The growing demand for sustainable and green energy resource management, along with an increase in government mandates worldwide, has influenced the demand for EMS. The global energy management systems market is expected to progress at a growth rate of 15.91% during the forecast period 2022-2028.
EMS allows facilities to control their energy consumption patterns, putting managers in charge of measuring, monitoring, and regulating these systems. With proper installation, maintenance, and monitoring, these systems can save 10-30% of their energy. Timers, occupancy sensors, programmable thermostats, photocells, and PLCs are some of the most prevalent energy management equipment.
Growth Trends and Key Challenges
With the growing world population and rise in living standards, there is a need for major advances in energy supply and efficiency while overcoming the risks relating to climate change. As organizations focus on energy conservation, the need for energy management systems increases. The following factors are responsible for the market’s advancement:
- Energy issues such as greenhouse gas emissions, access to electricity, carbon footprints and others are the most important challenges confronting the world today. In 2021, IEA predicted that the global energy demand would increase by 4.6%, with a 4.5% increase in electricity demand. The global energy-related carbon dioxide emissions rose 6% in 2021 to 36.3 billion tons.
- The adoption of smart grids and smart meters has become a trend. United States EPA’s smart growth program helps communities to improve their development practices and encourage strategies to protect the environment. Increased smart grid service usage, industrial competition, and demand from emerging economies are some of the primary reasons for market growth.
- Governments worldwide have urged organizations and institutions to implement energy-saving measures through policies and various incentives, helping the studied market to flourish. As per IEA, in 2021, the government policies were expected to increase the investments in energy efficiency by 10% to reach nearly $300 billion.
- The EMS technology is related to building management systems, which involve the use of computer systems. It helps to control and monitor facilities in buildings that consume significant amounts of energy, such as HVAC systems and lighting installations. The scope of implementation can range from a single building to university campuses, office buildings, or factories.
However, the energy management system market may face challenges due to a shortage of skilled professionals, a lack of awareness among stakeholders and non-standardized guidelines, which can stifle market growth. Additionally, the high initial cost is the major challenge faced by the market. However, the return on investment can be achieved in less time with proper awareness and usage, which will hinder the market’s prospects.
The Application of SCADA in Electric Power Grids
SCADA, or Supervisory Control and Data Acquisition, is a software application program that obtains real-time information from remote locations to control operational conditions and equipment. SCADA in electric power grids results in improved security, optimal energy consumption, reduced transmission loss. The use of SCADA in various market segments paves the way for the market’s flourishment, such as:
- In the end-user segment, the healthcare sector is growing at a CAGR of 16.28%. The increasing investments in the sector are due to commercializing of innovative products like SCADA and advanced monitoring sensors. These are used in EMS solutions for better maintenance of facilities, such as sensors and electrodes for diagnosis, to provide quality care and treatment to patients.
- Software is the fastest-growing component in terms of revenue. The monitor and control functions in EMS software are known as SCADA, accustomed to several online applications. The software provides utility bill tracking, real time metering and lighting control systems, carbon reporting, building simulation and modeling and demand response.
Developments by Competitors
A buyer can choose from several players in the market, such as IBM Corporation, General Electric Company, Honeywell International Inc, Schneider Electric, etc. These organizations have been at the forefront of implementing energy management systems, with recent developments including:
- In August 2021, Mitsubishi acquired smarter grid solutions to strengthen both companies’ distributed energy resources management solutions. It will expand the reach of the energy management enterprise software of Smarter Grid Solutions to distributed energy resource customers around the world.
- In February 2022, Actis Technologies launched Integrated EMS to save energy costs. This includes lighting control, green building systems and LED lighting fixtures.
- Johnson Controls and Pelion partnered in August 2021. The former is expected to leverage Pelion’s connected device platform for the IoT device management services, simplifying the monitoring of edge devices.
FAQ
Q1) What is the growth of the energy management systems market in terms of revenue?
The global energy management system market was valued at $8777.66 million in 2021 and is expected to reach $24453.90 million by 2028.
Q2) What are segments covered in the energy management systems market?
Type, components and end-users are the main segments covered in the energy management systems market.
