An energy management system involves implementing a systematic approach to energy efficiency and is superior to ad hoc or traditional project-based approaches to improving energy performance. Typically, energy management systems combine best practices in project management, energy monitoring, and energy awareness along with an energy policy that governs an organization’s approach towards energy use and performance.
This benefits an organization by enabling significant energy savings that are persistent since the organization’s personnel must continually monitor energy use and resolve anomalies or incidents that cause energy waste. Organizations that decide to adopt ISO 50001 will develop a special type of energy management system that not only yields these benefits, but also generates additional gains for the organization. In a relatively short time since its publication, ISO 50001 has become the internationally recognized standard for implementing a strategic and systematic energy management system with proven energy utilization and energy cost savings.
The energy management systems provide significant improvement of the energy performance level from an initial energy baseline. They guide with a systematic approach (plan-do-check and act), which leads to continuous energy efficiency improvement. Also, they develop a policy for an efficient use of energy and sustains efficiency overall project return on investments as well as generate data to better understand and make decisions concerning energy consumption.
The energy management systems measure and review the results of energy efficiency improvements. The energy management systems help to structure the energy policy of the company, which supports the development of an energy policy and contributes to the structure of an energy plan to achieve targets. The energy management systems also facilitate engagement (commitment and agreement) of management and have a positive contribution towards the energy targets.
The energy management system creates awareness and a commitment about energy, i.e., consumption, use, efficiency, and renewable sources within the organization. The energy management system improves the ability of organizations to manage energy risks and their possible impacts in an efficient way, and strengthens the competitiveness of organizations and reduces their vulnerability with respect to energy price fluctuation and availability of energy.
The energy management system allows organizations to gain credible external visibility of energy-saving actions. And provides a better understanding between predictable energy demand and supply. In addition, implementing energy management systems yields significant benefits beyond energy and energy cost savings. Early adoption experiences have shown that conformance with the standard results in some non-energy benefits such as greater productivity and lower maintenance needs.
In many cases, significant energy and energy cost savings were achieved with minimal or no capital investment. This is because ISO 50001 fosters a change in culture that engages and empowers employees to identify and address energy-saving opportunities as they materialize. Then, by continuously monitoring and improving energy efficiency, companies achieve persistence in energy savings.
However, the company enjoys additional market value from conforming to an internationally recognized standard such as ISO 50001. By certifying to ISO 50001, companies and organizations can demonstrate their commitment to sustainability to their customers, employees, investors and regulators. In doing so, the companies and organizations can gain a competitive advantage in the marketplace by proving themselves as good corporate citizens. This can help enhance their brand, which directly supports their marketing strategy.
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In addition, adoption of energy management systems confers credibility and structure to new or previously existing corporate energy management initiatives within an organization. This facilitates progress towards environmental and sustainability objectives and can help companies to encourage energy efficiency within their supply chains. The standard can also help organizations be better prepared for government- or utility-sponsored energy efficiency programs, carbon or energy taxes, and international climate agreements. For multinational companies this can greatly simplify compliance with environmental mandates across national borders since the certifications is internationally recognized.
The energy management system market was valued at US$ 6,340.0 Million in 2016 and is expected to expand at a CAGR of 14.8% during the forecast period (2017 to 2025). The demand for energy management system is expected to be driven by advanced technology such as cloud and big data during the forecast period. Increasing demand for robust management system and analytics is expected to ensure efficient compliance for regulatory purpose over the forecast period, which is in turn expected to drive the growth of the energy management system market.
The energy management system market is classified on the basis of deployment, vertical and software. On the basis of deployment, the energy management system market is segmented as on-premise and cloud-based. The on-premise sub-segment was valued US$ 3,931.8 Million in 2016. However, the cloud-based sub-segment is projected to register a high CAGR of 18.9% growth during the forecast period.
On the basis of vertical, the energy management system market is segmented into automotive, building automation, oil and gas, manufacturing, pharmaceutical, utilities and energy and others. The oil and gas sub-segment accounted a high market share and was valued at US$ 1,727.7 Million in 2016 and registered a CAGR of 15.3%.
On the basis of software, the energy management system market is segmented into utility energy management, industrial energy management, enterprise carbon and energy management and residential energy management. The enterprise carbon and energy management segment accounted a high market share and was valued at US$ 2,257.0 Million in 2016 and registered a CAGR of 17.0%.
Among the regions, North America accounted a large share of 38.3% in the global energy management system market in 2016. Asia Pacific is expected to have a high CAGR of 17.2% during the forecast period.
Examples of some of the top companies identified across the energy management system value chain are International Business Machines Corporation, C.A Technologies, Schneider Electric SE, Eaton Corporation PLC, Cisco Systems, Inc., Siemens AG, Honeywell International, Inc., Asea Brown Boveri (ABB) Ltd., General Electric Company, and Emerson Electric Co.
