Need to Reduce Energy Wastage and Improve Brand Image to Drive Adoption of Energy Management Systems

Today carbon emission reduction has become one of the top priorities of corporate environmental management programs. Companies across the globe are pledging to invest more in their efforts to reduce carbon emissions and focus on energy management systems (EMS). Thus, there is a high demand for energy management systems, which reduces energy wastage and also improves the brand image of the company. According to a report published by Transparency Market Research, the global energy management systems market was valued around US$9.8 bn in 2014 and is expected to reach about US$36 bn by the end of 2024, expanding at a CAGR of 13.4% from 2015 to 2023.

In this blog post, TMR answers three critical questions about the energy management systems market:

Q. What are the factors challenging the growth of the global energy management systems market?

A lack of customer awareness about the utility of EMS to reduce energy costs is one of the primary challenges, faced by the global energy management systems market. A majority of the companies are unaware about the long term benefits of using energy management systems. Low awareness leads to non-acceptance and is hampering the growth of the market. Companies are lacking information and proper guidance as to energy system and what kind of automation system will suit their business needs the most.

High initial investments in business automation process is another barrier restraining the market’s growth. Various initial cost such as ISO 50001 certification cost, cost of training the energy team, cost of data collection, and training employees are deterring companies from adopting energy management systems. Moreover, small scale enterprises (SMEs) generally focus on the time frame of return on investments and do not invest in EMS solutions.

Q. What are the factors acting as future opportunities in the market?

Government regulations and initiatives to reduce emissions will help boost the global adoption of these systems.  Countries such as China, which are key consumers of energy are developing EMS standards and following government norms and regulations actively by the adoption of EMS. Companies in the renewable energy sector are considering partnerships with government for improving their reputation and also for enjoying tax benefits. Developing nations such as India and China have many new carbon-free renewable energy plants, and this will create a need for EMS for operational efficiency.

Q. What are the strategies adopted by key players in the market?

Companies such as Eaton Corporation intends to expand their energy management business worldwide and they intend to do so by developing advanced energy management systems. Many companies are emphasizing on client retention by introducing enhanced and efficient equipment and software, to better equip customers and also to save energy. Some players in the market are actively seeking for inorganic growth by acquiring other companies and forming strategic partnerships with regional players.


Post a Comment

Note: only a member of this blog may post a comment.

Latest Post

Market Research Reports