The Americas was the largest contributor to the energy management systems market with 37 percent of the total market value in 2015. The energy management systems market in the Americas is expected to reach $20 billion by 2020, growing at a CAGR of close to 16 percent.

Rising energy prices and a growing focus on demand response and energy efficiency have made energy management products compelling propositions for end users in the Americas. These users include commercial buildings, government institutions, and health care facilities. The U.S. was the largest revenue contributor in the region due to the implementation of several building energy codes, which has driven efficiency and cost savings. For instance, the energy codes helped save about $5 billion annually in energy costs in 2012, and provided 36 million tons of carbon savings in 2012.

Apart from the financial benefits, the need to meet government regulations is another major factor prompting the adoption of energy management systems.

The energy management systems market in Europe, the Middle East, and Africa (EMEA) is expected to exceed $19 billion by 2020, growing at a CAGR of more than 17 percent.

Increased awareness and rising anxieties about the use of energy by end users has contributed to the growth of the market in this region. According to the European Union (EU), buildings account for 40 percent of the energy consumption in the region. The EU’s drive toward achieving an energy-efficient future will fuel the need for energy management systems. The growing awareness of the need to save energy and the high appeal among businesses are contributing to the EU’s goal of achieving 20 percent efficiency by the year 2020. This has increased the adoption of energy efficiency measures such as energy audits, added insulation, energy management, and building control systems.

According to the new framework program of EU, Horizon 2020, a contractual Public Private Partnership (PPP) on energy-efficient buildings, will drive innovative, affordable building technologies and solutions. This should point the way toward the development of smart cities and the application of energy management systems. The European energy management standard EN16001 plays a crucial role in the implementation of these systems across various sectors. The standard ensures the integration of energy management systems into organizational business structures to save energy and costs and to improve business performance. The economic benefits combined with government support will provide the necessary impetus for market growth.

The Asia-Pacific (APAC) region is forecast to post a CAGR of close to 13 percent during the period of 2016 to 2020.

The energy management systems market in APAC is growing significantly because of new construction development in the commercial and industrial sectors (driven by the growing population and expansion in economic activities in the region). The growing construction sector has led to higher energy consumption, which coupled with rising energy prices, is contributing to high demand for energy management systems in these countries.

China, Japan, India, Singapore, and Australia are the main contributors to market growth in the region. Governments in these countries are also taking steps to improve energy efficiency in buildings. For instance, the Chinese Ministry of Housing and Urban-Rural Development has introduced a version of the Leadership in Energy and Environmental Design (LEED) standards, which has three levels of rating, and financial incentives are awarded to buildings with two- and three-star rating.

The launch of new energy efficiency programs has attracted investment in the hardware segment of the market in APAC. This will ultimately boost market growth during the forecast period.

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Publication date: 10/5/2016

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