Power Management System Market by Type (Hardware, Software, Services), Module (Power Monitoring, Load Shedding, Power Simulator, Generator Controls), End-User (Oil & Gas, Marine, Metals & Mining, Data Centers) and Region - Global Forecast to 2028
[169 Pages Report] The power management system market is expected to grow from an estimated USD 5.8 billion in 2023 to USD 7.5 billion by 2028, at a CAGR of 5.4% during the forecast period. The increasing demand for energy efficiency in the industrial sector, and rising adoption of IoT and cloud-based platforms are driving the market for power management systems globally.
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Market Dynamics
Driver: increasing demand for energy efficiency
Modern businesses are witnessing a changing trend of energy consumption. The major players are focusing on energy costs and environmental concerns as key part of their strategy. The power management system supervises and controls power generation for efficient working of power networks. It also rearranges generation, importation, and loading in such a manner that individual generators, reactors, transformers, and tie-lines operate within specified limits. This affects the bottom line of the enterprise significantly and reduces the operating cost by 10%–25%.
Power management systems are installed in energy-intensive sectors such as oil & gas, petrochemicals, refineries, offshore platforms, and large industrial complexes to optimize the energy cost. In an industrial setup, it is essential to improve efficiency as motors consume 65% of the total energy supplied. A power management system monitors and analyzes such loads and can automatically block large motors to optimize the load on the power systems.
Restraint: Risk to data security
The increasing data security threat is a major challenge for the growth of the power management system market. Increasing occurrences of viruses and cyber-attack instances have led to security concerns. Important information can be stolen by malicious viruses in computer systems, which can cause a major loss to industries. The entire information flow could be disrupted if proper security measures are not implemented by the IoT infrastructure providers and cloud platform providers. With increasing dependence on web-based data interchange and off-the-shelf IT solutions, the digital infrastructure networks are prone to malware that is targeted at industrial systems. Due to the rise in cyber-attacks on critical infrastructure in the past decade, cybersecurity has become a prime concern among industrial automation users and vendors.
Opportunity: Rise in distributed power generation
Power systems are becoming less centralized with the adoption of distributed energy resources and new options for power generation. The demand for energy from distributed energy resources is growing due to many factors such as power quality problems, planned rolling blackouts, unexpected utility power outages, and increase in power costs, among others.
Power management systems are widely employed in distributed generation for generator control functions such as generator start and stop, generator frequency and voltage control, diesel or natural gas consumption optimization, and other functions. Distributed generation of electricity that is consumed on-site reduces the amount of electricity that needs to be delivered to a customer through the network. Under certain circumstances, these changes can create a network benefit, primarily by reducing peak demands and transmission and distribution losses on the network, thereby avoiding the need for network businesses to invest in augmentation or maintenance of the network. The industrial end-users have started generating their power based on distributed generation sources to cater to peak loads from unconventional energy sources. This helps the industries to reduce energy cost and resolves environmental concerns.
Challenge: Lack of compatibility with legacy power networks & equipment
Power management systems are more expensive than conventional SCADA systems. However, they offer several benefits in the long term such as better efficiency, reduced cost, and load management. Due to these benefits, a number of industrial and power end-users are focusing on retrofitting their existing setup with power management system. However, this creates interoperability issues. The additional retrofits often do not support the older technology in industrial plants that are more than 15 years old. Due to this, the older industrial setup prefers an advanced SCADA system to fulfill their power management needs. Therefore, this lack of compatibility has created a major challenge for retrofitting existing industrial setup with power management system.
Power management system Market Ecosystem
Prominent companies in this market include well-established, financially stable manufacturers of Power 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), General Electric (US), Siemens (Germany), Schneider Electric (France), Emerson Electric (US).
Generator Controls is expected to be the second largest market on based on module
The Generator Controls module is a critical component of a Power Management System (PMS) that specifically focuses on the monitoring, control, and optimization of electrical generators. In various applications, such as industrial plants, data centers, ships, and critical facilities, generators play a vital role in providing backup power during outages or supporting the main power grid during peak demand periods.
Paper & Pulp, by end user industry, to hold the second fastest market share during the forecast period during the forecast period
The Paper & Pulp industry can derive several significant benefits from implementing power management systems (PMS). This industry is known for its energy-intensive operations and requires a reliable and efficient power supply to support various processes involved in papermaking and pulp production.
North America is expected to account for the largest market size during the forecast period.
