Energy Management Software Market Outlook:
Energy Management Software Market size was estimated at USD 16.41 billion in 2025 and is expected to surpass USD 50.16 billion by the end of 2035, rising at a CAGR of 11.9% during the forecast period, i.e., 2026-2035. In 2026, the industry size of energy management software is assessed at USD 18.34 billion.
Government advances in energy efficiency policies, grid modernization, and advanced metering infrastructure are the main drivers of increased use of energy management software. The number of advanced meters in the U.S. grew by nearly 8 million between 2021 and 2022, representing a 7.3% annual increase to 119.3 million. According to the Energy Information Administration (EIA), the 119.3 million advanced meters now in use account for over 72% of the 165 million meters across all customer types. Additionally, the Office of Electricity and Energy Storage's R&D spending has provided key funding for demonstration tools and software optimization systems through cost-shared partnerships with utilities and state energy agencies.
Supply chains for energy technologies are scaling capacity and capabilities as part of integrated systems with increases in raw materials, equipment manufacturing, and assembly. The four-year review of energy sector supply chains by the DOE illustrated growth potential to support scaling the industrial base, accelerate R&D to use advanced software tools, and deploy control systems in addition to extract, process, and manufacture components. For residential customers, the advanced meter penetration rate was over 70% nationwide. Utilities provided aggregate advanced meter counts in the Pacific, South Atlantic, and West South-Central Census Divisions, which correspond to advanced meter penetration rates of above 80% in those areas. The Clean Energy Fund's RDD program awarded millions of dollars in grants for clean energy demonstration projects based on software models that continue to be active in deploying R&D in the public sector.
Energy Management Software Market - Growth Drivers and Challenges
Growth Drivers
- Government mandates on carbon reduction and energy efficiency: Governments all over the world are adopting more stringent regulations. The U.S. EPA Energy Star program mentions evidence that buildings with EMS use 35% more energy. The EU's Energy Efficiency Directive has an energy efficiency target of 32.5% by 2030. India's Perform, Achieve, Trade (PAT) scheme makes EMS mandatory at numerous facilities. Under the program, energy-saving goals have been assigned to 1333 Designated Consumers in thirteen sectors. The units listed above under PAT have saved 25.77 million tons of oil equivalent (MTOE) in 2022-2023, or roughly 8% of their entire yearly energy requirements. As of 2024, 11,127 individuals nationwide have earned certification as Energy Auditors. As compliance pressures increase worldwide, EMS platforms will be an effective way to help organizations control emissions and the energy bill while staying compliant.
- Expansion of smart grids and smart metering infrastructure: Digital grids rely on EMS software to collect, process, and act on the huge amounts of real-time energy data. The Infrastructure Investment and Jobs Act's $1.2 trillion infrastructure bill includes $65 billion for improvements to the electrical grid. The grid is an overdue investment that consists of more than 7,300 power plants, 160,000 miles of high-voltage power lines, and millions of low-voltage power lines. With the trend toward intelligent infrastructure, current EMS solutions must operate at an advanced level to optimize both the grid and facilities and become an ongoing integral part of business.
- Corporate sustainability and net-zero commitments: Major organizations have committed to net-zero targets through a variety of avenues, including the Science Based Targets Initiative (SBTi). EMS or environmental management software is where reductions will occur shortly, through robust carbon accounting, tracking Scope 1, 2, and 3 emissions, and through implementing suggested actions to optimize the process. Companies' movement toward sustainability is pushing global adoption of EMS in commercial and industrial environments.
