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.
Growth Drivers
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~17.20% |
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Base Year Market Size (2022) |
~ USD 39.61 Billion |
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Forecast Year Market Size (2035) |
~ USD 266.03 Billion |
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Regional Scope |
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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:
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By Applications |
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By Type |
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By Component |
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By End Users |
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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.
Author Credits: Payel Roy, Dhruv Bhatia
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