Energy Management Systems Market Share Report 2023-2035

Global Energy Management Systems Market Size, Forecast, and Trend Highlights Over 2023 - 2035

Energy Management Systems Market size is estimated to reach ~USD 266.03 Billion by the end of 2035 by growing at a CAGR of ~17.20% over the forecast period, i.e., 2023 – 2035. In addition to this, in the year 2022, the market size of energy management systems was ~USD 39.61 Billion. 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.

Global Energy Management Systems Market: 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 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 Countries

Global Energy Management Systems Market Segmentation

The global energy management systems market is segmented and analyzed for demand and supply by type into building, home, and industrial energy management systems. Out of these types of energy management systems, the home segment is estimated to have the highest CAGR of about ~38% in the year 2035. 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.

The global energy management systems market is also segmented and analyzed for demand and supply by applications into residential, and commercial. Amongst these three segments, the commercial segment is expected to garner a significant share of around ~59% in the year 2035. 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 energy management systems market includes the following segments:

By Applications	Residential Commercial
By Type	Building Energy Management Systems Home Energy Management Systems Industrial Energy Management Systems
By Component	Service Solution
By End Users	IT & Telecom Healthcare Retail Energy & Utilities Others

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Global Energy Management Systems Market Regional Synopsis

The market share of energy management systems 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 2035. 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.

The European energy management systems market is estimated to be the second largest, registering a share of about ~23% by the end of 2035. 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.

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.

Key Questions Answered in the Report

1) What are the major factors driving the growth of the energy management systems market?

Ans: Increasing installation of smart meters, growing awareness related to smart buildings, and rising energy price volatility are the major factors driving the market growth.

2) What would be the CAGR of energy management systems market over the forecast period?

Ans: The market size of energy management systems is anticipated to attain a CAGR of ~17.2% over the forecast period, i.e., 2023 â€“ 2035.

3) What are the challenges affecting the energy management systems market growth?

Ans: Slow government procedures and paperwork for switching to smart grid, lack of awareness regarding adoption of renewable energy infrastructure in developing countries are estimated to be the growth hindering factors for the market expansion.

4) Which region will provide more business opportunities for growth of energy management systems market in future?

Ans: The market in the North American region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.

5) Who are the major players dominating the energy management systems market?

Ans: The major players in the market are IBM Corporation, Cisco Systems, Inc., Honeywell International, Inc., General Electric Company, ABB Ltd, Siemens AG, Hitachi, Ltd., Emerson Electric Co, Eaton, and others.

6) How are the company profiles selected?

Ans: The company profiles are selected based on the revenues generated from the product segment, the geographical presence of the company which determines the revenue generating capacity as well as the new products being launched into the market by the company.

7) What are the segments in the energy management systems market?

Ans: The market is segmented by applications, type, component, end users, and by region.

8) Which segment captures the largest market size in the type segment in the energy management systems market?

Ans: The home segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.

Base Year	2022
Forecast Year	2023-2035
CAGR	~17.20%
Base Year Market Size (2022)	~ USD 39.61 Billion
Forecast Year Market Size (2035)	~ USD 266.03 Billion
Regional Scope	North America (U.S., and Canada) Latin America (Mexico, Argentina, Rest of Latin America) Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific) Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe) Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)

Energy Management Systems Market Size & Share, by Applications (Residential, Commercial); Type (Building, Home, Industrial); Component (Service, Solution); End-user (IT & Telecom, Healthcare, Retail, Energy Utilities) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2023-2035