1 Global Energy Software Market Insight Analysis
The global energy software market size is expected to be USD 13,807 million in 2024, with a CAGR of 8.25% from 2024 to 2033.
Energy software is software for tracking energy management that provides organizations with an easy way to track and collect vital metrics related to energy usage. Energy software features include real-time energy usage monitoring, utility bill tracking, energy data analysis, HVAC system control, and carbon and sustainability reporting. Energy software designed to increase efficiency, ensure compliance and reduce operating costs.
Figure Global Energy Software Market Size (M USD) and CAGR (2024-2033)
2 Energy Software Market Growth Drivers and Restraints
From the perspective of driving factors, first, the increasing importance of energy management has played a key role. With the expansion of energy and manufacturing industries, rising energy prices, and the advancement of environmentally friendly social construction, companies are paying more and more attention to energy management. Energy software can monitor and analyze energy consumption, and use machine learning technology to find areas for improvement, thereby reducing energy consumption and costs.
For example, by adjusting thermostat settings, optimizing lighting schedules, and other measures, companies can improve energy efficiency. The use of energy software also helps companies attract investors and employees who value sustainable development, meet regulatory requirements, avoid fines, and enhance corporate reputation, which has prompted many companies to invest in energy software and drive market growth.
Second, government policies supporting sustainable energy have provided a strong impetus for market development. Governments are committed to reducing the use of traditional energy and increasing investment in sustainable energy systems. Driven by policy encouragement and downstream customer demand, renewable energy investment platforms have accelerated project deployment. Energy software has played an important role in project financing and management, improved efficiency and transparency, and provided new opportunities for investors, thereby promoting the development of the energy software market.
In addition, the increase in the number of smart grids and smart meters installed has also contributed to market growth. The utility industry is actively developing smart infrastructure and investing heavily in projects such as smart buildings and smart agriculture. The construction of these infrastructures has increased the demand for efficient energy systems. The widespread deployment of smart grids and smart meters, which enable two-way communication of power flows and real-time monitoring of energy use, provides energy software with richer data, enabling it to better play its role, such as implementing advanced billing, predictive analysis and other functions, thereby driving the expansion of the energy software market.
However, the growth of the global energy software market also faces some limiting factors. On the one hand, the lack of awareness of energy efficiency and high implementation costs hinder the further development of the market. Most small and medium-sized enterprises lack understanding of the advantages of energy management and related policies, and are reluctant to invest heavily in energy-saving technologies. Small and medium-sized enterprises in emerging economies also face problems such as lack of infrastructure and monitoring facilities and limited technology options, resulting in less implementation of green initiatives.
On the other hand, the integration, implementation and maintenance costs of energy software are high. Although cost and energy savings can be achieved in the long run, the high initial investment limits the demand of some customers. The difficulty of software updates and the customization needs of downstream customers also increase the cost and implementation difficulty of enterprises.
On the other hand, the rise of open source software poses a certain threat to the energy software market. As the demand for digitalization grows, the demand for open source software is also increasing. The open source platform provides a wealth of tools and applications, with reliability and scalability, which attracts many companies to use it. However, open source software has security risks, such as a large number of code libraries with high-risk vulnerabilities, which makes companies face certain hidden dangers when using it. Despite this, the existence of open source software still diverts some market demand to a certain extent, which has a suppressive effect on the growth of the energy software market.
3 Technological Innovations in the Energy Software Market
In terms of technological innovation, energy software suppliers actively adopt advanced technologies to meet market demand and enhance their competitiveness. The application of IoT technology in energy software is particularly prominent. The new smart grid built by smart devices and sensors can monitor energy usage in real time, helping enterprises improve energy efficiency and reduce costs. For example, producers can optimize maintenance operations and realize automated on-site asset management with the help of IoT monitoring systems. At the same time, data analysis and sensors can be used to measure equipment performance, prevent equipment damage, and help enterprises better utilize renewable energy.
