Industrial Energy Management System Market by Component (Technology, Hardware and Services), End User (Automotive, Construction, Electronics, Food & Beverages, Mining, Oil & Gas, Petrochemicals and Utilities), and Region for 2022 and 2028
Industrial Energy Management System Market - Analysis, Outlook, Growth, Trends, Forecasts
- January 2022
- 345 pages
Industrial Energy Management System Market Outlook – 2022-2028
[345 Pages Report] The global industrial energy management system market is estimated to reach a valuation of around US$ 30.75 Bn in 2022. With surging industrialization across developing regions, the overall market is forecast to expand at a robust CAGR of 8.5% between 2022 and 2028, surpassing a valuation of US$ 50.30 Bn by the end of 2028.
Industrial Energy Management System Market Estimated Size in 2022
US$ 30.75 Bn
Industrial Energy Management System Market Value-based CAGR (2022-2028)
Industrial Energy Management System Market Projected Size in 2028
US$ 50.30 Bn
Industrial energy management system market has witnessed significant growth over the last few decades. Currently it accounts for around 40% share of the global energy management system market. Rising need to reduce energy consumption, increase productivity and minimize the carbon emission levels across various industries has ignited the demand for industrial energy management systems.
Food & beverages segment is projected to account for the largest market share of 15.7% by 2022. Rising adoption of advanced industrial energy management systems across food & beverage industry to reduce the overall costs as well as to enhance the energy efficiency is triggering the growth of this segment.
2013-2021 Industrial Energy Management System Market Outlook Compared To 2022-2028 Forecast
The industrial energy management system market is set to register a CAGR of 8.5% between 2022 and 2027 in comparison to 8.7% CAGR registered from 2013 to 2021.
Rapid industrialization, adoption of modern technologies, fluctuations in energy costs, formulation of green initiatives and rising need to control and reduce the energy consumption across industries are some of the factors driving the industrial energy management system (IEMS) market.
Energy management system has emerged as ideal solution for monitoring, controlling and optimizing energy performance in industrial setups. It helps the experts in diagnosing problems such as over consumption and leaks across the plants.
The energy conservation emergency has put industrial energy management systems under spotlight. Industries such as automotive, construction and food & beverages, are increasingly adopted advanced energy management systems to reduce costs and minimize the carbon emission levels. Implementation of stringent environmental regulations and energy management standards has prompted industries to make their process clean and efficient.
Continuous innovations in industrial energy management systems is providing a significant push to the market growth. New IEMS solutions such as smart meters and power grids have improved the overall efficiency.
Government support for sustainable energy usage is anticipated to aid the market growth during the forecast period. Major projects and programs are being launched to develop smart electricity infrastructures such as smart grids. For instance, in 2021, Dubai Electricity and Water Authority (DEWA) launched its updated Smart Grid Strategy up to 2035. The main of this strategy is to adopt grid automation and smart energy solutions.
Moreover, various efforts are being put to tackle the climate change, reduce the carbon emission level and increase energy efficiency. Organizations such as European Union (EU) and International Energy Association (IEA) are supporting the regional governments and industries in achieving carbon free world. This is positively impacting the growth of industrial energy management system market.
Spurred by the aforementioned factors, the global industrial energy management system market is set to expand 1.7X through 2028.
How Will Industrialization Drive Industrial Energy Management System Market?
Over the last few years, rapid urbanization and industrialization has augmented the energy consumption across developing countries such as China, Dubai, and India. An increasing number of industries are embracing modern technologies to improve their functioning and as well as to cater to the changing trends.
Rising energy consumption across these industries has put industrial energy management systems under spotlight. Industrialists are continuously striving for achieving maximum energy efficiency and environmental sustainability.
Industrial energy management systems help the industries to reduce energy bills as well as to minimize the environmental damage.
New EMS solutions such as smart meters and smart grids are being employed across industries. Moreover, cloud-based energy management systems are gaining enormous traction. These cloud-based energy solution provide more flexibility to the industries.
