Energy Management Systems Market Report

Market Insights

“The energy management systems market size was US$49.6 billion in 2024 and is likely to grow at a decent CAGR of 14.4 % in the long run to reach US$127.2 billion in 2031”.

Market Dynamics

Introduction

The Energy Management Systems (EMS) Market is rapidly advancing in part because industries, commercial organizations, and governments are starting to increasingly prioritize energy efficiency, operational transparency, and sustainability in the form of sustainability initiatives. EMS platforms allow organizations with installed hardware and software to monitor, manage, and optimize energy consumption across facilities, buildings, and infrastructure. EMS solutions provide organizations with helpful analytics derived from proactive actions taken through formalized data, online-based analytical processing, and automated planning and action implementation processes, while assisting organizations with minimizing or eliminating inefficient energy use as well as managing legislation guidelines. With continued growth in global energy consumption, EMS will help support smart infrastructure solutions and efforts to decarbonize energy consumption.

With technological progressions associated with cloud-based computing, IOT sensors, artificial intelligence-assisted alternative intelligence and analytics, and predictive maintenance and service allow for more optimized performance and scale with EMS-enabled technology. The EMS concept is evolving to offer organizations beyond just basic observation parameters; it now offers organizations the capability of dynamic building load forecasting, carbon tracking, and optimizing equipment lifecycle management. Governments around the world are serving to assist the EMS transition through energy efficiency mandates that typically take the form of energy efficiency codes or green building codes, while organizations are leveraging EMS in supporting those efforts through energy bill reduction, lessening emissions, and realizing ESG goals. EMS is becoming an inevitable evolution in enabling the world to transition to clean energy.

Market Driver

A key motivator of the EMS industry is a growing global focus on energy cost savings and sustainability compliance. As electricity prices rise and carbon regulations become stricter, organizations (including manufacturing, commercial real estate, and public infrastructure) are adopting EMS to find inefficiencies, automate load control, and optimize energy use. Not only do these systems help organizations reduce operational costs, but they also help organizations achieve energy certification standards (such as ISO 50001 or LEED), so EMSs provide organizations with a means to control costs while promoting energy stewardship.

Recent Market JVs and Acquisitions:

A considerable number of strategic alliances, including M&As, JVs, etc., have been performed over the past few years:

• In 2017, Wärtsilä acquired Greensmith Energy Management Systems.

Market Segments' Analysis

“Software components are expected to be dominant in the market during the forecast period.”

Software is at the top of the EMS market as it is the "intelligence layer" for energy monitoring, analytics, and automation. There are advanced cloud platforms that integrate data with sensors, meters, and control systems to create actionable insights in real-time to optimize the use of energy and assist with decision-making.

Advancements in cloud-based AI-powered platforms have enabled EMS software to be highly scalable and adaptable for diverse use cases. As organizations begin to digitize operations as well as reduce energy waste, software solutions are key features of smart buildings, factories, and grid systems, strengthening their position within both mature and developing markets.

By System Type

“Industrial Systems are expected to remain the dominant system type of the market during the forecast period.”

Industrial EMS currently has the biggest share of the market, due to the complexity of operational needs amid the high energy consumption of manufacturing plants, refineries, and heavy industry. Industrial EMS is designed to address energy use at a large scale, report inefficient operations, and manage and optimize energy loads across multiple equipment and facilities.

At the same time, industries are looking to reduce their operational costs and achieve regulatory compliance related to energy efficiency. As a reaction to this, most of the EMS models offered are a result of demand-side management, predictive maintenance-type systems, and carbon tracking, and this is all primarily done in the industrial sector, which has a higher growth rate in volume and revenues.

By Development Mode Type

“Cloud development mode is expected to remain the dominant and fastest-growing segment of the market during the forecast period.”

Cloud-based EMS is becoming the fastest-growing deployment model because it provides the flexibility of scalability, lower investment for initial access, and remote access and software updates.  Cloud solutions can also integrate relevant technologies, such as the IoT and AI, and provide analytics in real time, and also enhance the user experience. 

On-premises deployments remain relevant to security-conscious environments, but cloud EMSs are expanding rapidly with SMEs and multi-site enterprises. Vendors are increasingly providing subscription-based models that are meant to introduce digital dashboards, meaning that cloud-based EMSs are more accessible, more affordable, and more able to respond to changing energy demands.

By End User Type

“Manufacturing & Industrial user is expected to remain the dominant segment in the market during the forecast period.”

