Energy Management Systems Market to Reach $58.59 Billion by 2022
Technological advancements coupled with rising commercialization of innovative products expected to fuel growth
SAN FRANCISCO — The global energy management systems (EMS) market was valued at $20.49 billion in 2014, and is forecast to grow at a compound annual growth rate (CAGR) exceeding 14 percent from 2015 to 2022, reaching $58.59 billion by 2022, according to a report from Grand View Research.
Technological advancements coupled with rising commercialization of innovative products are expected to fuel market growth. Increasing requirements for reliable and consistent information technology (IT) platforms to monitor, control, and optimize available energy sources are projected to boost growth.
Industrial energy management systems (IEMS) captured over 60 percent of the overall revenue, dominating the market in 2014. Infrastructure development across the globe has accounted for the rising demand from the power and electricity industry. This factor, in turn, has increased the popularity of IEMS which enables fuel consumption optimization and operating cost reduction. IEMS is anticipated to grow at an estimated CAGR of over 13 percent from 2015 to 2022.
Building energy management systems (BEMS) captured over 30 percent of the global demand in 2014 and is predicted to grow at an estimated CAGR of over 15 percent from 2015 to 2022 owing to the rising popularity of these systems in hospitals, telecom, business parks, and shopping complexes. Home energy management systems (HEMS) is expected to witness significant gains over the next six years owing to the rising spending for construction of green buildings and smart homes.
Sensors are widely used components, accounting for over 35 percent of the EMS component segment. Sensors help in real-time tracking of energy requirements, thereby helping to improve the efficiency of energy using systems. The industry is expected to grow at a CAGR of 12.5 percent from 2015 to 2022.
Energy management software accounted for 27.1 percent of the overall revenue in 2014 and is expected to register growth at a CAGR of 15.6 percent from 2015 to 2022. Software offers solutions to minimize costs as well as predict energy requirements.
The power and energy sector dominated the application verticals, contributing to over 40 percent of market share in 2014. It is expected to generate revenue of over $22.5 million by 2022.
EMS implementation in the health care application segment is expected to grow at a CAGR of 15.5 percent over the forecast period. The growing geriatric population and rising health concerns are a couple of the factors contributing to segment growth.
Increasing industrial development and the establishment of factories, business parks, warehouses, and shopping malls are contributing to the swift growth of the retail and offices application segment, growing at an estimated CAGR of 15 percent over the forecast period.
North America accounted for over 40 percent of the global revenue in 2014, dominating the EMS regional market, owing to favorable government initiatives. Government efforts in Europe and the need to reduce power losses in the region have contributed to EMS market growth, generating revenue of $6.09 billion in 2014.
Asia-Pacific is the fastest growing regional segment and is expected to witness growth at a CAGR of over 16 percent over the forecast period. This increase can be attributed to rapid industrialization and favorable initiatives started by governments of the emerging economies of this region.
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Publication date: 4/27/2016