Global Energy Management Systems Market Report 2020: Increasing Usage of Smart Grids and Smart Meters & Rising Investments in Energy Efficiency
DUBLIN, Dec. 9, 2020 /PRNewswire/ -- The "Energy Management Systems Market - Growth, Trends, Forecast (2020 - 2025)" report has been added to ResearchAndMarkets.com's offering.
The global energy management system market was valued at USD 8.48 billion in 2019, and it is forecasted to reach a value of USD 17.38 billion by 2025, reflecting a CAGR of 16.2% during the period, 2020 - 2025.
The increasing focus toward issues, such as managing energy consumption, optimizing the use for renewable energy sources, and reducing carbon footprint and greenhouse gas emissions, is creating a demand for EMS. Further, cloud services effectively minimize operational costs of software development and maintenance and direct the monetary costs, cost of time, and spent resources on maintaining the in-house IT professionals and infrastructure on gathering, storing, and analyzing energy data. Cloud services are an ongoing trend responsible for the growth of the market studied.
The increasing usage of smart grids and smart meters drives the market. With the increasing energy demand and aging electricity infrastructure, governments across the world are increasingly moving toward modernization of energy grids by adopting smart grid solutions. With various governments undertaking modernization drives to upgrade their power grid, the demand for energy efficiency solutions is increasing in the market. For instance, the Missouri Public Service Commission made a utility investment of USD 6.3 billion for grid modernization. This was taken up by Ameren, and the company finished about 900 projects as of February 2020.
Further, in order to tackle climate change and increase energy efficiency, the European Union set itself a target to ensure that 80% of EU consumers use smart meters by the end of 2020. North America is also observing significant growth in the adoption of smart metering solutions and smart grid investments. By the end of 2024, the adoption rate of smart meters in the region is expected to reach over 80% from around 60% in 2018. According to the Institute for Electric Efficiency, in December 2018, the number of smart meters installed in the United States stood at 90 million units.
Furthermore, rising investments in energy efficiency are driving the market. There are various vendors operating in the energy efficiency space that enable governments to adopt such solutions, and such enterprises are observing a growth in investments. For instance, in November 2019, the Asian Development Bank (ADB) approved a loan of USD 250 million, as a part of an assistance package to EESL, to expand its energy efficiency investments in India.
Moreover, Turkey's public and private sectors joined hands to invest over USD 10 billion in energy efficiency over the next ten years, according to the Turkish energy and natural resources ministry. The investment is expected to generate USD 30 billion in savings till 2033. Such developments are further augmenting the demand for EMS in the market.
Further, with the recent outbreak of COVID-19, the global residential power sector witnessed significant growth due to quarantines, while the industrial energy demand slumped significantly during the first quarter of 2020. According to the CEO of Wind Europe, due to the COVID-19 pandemic, the company is expected to witness delays in new wind farm projects, which can cause developers to miss the deployment deadlines in countries, auction systems and as a result, face financial penalties.
However, major power projects and government projects are expected to continue without any discrepancies, as such projects are critical national infrastructure. Thus, such projects are deemed essential. For instance, in April 2020, DEWA resumed the AED 1.5 billion grid modernization project, despite the COVID-19 outbreak.
Also, with the COVID-19 impact, multiple energy management software providers are extending their services. For instance, in May 2020, Honeywell launched an integrated set of solutions to help building owners improve the health of their building environments and energy efficiency. Such developments and services are expected to maintain a steady demand over the forecast period.
Key Market Trends
HEMS (Home EMS) to Experience Significant Growth
With the rapid improvements in technologies, like network communication, smart grid, bidirectional communication medium's, information infrastructures, energy conservation methodologies, and various techniques, home area networks (HANs) encountered a revolutionary change about multiple areas of power consumption domains, like energy conservation at consumption premises and electricity usage patterns.
Competitive Landscape
The energy management systems market is competitive and consists several major players. However, in terms of market share, few of the major players currently dominate the market. These major players, with a prominent share in the market, are focusing on expanding their customer bases across foreign countries. These companies are leveraging strategic collaborative initiatives to increase their market shares and profitability. The key players are IBM Corporation and Rockwell Automation Inc.
Key Topics Covered:
1 INTRODUCTION
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.3 Industry Value Chain Analysis
4.4 Introduction to Market Drivers and Restraints
4.5 Market Drivers
4.5.1 Increasing Usage of Smart Grids and Smart Meters
4.5.2 Rising Investments in Energy Efficiency
4.6 Market Restraints
4.6.1 High Initial Installation Costs Coupled with Maintenance Costs
4.7 Assessment of the Impact of COVID-19 on the Industry
5 MARKET SEGMENTATION
5.1 Type of EMS
5.1.1 BEMS
5.1.2 IEMS
5.1.3 HEMS
5.2 End User
5.2.1 Manufacturing
5.2.2 Power and Energy
5.2.3 IT and Telecommunication
5.2.4 Healthcare
5.2.5 Other End Users
5.3 Application
5.3.1 Energy Generation
5.3.2 Energy Transmission
5.3.3 Energy Monitoring
5.4 Component
5.4.1 Hardware
5.4.2 Software
5.4.3 Services
5.5 Geography
6 COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 IBM Corporation
6.1.2 Rockwell Automation Inc.
6.1.3 General Electric Co.
6.1.4 Schneider Electric SE
6.1.5 Cisco Systems Inc.
6.1.6 Tendril Networks Inc.
6.1.7 Eaton Corporation
6.1.8 EnerNOC Inc.
6.1.9 Elster Group GMBH
6.1.10 SAP SE
6.1.11 Siemens AG
6.1.12 Honeywell International Inc.
7 INVESTMENT ANALYSIS
8 MARKET OPPORTUNITIES AND FUTURE TRENDS
For more information about this report visit https://www.researchandmarkets.com/r/oli09y
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