Government Policies Targeting Improved Energy Efficiency, and Climate Change Mitigation to Drive Energy Management System (EMS) Market
Controlling and reducing the amount of energy an organisation uses is important because it offers reduced costs, risk, and carbon emissions. Without energy management could cause you to experience a loss in functionality, a sudden increase in energy price, power outages or lack in energy supply. Energy management refers to the energy saving process of monitoring and controlling energy in businesses, public and government organisations, and homes. This process is key to saving energy, and therefore money, in the organisation. A successful energy management system involves savings related to heating, ventilation, and HVAC systems. Growing demand will thus drive the growth of energy management system market. Regional governments worldwide have passed several laws, and regulations aimed at lowering energy usage and raising awareness about energy conservation. In industrial, commercial, and residential sectors, these regulations, and policies act as the key driving factors for energy management system market. Governments are pursuing decarbonisation in several countries, and it entails various methods. Many countries have devised or have previously implemented regulations and guidelines regarding energy consumption and carbon reduction due to the rapid increase in carbon emission rates.
For instance, ISO 50001 was created to give a standardised, international approach to best practices that may be used in all nations and industries. It provides a framework for assisting in developing energy management capability within businesses, industries, and the economy as a whole. At the country level, several rules are in place to minimise energy usage and, as a result, carbon emissions from power consumption. Several companies are now using environmental sustainability to set themselves apart from the competition. This gives them a competitive advantage and aids in developing a solid brand image. EMS solutions will aid enterprises in their efforts to conserve energy. As a result, government initiatives like these and a shift toward addressing climate change would be a driving force behind the energy management system market.
Advantages of Home Energy Management Systems (HEMS) to Drive Energy Management System Market
Over the projection period, the home energy management systems (HEMS) segment is predicted to grow at the quickest rate. This industry’s expansion is fuelled by homeowners' increasing awareness of intelligent energy management, and power saving. A modern home equipped with HEMS contributes significantly to efficiency improvement, economising energy usage, dependability, and energy conservation for distributed systems within a robust smart grid architecture. Water heaters, freezers, and clothes dryers are big energy consumers, accounting for roughly 18% of total home energy consumption. Many technologies meant to improve whole-building energy performance can also be utilised to boost appliance efficiency. North America, and Europe represent major energy management system markets as these regions are already familiar with home energy management systems. Still, developing countries, particularly in the Asia Pacific, are striving hard to attain 100% electrification and, as a result, are heavily promoting the adoption of these technologies. Huawei, for example, released its Fusion Home Smart Energy Services Solution to help homeowners improve their solar panel systems. Fusion Home intends to make it easier for inhabitants to create, store, and manage power. It also helps with power consumption monitoring and provides an easy-to-adapt experience of using renewable energy at home.
Encouragement from Government to Drive North America’s Energy Management System Market
During the forecast period, North America will likely be the largest region in the energy management system market. The region's need for energy management systems is expected to be driven by an increasing focus on grid modernisation, smart meter adoption, and the deployment of household energy management systems to monitor and manage electricity consumption. Government programs in the region also aim to improve efficiencies to reduce energy use. Furthermore, North America's manufacturing sector has always been strong. As a result, increasing industrial energy efficiency through adopting energy management systems becomes increasingly crucial, boosting the growth of energy management system market in the region.
Encouragement from the government, tax breaks, and the necessity for companies to maintain a clean environment are just a few of the essential factors pushing EMS adoption across the end-use sectors. Consumers of battery-powered gadgets and those with restricted access to energy sources must prioritise energy efficiency. Government subsidies in the United States are expected to drive residential market expansion. By delivering detailed energy use statistics by particular equipment, energy management systems strive to achieve energy efficiency through process optimisation. Cloud-based EMS enables remote management of HVAC and other energy-intensive equipment and the collection of detailed and real-time data for energy-intensive electronic gadgets and appliances. In addition, cloud-based EMS provides specialised, intelligent, and real-time guidance for identifying and capturing energy-saving potential. For example, Powerhouse Dynamics' patented SiteSage system analyses and managed equipment centrally and provides actionable intelligence to help multi-unit retail, restaurant, and convenience store chains save energy.
With the increased demand for smart grid solutions to update older power infrastructures, Europe also has a significant market share. Furthermore, the European Union is encouraging various energy-saving policies and standards, which is driving up demand for power management systems throughout Europe. During the forecast period, Asia Pacific is expected to have the most significant CAGR. This expansion will be powered by the region's expanding sustainable energy infrastructure. The demand for smart grid and innovative metering technologies to optimise energy usage is growing as industrial and residential structures evolve. Furthermore, creating an ambitious sustainable energy agenda by regional energy associations promotes the need for next-generation energy management technologies, and services. This will remain an important factor pushing the performance of energy management system market.
Global Energy Management System Market: Competitive Landscape
In October 2021, Siemens Energy and SPIE, the independent European leader in multi-technical services in the areas of energy and communications, have formed cooperation to help the energy company achieve a climate-neutral future through efficient, sustainable, and digital solutions. On the other hand, in August 2021, Emerson purchased Open Systems International, Inc. (OSI Inc.) for USD 1.6 billion in an all-cash transaction. OSI Inc. is a prominent provider of operations technology software that expands and complements Emerson's extensive software offering while improving energy savings, and dependability.
Few of the players in the energy management system market include Schneider Electric (France), geo (Green Energy Options) (UK), ABB (Switzerland), Hitachi (Japan), Cisco Systems, Inc. (US), General Electric (US), Honeywell International Inc. (US), Siemens (Germany), Eaton (Ireland), Neptune India (India), Emerson Electric Co. (US), Enel X (Italy), Mitsubishi Electric Corporation (Japan), IBM (US), Rockwell Automation, Inc. (US), C3 AI (US), Delta Electronics, Inc. (Taiwan), Weidmuller (Germany), Energy Management Systems, Inc. (US), SWITCH Energy Inc. (Canada), Sensorberg (Germany), Distech Controls (Canada), Budderfly (US), GridPoint (US), and Yokogawa Electric Corporation (Japan).
The Global Energy Management System (EMS) Market is Segmented as Below:
Key Elements Included In The Study: Global Energy Management System (EMS) Market
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