Energy Management Systems Market - Historic Data (2019-2024), Global Trends 2025, Growth Forecasts 2037
Energy Management Systems Market in 2025 is estimated at USD 54.79 billion. The global Market size was valued at more than USD 49.38 billion in 2024 and is expected to register a CAGR of over 13.7%, exceeding USD 262.08 billion revenue by 2037. North America is poised to accumulate USD 86.49 billion by 2037, driven by changing energy regulations and increasing investment in renewable energy sources in the U.S.
The growth of the market can be attributed to the increasing use of renewable energy sources, which is surging the demand for energy management systems. There has been a global shift towards renewable sources owing to environmental concerns. Moreover, energy management solutions have gained popularity as they reduce costs and increase productivity. According to the Energy Information Administration, renewable energy sources accounted for nearly 12.4 percent of total primary energy consumption in the United States in the year 2021.
Energy management system is a software that collects energy data and then uses it for reporting, monitoring, and interaction. Reporting includes confirming energy data, monitoring includes tracking energy consumption, and engagement includes ongoing discussion about energy consumption between building managers and renters via automatic or manual messaging. Data analytics can be used to identify ways to optimize energy consumption patterns and eventually save money on energy costs by utilizing information acquired through energy management software. The system is highly used by the commercial, industrial, and public sector organizations to manage their energy consumption, and reduce costs.
Energy Management Systems Sector: Growth Drivers and Challenges
Growth Drivers
- Scarcity of Fossils– There has been huge consumption of fossil fuels for the generation of energy, and on the other hand, there is a limited availability of fossils. Therefore, it is anticipated to surge the growth of the energy management systems market. According to estimates, more than 60 percent of the world’s energy consumption demand is met by fossil fuels.
- Growing Awareness Related to Smart Buildings– Smart buildings are equipped with several sensors, and appliances in order to manage the electricity loads on the basis of utility or consumer decisions. Hence, it is predicted to increase the growth of the market in the upcoming years. According to the reports, the number of smart buildings across the globe is estimated to grow more than 110 Million in the year 2026.
- Increasing Installation of Smart Meters –The increasing installation of smart meters in order to manage electricity consumption is surging the demand for energy management systems. In addition, there has been rising awareness among people related to smart meters for energy consumption that is further expected to surge the growth of the market over the forecast period. As per the United Kingdom Government, there were 29.5 Million smart and advanced meters in small businesses and homes across Great Britain, as of the end of June 2022.
- Surging Government Policies for Energy Conservation – The laws and regulations implemented by the regulatory bodies related to the energy conservation are encouraging people to opt for better solutions. Hence, this is projected to rise the growth of the global energy management systems by the end of 2035. The Energy Conservation Bill, 2022, has been passed by the parliament of India in order to amend the Energy Conservation Act 2001. The aim of the amendment was to facilitate the achievement of COP-26 goals.
- Rising Energy Price Volatility– The increasing fluctuation in the prices of energy owing to various reasons is rising the need for energy management systems. The various reasons include economic conditions, extreme weather, supply availability, and others. Hence, it is anticipated to expand the growth of the market over the forecast period. In 2022, when the Russia-Ukraine war and the accompanying sanctions on Russia worsened an already-existing worldwide fuel scarcity, resulting in a 100-point increase in the fuel energy price index between August 2021 and March 2022.
- High Cost of the Installation- There is a requirement for high investment for the installation of energy management systems in industries and buildings. Furthermore, every industry is interested in cutting the cost of energy consumption in their operations. On the other hand, there is a high chance that the companies, industries are not able to bear the cost of the energy management system. Hence, it is expected to restrain the growth of the energy management systems market in the upcoming years.