Government across these developing regions including APEJ and MEA, are supporting the industries to adopt automation. In addition, leading market players are using various tactics to enter these lucrative markets.
FMI forecast industrial energy management system market to experience strong amid increasing penetration of industrialization cross developing regions.
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Will Advancement In Industrial Energy Management Systems Aid The Market Growth?
Industrial energy management system has become a standard solution for increasing the energy efficiency, reducing the overall costs and enhancing the environmental stability. Innovations in IEMS has paved way for the development of advanced solutions such as smart grids, smart meter and integrated energy management system/ energy internet.
Energy internet (EI), the next generation energy system has started gaining momentum in recent years. It is an emerging concept that which combines energy systems and the internet to provide better service.
EI is a novel energy ecosystem with better interconnectedness and flexibility. It has been developed to improve energy efficiency and reduce the cost of energy consumption.
Similarly, the emergence of smart grids is revolutionizing the industrial energy management system market. Rising focus on developing smart cities is pushing the sales of these advanced energy management systems. For instance, in November 2021, Slovenian-based state utility ELES completed the deployment of a cloud-based advanced energy management system (AEMS).
Rising penetration of these novel energy management systems is anticipated to spur the growth of industrial energy management system market in the future.
Why is the U.S Considered as one of the Leading Market for Industrial Energy Management Systems?
The U.S. continues to remain one of the most lucrative markets for industrial energy management systems, accounting for the largest share within North America in 2022. Growth of the U.S. industrial energy management system is driven by factors such as rapid adoption of advanced technologies, heavy industrialization, presence of leading market players and rising need of industries to conform with international standards such as ISO 50001.
Reduction in energy consumption has been a key concern among industries to save money. Moreover, various federal policies, increasing energy cost and implementation of strict greenhouse gas emissions are favoring the adoption of industrial energy management systems.
Industries are increasingly shifting their preferences towards smart energy management solutions including cloud-based ones, to cope with the government laid standards. Besides this, these energy management solutions help them to have better control over the energy consumption mechanism.
Leading companies are continuously innovative their products to offer better energy management solutions to their customers. New products are being launched in the markets.
How Will the Growth Unfold in the U.K. Industrial Energy Management System Market?
As per FMI, the U.K. will hold a substantial market share by 2028, owing to the rising demand for smart grid solutions, implementation of government regulations and presence of leading market players.
Additionally, rising environmental concerns along with growing need for achieving energy efficiency across industries is spurring the growth of industrial energy management system market in the U.K.
The U.K. government is putting various efforts to promote the employment of smart energy management solutions for achieving the environmental sustainability. For instance, in 2021, IEA, the UK government and other several other nations announced the largest ever global initiative to make products more energy efficient. The main aim of this initiative is to double the efficiency of key internationally traded products by 2030 in order to help drive reductions in global greenhouse gas emissions and consumers’ energy bills
What is the Growth Projection for China Industrial energy management system Market?
Adoption of modern technologies, rising government support, and rapid industrialization are some of the factors driving the China industrial energy management system market.
The rise of China as a technological hub has left a deep impact on the industrial energy management system market. China’s remarkable growth over the last few decades has resulted in the increase in carbon emission levels. According to the International Energy Association, energy sector is the source of around 90% of China’s greenhouse gas emission.
To counter this emission, various initiatives are being launched in China. For instance, In September 2020, Chinese President Xi Jinping announced that the People’s Republic of China will strive to achieve carbon neutrality before 2060. This is providing a huge thrust to the industrial energy management market.
The novel energy management systems such as smart grids and energy internet (EI) have become the talk of town across China. Industries are embracing these new solutions to minimize the costs as well as to have a better control over energy consumption.
Bases on these aforementioned factors, a healthy market share has been predicted for China market by FMI over the assessment period.
Why is Demand for Smart Meters Rising across Industries?
