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Introduction

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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Continuous increase in regulatory obligations and industry guidelines one of the major driver

  • All the resource-intensive industries utilize significant amount of raw materials, water and energy resources, thus leading to a large amount of solid waste, effluents, and emissions. These industries are often subject to numerous global and local regulations, along with several plant level geography compliance.
  • In order to comply with these stringent regulations, enterprises are adopting energy management solutions  and are employing various methodologies, such as product lifecycle assessments, carbon & energy footprint analysis, and devising processes to ensure a sustainable and eco-friendly supply chain, to cater to these requirements.
  • With environmental and energy sustainability becoming a global concern, there is an upsurge in the number of investors, customers, and suppliers who consider energy management system  as a key factor in taking decisions about their relationship with manufacturers.
  • Therefore, enterprises are engaging in developing sustainability goals, and are investing significantly into energy management solutions, to strengthen their brand value and reputation.
  • Moreover, these enterprises try to avoid failing to resonate with what their major stakeholders feel is important, as this will adversely impact their brands and ultimately the business.

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%.

Energy Management System Market

 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.

Vendors capitalizing on the adoption of emerging technologies such as mobility, cloud, big data, and analytics

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.

Sudip Saha
Sudip Saha

Principal Consultant

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Vendors capitalizing on the adoption of emerging technologies such as mobility, cloud, big data, and analytics

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.

Key Segments Covered

By Deployment:

  • Cloud based
  • On-premise

By Vertical:

  • Automotive
  • Building Automation,
  • Oil & Gas,
  • Manufacturing,
  • Pharmaceutical
  • Utilities & Energy
  • Others

By Software:

  • Utility Energy Management
  • Industrial Energy Management
  • Enterprise Carbon and Energy Management
  • Residential Energy Management.

Key Regions covered:

  • North America
    • United States
    • Canada
  • Latin America 
    • Brazil
    • Mexico
    • Rest of Latin America
  • Europe 
    • Germany
    • France
    • United Kingdom
    • Spain
    • Italy
    • Benelux
    • Nordic
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Australia & New Zealand
    • Rest of Asia Pacific
  • Middle East & Africa 
    • Gulf Cooperation Council Countries
    • Turkey
    • South Africa
    • North Africa
    • Rest of Middle East & Africa

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Frequently Asked Questions

What is the Growth Outlook for the Energy Management System Market?

The energy management system market is likely to secure a CAGR of 16.2% through 2032.

By 2032, how much can the Energy Management System Market Grow?

The energy management system market size is estimated to cross US$ 48.87 Bn by 2032.

What is the Current Valuation of the Energy Management System Market?

The energy management system market is likely to record a value of US$ 42.06 Bn in 2022.

Which Region is likely to Lead the Energy Management System Market?

Asia Pacific is likely to lead the energy management system market.

Table of Content

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