Energy Management Systems Market Trends

Growth Drivers

• Scarcity of Fossils– There has been huge consumption of fossil fuels for the generation of energy, and on the other hand, there is a limited availability of fossils. Therefore, it is anticipated to surge the growth of the energy management systems market. According to estimates, more than 60 percent of the world’s energy consumption demand is met by fossil fuels.
• Growing Awareness Related to Smart Buildings– Smart buildings are equipped with several sensors, and appliances in order to manage the electricity loads on the basis of utility or consumer decisions. Hence, it is predicted to increase the growth of the market in the upcoming years. According to the reports, the number of smart buildings across the globe is estimated to grow more than 110 Million in the year 2026.
• Increasing Installation of Smart Meters –The increasing installation of smart meters in order to manage electricity consumption is surging the demand for energy management systems. In addition, there has been rising awareness among people related to smart meters for energy consumption that is further expected to surge the growth of the market over the forecast period. As per the United Kingdom Government, there were 29.5 Million smart and advanced meters in small businesses and homes across Great Britain, as of the end of June 2022.
• Surging Government Policies for Energy Conservation – The laws and regulations implemented by the regulatory bodies related to the energy conservation are encouraging people to opt for better solutions. Hence, this is projected to rise the growth of the global energy management systems by the end of 2035. The Energy Conservation Bill, 2022, has been passed by the parliament of India in order to amend the Energy Conservation Act 2001. The aim of the amendment was to facilitate the achievement of COP-26 goals.
• Rising Energy Price Volatility– The increasing fluctuation in the prices of energy owing to various reasons is rising the need for energy management systems. The various reasons include economic conditions, extreme weather, supply availability, and others. Hence, it is anticipated to expand the growth of the market over the forecast period. In 2022, when the Russia-Ukraine war and the accompanying sanctions on Russia worsened an already-existing worldwide fuel scarcity, resulting in a 100-point increase in the fuel energy price index between August 2021 and March 2022.
• High Cost of the Installation- There is a requirement for high investment for the installation of energy management systems in industries and buildings. Furthermore, every industry is interested in cutting the cost of energy consumption in their operations. On the other hand, there is a high chance that the companies, industries are not able to bear the cost of the energy management system. Hence, it is expected to restrain the growth of the energy management systems market in the upcoming years.
• Slow Government Procedures and Paperwork for Switching to Smart Grid
• Lack of Awareness Regarding Adoption of Renewable Energy Infrastructure in Developing Countrie