Traditionally, there were limited IT applications in the market for environment, safety, risk, and product stewardship. Organizations used internal solutions or adopted point solutions, which could not be integrated with other applications.
However, with growing complexity and stringent regulatory environments, homegrown IT and the various solutions that were initially developed for energy management and associated tasks, were unable to provide the desired results.
Dedicated energy management software in conjunction/combination with advanced technology is playing a pivotal role in addressing the energy management needs. These services include resource management, waste management, reporting and compliance, and supply chain sustainability. Demand for such robust management systems to ensure efficient compliance for regulatory purposes, which vary across geographies, has been witnessing an upsurge recently.
Enterprises utilize sustainability related data to transform products, processes, and related practices, and integrate sustainability into each stage of their business operations. Vendors are looking to capitalize on the adoption of these advanced technologies to offer visibility of environmental and sustainability related data, which in turn is driving growth of the market for sustainability and energy management solutions.
Principal Consultant
Traditionally, there were limited IT applications in the market for environment, safety, risk, and product stewardship. Organizations used internal solutions or adopted point solutions, which could not be integrated with other applications.
However, with growing complexity and stringent regulatory environments, homegrown IT and the various solutions that were initially developed for energy management and associated tasks, were unable to provide the desired results.
Dedicated energy management software in conjunction/combination with advanced technology is playing a pivotal role in addressing the energy management needs. These services include resource management, waste management, reporting and compliance, and supply chain sustainability. Demand for such robust management systems to ensure efficient compliance for regulatory purposes, which vary across geographies, has been witnessing an upsurge recently.
Enterprises utilize sustainability related data to transform products, processes, and related practices, and integrate sustainability into each stage of their business operations. Vendors are looking to capitalize on the adoption of these advanced technologies to offer visibility of environmental and sustainability related data, which in turn is driving growth of the market for sustainability and energy management solutions.
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The energy management system market is likely to secure a CAGR of 16.2% through 2032.
The energy management system market size is estimated to cross US$ 48.87 Bn by 2032.
The energy management system market is likely to record a value of US$ 42.06 Bn in 2022.
Asia Pacific is likely to lead the energy management system market.
1. Market - Executive Summary
2. Assumptions & Acronyms Used
3. Research Methodology
4. Market Overview
4.1. Introduction
4.1.1. Market Definition
4.1.2. Market Taxonomy
4.2. Evolution of Energy Management Systems
4.3. Market Dynamics
4.3.1. Drivers
4.3.2. Restraints
4.3.3. Opportunity
4.3.4. Trends
4.4. Value Chain Analysis
5. Global Market Forecast, 2016-2024
5.1. Market Size (Value) Forecast
5.1.1. Y-o-Y Growth Projections
5.1.2. Absolute $ Opportunity
5.2. Global Market Snapshot (2015)
5.2.1. Market Share By Deployment
5.2.2. Market Share By Vertical
5.2.3. Market Share By Software
5.2.4. Market Share By Region
6. Global Market Analysis, By Deployment
6.1. Introduction
6.1.1. Y-o-Y Growth Comparison, By Deployment
6.1.2. Basis Point Share (BPS) Analysis, By Deployment
6.2. Market Forecast By Deployment
6.2.1. Cloud Based
6.2.1.1. Absolute $ Opportunity
6.2.1.2. Market Value Forecast
6.2.2. On Premise
6.2.2.1. Absolute $ Opportunity
6.2.2.2. Market Value Forecast
