Europe Energy Management Systems (EMS) Market Size, Share & Trends Analysis Report By Product (Industrial Energy Management Systems (IEMS), Building Energy Management Systems (BEMS), Home Energy Management Systems (HEMS)), By Component (Sensors, Controllers, Software, Batteries, Display Devices, Others), By End-Use (Residential, Commercial) and By Country(U.K., Germany, France, Spain, Italy, Russia, Nordic, Benelux, Rest of Europ) Forecasts, 2024-2032

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 Europe 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. 14%. 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

Energy Management Systems (EMS) Market Driving Factors

Europe Energy Management System (EMS) is not limited to energy-saving efforts that are adopted to save the available energy. Rather, it is a broader concept that deals with the process of controlling, monitoring, and conserving energy in the public or government sector, as well as in businesses, organisations, and even residential buildings. This can be done in order to save the available energy.

In addition, the rising adoption of smart grid services, the intensifying competition among industrial businesses, the cost effectiveness of these solutions, which is driving demand from developing countries, as well as policies and incentives implemented by governments are some of the factors that are contributing to the expansion of the market.

In addition, the manufacturing sector of Europe accounted for a considerable part of the market among the end-user verticals. This is because the manufacturing plants in this sector have equipment installed that operates constantly, which is essential to the plant operations. Because of the stringent rules addressing environmental emissions, businesses are putting in the effort to lessen their carbon footprint by establishing energy management systems as a result of the legislation.

In comparison to other regions, Europe's laws and policies regarding emissions and energy consumption are among the most stringent in the world. Because of these regulations, the construction industry is under increased pressure to construct new buildings and renovate existing ones in a way that is compliant with these standards.

According to the mandate issued by the government of the United Kingdom, energy providers are required to install smart metres in a total of 26 million households, with the ultimate goal of equipping each and every home in England, Wales, and Scotland with a smart metre by the year 2020.

The acceleration of the roll-out of smart metres, growing awareness of the energy crisis, and the European directive to reduce 80 percent of carbon emission by 2050 have been identified as the primary factors that are influencing the growth of home energy management systems in the United Kingdom. In addition, this growth has been influenced by the European directive.

The French government had announced plans for a programme that would invest 15 billion US dollars in digital infrastructure, with some of that money going toward the purchase of smart metres. Through the national utility Électricité de France (EDF), it planned to install three million smart metres by 2016, with the goal of scaling up to thirty-five million metres by the year 2020, so contributing to the expansion of the market for energy management systems.

Energy Management Systems (EMS) Market Restraining Factors

As a result of the developing pandemic and efforts to prevent the illness from spreading throughout the country, the majority of the industry's operations were halted, and the upgradation activities were postponed. This had a negative influence on the sector.

Regional Analysis

The Europe energy management systems (EMS) market in Europe is projected to expand at a steady rate over the next several years as a result of government initiatives such as Electricity and Monitoring Systems and Neighbourhood Oriented Brokerage. Growth in the regional market is likely going to be driven by countries like Germany, the United Kingdom, and France, who have a strong desire to cut back on energy waste.

Since 2010, Germany has been concentrating on long-term energy sustainability. The government approved the Energy Concept, a strategic blueprint for renewable energy implementation. This strategy lays forth a plan for the year 2050, with renewable energy as the cornerstone.

Through the National Action Plan Energy Efficiency plan, which covers the funding of programmes for energy efficiency measures and energy audits, the German government is on track to become one of the world's most energy-efficient and ecologically friendly countries.

Furthermore, the area is working to improve its energy management system by reimbursing the EEG fee in line with the German Renewable Energy Act and obtaining ISO 50001, a framework for the supply, use, and consumption of energy in industrial, commercial, and institutional organisations.

Furthermore, according to Deos AG, buildings consume around 40% of total energy in Germany. This is where cutting-edge energy management systems may provide the ideal framework for significantly increased building energy efficiency. They save energy, improve building occupant comfort, and preserve resources.

