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.
- Getting It Right: Evaluating, Deploying EMIS Software
- Energy Efficiency Ratings: Benchmarks that Drive Excellence in Building Design & Operations
- Guide to Energy, Carbon and Environmental Software
- Integrated Building Optimization
- Trends in Energy Management: Where Should Your Next Investment Be?
- 6 Steps from Getting the Most From Every Lighting Retrofit
- The CFO and the Sustainability Reporting Chain
- 2014 Environmental Leader Product and Project Awards
- NAEM Research Report: Planning for a Sustainable Future
- What You Need to Know About Demand Charges
- 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
- Energy Procurement in 2014: Products & Programs to Optimize Savings
- BUYING STRATEGIES IN A VOLATILE MARKET: What Businesses Need to Know about Retail Electricity Procurement