The U.S. market for industrial energy management software and services will rise from $960 million in 2011 to $5.6 billion by 2020, a compound annual growth rate (CAGR) of 21.6 percent, according to a new report from Pike Research. The report predicts the services segment will represent the bulk of this growth, accounting for more than 85 percent of the total market during the forecast period.
Using close to one-third of all the energy consumed in the United States on an annual basis, with high price volatility and stiff global competition for market share, U.S. industries, the report suggests, are better understanding their energy consumption patterns and are adopting organizational capabilities to better manage its use. According to Pike Resesarch, energy management software and service offerings, along with new energy management standards and certification programs, have created a renewed focus on energy as a manageable input to the industrial process.
“Energy management has become not only a company-specific issue, but a national imperative as well,” says Pike Research President Clint Wheelock in a prepared statement. “There is a definite shift taking place in the way industrial companies view energy procurement and use internally, and how its management and use is perceived externally by the company’s customers and supply chain.”
Wheelock says that although it has been in existence for decades, the industrial energy management software and services market is evolving rapidly with technological advances and a growing knowledge base resulting from the increased availability of detailed information about industrial energy use. Pike Research’s analysis indicates that there are multiple market influences that will drive growth and demand for energy management software and services. The strongest drivers include the desire for industrial companies to understand and limit the variability and cost of their energy inputs, and to satisfy increasing sustainability demands from their supply chain partners, consumers, and other stakeholders.
An Executive Summary of Pike Research’s report, “Energy Management Systems for Industrial Markets,” which examines market trends in the U.S. for the period from 2011 through 2020, is available for free download on the firm’s website.