Energy management market set to soar by 2021
August 24, 2016
The energy management system market is expected to grow from US$32.41bn in 2016 to $76.75bn by 2021, at a CAGR of 18.8%, according to Markets & Markets.
The research looks at the market by software, including as used by utilities, industry and residential, as well as by devices such as in-house displays, smart thermostats, smart plugs and load control switches.
The major drivers for the upsurge in demand for EMS technology are mandatory regulations and policies, energy incentive programmes, increasing concern for reducing carbon footprints, smart grid technology adoption, digitisation of energy infrastructure, and need for centralised gird distribution management and control.
The utility segment is estimated to have the largest market share among EMS software. The emergence of cloud platforms, declining cost of IoT components, regional government initiatives for smart grid roll-outs, and necessity of operational efficiency for utilities are driving the demand for utility EMS software across the globe.
However, adopting the utility software is still a challenge in some regions due to poor infrastructure and cyber threats. Lack of technological awareness and apprehensions regarding privacy and security have raised a number of concerns for the retailers, thereby hindering the adoption of smart systems in the utility industry.
According to the analysis, although today the home EMS market shows slow year-over-year growth potential, the market will most likely achieve a winning imperative towards the end of the forecast period as new and more efficient technology will be introduced. Moreover, the winning imperatives will be more beneficial for vendors that offer open architecture and user-friendly products.
The increasing energy demand, price volatility, government mandates and increased spending over EMS are considered as the influential growth drivers for the home EMS market.
North America is expected to hold the largest market share and dominate the smart grid market from 2016 to 2021. The government has been actively involved with the energy efficiency and management standards for the residential sector, while the public and investor-owned utilities are also considering reducing the energy cost and consumption as a major priority factor in their management strategies. This has pushed the residential energy management market towards the growth phase.
The leading players in this market, says the report, are ABB, Cisco, General Electric, Honeywell, IBM, Schneider Electric, Siemens, CA Technologies, Eaton and Emerson Process Management.