Global Energy Management Software Market Trends, Forecast Report 2025-2037
Energy Management Software Market size is anticipated to expand from USD 48.68 billion to USD 241.56 billion, registering a CAGR of around 13.7% throughout the forecast period, from 2025 to 2037. In the year 2025, the industry size of energy management software is assessed at USD 54.05 billion.
The market growth can be attributed primarily to rising demand for energy management systems (EMS) in the industrial, commercial, and public sectors. Energy efficiency and energy waste reduction can help to reduce greenhouse gas emissions, minimize exposure to energy price fluctuations, and boost productivity. A widely known article provided data indicating that energy consumption accounts for 74% of all human-caused greenhouse gas emissions around the world. To optimize energy consumption and control flow, industry players are now turning to IoT-based solutions.
EMS systems have significantly improved the energy performance of many industrial and other organizations. As a result, organizations have achieved significant savings in energy costs, other related costs, increased resilience to volatile energy costs, and more importantly, stability and productivity improvements. Global demand for energy is increasing rapidly owing to the growing population and economic growth in emerging market economies. Rising demand creates new challenges such as energy security concerns can occur as more consumers require more energy resources ever, and higher usage of fossil fuels leads to higher carbon emissions, which contribute to global warming. At the same time, in rural areas access to electricity remains unacceptably high, which is expected to create growth opportunities for the global energy management software market.
Energy Management Software Sector: Growth Drivers and Challenges
Growth Drivers
- Increased Access to Electricity in Larger Populations- In accordance with the World Bank's press release, in the past decade, more than 1 billion people in the world have had access to electricity. Therefore, 90% of the world's population was connected in 2019. Since 2010, there has been a more than doubled number of people connected to mini grids, growing from 5 to 11 million in 2019. Increasing energy access and ensuring a sustainable energy future requires innovations and new practices - essentially reinventing how energy is produced, delivered, and consumed. Energy efficiency and reliable energy supplies are essential for raising living standards and ensuring electricity access for everyone. In addition to reducing energy consumption, optimizing energy usage and increasing reliability, the energy management software system reduces costs and improves system efficiency.
- Increasing Rate of Digitization in The Energy Sector- The digitalization of electricity systems can facilitate renewable energy integration through demand-side solutions and energy storage. In October 2022, the European Commission announced the 'Digitalization the energy system - EU action plan', a comprehensive energy digitalization plan. In order to support the EU energy policy objectives, it supports the development of digital energy services, ensures data privacy, and supports infrastructure investment in digital energy.
- Growing Deployment of Smart Grids and Infrastructure Investments- According to the IEA, investments in electricity grids increased by 10% in 2021, with U.S. investments accounting for most of the investments made in energy grids worldwide.
- Rising Concern Among Commercial Building Owners Regarding Energy Consumption - Commercial building owners and managers, reducing energy consumption has been a primary concern. Approximately 39% of the energy consumed and 32% of greenhouse gas emissions worldwide are attributed to buildings, according to the World Economic Forum.
- Increasing Demand For Commercial Energy - According to estimates, the total demand for residential and commercial energy is expected to increase by approximately 16% through 2050. The expansion of reliable electricity access in developing countries is largely responsible for the rise in commercial energy demand.
Challenges
- Increasing Availability Of Open-Source Energy Management Software Platforms - In the present market scenario, there has been an increase in the need for open-source software owing to the rising demand for digitalization. Various tools and applications are available for free on the internet from open-source platform vendors. Therefore, the easy accessibility of open-source energy management software is expected to restrict energy management software market growth in the coming years.
- Mitigating The Risk Of Data Security
- High Amount Of Time Spent On Energy Reporting
Energy Management Software Market: Key Insights
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
13.7% |
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Base Year Market Size (2024) |
USD 48.68 billion |
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Forecast Year Market Size (2037) |
USD 241.56 billion |
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Regional Scope |
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Energy Management Software Segmentation
Software (Cloud Based, On Premise)
The cloud-based segment is anticipated to grab majority of share by the end of 2037 on account of reduced hosting cost, and efficiency & availability of computing resources. Using cloud computing systems, organizations are able to increase flexibility while visualizing, monitoring, and assessing data remotely. A growing number of end-users are utilizing IoT devices to manage and monitor energy practices using cloud-based energy management systems. Moreover, power & utilities, industrial sectors, and others are expected to demand cloud-based energy management systems (EMS) for a real-time view of their energy usage.
Our in-depth analysis of the global market includes the following segments:
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By Software |
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By Solution |
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By End Use Application |
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Customize this ReportEnergy Management Software Industry - Regional Synopsis
The Asia Pacific energy management software market is poised to account for majority revenue share by 2037, owing to the rising demand for energy and rising awareness about carbon management systems in the region combined with increased adoption of energy-saving systems and software. Moreover, the ongoing paradigm shift in electrification and increasing electrical system performance, as well as optimizing energy usage to reduce costs, will fuel the demand for energy management software in the region. Over the years, India's power sector has undergone a paradigm shift owing to government efforts to encourage investment. It is estimated that the installed capacity of power generation has increased from 344 GW in 2018 to 356 GW in 2019.
Companies Dominating the Energy Management Software Landscape
- General Electric
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
- Honeywell International Inc.
- IBM
- Cisco Systems, Inc.
- SAP SE
- Schneider Electric SE
- ICONICS
- CA Technologies
- Siemens AG
- ABB
In the News
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General Electric announced its partnership with UK Power Networks to optimize distribution network utilization. As a result of the innovation project, around 17.8 million tonnes of CO2 emissions will be reduced by 2050, facilitating the integration of renewables
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Energy management and automation leader Schneider Electric SE announced collaboration with Hitachi Energy to provide greater value for customers and accelerate the energy transition.
Author Credits: Dhruv Bhatia
- Report ID: 3061
- Published Date: Jan 28, 2025
- Report Format: PDF, PPT
