Asia Pacific Energy Management Systems (EMS) Market

Market Overview

An energy management system (EMS) is a computer-aided tool that the operators of electric utility grids use for the purpose of monitoring and managing the performance of generating and/or transmission networks. EMSs are also known as energy optimization systems (OESs).

According to the International Organization for Standardization (ISO), the components of an energy management system include defining and implementing an energy strategy, establishing energy use targets that are attainable, designing action plans to achieve them, and tracking progress toward achieving the targets. In order to cut down on energy costs, some potential solutions include introducing innovative equipment that is more energy-efficient, cutting down on energy waste, or improving existing operations.

In 2021, the Asia Pacific energy management systems (EMS) market size was estimated to be around billion dollars, and it is anticipated that this figure will increase to billion dollars by 2030. During the period covered by the forecast (from 2022 to 2030), it is anticipated that the market will expand at a compound annual growth rate of apporx. 15%. A framework for controlling energy consumption by energy users, such as industrial, commercial, and public sector organisations, is referred to as an energy management system (EMS). It provides assistance to enterprises in the process of locating and developing energy-saving technology, particularly that which does not necessarily call for a big initial investment. To properly construct an emergency management system (EMS), specific expertise and extensive training of staff are typically required.

Market Dynamics

Asia Pacific Energy Management Systems (EMS) Market Drivers

Stimulating the incorporation of energy management systems (EMS) can be accomplished by proactive actions taken by government entities in the region for the adoption of standards, such as ISO 50001 (the energy-management-system standard), in the building industry.

As a direct result of this, there are now more chances for automation to be found across the region's small and medium-sized structures. Over the past twenty years, there has been a meteoric rise in the number of homes across the Asia Region. According to projections made by the United Nations, the rate of urbanisation in Asia would reach 64.1% by the year 2050, which will create even more chances for the building and construction business in the area.

The national governments of many nations have been heavily involved in the process of determining acceptable levels of energy use. For instance, structural shifts in the national economy compelled the Government of Vietnam to establish a reduction of energy consumption per unit of GDP ratio as one of the economic targets of the national Sustainable Development Strategy for 2011-2020; as the country remained the most energy-intensive economy in East Asia, trailing behind China, Indonesia, Thailand, Malaysia, and the Philippines. This was one of the reasons why the Government of Vietnam established a reduction of energy consumption per unit of GDP ratio as one of the economic targets of the national Sustainable Development Strategy for.

The Korean technology company NTELS created a building energy management system (BEMS) that gathered energy data from heating, ventilation, and air conditioning (HVAC) systems. After that, the system detected the patterns of energy consumption of the buildings based on their features and generated appropriate plans for their energy use. In addition to this, it monitors building operations and provides forecasts, both of which contribute to an increase in the overall energy efficiency of a facility. This BEMS technology has the potential to completely revolutionise the buildings' energy efficiency.

Home area networks (HANs) have experienced a revolutionary change in multiple areas of power consumption domains, such as energy conservation at consumption premises and electricity usage patterns, due to rapid improvements in technologies such as network communication, smart grid, bidirectional communication medium's, information infrastructures, energy conservation methodologies, and various techniques.

As public awareness of the need of energy efficiency grows, more emphasis is being placed on the installation of energy-saving equipment in homes. Regardless of national energy costs, use, or climatic circumstances, energy management systems are cost-effective in all residential structures. As a result, they're becoming more popular in households. The expansion of the domestic energy management market will be fueled by increased investment in grid digitalization through the use of modern communications technology. China plans to invest USD 6 trillion in infrastructure over the next decade as part of its urbanisation development agenda. China and the economies that have signed a Belt and Road Initiative (BRI) cooperation agreement with China are increasing their share of the global economy.

There has been a substantial increase in the creation of linked, intelligent devices, such as smart metres, smart sensors, and smart thermostats that are installed in smart homes, in recent years. The power monitoring and display technology on these gadgets are improving.

For example, the Indian government planned to build 500 smart cities in stages, with smart houses being the most important component of smart cities.

