WELLESLEY, Mass. — In 2011, the U.S. accounted for slightly more than half of the global energy management information systems (EMIS) market of about $62 billion. BCC Research reveals the U.S. market share dropped to about 48 percent in 2014, reflecting a downward trend projected to reach about 40.4 percent by 2020. Meanwhile, the European and Asia-Pacific markets should see market share gains.
The global EMIS market is projected to register $59.9 billion in 2015, and, with a five-year compound annual growth rate (CAGR) of 3.8 percent, should reach $72.1 billion in 2020. The U.S. has the slowest growth rate (0.8 percent) of any major market during the forecast period, while the European and Asia-Pacific markets are projected to grow at CAGRs of 4.7 percent and 7.4 percent, respectively. Meanwhile, other countries, combined, are projected to grow at a CAGR of 4.5 percent.
Globally, the economic environment can be described as gradually recovering from the 2008 and 2009 recession, which led to a decline in building and other related investments, such as EMIS. The overall economic slowdown initially helped to put the brakes on rising energy consumption. As a result, energy prices leveled off or even declined slightly in some cases.
Stable or declining energy prices diminished the economic incentives to invest in EMIS. However, by 2014, U.S. prices of most forms of energy, except natural gas, had risen above prerecession levels. As a result, the U.S. share of the global EMIS market is projected to decline to 40.4 percent by 2020. Meanwhile, the Asia-Pacific market is projected to increase its global market share from 26.6 percent in 2014 to 32.6 percent in 2020 and the E.U. from 17 percent to 18 percent.
“The impact of the recession on electricity consumption was felt most keenly in the industrial sector,” said Andrew McWilliams, research analyst, BBC Research & Consulting. “Electricity demand in the residential and commercial sectors is less sensitive to changing economic conditions than it is in the industrial sector. This disparity arises because people generally continue to consume electricity for space heating and cooling, cooking, refrigeration, lighting, and heating water, even in a recession.”
Publication date: 7/6/2015