Segmental Analysis

Based on products, the Europe 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).

Industrial Energy Management Systems (IEMS) segment addresses the energy management needs of industries like manufacturing, chemicals, heavy industries, and so on. IEMS optimize energy use to reduce operation costs and increase sustainability by advanced monitoring, control, and analytical features. These drivers include increasing pressures from the government related to energy efficiency, high and increasing energy costs, and quick adoption of the technologies pertaining to Industry 4.0. European industries are investing in IEMS to achieve compliance with strict environmental regulations and enhancing overall operational efficiency. This will, most likely, remain the growing segment as industries seek more advanced solutions to manage their energy use better and lower their carbon footprint.

Building Energy Management Systems (BEMS) market has been gaining progressive growth within the wider sector of Energy Management Systems (EMS) due to increased awareness related to energy efficiency and sustainability. Within this setting of commercial and residential buildings, BEMS becomes critical in terms of optimizing energy usage through integration with advanced technologies facilitating real-time monitoring, control, and management of energy consumption. The European market benefits from stringent regulatory standards and ambitious climate goals, thus offering an incentive for energy-saving solutions. Another major factor driving the growth of the BEMS market is an increasing emphasis on reducing operational costs and carbon footprints. Innovations in areas like IoT, artificial intelligence, and data analytics are done with enhanced capability among BEMS to offer sophisticated energy management solutions.

Home Energy Management Systems (HEMS) focuses on technologies designed to optimize energy use in residential settings. Smart thermostats, energy monitoring systems, and automated control systems represent the types of HEMS, which monitor and control both energy consumption and generation within homes. With increasing consumer awareness about energy efficiency and sustainability, backed by government policies and incentives on reducing carbon footprints, exponential growth in the HEMS market in Europe is observed. Growing smart home technologies and integration with renewable energy sources, such as solar panels, further speed up the demand for advanced HEMS solutions. As the European Union enforces ambitious climate objectives, the HEMS market looks to resume its upwards track, with innovation focusing on enhancing user interfaces, interoperability, and improved energy-savings capabilities.

On the basis of components, the energy management systems (EMS) market has been divided into controllers, batteries, sensors, software, display devices, batteries, and others.

 Sensors are of paramount importance in an EMS to monitor various parameters like energy consumption, temperature, humidity, and power quality. These devices provide real-time data, enabling precise analysis and control over energy usage which is critical for both industrial and residential application. In such segments, sensors can see the growth of demand driven by growing emphasis on energy efficiency, regulatory requirements, smart grids, and IoT technologies, an all-encompassing umbrella. The further driving of this is European energy legislation and incentives for energy conservation and resource efficiency. As organizations investigate ways to cut down the energy costs and carbon footprints, the use of advanced sensors in EMS is yet expanding, increasing the active role in the enhancement of good energy management practice across Europe.

Controllers are an integral component of energy management systems and are involved in regulating and managing energy usage across various applications. They allow for real-time monitoring, control, and optimization of energy consumption, thereby bringing about considerable improvement in energy efficiency and reduction in costs. Development in the European region is triggered by an increased emphasis on energy conservation, regulatory mandate to reduce carbon emissions, and increased adoption of smart grid technologies. This, in most cases, involves advanced controllers equipped with sophisticated algorithms and a multitude of integration capabilities to enhance their functionality when called upon for management duties over complex energy systems. The European market for controllers within EMS is expected to grow at par with the region's commitment to the adoption of innovative solutions for energy management as it advances its energy infrastructure to achieve sustainability goals.

Software comprises all those different software solutions that would enable organizations and utilities to optimize energy use, enhance efficiency, and lower associated costs. Advanced analytics software key offerings in this category provides insights related to the pattern of energy consumption. Control software helps in the automation and regulation of energy systems. Again, incorporation of AI and machine learning technologies in such software solution technologies is making them even more powerful, predictive in maintenance, and better at forecasting. On the other hand, demand from EMSs for sophisticated software is increasing rapidly since many organizations are striving to achieve stringent environmental standards and energy savings amid growing concerns toward sustainability and regulatory pressures across Europe.

