems (IEMS) subsegment is experiencing robust growth, primarily driven by the need for enhanced operational efficiency and the integration of Industry 4.0 technologies. IEMS are tailored to manage and optimize energy use in large-scale, energy-intensive industrial environments, where energy consumption is a significant portion of operational costs. These systems provide comprehensive solutions for monitoring, controlling, and analyzing energy usage across various industrial processes, from manufacturing to production and distribution.
On-premises segment by deployment is estimated to be the largest segment for Energy Management System market
The on-premise subsegment of the global Energy Management Systems market represents a significant portion of the deployment strategies adopted by organizations, particularly those with stringent data control, security, and compliance requirements. On-premise EMS solutions involve the deployment of software and hardware within the physical infrastructure of an organization, providing full control over data management, system customization, and integration with existing IT environments. This approach is particularly favored by industries such as manufacturing, utilities, and government sectors, where sensitive data and critical operations necessitate robust security measures and minimal reliance on external networks.
Food & beverages segment by end-use industry is estimated to be the third-largest segment for Energy Management System market
The Food & Beverage subsegment of the global energy management systems market is experiencing robust growth, driven by the sector's focus on sustainability and operational efficiency. This industry is characterized by high energy consumption due to processes such as heating, cooling, refrigeration, and production line operations. EMS solutions are crucial for managing these energy-intensive processes effectively, allowing food and beverage companies to optimize their energy usage, reduce costs, and enhance their sustainability efforts.
North America is expected to account for largest market size during the forecast period.
North America holds the largest market share in the global energy systems (EMS) market as its advanced energy systems, high technology, strong regulatory framework that promotes energy efficiency and sustainability, encourage Investments in infrastructure, integration of renewable energy, further modernization of aging energy systems contribute to increased use of EMS. Leading EMS providers and well-established markets applications in the energy sector reinforce North America’s leadership position in the global EMS market. Also, the regulatory compliance is another factor for driving demand of EMS systems in this region.
Key Market Players
The Energy Management System market is dominated by a few major players that have a wide regional presence. The major players in the Energy Management System market are ABB (Switzerland), Siemens (Germany), Schneider Electric (France), General Electric Company (US), and Emerson (US). Between 2020 and 2024, Strategies such as product launches, contracts, agreements, partnerships, collaborations and acquisition sare followed by these companies to capture a larger share of the Energy Management System market.
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Report Metric |
Details |
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Market Size available for years |
2020–2029 |
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Base year considered |
2023 |
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Forecast period |
2024–2029 |
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Forecast units |
Value (USD Million) |
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Segments covered |
By Component, By Deployment, By Type, By End-use industry |
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Geographies covered |
Asia Pacific, North America, Europe, Middle East & Africa, South America |
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Companies covered |
Schneider Electric (France), Siemens (Germany), Honeywell International Inc. (US), Johnson Controls Inc (US), ABB (Switzerland) General Electric Company (US), Eaton (Ireland), Emerson Electric Co. (US), Mitsubishi Electric Corporation (Japan), Rockwell Automation (US), and Hitachi, Ltd. (Japan). |
The global energy management systems market is classified in this research report based on component, type, deployment, end-use industry, and region.
Based on component, the energy management systems market has been segmented as follows:
- Software
- Hardware
- Services
Based on type, the energy management systems market has been segmented as follows:
- Home Energy Management Systems
- Building Energy Management Systems
- Industrial Energy Management Systems
Based on deployment, the energy management systems market has been segmented as follows:
- On-premises
- Cloud-based
Based on end-use industry, the energy management systems market has been segmented as follows:
- Power & Energy
- IT & Telecom
- Manufacturing
- Residential & Commercial
- Food & Beverage
- Others
Based on regions, the energy management systems market has been segmented as follows:
- North America
- Asia Pacific
- Europe
- Middle East & Africa
- South America
Recent Developments
- In July 2024, Honeywell International entered a partnership with Odys Aviation to develop new ground control stations. This collaboration aims to enhance operational efficiencies and support the integration of advanced technologies in aviation and energy management.
- In June 2024, ABB entered a memorandum of understanding (MoU) with Cleanwatts to develop advanced energy management and efficiency technologies. This collaboration focused on creating scalable projects in key European markets, enabling users and property managers to optimize energy consumption through smart monitoring and control solutions. The partnership aimed to integrate Cleanwatts' energy-sharing platform with ABB's energy management technology, enhancing the management of renewable energy generation, storage, and consumption.
- In November 2023, Schneider Electric announced the acquisition of EcoAct, a leader in climate consulting and net-zero solutions. This acquisition would strengthen Schneider Electric's sustainability initiatives and expand its offerings in the energy management sector.
Frequently Asked Questions (FAQ):
What is the current size of the Energy Management System Market?
The current market size of global Energy Management System market is estimated to be USD 44.19 billion in 2024.
What are the major drivers for Energy Management System market?
The major drivers for the Energy Management System (EMS) market include escalating energy costs and mounting regulatory pressures for improved energy efficiency and sustainability, which compel organizations to adopt EMS solutions to optimize their energy consumption and reduce expenses. Technological advancements, particularly in artificial intelligence (AI), Internet of Things (IoT), and edge computing, are also pivotal, as they enhance the capabilities and effectiveness of EMS solutions. Additionally, the increasing focus on integrating renewable energy sources and developing smart grid infrastructure drives demand for sophisticated EMS solutions to support these initiatives and manage complex energy landscapes.
What is the major restraint for Energy Management System market?
Major restraints for the Energy Management System (EMS) market include the high initial implementation costs, which can be a significant barrier for many organizations, particularly smaller enterprises. Data security concerns, especially with cloud-based solutions, pose challenges as organizations seek to protect sensitive information from potential breaches. Additionally, the complexity of integrating new EMS technologies with existing infrastructure and ensuring seamless interoperability between various systems can be a significant hurdle, potentially complicating deployment and increasing costs.
Which is the fourth-largest-growing region during the forecasted period in Energy Management System market?
Middle East and Africa accounted for a 10.77% share of the global energy management systems market in 2023. The region has been segmented, by country, into South Arabia, UAE, GCC, South Africa and Rest of GCC and Rest of Middle East and Africa. The scope of Rest of GCC includes Qatar, Kuwait and Bahrain and Rest of Middle East and Africa include Nigeria and kenya.
Middle east and Africa region is experiencing rapid infrastructure development and urbanization, driving demand for advanced energy management solutions to optimize and manage growing energy needs. Secondly, there is a strong push towards energy efficiency and sustainability in response to high energy consumption rates and the need to diversify energy sources, particularly in oil-rich countries that are seeking to modernize their energy sectors. The government initiatives and incentives aimed at improving energy efficiency and integrating renewable energy sources are fueling market growth. The increasing focus on smart cities and large-scale infrastructure projects in both urban and industrial sectors further contributes to the rising demand for EMS solutions in the region.
Which is the largest segment, by end-user industry during the forecasted period in Energy Management System market?
The manufacturing segment holds 36.30% market share in 2023. The Manufacturing subsegment holds the largest market share in the global energy management systems market's "By End-Use Industry" segment, a position driven by the sector's continuous pursuit of operational efficiency and cost reduction. As one of the most energy-intensive industries, manufacturing is under immense pressure to manage energy consumption effectively, not only to reduce costs but also to meet stringent environmental regulations and sustainability goals. EMS solutions have become indispensable in this context, providing manufacturers with the tools necessary to monitor, control, and optimize energy use across their operations.
One of the primary reasons for the dominance of the Manufacturing subsegment is the industry's inherent need for energy efficiency. Manufacturing processes, particularly in sectors such as automotive, steel, chemicals, and electronics, consume vast amounts of energy, making energy costs a significant portion of overall operating expenses. By implementing EMS technologies, manufacturers can gain real-time insights into energy usage, identify inefficiencies, and implement strategies to reduce energy consumption. These systems enable precise monitoring and control of energy across various stages of production, from raw material processing to assembly lines, thereby minimizing waste and optimizing resource allocation. The result is not only a reduction in energy costs but also an improvement in overall operational efficiency, which directly contributes to higher profit margins. .
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This study encompassed significant efforts in determining the present size of the energy management systems market. It commenced with a thorough secondary research process to gather data related to the market, similar markets, and the overarching industry. Subsequently, these findings, assumptions, and market size calculations were rigorously validated by consulting industry experts across the entire supply chain through primary research. The total market size was assessed by conducting an analysis specific to each country. Following that, the market was further dissected, and the data was cross-referenced to estimate the size of various segments and sub-segments within the market.
Secondary Research
In this research study, a wide range of secondary sources were utilized, including directories, databases, and reputable references such as Hoover's, Bloomberg BusinessWeek, Factiva, World Bank, International Monetary Fund (IMF), the US Department of Energy (DOE), and the International Energy Agency (IEA). These sources played a crucial role in gathering valuable data for a comprehensive analysis of the global energy management systems market, covering technical, market-oriented, and commercial aspects. Additional secondary sources included annual reports, press releases, investor presentations, whitepapers, authoritative publications, articles authored by well-respected experts, information from industry associations, trade directories, and various database resources.
