Energy management system market to grow by 9% during 2020-26

According to a recent study from market research firm Global Market Insights, the energy management system market is set to grow from its current market value of more than $28 billion to over $45 billion by 2026, gaining remarkable traction over the 2020 to 2026 period.

Global energy management system market has been expanding as one of the fastest emerging verticals within the sustainable and smart technologies space. It is likely to witness notable growth over the course of the next few years with the proliferation of manufacturing, IT and energy sectors.

Factors such as global warming and climate change are creating a significant need for energy efficient and sustainable technologies. Consequently, the demand for energy management systems and services has been increasing steadily. Constant technological innovations will continue to play a critical role in driving future trends in EMS. The introduction of stringent environmental and energy efficiency norms worldwide will bolster the industry outlook significantly.

On the basis of components, energy management system market can be segmented into hardware, software, metering & field equipment, sensors, control systems, network devices, and others. The demand for energy management software solutions is projected to witness considerable momentum in the near future, with increasing deployment across residential, commercial, as well as industrial applications. Both developed and developing countries are spending on building commercial spaces, which is expected to drive the technology deployment across offices, healthcare facilities, and educational institutions.

As per the Global Market Insights report, the demand for network device components across the U.K. increased at more than 8 percent CAGR between 2015 and 2019 and is likely to further rise in the forthcoming years. The regional technology adoption can be linked with a strict regulatory scenario pertaining to environmental sustainability and energy efficiency. Supportive government efforts and initiatives to promote sustainability in the energy and power sectors will considerably complement the regional outlook.

The power & energy, manufacturing, IT, healthcare, and enterprise sectors are some of the major end-users of energy management systems. Energy management system market share from enterprise sector is slated to experience exponential growth in the upcoming years, with growing adoption of these systems across business enterprises. More and more enterprises are aiming to implement reliable and efficient energy management systems to comply with regulatory standards and lower their environmental impact.

In terms of the regional landscape, Brazil accounted for more than 10 percent revenue share of Latin America EMS industry in 2019 and will witness robust growth by 2026. The National Energy Balance had reported in 2017 that electricity consumption in buildings accounted for over 51 percent of the overall power consumption in the country. Consequently, energy efficiency retrofits and deployment of energy management systems can reduce the energy consumption in buildings by 30-50 percent.

Saudi Arabia captured over 15 percent revenue share of Middle East and Africa energy management system market in 2019 and is poised to experience a commendable growth over the next few years. The country is likely to spend substantially on the implementation of energy efficient technologies in upcoming residential and commercial projects.