Manufacturing and industrial environments are at the forefront of energy management system adoption, based on continuous operations, the amount of energy consumed, and the need to track energy performance in detail. Real-time optimization, load balancing, and equipment efficiencies make the industrial environment the biggest beneficiary of energy management systems (EMS).

Industries are adopting EMS to reduce wastage, ensure uptime, and achieve sustainability objectives while meeting ESG expectations and rising energy prices. Additionally, they have access to most energy efficiency programs that incentivize industrial use. This end-user category has the most significant contribution to EMS revenue and EMS deployment overall.

Regional Analysis

“North America is expected to remain the largest market for energy management systems during the forecast period.”

North America leads in the EMS market due to early adoption, relatively strict energy efficiency regulations, and the presence of key EMS vendors (e.g., Honeywell, GE, Johnson Controls). Increasing energy prices and the deployment of smart buildings across the region support market growth.

The region provides a strong foundation for EMS development with significant interest in developing smart grid infrastructure, a recent focus on digitalization, and green building initiatives like LEED and ENERGY STAR. Utility incentives and the need for corporate sustainability drive additional adoption, all of which have firmly established North America as to leader in EMS deployment.

Key Players

The market is moderately concentrated, with over 150 players. Most of the major players compete in some of the governing factors, including price, service offerings, regional presence, etc. The following are the key players in the energy management systems market.

Here is the list of the Top Players (Based on Dominance)

• ABB Ltd.
• Schneider Electric SE
• Siemens AG
• General Electric Company (GE Digital)
• Honeywell International Inc.
• Emerson Electric Co.
• Eaton Corporation PLC
• Cisco Systems, Inc.
• IBM Corporation
• Johnson Controls, Inc.

Note: The above list does not necessarily include all the top players in the market.

Are you the leading player in this market? We would love to include your name. Please write to us at [email protected]

Report Features

This report provides market intelligence most comprehensively. The report structure has been kept so that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market. The following are the key features of the report:

• Market structure: Overview, industry life cycle analysis, supply chain analysis.
• Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
• Market trend and forecast analysis.
• Market segment trend and forecast.
• Competitive landscape and dynamics: Market share, Service portfolio, New Product Launches, etc.
• COVID-19 impact and its recovery curve
• Attractive market segments and associated growth opportunities.
• Emerging trends.
• Strategic growth opportunities for the existing and new players.
• Key success factors.

The energy management systems market is segmented into the following categories. 

Energy Management Systems Market, by Component Type

• Hardware (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of World)
• Software (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of World)
• Services Displacement Pump (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of World)

Energy Management Systems Market by Systems Type

• Industrial (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of World)
• Building EMS (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of World)
• Home EMS (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of World)
• Utility EMS (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of World)

Energy Management Systems Market by Development Mode Type

• On-Premises (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of World)
• Cloud-Based (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of World)
• Hybrid (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of World)

Energy Management Systems Market by End User Type

• Manufacturing & Industrial (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of World)
• Commercial (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of World)
• Residential (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of World)
• Government & Municipal (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of World)
• Energy & Utilities (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of World)
• Transportation & Logistics (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of World)

Energy Management Systems Market by Region

• North America (Country Analysis: The USA, Canada, and Mexico)
• Europe (Country Analysis: Germany, France, The UK, Russia, and the Rest of Europe)
• Asia-Pacific (Country Analysis: Japan, China, India, and Rest of Asia-Pacific)
• Rest of the World (Country Analysis: Brazil, Saudi Arabia, and Others)

Research Methodology

• This strategic assessment report from Stratview Research provides a comprehensive analysis that reflects today’s energy management systems market realities and future market possibilities for the forecast period. 
• The report segments and analyzes the market in the most detailed manner in order to provide a panoramic view of the market.
• The vital data/information provided in the report can play a crucial role for market participants and investors in identifying the low-hanging fruit available in the market and formulating growth strategies to expedite their growth process.
• This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools.
• More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data.
• We conducted more than 15 detailed primary interviews with market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Report Customization Options

With this detailed report, Stratview Research offers one of the following free customization options to our respected clients:

Company Profiling

• Detailed profiling of additional market players (up to three players)
• SWOT analysis of key players (up to three players)

Competitive Benchmarking

• Benchmarking of key players on the following parameters: Service portfolio, geographical reach, regional presence, and strategic alliances

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