Smart meters are the future of modern industrial energy management systems. Employment of smart meters across industries has eased the process of gathering detailed electricity consumption data. They are intended to simplify the complex issues encountered by industrial energy users, and can identify energy waste in a number of categories.
These smart meters enable the development of a remote energy management system that helps the users to reduce the energy costs as well as the amount of used energy. Moreover, they are ideal for addressing the basic errors in control system programming and maintenance procedures.
Various governmental bodies are laying emphasis on improving energy efficiency. To achieve this, they are encouraging the installation of smart meters.
Rapid growth in industrialization and growing popularity of smart grids and smart meters are anticipated to drive the IEMS market swiftly during the forecast period.
Who is the Leading End User of Industrial Energy Management Systems?
Based on end user, the industrial energy management system market has been segmented into automotive, construction, electronics, food & beverages, mining, oil & gas, petrochemicals and utilities.
As per FMI, food & beverages segment will lead the industrial energy management system, accounting for a share of 15.7% in 2022.
Adoption of industrial energy management system in food & beverage plants has become a necessity. Increasing competitive pressure along with rising energy costs is compelling manufacturers to employ advanced energy management systems for reducing bills and carbon emission levels. By using IEMS, manufacturers can develop integrated energy management programs and make more intelligent business decisions.
Food & beverage industries are continuously employing innovative control systems and software for sustainable food manufacturing. Rapidly increasing population and expanding food & beverage industry will continue to boost the growth of industrial energy management system market during the forecast period.
Leading players operating in the industrial energy management system market are focusing on expanding their product portfolio as well as services to help the industries in managing their energy mechanism. Besides this, they are leveraging various strategies such as mergers, partnerships, new product launches, acquisitions and partnerships to dominate the market. For instance,
- In November 2020, Rockwell Automation, the world’s largest company dedicated to industrial automation and digital transformation, acquired Fiix Inc. The acquisition helped the company to expand its industrial management solutions portfolio.
- In June 2021, Rockwell Automation launched its new brand, called LifecycleIQ Services to help companies innovate faster and improve efficiencies.
- In May 2019, Eaton, a power management company, launched new energy solution, called Energy Aware, that will enable the energy intensive industries to stabilize the grid and contribute to more renewable power.
- In March 2019, Mitsubishi Electric US, Inc., launched the BEAM AX energy management system for analyzing energy usage and costs in commercial buildings.
- In July 2020, Siemens, a leading provider of automation technology and industrial software, launched “Siapp, a software license for the Sicam A8000 automation and remote terminal unit.
Scope Of The Report
Historical Data Available for
Units for Volume and US$ Mn for Value
Key Regions Covered
North America, Latin America, Europe, APEJ, Japan, and the Middle East & Africa
Key Countries Covered
US, Canada, Mexico, Brazil, Germany, U.K., France, Italy, Spain, Russia, Poland, China, Japan, South Korea, India, ASEAN, Turkey and South Africa
Key Segments Covered
Modality, End-User and Region
Key Companies Profiled
Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives
Customization & Pricing
Available upon Request
Industrial Energy Management System Market by Category
By Component :
- Energy Platform
- Distributed Control System (DCS)
- Meter Data Management (MDM)
- Peak Load Control System (PLCS)
- Programmable Logic Controls (PLC)
- Energy Analytics
- Supervisory Control And Data Acquisition (SCADA)
- Energy Management Information System (EMIS)
- Communication Network Hardware
- Industrial Hardware
- Smart Meters
- Heating, Ventilating, and Air Conditioning (HVAC)
- Load Control Switch (LCS)
- Human Machine Interface (HMI)/Operator Panels
- System Integrators
- Maintenance & Support Services
By End User :
- Food & Beverages
- Oil & Gas
By Region :
- North America
- Latin America
- Western Europe
- Eastern Europe
- South East Asia & Pacific
- Middle East and Africa