The global Energy Management System (EMS) market is expected to reach $44.4 billion by 2020, registering a CAGR of 13.75 percent during 2014 to 2020, according to a new report by Allied Market Research.
Building Energy Management System (BEMS) is expected to grow swiftly and would drive the market significantly by the year 2020, says the report, “Energy Management Systems Market.” In certain economies like Europe, government provides support and subsidies to encourage adoption of Home Energy Management System (HEMS), hence its demand is expected grow, thereby contributing to the total market size.
Among all types of EMS which include HEMS, BEMS, Industrial Energy Management System (IEMS), the adoption of BEMS is expected to increase rapidly due to its varied application in verticals namely, healthcare, telecom and IT, educational institutions and universities and commercial building like shopping malls, offices etc.
Presently, IEMS is the largest revenue-generating segment of the EMS market and would continue to be the same by 2020, given its high product, installation and maintenance cost. The incorporation of Big Data and analytics has opened scope of technological advancements in better management and allocation of energy. This has transformed the market and is expected to be a crucial component of EMS in the coming years.
Key findings of the study:
- Global market for EMS would grow due to increased adoption across key sectors such as Power and Energy, Manufacturing, Telecom and IT, Healthcare and Commercial Enterprises during the forecast period (2014–2020)
- IEMS would grow at the fastest CAGR during 2014 to 2020, contributing over half of the total market revenue by 2020
- The need for energy efficiency and government regulations would continue to drive the global EMS market over the analysis period
- Rapid growth is expected in the BEMS market, as the implementation of smart technologies and new business models by the existing as well as emerging participants is prevalent
- Asia-Pacific is forecasted to be one of the most lucrative markets, in terms of growth given the economy is evolving rapidly
The market growth is attributed to innovation in energy management and monitoring along with rising demand from manufacturing sector, power and energy and enterprises.
In order to gain a higher market share, in addition to the production launches, companies are adopting acquisition/ partnership as key strategies. Companies such as Schneider, GridPoint and Elster etc. have collaborated with different industry experts to get access to the market as well as technologies of each other. Prominent companies profiled in the report include Schneider Electric, Siemens AG, Honeywell International Inc., Elster Energy, Johnson Controls Inc., Gridpoint Inc., C3 Energy and GE.
For more information on the report, go here.