The exceptional growth rate registered by energy management system market can be clearly demonstrated by a recent estimate claiming the number of European households equipped with energy management systems to have doubled between 2015-2016.
Apparently, 20,000 households had energy management systems in 2015 but in 2016 the figures jumped to 40,000 demonstrating the rising awareness for energy-efficient buildings as well as the need to intelligently manage electricity flow in the house to save thousands of euros annually.
Incidentally, the energy management systems market is still in its early stages. However, the rising urgency to bring down emission levels, intensifying use of renewable energy and development as well as retrofitting of building to make them more energy efficient will contribute toward augmenting energy management system market size, which is predicted to register a double-digit CAGR of 13% over 2016-2024.
Reports by Global Market Insights show that presently, a variety of players are entering the EMS market, ranging from start-ups to battery storage companies and data analytics specialists to energy suppliers. With more players entering the industry and more lucrative partnerships being forged, the energy management system market is expected to surpass $38 billion by 2024.
Back in 2017, the annual sales for energy management systems was predicted could rapidly exceed 200,000 as the utilization as well as energy and cost saving capability of such systems has become evident.
With the maturity of the EMS market, the system is expected to exert a profound impact on energy consumption. At present the most palpable value to be obtained from installing a system is derived from its capability to optimize self-consumption, thus reducing a portion of the burden on the grid. The augmentation of energy storage and increasing popularity of solar PV will further augment the energy management system market scope. Energy management system solutions are cautiously being designed to demonstrate annual savings of up to €1,000 for customers.
Presently, the global energy management systems market is characterized by a plethora of investments. The investments have already started to pay off in Germany wherein large PV and storage markets have made the country an appealing place from where solutions focused on optimizing self-consumption may be launched. Over the coming years, similar progress is anticipated from markets such as France, where self-consumption laws are set to be finalized and high demand for residential implementation of energy management system has been recorded urging companies to respond by focusing their efforts on grid flexibility. With the rising awareness for the importance of energy efficiency and the reward such measures draw from regulatory bodies, energy efficient properties have come to accrue higher market value. Efficient use of energy renders into improved internal comfort and lower operating costs.
Energy management system supported by electricity market regulations will help households and commercial properties alike to unlock new, energy efficient benefits. The European Union established the European Energy Efficiency Directive 2012/27/EU (EU-EED) to promote energy efficiency in the European Union and also to achieve the European Union’s 20% target on energy efficiency increase by 2020 compared to projections, as well as to set a basis for further improvements beyond 2020.
Investors in properties have depicted a greater preference for more productive property that entails reduced utility costs, better-quality workspaces and environmental sustainability.
Extensive research has made it evident that homebuyers, investors and commercial tenants are ready to pay premium to buy or lease energy-efficient properties while owners of efficient commercial buildings are experiencing higher occupancy rates and faster lease-up periods, increasing their operating income.
Energy management systems have thus become a good investment option to promote energy efficiency of buildings and earn better revenue. The overall energy management system market in this regard has thus received added boost through increased adoption of the system for commercial properties.
The transparency of building energy performance is also helping drive EMS market trends. In the past there had been no system for real estate markets to measure and comprehend information about the energy performance of a building. Energy management system has helped convey actionable energy performance data to the market empowering consumers to compare the energy efficiency of buildings and incorporate building energy performance into purchasing and leasing and decisions.