6.2.3. Market Attractiveness Analysis, By Deployment
7. Global Market Analysis, By Vertical
7.1. Introduction
7.1.1. Y-o-Y Growth Comparison, By Vertical
7.1.2. Basis Point Share (BPS) Analysis, By Vertical
7.2. Market Forecast By Vertical
7.2.1. Automotive
7.2.1.1. Absolute $ Opportunity
7.2.1.2. Market Value Forecast
7.2.2. Building Automation
7.2.2.1. Absolute $ Opportunity
7.2.2.2. Market Value Forecast
7.2.3. Oil & Gas
7.2.3.1. Absolute $ Opportunity
7.2.3.2. Market Value Forecast
7.2.4. Manufacturing
7.2.4.1. Absolute $ Opportunity
7.2.4.2. Market Value Forecast
7.2.5. Pharmaceutical
7.2.5.1. Absolute $ Opportunity
7.2.5.2. Market Value Forecast
7.2.6. Utilities & Energy
7.2.6.1. Absolute $ Opportunity
7.2.6.2. Market Value Forecast
7.2.7. Others
7.2.7.1. Absolute $ Opportunity
7.2.7.2. Market Value Forecast
7.2.8. Market Attractiveness Analysis, By Vertical
8. Global Market Analysis, By Software
8.1. Introduction
8.1.1. Y-o-Y Growth Comparison, By Software
8.1.2. Basis Point Share (BPS) Analysis, By Software
8.2. Market Forecast By Software
8.2.1. Utility Energy Management
8.2.1.1. Absolute $ Opportunity
8.2.1.2. Market Value Forecast
8.2.2. Industrial Energy Management
8.2.2.1. Absolute $ Opportunity
8.2.2.2. Market Value Forecast
8.2.3. Enterprise Carbon & Energy Management
8.2.3.1. Absolute $ Opportunity
8.2.3.2. Market Value Forecast
8.2.4. Residential Energy Management
8.2.4.1. Absolute $ Opportunity
8.2.4.2. Market Value Forecast
8.2.5. Market Attractiveness Analysis, By Software
9. Global Market Analysis, By Region
9.1. Introduction
9.1.1. Y-o-Y Growth Projections, By Region
9.1.2. Basis Point Share (BPS) Analysis, By Region
9.2. Market Forecast By Region
9.2.1. North America Market Value Forecast
9.2.2. Latin America Market Value Forecast
9.2.3. Asia Pacific Market Value Forecast
9.2.4. Europe Market Value Forecast
9.2.5. Middle East & Africa Market Value Forecast
9.3. Regional Attractiveness Analysis
10. North America Market Analysis
10.1. Introduction
10.1.1. Y-o-Y Growth Projections, By Country
10.1.2. Basis Point Share (BPS) Analysis, By Country
10.2. North America Market Forecast
10.2.1. Market Value Forecast By Country
10.2.1.1. S. Absolute $ Opportunity
10.2.1.2. Canada Absolute $ Opportunity
10.2.2. Market Value Forecast By Deployment
10.2.2.1. Cloud Based
10.2.2.2. On Premise
10.2.3. Market Value Forecast By Vertical
10.2.3.1. Automotive
10.2.3.2. Building Automation
10.2.3.3. Oil & Gas
10.2.3.4. Manufacturing
10.2.3.5. Pharmaceutical
10.2.3.6. Utilities & Energy
10.2.3.7. Others
10.2.4. Market Value Forecast By Software
10.2.4.1. Utility Energy Management
10.2.4.2. Industrial Energy Management
10.2.4.3. Enterprise Carbon & Energy Management
10.2.4.4. Residential Energy Management
10.2.5. Market Attractiveness Analysis
10.2.5.1. By Country
10.2.5.2. By Deployment
10.2.5.3. By Vertical
10.2.5.4. By Software
10.2.6. Drivers & Restraints: Impact Analysis
11. Latin America Market Analysis
11.1. Introduction
11.1.1. Y-o-Y Growth Projections, By Country
11.1.2. Basis Point Share (BPS) Analysis, By Country
11.2. Latin America Market Forecast
11.2.1. Market Value Forecast By Country
11.2.1.1. Argentina Absolute $ Opportunity
11.2.1.2. Mexico Absolute $ Opportunity
11.2.1.3. Brazil Absolute $ Opportunity
11.2.1.4. Rest of LATAM Absolute $ Opportunity
11.2.2. Market Value Forecast By Deployment
11.2.2.1. Cloud Based
11.2.2.2. On Premise
11.2.3. Market Value Forecast By Vertical
11.2.3.1. Automotive
11.2.3.2. Building Automation
11.2.3.3. Oil & Gas
11.2.3.4. Manufacturing
11.2.3.5. Pharmaceutical
11.2.3.6. Utilities & Energy
11.2.3.7. Others
11.2.4. Market Value Forecast By Software
11.2.4.1. Utility Energy Management
11.2.4.2. Industrial Energy Management
11.2.4.3. Enterprise Carbon & Energy Management
11.2.4.4. Residential Energy Management
11.2.5. Market Attractiveness Analysis
11.2.5.1. By Country
11.2.5.2. By Deployment
11.2.5.3. By Vertical
11.2.5.4. By Software
11.2.6. Drivers & Restraints: Impact Analysis
12. Asia Pacific Market Analysis
12.1. Introduction
12.1.1. Y-o-Y Growth Projections, By Country