Emerging Meter Penetration Dynamics
Advanced Meter Penetration Rate by Census Division and Customer Class (2022)
|
Census Division |
Residential |
Commercial |
Industrial |
All Classes |
|
East North Central |
79.5% |
76.2% |
70.2% |
79.1% |
|
East South Central |
80.3% |
75.4% |
70.2% |
79.6% |
|
Middle Atlantic |
44.0% |
42.5% |
55.4% |
43.9% |
|
Mountain |
65.4% |
55.6% |
68.4% |
64.2% |
|
New England |
23.3% |
24.0% |
23.3 |
23.45% |
|
Pacific |
80.7% |
81.5% |
69.1% |
80.9% |
|
South Atlantic 86.4% 83.9% |
86.4% |
83.9% |
62.1% |
86.0% |
|
West North Central |
58.6% |
55.2% |
72.8% |
58.3 |
|
West South Central |
87.8% |
82.1% |
75.2% |
87.0% |
|
All Regions |
72.7% |
69.3% |
68.5% |
72.3% |
Source: ferc.gov
Potential Peak Demand Savings (MW) from Retail Demand Response Programs by Census Division and Customer Class (2022)
|
Census Division |
Residential |
Commercial |
Industrial |
All Classes |
|
East North Central |
837.7 |
888.2 |
3,248.1 |
4,974.0 |
|
East South Central |
343.5 |
117.9 |
3,761.9 |
4,223.4 |
|
Middle Atlantic |
169.8 |
536.6 |
135.8 |
842.1 |
|
Mountain |
1,169.9 |
365.3 |
854.3 |
2,389.4 |
|
New England |
110.0 |
132.5 |
66.7 |
309.2 |
|
Pacific |
404.9 |
303.2 |
682.2 |
1,390.3 |
|
South Atlantic |
3,476.9 |
2,393.3 |
2,579.1 |
8,449.2 |
|
West North Central |
1,981.0 |
1,005.6 |
1,800.8 |
4,787.4 |
|
West South Central |
545.3 |
802.2 |
1,735.1 |
3,082.6 |
|
Total |
9,038.9 |
6,544.7 |
14,864.0 |
30,447.6 |
Source: ferc.gov
Challenges
- Lack of skilled workforce: The EMS market suffers from a shortage of trained individuals who can operate and manage advanced analytics, AI-centric energy optimization tools, and IoT integration. Nevertheless, the demand for energy engineers continues to grow faster in the market. Talent shortages can cause EMS systems' capabilities to go unused, extend deployment timelines, and inefficiencies in day-to-day operations, especially in developing economies and limited digital maturity industries.
- Data privacy and cybersecurity risks: Energy management systems are certainly data-rich and rely upon sensors, smart devices, and user behaviours, and are at risk when subject to a cyber-attack. In 2023, energy and utilities were the top five sectors subjected to cyber-attacks (U.S. Cybersecurity and Infrastructure Security Agency). Breaches can result in data loss, affect operational capability, or lead to regulatory penalties. For these reasons, many enterprises are hesitant to adopt cloud-based EMS platforms, especially in industries that deal with sensitive information, such as defense, healthcare, or finance.
Energy Management Software Market Size and Forecast:
| Report Attribute | Details |
|---|---|
|
Base Year |
2025 |
|
Forecast Year |
2026-2035 |
|
CAGR |
11.9% |
|
Base Year Market Size (2025) |
USD 16.41 billion |
|
Forecast Year Market Size (2035) |
USD 50.16 billion |
|
Regional Scope |
|
Energy Management Software Market Segmentation:
Deployment Segment Analysis
The cloud‑based segment is anticipated to constitute the most significant growth by 2035, with 52.5% market share, due to corporations with premises moving towards scalable solutions that have subscription fees and pricing models. Cloud-based energy management platforms provide remote monitoring from anywhere in the world, upgrades are easier, negotiations for lower initial capital costs are more flexible, obtaining carbon-neutral financing potential, and they centralize corporate energy management data for organizations with multinational locations, buildings, and industrial facilities.
Component Segment Analysis
The software segment is predicted to gain the largest market share of 45.2% during the projected period by 2035, due to the high level of demand for real-time monitoring (for example, using smart networks), analytics, predictive optimization, and integration with IoT technologies. Big data analytics will permit real-time dashboards providing usable and actionable insights, making software the largest revenue-generating sub-segment by 2035. The U.S. Department of Energy (DOE) Energy Management Programs (EERE) refers to ISO 50001 energy management systems platforms and recommends organizations integrate their organized energy management systems with ISO 50001 to improve energy efficiency, cost savings, and pursue certification.
