Energy Management Market ‘to Almost Double’ by 2020
Worldwide spending on industrial energy management systems and services, including software components, will grow from $11.3 billion in 2013 to $22.4 billion in 2020, according to a study from Navigant Research.
That amounts to a compound annual growth rate of 10.3 percent, according to the report, titled Industrial Energy Management Systems. The North American market is the largest global region for IEMS revenues, but only by a slim margin over Europe.
With their global presence, extensive domain expertise, and established infrastructure to support long-term engagements, large original equipment manufacturers, such as Schneider Electric, Siemens, Invensys, and Rockwell Automation, have long been the leaders in this market, but the market is changing rapidly, according to the report. Major IT companies like SAP and IBM with expertise in handling large data sets and sophisticated real-time business analytics applications are making inroads, the report says.
Other smaller niche companies are also participating in the energy management systems market with unique product and service offerings, but these companies generally require partnering relationships with the larger, more established vendors in order to access the market, according to the report.
Although technology is advancing at a brisk pace, end-use clients may not be adapting as quickly. Many of the potential buyers of energy management systems are at a stage where they understand the benefits of implementing these systems, but prefer to utilize more basic technology and applications. This is due to resource constraints as well as the early stage of progress of understanding energy consumption and energy efficiency in which these companies find themselves, Navigant says.
More sophisticated energy management systems adopters are finding that the line between production and the corporate environment is blurring. Energy is now considered just another data source that can be combined with a host of other business intelligence to provide a more holistic and complete picture of overall business performance, the report says.
A report released in September last year by Pike Research found that the smart building energy management systems market is to almost quadruple in size and be worth over $1 billion by 2020. Worldwide spending on these services – which include data acquisition and analytics, as well as building maintenance contracts – will grow from $291 million in 2012 to $1.1 billion by 2020, the report, titled Smart Building Managed Services, says.
- Smart Companies Utilize Integrated Energy Solutions
- Six Essential Steps to Drive Effective Energy Management
- How to Use Lean Tools to Cash In On Environmental and Energy Savings
- Essential Guide to Lighting Retrofits and Upgrades
- Top 3 Reasons to Calculate Your Environmental Footprint
- Integrated Building Optimization
- Trends in Energy Management: Where Should Your Next Investment Be?
- Alarms Management: The Future is Now
- 2014 Insider Knowledge Report
- Mobility From The Plant Floor To The Store Door: Improve Safety, Accuracy, and Productivity
- Cut Costs and Improve Facility Operations with Energy Data
- Energy Procurement Strategies for Winter 2014 and 2015
- Energy Efficiency Requires Engineering Efficiency
- Integrated Building Optimization: A Crucial Convergence of Demand-side and Supply-Side Energy Management Strategies
- Driving Productivity and Profit with Industrial Energy Management