According to the Short-Term Energy Outlook by the EIA, coal consumption in the United States is projected to decrease in 2022, with power plants expected to consume 482 million short tons of coal, which is lower than the 501 million short tons consumed in 2021. This decline in consumption can be attributed mainly to supply limitations, including problems with rail transportation and a restricted availability of coal.
Furthermore, the report forecasts that renewable energy will play an increasingly significant role in the generation of electricity in the United States. It is estimated that renewable sources will account for 22% of U.S. electricity in 2022 and further increase to 24% in 2023, compared to 20% in 2021.
In addition, the US, Canada, and Mexico signed an agreement with the objective of generating 50% of electricity from clean energy sources by 2025. The subsequent improvement in the oil & gas market and investments in the metal and mining sector are expected to drive the power management system market in the region.
Key Market Players
The power management system market is dominated by a few major players that have a wide regional presence. The major players in the power management system market are ABB (Switzerland), General Electric (US), Siemens (Germany), Schneider Electric (France), Emerson Electric (US). Between 2018 and 2022, Strategies such as product launches, contracts, agreements, partnerships, collaborations, alliances, acquisitions, and expansions are followed by these companies to capture a larger share of the power management system market.
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Report Metric |
Details |
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Market size available for years |
2021–2028 |
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Base year considered |
2022 |
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Forecast period |
2024–2028 |
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Forecast units |
Value (USD) |
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Segments covered |
Type, Module, End User Industry, and Region |
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Geographies covered |
Asia Pacific, North America, Europe, Middle East & Africa, and South America |
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Companies covered |
ABB (Switzerland), General Electric (US), Siemens (Germany), Eaton (Ireland), Schneider Electric (France), Emerson Electric (US), Mitsubishi Electric (Japan), Rockwell Automation (US), Honeywell International Inc. (US), Fuji Electric (Japan), Larsen & Toubro (India), Yokogawa (Japan), Wartsila (Finland), Cpower (UK), Brush (UK), Albireo Energy (US), Greystone Energy Systems Inc. (Canada), Omron (Japan), Lineage Power (India) |
This research report categorizes the power management system market by type, end user industry, module, and region
On the basis of type, the power management system market has been segmented as follows:
- Hardware
- Software
- Services
On the basis of end- user industry, the power management system market has been segmented as follows:
- Oil & Gas
- Marine
- Chemical & Petrochemical
- Paper & Pulp
- Metal & Mining
- Utilities
- Data Centre
- Others
On the basis of by module, the power management system market has been segmented as follows:
- Power Monitoring & Control
- Load Shedding & Management
- Energy cost accounting
- Switching & Safety Management
- Power Simulator
- Generator Controls
- Data Historian
- Others
On the basis of region, the power management system market has been segmented as follows:
- Asia Pacific
- Europe
- North America
- Middle East & Africa
- South America
Recent Developments
- In June 2023, Eve Systems GmbH, a Munich-based company known for its smart home products in Europe and the United States, has been successfully acquired by ABB. With this acquisition, ABB will now establish itself as a prominent player in the smart home industry, particularly in products based on the latest interoperating standard called Matter and wireless connectivity technology known as Thread.
- In June 2022, GE Digital has introduced the Accelerator product line, which consists of exceptional software tools. These tools aim to assist companies operating in energy industries with significant assets by facilitating the configuration of their Asset Performance Management (APM) and other solutions. The GE Digital Accelerators are specifically developed to enhance the speed at which companies can realize value, expand the implementation of APM to various assets, and enable enterprises to generate financial benefits throughout their facilities and across the entire organization.
- In October 2021, Siemens Smart Infrastructure has successfully finalized the purchase of Wattsense, a French startup specializing in hardware and software solutions. Wattsense provides a cutting-edge, plug-and-play IoT management system designed for small and mid-size buildings.
- In September 2022, In India, Schneider Electric has introduced EcoStruxure Service Plans, a fresh service offering. The objective of this launch is to provide comprehensive packages accompanied by robust digital services customized to meet specific customer requirements. With this new service offering, Schneider Electric aims to enhance its customers' maintenance budgets by up to 40% and reduce the risk of electrical failures by up to 75% on connected equipment.
Frequently Asked Questions (FAQ):
What is the current size of the power management system market?
The current market size of global power management system market is USD 5.8 billion in 2023.
What is the major drivers for power management system market?
The global power management system market is driven by increasing demand for energy efficiency, Modern businesses are witnessing a changing trend of energy consumption. The major players are focusing on energy costs and environmental concerns as key part of their strategy. The power management system supervises and controls power generation for efficient working of power networks.
Which is the largest growing region during the forecasted period in power management system market?