Type Segment Analysis
The building energy management systems segment is anticipated to constitute the most significant growth by 2035, with 40.2% market share, mainly as the commercial real estate sector, smart cities, and corporate net zero initiatives drive increasing levels of adoption of energy management systems. A number of government programs, such as Atmanirbhar Bharat's "Make in India" campaign, Production Linked Incentive (PLI) programs, financial incentives, and the pledge to achieve carbon neutrality by 2070, are major drivers of the growth of the energy-efficient HVAC market. With a projected market size of $30 billion by 2030 and a compound annual growth rate (CAGR) of 15.8%, the Indian subcontinent has emerged as a thriving location for both domestic and foreign HVAC manufacturers. Smart HVAC technologies, smart lighting control, and integrated renewable‐energy dashboards will all drive uptake of energy management systems.
Our in-depth analysis of the energy management software market includes the following segments:
|
Segment |
Sub-Segments |
|
Component |
|
|
Type |
|
|
Deployment |
|
|
End use |
|
Vishnu Nair
Head - Global Business DevelopmentCustomize this report to your requirements — connect with our consultant for personalized insights and options.
Energy Management Software Market - Regional Analysis
North America Market Insights
By 2035, the North America market is expected to hold 33.3% of the market share, due to rising demand for sustainable energy, stricter environmental regulations, and digitalization of energy-intensive industries. Utilities, manufacturing, and commercial organizations are utilizing software to manage energy usage and costs. Government initiatives to further support renewable energy integration, smart grid integration, and carbon reduction have also spurred adoption. The presence of a large number of key vendors in the region, coupled with its advanced IT environments, provides a competitive advantage to many organizations utilizing energy management software.
The U.S. is expected to lead the North American energy management software market due to its advanced digital technology infrastructures, federal clean energy programs, and industry-specific energy optimization programs. These initiatives, especially the growing focus on carbon neutrality, led by the U.S Environmental Protection Agency (EPA), U.S Department of Energy (DOE), and state-level regulations, have also fueled adoption rates. More than 9,200 electric generating units with a combined output capacity of more than 1 million megawatts are connected by more than 600,000 miles of transmission lines, making the U.S. electric grid a technical achievement. Enterprises involved in Industrial manufacturing, healthcare, and commercial real estate remain the largest segment of users are helping sustain the U.S.'s leadership position.
Asia Pacific Market Insights
Asia Pacific market is expected to hold 28.9% of the market share by 2035, due to increased energy consumption, accelerated digitalization, and smart grid investment. Encouraging energy efficiency, policies for carbon neutrality, and efficiency optimization are also catalyzing software adoption for energy management across commercial and industrial applications. China, India, and Southeast Asia are implementing a variety of large-scale energy efficiency programs designed to offset carbon emissions, and utility-scale monitoring and AI-based optimization capability modules are being integrated into legacy utility energy systems. As the regional infrastructure grows, significant momentum in cloud-based EMS adoption from both manufacturers and data centers is projected throughout the analysis timeframe.
China is expected to rapidly grow from 2026 to 2035 as the National Policies focus on achieving dual carbon policy goals of Carbon Peak before 2030, followed by carbon neutrality in 2060. In a 2020 study conducted by the Guangzhou-based non-profit China Youth Climate Action Network (CYCAN), 46% of youth cited climate change as the "most critical global issue" of the time, and 86% said China was a major player in global climate governance. The growth of industrial automation with an integrated AI-powered energy networking system is also drawing assets towards purchasing systems that will monitor and analyze energy performance in real-time. Energy efficiency and efficiency tracking are becoming high priorities for companies like steelmaking, cement, and electronics manufacturing that are monitored by regulators. The company has a lot of resources through R&D and investment through pilot energy-efficiency zones, and now these same enterprises have PIECC energy management systems and due diligence strategies in Tier 1 and Tier 2 cities.
