PUBLISHER: The Business Research Company | PRODUCT CODE: 1675223
PUBLISHER: The Business Research Company | PRODUCT CODE: 1675223
Energy management systems are integrated software systems that control, manage, and store energy parameters, analyzing usage and identifying wastage to reduce electricity costs. These systems leverage innovative technologies such as artificial intelligence and IoT to enhance effectiveness and provide insightful data. They are employed to control and optimize the energy usage of various electronic devices, such as fans and pumps.
The primary categories of energy management systems encompass home energy management systems, building energy management systems, and industrial energy management systems. Home energy management systems are a blend of hardware and software components designed to collaboratively optimize energy usage and lower energy costs within residential settings. These systems incorporate a range of components, including hardware, software, and services, and are deployed through on-premise and cloud-based models. They find application across various sectors, including power and energy, telecom and IT, manufacturing, residential and commercial spaces, as well as in industries such as food and beverages, among other end-users.
The energy management systems market research report is one of a series of new reports from The Business Research Company that provides energy management systems market statistics, including energy management systems industry global market size, regional shares, competitors with an energy management systems market share, detailed energy management systems market segments, market trends and opportunities, and any further data you may need to thrive in the energy management systems industry. This energy management systems market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The energy management systems market size has grown rapidly in recent years. It will grow from $57.53 billion in 2024 to $66.38 billion in 2025 at a compound annual growth rate (CAGR) of 15.4%. The growth in the historic period can be attributed to energy cost savings, environmental sustainability, regulatory compliance, operational efficiency, corporate social responsibility.
The energy management systems market size is expected to see rapid growth in the next few years. It will grow to $127.18 billion in 2029 at a compound annual growth rate (CAGR) of 17.6%. The growth in the forecast period can be attributed to renewable energy integration, resilience planning, demand response initiatives, economic trends, increasing focus on net-zero goals. Major trends in the forecast period include blockchain for energy transactions, advanced energy analytics and visualization, integration of internet of things (IoT), regulatory compliance and sustainability reporting, collaboration with utility providers.
The energy management systems market is poised for growth, driven by the widespread adoption of smart grids and smart meters. Smart grids, characterized by digital technology, enable two-way communication for the efficient supply of electricity. On the other hand, smart meters are electronic devices that measure and record energy consumption data, communicating remotely with utility providers. The surge in the use of smart meters and grids is attributed to their effectiveness in reducing electricity costs for consumers. As integral components of energy management systems, the increasing adoption of smart meters and smart grids is propelling the forward momentum of the energy management systems market. For example, data from the Institute for Electric Innovation (IEI), a US-based research institute, reveals that as of December 2022, the total number of smart meter installations in the U.S. reached 119 million. This substantial uptake underscores the significant impact of smart meters and grids in driving the growth of the energy management systems market.
The energy management systems market is set to experience substantial growth, propelled by the increasing adoption of renewable energy sources. These sources, such as solar and wind power, are naturally replenished over time, providing a sustainable and environmentally friendly approach to energy production. Energy management systems play a crucial role in optimizing the utilization of renewable energy by monitoring, controlling, and balancing their integration into the grid. This ensures a sustainable and cost-effective energy supply. For instance, as of December 2023, data from the Department for Energy Security and Net Zero, a UK-based government department, indicated that renewable electricity generation achieved a record high of 30.1 terawatt-hours in the third quarter of 2023, reflecting a 6.8% increase compared to the same period in 2022. The escalating adoption of renewable energy sources is a key driver fueling the growth of the energy management systems market.
Technological advancements are a key trend gaining momentum in the energy management systems market. Leading companies in this market are developing innovative technologies, such as advanced tools for automated power plant control, to boost operational efficiency, lower energy consumption, and enhance grid reliability. These advanced tools for automated power plant control consist of sophisticated software and hardware systems designed to optimize the management and functioning of power generation facilities. For instance, in July 2024, GreenPowerMonitor (GPM), a Spain-based energy management software company, introduced an advanced Energy Management System (EMS), a tool designed for automated power plant control. The Energy Management System (EMS) is a comprehensive platform that integrates real-time data monitoring, predictive analytics, and automated control functions to optimize the performance of power generation assets. It enables operators to efficiently manage energy flows, anticipate demand, and respond dynamically to fluctuations in the energy market, ultimately improving operational efficiency and reducing costs.
Major players in the energy management systems market are intensifying their focus on introducing energy optimization software to gain a competitive advantage. Energy optimization software is crafted to enhance the efficiency and performance of energy systems across various settings. A case in point is ABB Ltd., a Switzerland-based automation company, which, in November 2022, unveiled ABB Ability OPTIMAX. This software is engineered to decrease the cost of green hydrogen production by up to 20%. It achieves this by enhancing the efficiency of energy-intensive electrolyzers used in green hydrogen production, providing real-time visualization, monitoring, and forecasting. The overarching aim is to empower companies to competitively trade and seamlessly integrate green hydrogen into existing networks. This innovative solution is poised to reduce electricity-based costs, contributing to the scalability of green hydrogen production and aligning with the broader objectives of achieving a low-carbon future.
In a strategic move in May 2022, Schneider Electric, a France-based automation and energy management company, successfully acquired AutoGrid for an undisclosed amount. This acquisition positions Schneider Electric to extend its reach into new geographical markets and enhance its ability to cater to the evolving needs of its customer base. AutoGrid, the acquired entity, is a US-based company specializing in AI-driven energy management solutions.
Major companies operating in the energy management systems market include Siemens AG, General Electric Company, Hitachi Energy Ltd., Raytheon Technologies Corporation, Panasonic Corp., IBM Corporation, Cisco Systems Inc., Oracle Corporation, Mitsubishi Electric Corporation, Schneider Electric SE, Honeywell International Inc., SAP SE, Broadcom Inc., Danaher Corp., ABB Ltd., Toshiba Corporation, Daikin Industries Ltd., Johnson Controls International plc, Eaton Corporation plc, Carrier Corporation, Trane Technologies plc, Emerson Electric Co., Delta Electronics Inc., Rockwell Automation Inc., Lennox International Inc., Yokogawa Electric Corp., C3.ai Inc., Legrand S.A., Elster Group GmbH, EnerNOC Inc.
North America was the largest region in the energy management systems market in 2024. Asia-Pacific is expected to be the fastest-growing region in the global energy management systems market report during the forecast period. The regions covered in the energy management systems market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the energy management systems market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The energy management systems market consists of revenues earned by entities by providing services such as utility expense management, meter reading, billing, collection, meter system design, installation, energy procurement, central plant cost, allocation, and energy benchmarking. The market value includes the value of related goods sold by the service provider or included within the service offering. The energy management systems market also includes sales of computer servers, UI devices, map board, RTUs (remote terminal unit) and other front-end and ancillary devices, which are used in providing energy management system services. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Energy Management Systems Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on energy management systems market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for energy management systems ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The energy management systems market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.