Energy Management System Market: Current Analysis and Forecast (2021-2027)

Energy Management System Market: Current Analysis and Forecast (2021-2027)

Rising investments in power transmission and distribution networks coupled with the growing augmentation and modernization of transmission and distribution networks across the globe are expected to drive the market. As per the United Nations Industrial Development Organization (UNIDO), an energy management system (EMS) is a framework for energy consumers, including industrial, commercial, and public sector organizations, to manage their energy use. It assists businesses in identifying opportunities to adopt and improve energy-saving technologies, including those that do not necessitate a large capital investment. In most cases, successful EMS implementation requires specialized knowledge and staff training. Thus, with the rising energy consumption coupled with the integration of mandatory environmental regulations and policies in the current energy management ecosystem, the global EMS market is expected to witness exponential growth during the forecast period.

The global energy management system market is expected to witness a CAGR of around 18% during the forecast period (2021–2027). Energy management is the process of tracking and optimizing energy consumption to conserve usage. Some of the features of EMS are collecting and analyzing continuous data, identifying optimizations in equipment schedules, setting points and flow rates to improve energy efficiency, calculating return on investment, and executing energy optimization solutions, among others. Thus, the EMS market is expected to witness exponential growth during the forecast period owing to the growing focus on energy conservation and management. Moreover, the surging consumption of electricity in developing countries are escalating the adoption of the smart grid coupled with the increasing need to upgrade existing infrastructure has positively influenced the market growth. In 2021, China witnessed an increase in electricity demand of 10%. This was mainly led by the industrial sector such as cement, construction, steel, and other metals, among others.

IBM Corporation, Rockwell Automation Inc., General Electric Co., Schneider Electric SE, Cisco Systems Inc., Tendril Networks Inc., Eaton Corporation, EnerNOC Inc., Elster Group GMBH, and SAP SE are some of the key players in the market. Several M&As along with partnerships have been undertaken by these players to facilitate customers with hi-tech and innovative products/technologies.

Insights Presented in the Report
"Amongst Type, BEMS category to hold significant share in the market”

Based on type, the market is classified into BEMS, IEMS, and HEMS. Amongst them, BEMS is expected to hold a significant market share by 2027. This is mainly due to the increased demand for building automation systems, rising global demand for energy-efficient electrical products coupled with an increase in urban population and industrialization activities. In addition, rising investments in power transmission and distribution networks coupled with the growing augmentation and modernization of transmission and distribution networks across the globe, are expected to drive the market. For instance, in February 2021, State Grid Corporation of China (SGCC) announced that it will spend an average of more than $70 billion a year (between 2021-2025) to upgrade the power grid to the "Energy Internet" and promote the transition to clean and low-carbon energy.
"Amongst End-Users, power and energy category is accounted for a significant market share in 2020”

Based on end-users, the market is classified into manufacturing, power and energy, it and telecommunication, healthcare, and others. Amongst them, the power and energy category is accounted for a significant market share in 2020. This is mainly due to the growing adoption and integration of EMS by utility companies, globally. For instance, SICAE Somme & Cambraisis, one of France’s regional electrical utilities, integrated EcoStruxure ADMS solution by Schneider Electric for its smart grid. This solution offers them a single tool for supervision, optimized grid management, simulation, effective scheduling of engineering work, incident management, and traceability. Furthermore, with the growing construction of high-rise residential as well as commercial buildings, the market is expected to witness tremendous growth opportunities during the forecast period. For instance, The Government of India in the Union Budget 2014-15, has announced a project to develop ‘One Hundred Smart Cities’ as satellite towns of larger cities by modernizing the existing mid-sized cities in the country,
"Amongst Application, energy monitoring category is expected to witness significant growth in the global energy management system market”

Based on application, the market is categorized into energy generation, energy transmission, and energy monitoring. During the forecast period, the energy monitoring category is expected to witness significant growth in the market owing to the increasing development of connected, intelligent devices, such as smart meters, smart sensors, and smart thermostats. Furthermore, major players in the market are focusing on various strategies such as partnering with local utility companies and entering the untapped and developing economies. For instance, in 2018, GE Power through its grid solutions collaborated with Tata Power Delhi Distribution (India) and launched a new Advanced Distribution Management Solution (ADMS), designed for India with advanced features, such as monitoring, security, analysis, and planning, enabling Tata Power-DDL to enhance the reliability, safety, and efficiency of state’s distribution network.
"APAC to witness significant growth during the forecast period”

Asia-Pacific is expected to witness the highest CAGR in the energy management system market, during the forecast period. The major contributors to the growth of this market are China, India, and Australia. The increase in infrastructure development in emerging economies, as well as the expansion of the commercial and industrial sector, coupled with the rise in installation and integration of smart devices, has contributed to the growth of the APAC market. Furthermore, factors such as growing investments in the up-gradation of old power transmission and distribution equipment and the growing development of smart cities are expected to support the market’s growth. In addition, an upsurge in renewable power generation projects is expected to positively influence the market demand for shunt reactors. For instance, in 2021, China's total renewable energy capacity increased 10.2 percentage points as compared to 2015. The capacity exceeded 1,000 GW in 2021, according to the National Energy Administration, accounting for 43.5% of the country's total power generation capacity.

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