September 20, 2016 - 11:43 AM EDT
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Global Energy Management Systems Market to Generate Close to USD 55 Billion by 2020, Says Technavio

The global energy management systems market is expected grow at a CAGR of more than 16% during the period 2016-2020, according to Technavio’s latest report.

In this report, Technavio covers the market outlook and growth prospects of the global energy management systems market for 2016-2020. The revenue calculation is based on the application that help to monitor and control the energy consumption in industries, commercial facilities, and residential sectors. In addition, the report discusses the major drivers influencing market growth and the challenges faced by vendors and the market as a whole. It also examines key emerging trends and their influence on current and future market scenarios.

“The global energy management systems market is expected to grow steadily during the forecast period, owing to the need for cost reduction. This has led organizations and households to adopt energy management systems to lower energy consumption and improve energy efficiency,” says Thanikachalam Chandrasekaran, a lead smart grid research expert from Technavio.

Technavio’s energy research analysts segment the global energy management systems market into the following regions:

  • Americas
  • EMEA
  • APAC

In 2015, with a market share of over 37%, Americas dominated the global energy management systems market, followed by EMEA with over 34% and the Americas with close to 29%.

Americas: largest contributor to the energy management systems market

The energy management systems market in the Americas is expected to reach USD 20 billion by 2020, growing at a CAGR of close to 16%.

The Americas was the largest contributor to the energy management systems market with 37% of the total market value in 2015. Rising energy prices and a growing focus on the demand response and energy efficiency have made energy management products compelling propositions for end-users in the Americas. These users include commercial buildings, government institutions, and healthcare facilities. The US was the largest revenue contributor in the region due to the existence and the implementation of several building energy codes, which has driven the need for efficiency and cost savings in the country. For instance, the energy code helped save about USD 5 billion annually in energy costs in 2012, 36 million tons of carbon savings in 2012.

“Apart from financial benefits, the need to meet government regulatory compliance policies with regard to power and backup systems is also another major factor prompting the adoption of energy management systems,” says Thanikachalam.

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EMEA: EU’s drive toward achieving an energy-efficient future to boost growth

The energy management systems market in EMEA is expected to exceed USD 19 billion by 2020, growing at a CAGR of more than 17%.

Increased awareness and rising anxieties about the use of energy by end-users has contributed to the growth of the market in this region. According to the EU, buildings account for 40% of the energy consumption in the region. The EU’s drive toward achieving an energy-efficient future will fuel the need for energy management systems in the region. Growing awareness for the need of energy saving and high desirability among businesses are contributing to the EU’s goal of achieving 20% efficiency by the year 2020. This has increased the adoption of energy efficiency measures such as conducting energy audits, energy insulation, energy management, and building control systems.

According to the new framework program of EU, Horizon 2020, a contractual Public Private Partnership (PPP) on energy-efficient buildings, will drive innovative, affordable building technologies and solutions. This should point the way toward the development of smart cities and the applications of energy management systems. The European energy management standard EN16001 plays a crucial role in the implementation of EMS across various sectors. The standard ensures the integration of energy management systems into organizational business structures to save energy and costs and to improve business performance. The economic benefits combined with government support will provide the necessary impetus for market growth.

APAC: to post a CAGR of close to 13% during the period 2016-2020

The energy management systems market in APAC is growing significantly because of new construction developments in the commercial and industrial sectors (driven by the growing population and expansions in economic activities in the region). The growing construction sector has led to higher energy consumption, which coupled with the rising energy prices, is contributing to the high demand for energy management systems in these countries.

China, Japan, India, Singapore, and Australia are the main contributors to market growth in the region. Governments in these countries are also taking steps to improve energy efficiency in buildings. For instance, the Chinese Ministry of Housing and Urban-Rural Development has introduced a version of LEED standards, which has three levels of rating and financial incentives are awarded to buildings with two and three-star rating.

The launch of new energy-efficient programs has attracted investments in the hardware segment of the market in APAC. This will ultimately boost market growth during the forecast period.

The top vendors in the global energy management systems market highlighted in the report are:

  • GE-Alstom
  • Honeywell
  • Johnson Controls
  • Schneider Electric
  • Siemens

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About Technavio

Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.

Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.

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Technavio Research
Jesse Maida
Media & Marketing Executive
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UK: +44 208 123 1770

Source: Business Wire (September 20, 2016 - 11:43 AM EDT)

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