Asia Pacific Energy Management Systems (EMS) Market Restraints

The market confronts several hurdles, particularly in developing countries such as India, such as a shortage of cash on the part of the utilities for energy efficiency projects. Despite the fact that there are various variables that inspire development potential, the industry faces some challenges. The capital, in the form of both money and physical resources, that is required for implementing EMS projects is extremely limited. In addition, there is a lack of data on energy consumption as well as the tools necessary to evaluate energy data, which can be a barrier to the implementation of EMS projects.

As a result of the new coronavirus being classified as a pandemic, the majority of the enterprises and industries have either shut down entirely or are subject to stringent restrictions. On the other hand, the amount of energy that is consumed in households, in addition to hospitals, has significantly grown. In spite of this, overall power and energy consumption has gone down, mostly as a result of a slowdown in the manufacturing sector in China, Japan, and India. Despite this, there is a possibility that some of the limits will be eased in the coming months. Over the course of the projected period, it is expected that opportunities will present themselves in the region as a result of government measures to cut energy usage.

It is anticipated that concerns about privacy and security would impede the expansion of the industry.

Regional Analysis

It is projected that the Asia-Pacific region would exhibit the most rapid growth in the market for energy management systems. It is expected that sales will increase even higher as a result of rebates, tax benefits from a variety of authorities, and rising industrialisation throughout the area, notably in China and India.

Beijing has followed an energy intensity target relative to GDP throughout the years, allowing China to expand at a breakneck speed. However, China, like the European Union, has set a limit on energy use by 2020. In certain areas, the government is preparing ahead of time for smart metre installation.

According to the World Green Building Council, China is the world's largest building construction industry, with up to 2 billion square metres built yearly, accounting for roughly half of new construction globally over the next decade. It is also the world's leading producer of greenhouse gases, allowing the government to invest in green buildings that employ energy management systems.

Local vendors, particularly in China, use AI as a primary strategy, and just a handful have successfully raised financing. R&B Technology Holding, for example, which specialises in developing energy management software for the commercial and industrial (C&I) building sectors, led BP Ventures in its most recent round of funding, raising USD 3.6 million. The energy management solutions offered by R&B are especially intended to forecast, control, and improve building energy use. This solution complements BP Alternative Energy's focus on low-carbon electricity, storage, the digital energy value chain, and expanded Energy as a Service (EaaS) offerings.

Due to the rising industrial and manufacturing sectors in India, the market is expected to develop rapidly over the forecast period.

Segmental Analysis

Based on products, the energy management systems (EMS) market has been divided into three categories: industrial energy management systems (IEMS), building energy management systems (BEMS), and home energy management systems (HEMS). During the projected period, the industrial energy management systems (IEMS) sector is likely to dominate the worldwide market. For monitoring real-time power consumption trends and minimising costs, EMS has a considerable market share in the industrial sector, notably in the manufacturing and power industries.

Due to growing deployment of the system in business parks, hospitals, shopping malls, IT enterprises, and other commercial areas, the building energy management systems (BEMS) product market is predicted to grow considerably throughout the forecast period. The increased awareness of smart energy management and power savings among manufacturers is moving this industry forward.

On the basis of components, the energy management systems (EMS) market has been divided into controllers, batteries, sensors, software, display devices, batteries, and others. During the projected period, the software component segment is likely to dominate the worldwide market. Integration of data analytics software into existing modules has been one of the industry's important achievements throughout time. BuildingIQ and Ecova, for example, have developed industry-specific software platforms that allow organisations to run programmes and algorithms for improved outcomes. As a result, market growth is projected to be fueled by increased software use in energy management systems.

Based on verticals, the energy management systems (EMS) market is divided into telecom & IT, power & energy, retail & offices, healthcare, manufacturing, and others. During the projected period, the power & energy category is expected to dominate the worldwide market. The rising need for energy consumption monitoring in a variety of industries, including power generation, oil and gas, chemical, and petrochemical complexes, has resulted in the monetization of energy management system modules.

The retail & offices category is expected to grow at the quickest rate throughout the projection period, thanks to energy-efficiency management techniques implemented by various firms. Increasing awareness of the benefits of energy management and growing enterprises employing it to enhance efficiency and lower operating costs will drive growth during the projected period.

Recent Developments

Yokogawa India Ltd. invested with Japan's APB Corporation in March 2020 to expand its EMS business.