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3. Energy Management Systems Market Size & Share - Future Growth Expectations

The global energy management systems market size is expected to reach USD 75.6 billion by 2028 from an estimated USD 40.7 billion in 2023, at a CAGR of 13.2% during the forecast period. The major factors driving the growth of this market include the increased energy usage and price volatility, rising installation of smart grids and smart meters, and government initiatives to combat climate change and improve energy efficiency.

The energy management systems market has been expanding rapidly as a result of various important factors.

• Increasing Energy Costs
• Corporate Sustainability Initiatives
• Technological Innovations
• Integration of Smart Buildings and IoT
• Industry 4.0 and Digital Transformation
• Grid Integration and Demand Response

To know about the assumptions considered for the study download the pdf brochure

Increasing Energy Costs:

• As energy costs rise, businesses are forced to look for ways to cut back on utility expenditures and optimize energy use. By finding inefficiencies and putting measures in place to reduce waste and lower energy bills, EMS systems help enterprises, industries, and institutions monitor, analyze, and control energy usage in real-time. The need for EMS solutions for economical energy management is growing as energy costs keep rising.

Corporate Sustainability Initiatives:

• In an effort to lessen their influence on the environment and improve their reputation, businesses are progressively implementing sustainability objectives and corporate social responsibility (CSR) pledges. Organizations can track energy use, establish sustainability goals, and carry out programs to cut greenhouse gas emissions and become carbon neutral with the aid of EMS solutions. The demand for EMS solutions for environmental management rises as businesses give priority to sustainability initiatives.

Technological Innovations:

• Innovation in EMS systems is fueled by ongoing developments in sensor technology, data analytics, cloud computing, and artificial intelligence (AI). Proactive energy management and optimization are made possible by advanced EMS platforms, which provide real-time monitoring, predictive analytics, and automated control features. Technological advancements propel market acceptance across all industries by improving the scalability, interoperability, and user-friendliness of EMS systems.

Integration of Smart Buildings and IoT:

• The use of EMS solutions for building energy management is accelerated by the growth of Internet of Things (IoT) devices and smart building technologies. EMS platforms can be integrated with IoT sensors, smart meters, and building automation systems to gather and analyze energy data, improve building performance, and improve occupant comfort. EMS solutions for smart building management are becoming more and more in demand as building owners and operators look for ways to lower operating costs and increase sustainability.

Industry 4.0 and Digital Transformation:

• The market for EMS solutions is growing as a result of the manufacturing, utilities, and process industries implementing Industry 4.0 technologies and digital transformation programs. Enhanced operational efficiency and competitiveness are achieved through the use of EMS platforms, which facilitate energy-efficient production processes, smart manufacturing, and predictive maintenance techniques. Demand for EMS solutions for industrial energy management is rising as more sectors adopt automation and digitalization.

Grid Integration and Demand Response:

• In order to help utilities balance supply and demand, control peak loads, and enhance grid stability, energy management technologies are essential to grid integration and demand response initiatives. Demand-side management features offered by EMS solutions let users modify their energy usage in response to pricing signals and grid conditions. The need for EMS solutions for grid integration is growing as utilities adopt demand-side management tactics and smart grid technologies.

The energy management systems market is anticipated to expand further as businesses place a higher priority on cost savings, sustainability, and energy efficiency. EMS solutions are well-positioned to play a significant role in optimizing energy use and guiding the shift towards a more sustainable and resilient energy future, thanks to favorable regulatory frameworks, technology improvements, and commercial incentives driving adoption.

Energy Management Systems Market Share - Global Industry Landscape

The energy management systems market is characterized by the presence of several key players competing for market share. Some of the leading companies in the energy management systems industry include:

• ABB (Switzerland)
• Schneider Electric (France)
• Siemens (Germany)
• General Electric (US)
• Emerson Electric (US)

These companies operate in the global energy management systems market by providing a range of goods, services, and technology to meet the changing demands of clients across various industries, alongside other specialized vendors and service providers. Market share in the power management system sector can change depending on a number of variables, including new product development, scalability, dependability, client connections, and geographic reach.

ABB (Switzerland)

• ABB held the majority of the global energy management systems market share in 2022. ABB strengthened its portfolio of energy efficiency devices in India with a new range of smart metering solutions for efficient energy management. It commits to establishing energy efficiency targets and continues to deploying energy management systems at its sites in EP 100 target. ABB offers products, solutions, and services related to energy management under the Electrification segment. It offers miniature breakers, distribution enclosures, wiring accessories, and building automation under Smart Buildings.

Schneider Electric (France)

• Schneider Electric followed in second place with an extremely huge product portfolio. The company also has global operations and generates the remaining revenue from the Middle East, Asia Pacific, South America, North America, and Africa. The company’s revenue grew organically by 12.7% to USD 34.3 billion in 2021, from USD 22.1% in 2020. It achieved this by focusing on prices under inflationary pressures and continued progress on operational efficiency plans. The strong operational performance, coupled with a reduction in restructuring costs, and a reduction in restructuring costs resulted in net incomes of USD 3.4 billion, an increase of 51% over 2020.

Siemens (Germany)

• Siemens is considered to have the third largest share in the energy management systems market. Siemens mostly primarily focuses on strengthening its market position through product launches, partnerships, and acquisitions. In October 2021, Siemen’s Smart Infrastructure acquired French IoT startup Wattsense to expand its offerings within the building’s energy management and automation, automation, and French markets. Siemens invested 7.9% of its total revenue in R&D in 2021, which is one of the key strategic choices adopted by Siemens.

General Electric (US)

• General Electric is considered to have the forth largest share in the energy management systems market. General Electric strategically focuses on sales contracts, partnerships, and contracts to strengthen its market position. For instance, in April 2021, General Electric Digital, a subsidiary of General Electric, signed a sales contract with Petroleum Development Oman (PDO) to supply its Advanced Energy Management Systems (AEMS). The AEMS software is designed to enableenables PDO to plan, control, and optimize renewable power generation to help keep its oil production plants operating reliably and efficiently.

Emerson Electric (US)

• Emerson which focuses on several deals such as acquisition. For instance, in Aug 2022, in an all-cash transaction, Emerson acquired Open Systems International, Inc. (OSI Inc.) for USD 1.6 billion. OSI Inc. is a leading operations technology software provider that broadens and complements Emerson’s robust software portfolio and improves energy efficiency and reliability.

Related Reports:

Energy Management Systems Market by Component, Type (Home Energy Management Systems, Building Energy Management Systems, Industrial Energy Management Systems), Deployment, End-User Industry and Region - Global Forecast to 2028