Display devices vary from different kinds of screens and monitors displaying data in real-time, analytics, and status of the system to users. They are integral devices to the EMS solution, whereby the former lets the operator trace the pattern of energy consumption, track performance metrics, and indicate possible inefficiencies. As Europe places growing importance on energy efficiency and sustainability, demand has risen for advanced display technologies that can yield clearer, more interactive presentations of energy data. As organizations strive to enhance their Energy Management capabilities, so will investments in high-resolution, user-friendly display devices that support effective decision-making and Operational Control.

Based on end-user, the energy management systems (EMS) market is divided into Residential and commercial.

The residential segment is drawing a lot of traction in the European energy management systems market, as consumers are becoming fonder of optimizing their energy consumption and reducing costs. This area includes a multitude of solutions geared toward residential applications, such as smart thermostats, energy-efficient lighting systems, and home automation technologies. It has made a lot of people conscious of using environmentally friendly methods, which have further been implemented owing to government incentives for energy efficiency in homes. Further, what is mostly driving the market in the residential EMS industry is an increase in technology and cross-adoption of the Internet of Things devices. In fact, moving toward more personalized and user-friendly solutions would help significantly in the efficacy of energy management practices at home, leading to smarter energy use and improved cost saving.

The commercial segment of the European Energy Management Systems (EMS) market is growing because companies attempt to enhance their energy efficiency and operational performance. This further includes solutions tailored for various commercial settings, such as office buildings, retail spaces, and industrial facilities. Such systems basically have advanced monitoring, control, and optimization facilities to help organizations manage their consumption of energy better, reduce operational costs, and adhere to regulatory provisions. Coupled with the thrust toward sustainability, growing energy prices, and strict environmental laws, the adoption of EMS solutions in the commercial sector has picked up a lot. On the other hand, enhanced data analytics, automation, and real-time monitoring capabilities within the EMS platform help commercial users get much more accurate and relevant insights, achieving better energy management with substantial cost savings.

Impact of covid-19

The automotive industry is critical to the economy's growth. However, during the second and third quarters of 2020, the COVID-19 outbreak impacted the whole automotive supply chain, affecting new car sales in FY 2020.

South America is most affected by COVID-19, with Brazil leading the way, followed by Ecuador, Chile, Peru, and Argentina. South America's government (SAM) has taken a number of steps to protect its citizens and stem the spread of COVID-19. South America is expected to have fewer export revenues as commodity prices fall and export volumes fall, particularly to China, Europe, and the United States, which are all significant trading partners. The manufacturing industry, especially automotive manufacturing, has been damaged by containment measures in various South American countries. Due to the pandemic, major automotive manufacturers have also temporarily halted manufacturing in the region as a cost-cutting move. Furthermore, the automobile disc brake industry has been significantly affected in 2020 due to a lack of raw materials and supply chain disruption.

The Automotive Brake System control module of a vehicle is meant to alert the driver with a warning light if the system fails. The module itself is rarely defective; instead, the sensors or the wiring to the sensors are frequently defective. The most typical cause of dysfunction is when the Automotive Brake System is contaminated with particles or metal shavings. There is no signal continuity when sensor wiring is destroyed. Brake fluid becomes contaminated in corrosive situations, and the hydraulic unit fails to function.

Recent Developments

February 2020- Castle Development and Schneider Electric Egypt signed an agreement to provide an energy management system for the Castle Landmark compound, manage the project's infrastructure, rationalise energy consumption, and provide safe, efficient, and environmentally friendly products such as heating systems, water, and natural gas networks, solar panels, heating systems, internet, traffic control systems, and electric vehicle charging stations.

January 2020- The Enel Group and Infracapital, one of Europe's top infrastructure investment funds, have agreed to expand the Cogenio distributed generation and energy conservation strategic collaboration through a new business that will operate throughout Spain.