12.1.2. Basis Point Share (BPS) Analysis, By Country / Region
12.2. Asia Pacific Market Forecast
12.2.1. Market Value Forecast By Country/Region
12.2.1.1. China Absolute $ Opportunity
12.2.1.2. India Absolute $ Opportunity
12.2.1.3. Japan Absolute $ Opportunity
12.2.1.4. ASEAN Absolute $ Opportunity
12.2.1.5. ANZ Absolute $ Opportunity
12.2.1.6. Rest of Asia Pacific Absolute $ Opportunity
12.2.2. Market Value Forecast By Deployment
12.2.2.1. Cloud Based
12.2.2.2. On Premise
12.2.3. Market Value Forecast By Vertical
12.2.3.1. Automotive
12.2.3.2. Building Automation
12.2.3.3. Oil & Gas
12.2.3.4. Manufacturing
12.2.3.5. Pharmaceutical
12.2.3.6. Utilities & Energy
12.2.3.7. Others
12.2.4. Market Value Forecast By Software
12.2.4.1. Utility Energy Management
12.2.4.2. Industrial Energy Management
12.2.4.3. Enterprise Carbon & Energy Management
12.2.4.4. Residential Energy Management
12.2.5. Market Attractiveness Analysis
12.2.5.1. By Country
12.2.5.2. By Deployment
12.2.5.3. By Vertical
12.2.5.4. By Software
12.2.6. Drivers & Restraints: Impact Analysis
13. Europe Market Analysis
13.1. Introduction
13.1.1. Y-o-Y Growth Projections, By Country / Region
13.1.2. Basis Point Share (BPS) Analysis, By Country / Region
13.2. Europe Market Forecast
13.2.1. Market Value Forecast By Country/Region
13.2.1.1. Germany Absolute $ Opportunity
13.2.1.2. France Absolute $ Opportunity
13.2.1.3. K. Absolute $ Opportunity
13.2.1.4. Spain Absolute $ Opportunity
13.2.1.5. Italy Absolute $ Opportunity
13.2.1.6. Russia Absolute $ Opportunity
13.2.1.7. Poland Absolute $ Opportunity
13.2.1.8. Nordic Absolute $ Opportunity
13.2.1.9. Benelux Absolute $ Opportunity
13.2.1.10. Rest of Europe Absolute $ Opportunity
13.2.2. Market Value Forecast By Deployment
13.2.2.1. Cloud Based
13.2.2.2. On Premise
13.2.3. Market Value Forecast By Vertical
13.2.3.1. Automotive
13.2.3.2. Building Automation
13.2.3.3. Oil & Gas
13.2.3.4. Manufacturing
13.2.3.5. Pharmaceutical
13.2.3.6. Utilities & Energy
13.2.3.7. Others
13.2.4. Market Value Forecast By Software
13.2.4.1. Utility Energy Management
13.2.4.2. Industrial Energy Management
13.2.4.3. Enterprise Carbon & Energy Management
13.2.4.4. Residential Energy Management
13.2.5. Market Attractiveness Analysis
13.2.5.1. By Country
13.2.5.2. By Deployment
13.2.5.3. By Vertical
13.2.5.4. By Software
13.2.6. Drivers & Restraints: Impact Analysis
14. Middle East & Africa Market Analysis
14.1. Introduction
14.1.1. Y-o-Y Growth Projections, By Country / Region
14.1.2. Basis Point Share (BPS) Analysis, By Country / Region
14.2. Middle East & Africa Market Forecast
14.2.1. Market Value Forecast By Country/Region
14.2.1.1. GCC Absolute $ Opportunity
14.2.2. Africa Absolute $ Opportunity
14.2.2.1. Africa Absolute $ Opportunity
14.2.2.2. Rest of MEA Absolute $ Opportunity
14.2.3. Market Value Forecast By Deployment
14.2.3.1. Cloud Based
14.2.3.2. On Premise
14.2.4. Market Value Forecast By Vertical
14.2.4.1. Automotive
14.2.4.2. Building Automation
14.2.4.3. Oil & Gas
14.2.4.4. Manufacturing
14.2.4.5. Pharmaceutical
14.2.4.6. Utilities & Energy
14.2.4.7. Others
14.2.5. Market Value Forecast By Software
14.2.5.1. Utility Energy Management
14.2.5.2. Industrial Energy Management
14.2.5.3. Enterprise Carbon & Energy Management
14.2.5.4. Residential Energy Management
14.2.6. Market Attractiveness Analysis
14.2.6.1. By Country
14.2.6.2. By Deployment
14.2.6.3. By Vertical
14.2.6.4. By Software
14.2.7. Drivers & Restraints: Impact Analysis
15. Competition Landscape
15.1. Competition Dashboard
15.2. Market Structure
15.3. Company Profiles
15.3.1. Asea Brown Boveri (ABB) Ltd
15.3.1.1. Revenue
15.3.1.2. Products/Brand Offerings
15.3.1.3. Company Highlights
15.3.2. Cisco Systems, Inc.
15.3.3. General Electric Company
15.3.4. Honeywell International, Inc.
15.3.5. International Business Machine Corporation
15.3.6. Schneider Electric SE
15.3.7. Siemens AG
15.3.8. Emerson Process Management
15.3.9. CA Technologies
15.3.10. Eaton Corporation PLC
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Energy Management System Market