India Renewable Energy Capacity in 2024
|
State |
Capacity (GW) |
Renewable Energy Resource |
Capacity (GW) |
Workforce |
|
Rajasthan |
29.98 |
Solar Power |
92.12 |
238,000 |
|
Gujrat |
29.52 |
Wind Power |
47.72 |
52,200 |
|
Tamil Nadu |
23.70 |
Hydroelectric Power |
46.93 |
453,000 |
|
Karnataka |
22.37 |
Bio Power |
11.32 |
85,000 |
Source: PIB
Europe Market Insights
The European market is expected to hold 27.4% of the market share by 2035, due to adoption supported by initiatives related to the rollout of the smart grid and corporate social sustainability mandates. The increase in renewables for energy, and the regulatory framework put in place for its integration. Global movement towards increasing automation and improved energy efficiency is fundamentally driving the widespread adoption of energy management software across utilities, manufacturing, buildings, and services sectors. Rapid evolution and growth are expected in the next generation of analytics, carbon reporting, and grid resilience platforms.
To achieve the EU's Fit for 55 and REPowerEU goals, around €584 billion in electricity infrastructure investment is needed between 2020 and 2030, mainly in distribution grids. According to ACER’s Market Monitoring Report, by the end of 2021, smart meters were installed in 54% of EU households. The adoption of smart meters increased to over 80% in 13 countries by 2022. By 2030, investing in smart metering for 266 million meters will cost approximately €47 billion, reaching nearly 92% penetration. The average installation cost per meter ranges from €180 to €200, while testing costs for savings per metering point are €230 for gas and €270 for electricity. Energy savings are estimated at 2-10% across stakeholders.
Key Energy Management Software Market Players:
- Schneider Electric SE
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
- Siemens AG
- General Electric Company (GE Digital)
- Honeywell International Inc.
- Mitsubishi Electric Corporation
- Johnson Controls International plc
- ABB Ltd.
- Rockwell Automation, Inc.
- Delta Electronics, Inc.
- Schneider Electric (Australia)
- Samsung SDS
- Tata Consultancy Services (TCS)
- Hitachi Energy Ltd.
- Toshiba Energy Systems & Solutions Corp.
- Fujitsu Limited
The global energy management software market is very competitive, and the major market share is dominated by international players, including Schneider Electric, Siemens, GE Digital, and Honeywell. Leaders have integrated software platforms, IoT capabilities, and AI-driven analytic capabilities. Market players are leveraging strategic initiatives that include mergers and joint partnerships that aim to leverage smart grid and other IoT initiatives, developing SaaS platforms to enhance their offerings, and aggressive company-level investment in the Asia Pacific. Japan firms, such as Mitsubishi Electric, Hitachi Energy, Toshiba, and Fujitsu, are promoting their smart infrastructure initiatives, while U.S players tend to be very interested in pursuing enterprise-level energy intelligence, and Indian and Malaysian firms are often offering tailored, low-cost as-is deployments. Additionally, sustainability compliance and aggressive government-led policies and mandates aimed at energy efficiency are fueling innovation in other regions of the globe.
Some of the key players operating in the market are listed below:
Recent Developments
- In September 2024, FlexGen introduced HybridOS V12, the leading AI-based battery energy storage system (BESS) management platform on the market, with global availability on a software-as-a-service platform. HybridOS V12 combines detection and evaluation for automated actions (contingent on pre-configured delivery and NERC compliance) to significantly increase performance and reliability. HybridOS V12 allows up to 97% fleet/site availability (greater than 6% higher than competitors). HybridOS V12 also delivered 23% more revenue per kW than the ERCOT market average, delivering additional returns for energy and battery operators.
- In May 2025, ABB and GridBeyond launched a Battery Energy Storage Systems-as-a-Service (BESSaaS) platform for utilities or commercial users. This integrated offering provides near real-time intelligent load control, automated demand-response actions, and revenue generation from BESS assets in one layer of software. Flexible and performance-driven, the BESSaaS platform can dispatch optimized energy, support system stability, and provide monetization alternatives in a rapidly evolving landscape of electricity offers within each new trading period.
- Report ID: 3061
- Published Date: Sep 24, 2025
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