Energy Management System Market Worth $58.59 Billion by 2022
Industrial energy management is largest segment; home energy management to see highest growth
SAN FRANCISCO — The global energy management system (EMS) market is expected to reach $58.59 billion by 2022, growing at a compound annual growth rate (CAGR) of 14.3 percent, according to a new report by Grand View Research. The demand for energy efficiency and optimization are the keys driving adoption of energy management solutions. International standardization along with favorable government initiatives promoting energy management in the commercial and industrial sectors are expected to remain important factors enhancing demand.
Technological advancements such as development of user-friendly programming platforms have enabled hassle-free operation and maintenance of these systems. Additionally, development of innovative technologies to install remote sensors in HVAC and lighting system applications for real-time monitoring and control is expected to create new avenues for growth. On the other hand, high capital cost and long payback period are expected pose challenges for the market.
The largest segment of the market is industrial energy management systems (IEMS), accounting for over 60 percent of total revenue in 2014. High installation and maintenance cost are expected to hinder growth over the forecast period. Home energy management systems (HEMS) are anticipated to witness the highest growth over the forecast period. Increasing construction of smart homes and green buildings especially in the developed economies of the U.S., UK, and Germany are expected to contribute high growth in the segment over the forecast period.
Sensor EMS market components dominated the industry and generated revenue worth $7.24 billion in 2014. Software is expected to emerge as the fastest growing component segment at an estimated CAGR of 16.3 percent from 2015 to 2022.
The power and energy sector contributed the majority of the revenue generated in 2014 and is expected to maintain its dominance over the forecast period to reach a net worth of $22.57 million by 2022, at an estimated CAGR of over 13.5 percent from 2015 to 2022. EMS implementation in health care is anticipated to grow at an estimated CAGR of 15.5 percent over the next seven years.
The commercial sector accounts for over 80 percent of the total installations and is expected to lose share to the residential sector over the next seven years. Implementation of various new government legislation to promote energy management and control and green building construction initiatives in the UK, Germany, and the U.S. are anticipated to create lucrative opportunities for industry participants to invest in the residential sector.
North America was the leading regional market and accounted for over 40 percent of total market revenue in 2014. Asia Pacific is projected to see the highest growth with regional revenue expected to exceed $13 billion by 2022. Rapid industrialization and the improving energy infrastructure in China, India, and Indonesia are expected to drive the regional market over the next seven years.
More information is available here.
Publication date: 1/12/2016