The global energy management system market is projected to grow from $10.55 billion in 2020 to $30.15 billion by 2025, at a CAGR of 23.37% from 2020 to 2025. The growth in the energy management system market is expected to be driven by the increasing demand for energy conservation and environmental safety, the evolution of smart grid, and favorable government policies and incentive programs.
Read Report Overview: Energy Management System Market
The energy management system has garnered adoption in commercial sectors across various business organizations. Catering to the commercial end users, the growth in the adoption of energy management system is due to the increase in the energy cost applicable to commercial facilities due to high electricity consuming devices such as commercial transformers, DG sets, data centers, and HVAC systems.
The use of energy management systems has helped the residential consumers to analyze a set of data collected from sensors planted at the site. The energy management system has been adapted to not only improve the operational performance but also ensure a secure living environment for the end users.
Impact of COVID-19 on Global Energy Management System Industry
In 2020, the energy management system market is expected to experience a downfall of 9.20% from $11.62 billion in 2019 due to the COVID-19 pandemic, as energy consumption has reduced from commercial and industrial consumers in the first quarter of the year. With the lockdown being imposed in most parts across the world, there has been a drop in global energy demand as the energy consumption was majorly at the residential consumers, which is expected to impact the global energy management system market for this particular year. However, the growth of the energy management system market has been reviving from Q3 2020 once the operational activities regained normalcy with reduction in operational restrictions. The increasing operational activities and escalating electricity demand would allow the industrialized world and the business organizations to adopt energy management practices to meet the global electricity demand, without any blackouts.
Regional Market Dynamics
The energy management system market holds a prominent share in various countries of North America, Europe, Asia-Pacific and Japan, and the Middle East and Africa. North America is at the forefront of the global energy management system market, with a high market penetration rate in the U.S., Canada, and others, which are expected to display robust market growth in the coming five years.
During the forecast period, the Asia-Pacific and Japan region is expected to flourish as one of the most lucrative markets for energy management systems. The Asia-Pacific and Japan region is expected to exhibit significant growth opportunities for energy management system due to the increasing industrialization, which has led to increased energy consumption in countries such as Japan, South Korea, and India, thereby increasing the adoption of energy management system across organizations.
The competitive landscape of the energy management system market consists of different strategies undertaken by major players across the industry to gain market presence. Some of the strategies adopted by the energy management system providers are partnerships, and collaborations, new product launches, and business expansions. Among all the strategies adopted, partnerships and collaborations have been the most prominent strategy adopted by the energy management system providers. For instance, in June 2020, Zen Ecosystems and Ferguson HVAC partnered to provide intelligent energy management solution for solving commercial challenges of energy management. Additionally, in August 2020, Schneider Electric and Cisco collaborated on developing, testing and validating designs that help connect building management systems to an IP network that is easier to manage and is more scalable.
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Most of the energy management system providers have numerous tie-ups with various power utilities and other technology providers. The industry landscape is quite competitive because of the market dominance of the few players in the market. Therefore, innovation and development have been the key factors for large scale growth in this market. To increase their overall global footprint, the energy management system providers are entering into strategic partnerships and expanding their businesses to increase their customer base.