Primary Research
The energy management systems market involves a range of stakeholders, including IT service providers, support infrastructure equipment providers, component providers, software providers, system integrators, network service providers, financial organizations, and energy efficiency consultants within the supply chain. To gather qualitative and quantitative insights, various primary sources from both the supply and demand sides of the market were interviewed. The following breakdown presents the primary respondents involved in the research study.
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Market Size Estimation
The estimation and validation of the global energy management systems market size have been conducted using a bottom-up approach. This approach was rigorously employed to ascertain the dimensions of multiple subsegments within the market. The research process comprises the following key stages.
- In this method, the statistics for each offering of energy management systems have been examined at both the country and regional levels.
- Thorough secondary and primary research has been conducted to gain a comprehensive understanding of the global market landscape for various segments of energy management systems market.
- When calculating and forecasting the market size, qualitative factors such as market drivers, limitations, opportunities, and challenges have been taken into account.
Global Energy Management Systems Market Size: Bottom-Up Approach
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Data Triangulation
The process of determining the overall market size involved the methodologies described earlier, followed by segmenting the market into multiple segments and subsegments. To finalize the comprehensive market analysis and obtain precise statistics for each market segment and subsegment, data triangulation and market segmentation techniques were applied, as appropriate. Data triangulation was accomplished by examining various factors and trends from both the demand and supply perspectives within the ecosystem of the energy management systems market.
Market Definition
Energy Management Systems (EMS) refer to a set of integrated technologies and solutions designed to monitor, control, and optimize the production, consumption, and distribution of energy in various environments, including residential, commercial, industrial, and utility sectors. EMS encompasses a combination of hardware, software, and services that enable organizations and individuals to manage energy use efficiently, reduce energy costs, improve energy performance, and contribute to environmental sustainability.
Key Stakeholders
- EMS vendors
- Energy service providers (private/government)
- Utility platform and analytics vendors
- System design and development vendors
- System integrators/migration service providers
- Consultants/consultancies/advisory firms
- Environmental research institutes
- Private or investor-owned utilities
- Government & research organizations
- State and national regulatory authorities
- Investors/Shareholders
- Investment banks
Objectives of the Study
- To define, describe, segment, and forecast the energy management systems market, by value, based on component, type, deployment, and end-use industry.
- To forecast the market size, by value, for five key regions: North America, South America, Europe, Asia Pacific, and the Middle East & Africa, along with their key countries
- To provide detailed information about the key factors, such as drivers, restraints, opportunities, and challenges influencing the growth of the market
- To strategically analyze the subsegments concerning individual growth trends, prospects, and contributions of each segment to the overall market size
- To analyze market opportunities for stakeholders and details of the competitive landscape for market leaders
- To strategically profile the key players and comprehensively analyze their market shares and core competencies.
- To track and analyze competitive developments, such as product launches, mergers, acquisitions, expansions, and supply contracts in the energy management systems market.
Available Customization
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PRODUCT ANALYSIS
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COMPANY INFORMATION
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Generating Response ...
Growth opportunities and latent adjacency in Energy Management Systems Market
How emerging markets offering revenue expansion opportunities in Energy Management Systems Market?
Which end user industry is expected to hold major share of the global Energy Management Systems Market for 2022 to 2027?
During the global Energy Management System (EMS) Market study, we did a separate exercise of deriving revenues for each major vendors for the specific segment and for the specific geographies, for example, IBM’s revenue for big data analytics, energy & utility industry, and UK/Europe/EMEA region. This exercise was done for all public companies and few private companies (which helped us with the specific information). This helped us to derive a portion of the overall market and the overall market was derived based on other data points collected using secondary and primary research.
MnM analyzed analytics vendors’ offerings for Energy Management System (EMS) industry verticals in the energy and utility space. MnM have collected various data points related to the company information from company websites, annual reports, investor presentations, press releases, and news publications. We also have an access to various paid databases including Factiva, OneSource, Hoovers, and Bloomberg, from where we have also collected few relevant data points for each analytics vendor. This helps us understand the revenue breakdown by business segments and geographies.We have collected various data points for the entire industry ecosystem and analyzed various parameters including economic condition, regulations, industry use cases, etc. to understand the adoption trend for this market. Apart from some industry related articles, we have also referred to some government publications and industry journals for collecting data points. After collecting data points for both sides, the industry trend was estimated based on various parameters including IT spending (for some cases, Big Data spending) government regulations, M&A initiatives, recent developments pertaining to the market, R&D expenses, start-up ecosystem/funding, and technology maturity. After analyzing each of these factors, we have applied our statistical market engineering model on these factors to estimate the market size and forecast them. We have also verified our assumptions and estimated through primary research.