According to a new report by Allied Market Research, ‘Energy Management Systems Market 2013-2020’, the global energy management systems (EMS) market is expected to reach $44.4 billion by 2020, registering a CAGR of 13.75% during 2014-2020.
The report indicates that the building energy management system (BEMS) market is expected to grow swiftly, driving the market significantly by the year 2020.
In certain economies like Europe, government provides support and subsidies to encourage the adoption of home energy management systems (HEMS). The need for energy efficiency and government regulations will play a large part in driving the global EMS market.
The report reveals that Asia-Pacific is forecast to be one of the most lucrative markets, in terms of growth given the economy is evolving rapidly. The study analyzed the US, Europe, Asia-Pacific and Latin America.
Industrial energy management will see fastest growth
Among all types of EMSs, including those in the home, buildings and industrial sectors, industrial energy management systems will see the fastest growth. The adoption of BEMS on this sector is expected to increase rapidly due to its varied application in verticals namely, healthcare, telecom and IT, educational institutions and universities and commercial building like shopping malls, offices, etc. In addition, rapid growth is expected in BEMS due to the implementation of new smart technologies and new business models by these establishments.
Currently, IEMS is the largest revenue generating segment of the EMS market and should continue to be the same by 2020, given its high product, installation and maintenance cost. IEMS is expected to grow at the fastest CAGR during 2014-2020, contributing over half of the total market revenue by 2020.
Innovation, acquisition and partnerships
Market growth is attributed mainly to innovation in energy management and monitoring solutions along with a rising demand from the manufacturing sector, power and energy and enterprises.
The incorporation of big data and analytics has opened scope of technological advancements in better management and allocation of energy. This has transformed the market and is expected to be a crucial part of EMS in the years to come.
In order to gain a higher market share, energy management firms are adopting acquisition/partnerships as key strategies. Companies such as Schneider, GridPoint and Elster, etc. have collaborated with different industry experts to get access to the market as well as technologies of each other.