Energy Management Systems (EMS) Market to See Incredible Growth During 2024
According
to Transparency Market Research (TMR), the key energy management
systems players have a very strong grip on the global market. Siemens
AG, Johnson Controls, Inc., and Schneider Electric SE are the top
three players in this market and had collectively accounted for 50%
of the revenue share in 2014. Emerson Process Management and
Honeywell International operate on a global scale and hold wide
energy management systems portfolios. Their products and services are
a built to suit a wide array of end users.
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Transparency
Market Research suggests that players in the energy management
systems can focus towards emerging economies such as China and India,
where the rapid industrialization rates are generating a rich
environment for the implementation of modern EMS services.
Energy
management services are expected to receive a major boost over the
coming years in the form of heavy investments by end users. Two core
factors responsible for the high end user interest in energy
management systems are the strengthening government regulatory
efforts to impose EMS and reduce carbon footprints, and the ability
of EMS to significantly reduce operations costs.
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Another
globally concurrent effort that will benefit energy management
systems companies is the increasing focus on renewable energy
sources. This factor is especially visible in Japan, China, Germany,
and the U.S., where renewables are taking the foreground in terms of
research, development and implementation.
Energy
Management Systems Highly Sought for Operations Cost Reduction
“The
cost of raw materials and cost of energy are the two largest expenses
in a manufacturing plant, and are also the two most variable ones,”
states a TMR analyst. For the majority of manufacturing industries,
energy consumption is a leading expense that has to be managed. As
energy supply dwindles, it is no longer feasible to simply hold a
manufacturing process in full speed. There has to be a schedule for
the processes and the use of modern equipment and systems that allow
a company to cut back on the money spent on energy.
“Take
the iron and steel industry as an example,” continues the analyst,
“From the total cost of the produced steel, nearly 20% to 25%
arises from its consumption of energy. This can be reduced using EMS;
in fact, the steel and iron manufacturers can achieve an energy
consumption rate of up to 30%. In the long run, that can count for
massive savings in power consumption and consequently, the cost of
manufacturing.
A
similar effect can be achieved on commercial structures. The annual
energy consumption within the U.S. shows a 40% share taken up by
commercial buildings. Currently, this amounts to about US$40 bn
annually spent on energy alone. The energy management systems players
need to provide optimal solutions to help reduce this energy
consumption in order to gain a larger market share and demand.
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Industrial
Demand for EMS Will Continue to be the Largest
About
71% of the global energy management systems market was taken up by
the industrial sector in 2014, based on applications. In that year,
the global market was valued around US$9.8 bn. With a CAGR of 13.4%
from 2015 to 2023, this market is expected to reach about US$36 bn by
the end of 2024.
Although
the industrial segment is expected to lose some of its share to the
segments of home and buildings, it still leads the energy management
systems market by a wide margin. Buildings and industries are
expected to reach shares of about 25% and 65% respectively by 2024.
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