Energy Management Software Market Trends

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