According to the latest report published by Future Market Insights (FMI), the global energy management system (EMS) market, which is currently valued at $6.3 million is projected to reach $21.6 million by 2025. In terms of revenue, the market is expected to reflect 14.8% CAGR between 2017 and 2025.
The report also cites that the increasing demand for energy management solutions to reduce energy consumption — coupled with the growing pressure to adopt sustainable energy solutions in industrial and commercial sectors — is supporting the growth of the global energy management system market.
Moreover, factors such as augmented energy prices, new regulatory guidelines related to energy management and growing concerns over environmental sustainability are fueling the demand for energy management systems worldwide.
Owing to its technological superiority, preference for cloud-based EMS deployment is expected to grow higher as compared to on-premise EMS deployment over the forecast period.
In 2016, deployments of EMS in the oil and gas industry itself accounted for more than 27% revenue share of the global market. Use of EMS in the oil and gas industry is expected to remain robust in 2017 and beyond.
Meanwhile, demand for EMS has grown exponentially in the building automation sector. Towards the end of the forecast period, the sector is expected to account for a sizeable contribution to the growth of the global EMS market.
Amongst all the regions, the energy management market in Asia-Pacific is projected to witness a higher growth rate as compared to other markets, reflecting a CAGR of 17.2% during the forecast period. The region embraces some of the fastest emerging economies in the world, which include India and China, along with developed economies such as Japan, Australia and South Korea.
Further, Asia Pacific holds the top position in the world when it comes to volume consumption of energy, which is expected to increase even higher over the next couple of years. North America and Europe are the other two regions with great significance to the global market.
In terms of revenue, both the regions collectively accounted for more than 60% share of the global market in 2016. In addition, the market in North America was valued at $2.4 million in 2015 and accounted for 38.3% of the global market revenue share. Also, the region is likely to remain dominant over 2025, capturing a revenue share of 33.6% of the overall market.
The ever-increasing application of cloud-based technology is expected to create new business opportunities for EMS developers. EMS developers are laying emphasis on developing advanced systems that can be updated and upgraded in real-time, thereby allowing users to utilize the data more efficiently.
IBM Corporation, C.A Technologies, Eaton Corporation PLC, Cisco Systems, Inc., Siemens AG, Honeywell International Inc., Asea Brown Boveri (ABB) Ltd., General Electric Company, Emerson Electric Co. and Schneider Electric are amongst some of the top companies that develop energy management systems.
Vendors mentioned in this article include: