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

  • Report ID: 4860
  • Published Date: Apr 28, 2023
  • Report Format: PDF, PPT

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

Energy Management Systems Market size is anticipated to reach USD 266.03 Billion by the end of 2035, growing at a CAGR of 17.20% during the forecast period, i.e., 2023-2035. In the year 2022, the industry size of energy management systems was over 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.

Energy Management Systems Market
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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


Base Year


Forecast Year




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)
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Energy Management Systems Segmentation

Type (Building, Home, Industrial)

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.

Applications (Residential, Commercial)

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 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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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 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.

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 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.

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.

Research Nester
Energy Management Systems Market Size
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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


In The News

  • 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:  Payel Roy, Dhruv Bhatia

  • Report ID: 4860
  • Published Date: Apr 28, 2023
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

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

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

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.

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.

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.

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.

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

The home segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.
Energy Management Systems Market Report Scope

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