North America is the largest growing region during the forecasted period due to The subsequent improvement in the oil & gas market and investments in the metal and mining sector are expected to drive the power management system market in the region.
Which is the fastest-growing segment, by end - use industry during the forecasted period in power management system market?
The power monitoring & control segment by module is expected to be the largest segment in the market. This is attributed to the as this device includes sensors, meters, and monitors that measure various electrical parameters, such as voltage, current, power factor, and energy consumption. Real-time monitoring of these parameters is crucial for power management and optimization.
Which is the largest-growing segment, by module during the forecasted period in power management system market?
Company profiles for significant players include information such as a business overview including the company's business segments, financials, regional presence, revenue mix, and business revenue mix. The company profiles section also includes information on product offerings, important developments linked with the firm, and MnM opinion, which gives an in-depth analyst perspective on the company.
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The study involved major activities in estimating the current size of the power management system market. Exhaustive secondary research was done to collect information on the peer and parent markets. The next step was to validate these findings, assumptions, and sizing with industry experts across the value chain through primary research. Both top-down and bottom-up approaches were employed to estimate the complete market size. Thereafter, market breakdown and data triangulation were used to estimate the market size of the segments and subsegments.
Secondary Research
This research study on the power management system market involved the use of extensive secondary sources, directories, and databases, such as Hoovers, Bloomberg, Businessweek, Factiva, International Energy Agency, and BP Statistical Review of World Energy, to identify and collect information useful for a technical, market-oriented, and commercial study of the global power management system market. The other secondary sources included annual reports, press releases & investor presentations of companies, white papers, certified publications, articles by recognized authors, manufacturer associations, trade directories, and databases.
Primary Research
The power management system market comprises several stakeholders such as generator manufacturers, manufacturers of subcomponents of power management system, manufacturing technology providers, and technology support providers in the supply chain. The demand side of this market is characterized by the rising demand for uninterrupted power supply from end users. Moreover, the demand is also driven by the rising demand from data centers & IT facilities. The supply side is characterized by rising demand for contracts from the industrial sector, and mergers & acquisitions among big players. Various primary sources from both the supply and demand sides of the market were interviewed to obtain qualitative and quantitative information. Following is the breakdown of primary respondents:
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Market Size Estimation
Both top-down and bottom-up approaches were used to estimate and validate the total size of the power management system market. These methods were also used extensively to estimate the size of various subsegments in the market. The research methodology used to estimate the market size includes the following:
- The key players in the industry and market have been identified through extensive secondary research, and their market share in the respective regions have been determined through both primary and secondary research.
- The industry’s value chain and market size, in terms of value, have been determined through primary and secondary research processes.
- All percentage shares, splits, and breakdowns have been determined using secondary sources and verified through primary sources.
Global Power management system Market Size: Bottom-Up Approach
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Data Triangulation
After arriving at the overall market size from the estimation process explained above, the total market has been split into several segments and subsegments. To complete the overall market engineering process and arrive at the exact statistics for all the segments and subsegments, the data triangulation and market breakdown processes have been employed, wherever applicable. The data has been triangulated by studying various factors and trends from both the demand- and supply sides. Along with this, the market has been validated using both the top-down and bottom-up approaches.
Market Definition
The Power Management System (PMS) market refers to the global industry that involves the development, manufacturing, and implementation of solutions and technologies for the efficient, reliable, and optimized management of electrical power.
Key Stakeholders
- Government & research organizations
- Institutional investors and investment banks
- Investors/shareholders
- Environmental research institutes
Objectives of the Study
- To define, describe, segment, and forecast the power management system market, in terms of value and volume, on the basis of type, end user industry, module, and region
- To forecast the market size for five key regions: North America, South America, Europe, Asia Pacific, and Middle East & Africa, along with their key countries
- To provide detailed information about the key drivers, restraints, opportunities, and challenges influencing the growth of the market
- To strategically analyze the subsegments with respect to individual growth trends, prospects, and contributions of each segment to the overall market size
- To analyze market opportunities for stakeholders and the competitive landscape of the market
- To strategically profile the key players and comprehensively analyze their market shares and core competencies
- To analyze competitive developments, such as sales contracts, agreements, investments, expansions, new product launches, mergers, partnerships, collaborations, and acquisitions, in the market
Available Customizations:
With the given market data, MarketsandMarkets offers customizations as per the client’s specific needs. The following customization options are available for this report:
Geographic Analysis
- Further breakdown of region or country-specific analysis
Company Information
- Detailed analyses and profiling of additional market players (up to 5)
Growth opportunities and latent adjacency in Power Management System Market