- Slow Government Procedures and Paperwork for Switching to Smart Grid
- Lack of Awareness Regarding Adoption of Renewable Energy Infrastructure in Developing Countrie
Energy Management Systems Market: Key Insights
| Report Attribute | Details |
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
13.7% |
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Base Year Market Size (2024) |
USD 49.38 billion |
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Forecast Year Market Size (2037) |
USD 262.08 billion |
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Regional Scope |
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Energy Management Systems Segmentation
Type (Building, Home, Industrial)
The home segment in the energy management systems market is estimated to account for 38% share in the year 2037. The growth of the segment can be attributed to the increasing number of smart homes that are equipped with energy management systems. Moreover, fully equipped smart homes help reduce the energy consumption, as well as improve the efficiency. In addition, home appliances are major energy consumers for the home energy consumption. Therefore, all these factors are predicted to boost the growth of the segment in the market. According to recent data, there are predicted to be more than 400 million smart homes around the globe by the end of the year 2025.
Applications (Residential, Commercial)
The commercial segment is expected to garner a significant share of around 59% in the year 2037. This can be attributed to the surging consumption of electricity in the commercial sector. Moreover, there has been an increase in the use of energy for application in lighting, air conditioning, and lighting purpose in industrial and manufacturing areas, that is further expected to boost the segment's growth in the market. In addition, the manufacturing units requires a huge amount of energy for their operations, which in turn is anticipated to provide opportunities of the segment in the market over the forecast period.
Our in-depth analysis of the global market includes the following segments:
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By Applications |
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By Type |
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By Component |
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By End Users |
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Vishnu Nair
Head - Global Business DevelopmentCustomize this report to your requirements — connect with our consultant for personalized insights and options.
Energy Management Systems Industry - Regional Synopsis
North American Market Forecast
The energy management systems market in North America, amongst the market in all the other regions, is projected to be the largest with a share of about 33% by the end of 2037. The growth of the market can be attributed majorly to the owing to drastically changing energy regulations and increasing investment in sustainable energy in the U.S. For instance, public benefit funds (PBF) for renewable energy are set up and used by the states in the USA to invest in clean energy supply for the public. Furthermore, the growing acceptance and utilization of renewable energy among the countries in the North America region, is further estimated to support the market growth. According to the data by OECD, 8% of the total primary energy consumed in the USA is derived from renewable energy sources, as of 2019. Moreover, various industry giants are increasingly investing in advanced energy management system to reduce energy wastage, which is foreseen to boost the market growth in the region.
Europe Market Forecast
The European energy management systems market is estimated to be the second largest, registering a share of about 23% by the end of 2037. The growth of the market can be attributed majorly to the escalating adoption of smart grids in the region and environmental concerns among the people. Furthermore, there has been a surge in the implementation of government policies for the efficient use of energy, and reducing the amount of carbon emissions in countries such as the UK, Germany, France, and others, that is further predicted to expand the growth of the market in the European region.
APAC Market Statistics
Energy management systems market in Asia Pacific is estimated to experience the highest CAGR during the forecast period on the back of evolving sustainable energy infrastructure in the region. The growing industrialization in developing countries is projected to increase the demand for smart grids and smart meters to optimize energy utilization, which in turn would drive the market growth in the region. Growing initiatives to promote the use of renewable energy such as subsidies for solar farms in developing economies, is projected to promote market expansion in the Asia Pacific region.
Companies Dominating the Energy Management System Landscape
- Mitsubishi Electric Corporation
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
- IBM Corporation
- Cisco Systems, Inc.
- Honeywell International, Inc.
- General Electric Company
- ABB Ltd
- Siemens AG
- Hitachi, Ltd.
- Emerson Electric Co
- Eaton
Recent Developments
- April 2023: Following the successful installation of gas turbines in Colorado, GE (NYSE: GE) announced today that new options for further emission reduction technologies are now available for its LM25000XPRESS aeroderivative gas turbine fleet worldwide.
- February 2023: Siemens AG announced the partnership with EnergyHub in order to expand its ecosystem of partners for its grid software business.
Author Credits: Dhruv Bhatia
- Report ID: 4860
- Published Date: May 09, 2025
- Report Format: PDF, PPT
