Energy Management Systems Global Market Report 2024

The energy management systems market size has grown rapidly in recent years. It will grow from $49.88 billion in 2023 to $57.65 billion in 2024 at a compound annual growth rate (CAGR) of 15.6%. The growth observed in the historical period can be attributed to energy cost savings, environmental sustainability, regulatory compliance, operational efficiency, and corporate social responsibility.

The energy management systems market size is expected to see rapid growth in the next few years. It will grow to $106.3 billion in 2028 at a compound annual growth rate (CAGR) of 16.5%. The anticipated growth in the forecast period can be attributed to renewable energy integration, resilience planning, demand response initiatives, economic trends, and the increasing focus on net-zero goals. Major trends in the forecast period include blockchain for energy transactions, advanced energy analytics and visualization, integration of the Internet of Things (IoT), regulatory compliance, and sustainability reporting, along with 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 stand out as a prominent trend gaining traction in the energy management systems market. Major companies within this market are actively pursuing innovative technologies to maintain and strengthen their positions. For instance, in May 2021, Robert Bosch Engineering and Business Solutions (RBEI), a Germany-based IT service management company, introduced the Phantom Edge platform. Leveraging AIoT (Artificial Intelligence of Things), this platform facilitates real-time monitoring of electrical energy consumption, operating usage, electrical parameters, and appliance-level information. The versatility of the Phantom Edge platform extends its application to real-time energy monitoring in various sectors, including retail, residential, healthcare, agriculture, and commercial domains. This example underscores the pivotal role of technological advancements in shaping the landscape of the energy management systems market.

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 report are 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 2023. 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 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 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 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.


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