IEMS Revenue to Reach $35.6B by 2024
The industrial energy management system (IEMS) market is expected to grow from $13.5 billion in 2015 to $35.6 billion in 2024, according to a new report from Navigant Research. Increasing customer demand for IEMS software and services will cause this market will grow aggressively during the next decade.
The North American and European markets are expected to continue to lead the market in terms of revenue, while Asia Pacific is expected to experience the fastest growth.
In the West, emerging climate change regulations will help to increase customer awareness of the business benefits of energy management. The European Union (EU) will continue to pressure industrial customers to improve energy efficiency and reduce greenhouse gas emissions under the regulatory framework of the EU Emissions Trading Scheme (EU ETS) and Energy Efficiency Directive (EED).
In North America, regulatory drivers are expected to have a less direct impact on the market; however, the mid- and long-term impacts of the EPA’s Clean Power Plan in the United States are expected to accelerate interest and financial support of energy efficiency investment in the industrial segment.
Corporate commitments to sustainability and climate change mitigation are also expected bolster opportunities for IEMS vendors in the West.
In Asia Pacific, IEMS vendors will see continued growth in Japan and Australia as customers focus on corporate energy management and climate change commitments. In China, the rapidly growing market presents opportunity for IEMSs based on its sheer size. The economic and operational efficiency benefits of IEMSs provide a strong business case for customers in China.
In 2013, Navigant projected that the IEMS market would almost double by 2020.
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