Systems that collect data on energy measurement from the field are called energy management systems. To help concerned entities effectively manage their energy resources, the acquired data is subsequently made available through energy quality analyzers, online monitoring tools, and visualizations. Energy leaks can be found and reduced with the aid of energy management technologies, which also make it easier to regulate power transmission. The majority of businesses in the commercial, industrial, and public sectors use these systems.

In 2021, the market for energy management systems was USD 37.33 billion, and by 2030, it will reach USD 162.03 billion, growing at a 16.73% CAGR during the forecast period. 

The main factors accelerating the growth of this market are:

· The increased need for sustainable energy sources.

· Strict emission restrictions around the world.

· Rising R&D activity in the area.

Furthermore, there are many prospects for the industry sector to flourish due to the growing adoption of smart grids and meters in business and residential complexes.

Market Dynamics

Drivers

The widespread product use in residential structures worldwide largely impacts market growth. Energy management systems are frequently used to keep track of and manage a building's energy requirements and help a facility become more energy efficient overall. The growing need for EMS in businesses and organizations to reduce operating expenses and greenhouse gas emissions also promotes market expansion. A significant boost to the market's growth is also being provided by the extensive integration of artificial intelligence & the Internet of Things to optimize electricity use, analyze data, and aid in effective and sustainable energy consumption strategies based on usage patterns.

Restraints

Smart meters, sensors, and other devices have been included into energy management systems to keep up with technological advancements. The market expansion is restricted by the high cost of installing the full system due to the system's integration of multiple technologies to maintain energy efficiency.

Opportunity 

The growth of smart infrastructure is driving the demand for improved energy management systems. This has directly influenced industrialized and developing countries adoption of smart grids and meters. The implementation of a smart grid allows for cost reduction and increased productivity. As a result, the market for energy management systems is seeing strong development due to the spike in smart meter and grid installation.

Market Segmentation

By System Type

On the basis of system type, the energy management systems market is segmented into building energy management systems, home EMS, and industrial EMS.

In 2022, the industrial energy management system ruled the market with a revenue share of 70%. The energy management system is utilized in several industries and is highly implemented in the manufacturing industry.

The building energy management system segment is the fastest-growing market. Rising awareness about the energy management system and expanding number of building and construction projects are boosting the growth of this segment.

By Component

In 2022, the hardware segment led the overall market with 60% of the revenue share due to the expanding adoption of communication and sensor technology. Bridges and sensors have also become more popular, with wired sensor networks seeing increased adoption due to their increased dependability, longer service lives, and reduced susceptibility to interference and interruptions. Hardware components may boost the energy management systems market as monitoring and managing building activities gain traction to embed intelligence.

By End-User

The manufacturing segment led the entire market in 2022 with a revenue share of 20%. The demand for EMS has increased due to rising environmental concerns and an increased understanding of the benefits of electric vehicles.

Regional Analysis

North America is the highest regional market for EMS solutions due to the widespread use of energy-efficient products and supportive government programs. The largest markets in the area are the United States, Canada, and Mexico. Major market participants are present, and EMS solutions that are cloud-based and IoT-enabled are becoming more and more popular.

Europe is the second-largest market for EMS products, driven by the improvement of renewable energy sources and the rising need for energy-efficient products. The region's three largest markets are the United Kingdom, Germany, and France. These markets are distinguished by high technological development and a sizable number of SMEs.

Key Players

· Honeywell International Inc.

· Cisco Systems, Inc.

· Schneider Electric SE

· Johnson Controls, Inc.

· Siemens AG

· General Electric

· International Business Machines Corp.

· GridPoint

· ABB

In 2021, the market for energy management systems was USD 37.33 billion, and by 2030, it will reach USD 162.03 billion, growing at a 16.73% CAGR during the forecast period. The market is developing due to the rising need for energy management systems brought on by the increased usage of renewable energy sources.