The global energy management systems market was valued at $25.88 billion last year and is expected to register a CAGR of 13.78% by 2024.
The figures, from ResearchandMarkets, pinpoint an increasing focus on managing energy consumption, optimizing the use of renewable energy sources, reducing the carbon footprint and greenhouse gas emissions as the main drivers of EMS growth.
Meanwhile, the increasing usage of smart grid services, growing competition among industrial enterprises, cost efficiency increasing the demand from emerging economies and government policies and incentives are some of the secondary factors augmenting the growth of the market.
The report says rapid advancements in technology have led to greater insights into energy procurement and energy usage globally and help in gaining competitive advantage, and increase productivity at a reduced energy cost.
However, lack of skilled personnel, lack of awareness among stakeholders, lack of finance and non-standardized guidelines have served as a key impediment hindering the growth of the market.
Power and Energy to take biggest slice
Research andMarkets says demand for electricity in the non-residential sector has been rising over the last few years owing to new entrants in the manufacturing industry, increasing production activity from various industries including chemical, electronics, and automotive, which is expected to fuel the market.
Increasing power generation through the renewable source of energy is expected to witness exponential growth owing to the growing awareness regarding the environmental impact of fossil fuels, further propelling the growth of the market.
United States to account for majority of market
The energy management systems market in the United States looms large as residential, commercial and industrial consumers continue to drive adoption in order to realize energy savings.
The US is currently ranked as the second largest consumer of electricity after China. Several key federal policy directives, rising energy costs, stringent regulations concerning greenhouse gas emissions, and growing awareness about the benefits of automation, are major factors driving the market in the United States.
Furthermore, the presence of major energy management system companies like Siemens, coupled with the evolution of new concepts and major technological contributions, are further fuelling the demand for these solutions in North America.