Artificial intelligence technology has also brought significant changes to energy software. It enables enterprises to retrieve and analyze data using natural language interfaces, improve user experience, and achieve more efficient data monitoring and management. By analyzing customer preferences and consumption data, artificial intelligence can help enterprises choose the most cost-effective energy supplier. The combination of artificial intelligence and IoT can also detect equipment failures through image analysis, such as Schneider Electric and Microsoft using machine learning to monitor and configure on-site oil pumps to detect potential failures in advance.
In addition, blockchain technology has also shown its application potential in the field of energy software. It can achieve instant recording and settlement of energy transactions without the need for intermediaries, improving the security and efficiency of transactions. The integration of blockchain technology between energy software and financial software provides a legal, secure and automated solution for energy transfer. Digital twin technology helps companies visualize assets, analyze and predict, and optimize asset performance, playing an important role in many aspects of the energy field.
Corporate mergers and acquisitions are also an important development trend in the global energy software market. Many companies use mergers and acquisitions to expand their scale, enhance their technical strength and expand their market share. For example, EnergyCAP acquired Wattics, expanded its platform capabilities, and obtained advanced energy management analysis tools, which can provide customers with more comprehensive services and support customers to achieve net zero carbon emissions goals. W Energy Software acquired Seven Lakes Technologies, integrating artificial intelligence technology into field operations and energy back-end management, optimizing production management capabilities and enhancing market competitiveness.
Schneider Electric’s acquisition of AVEVA is a major event in the industry. AVEVA has deep technical accumulation in the field of industrial software. This acquisition enables Schneider Electric to strengthen its capabilities in industrial digital transformation and promote the development of its overall business. Enverus acquired RatedPower, expanding its business scope in the solar industry, enhancing its capabilities in feasibility studies, design and engineering of photovoltaic power stations, and improving its comprehensive competitiveness in the energy software market.
4 Global Energy Software Market Size by Type
On-Premise energy software refers to solutions that are installed and operated within an organization’s own infrastructure. This type of software is preferred by organizations that require high levels of control over their data and systems, as well as those with specific regulatory and security requirements. In 2024, the On-Premise segment is projected to generate a revenue of $5,023 million USD. This represents a significant portion of the total market, accounting for approximately 36.38% of the global energy software market value.
The growth of the On-Premise segment is driven by several factors. Firstly, organizations in sectors such as finance, government, and healthcare often prefer on-premise solutions due to their stringent data security and compliance requirements. Secondly, on-premise solutions offer greater customization and control, allowing organizations to tailor the software to their specific needs. However, the market share of on-premise solutions is gradually declining as cloud-based solutions gain more traction.
Cloud-based energy software, on the other hand, is hosted and managed by third-party service providers. This type of solution offers scalability, flexibility, and reduced upfront costs, making it an attractive option for a wide range of organizations, especially small and medium-sized enterprises (SMEs). In 2024, the Cloud-based segment is expected to generate a revenue of $8,783 million USD, representing 63.62% of the total market value.
The growth of cloud-based energy software is driven by several key trends. The increasing adoption of cloud technologies across various industries has led to a greater acceptance of cloud-based energy management solutions. These solutions provide real-time data access, enhanced collaboration, and automated updates, which are crucial for modern businesses. Additionally, the cloud-based model allows organizations to pay for only the resources they use, reducing operational costs and improving efficiency.
Table Global Energy Software Market Size and Share by Type in 2024
Type | Market Size (M USD) 2024 | Market Share 2024 |
|---|---|---|
On-Premise | 5023 | 36.38% |
Cloud | 8783 | 63.62% |
5 Global Energy Software Market Size by Application
The oil and gas industry is a major consumer of energy software, leveraging these solutions to optimize energy usage, reduce operational costs, and enhance sustainability. In 2024, the market revenue for energy software in the oil and gas sector is projected to reach $2,691 million USD, accounting for approximately 19.49% of the total market value. This segment is driven by the need for efficient energy management to comply with environmental regulations and improve operational efficiency.
The IT and telecommunications sector is another significant consumer of energy software, driven by the increasing demand for data centers and the need to manage energy consumption efficiently. In 2024, this sector is expected to generate a revenue of $4,220 million USD, representing 30.56% of the total market value. The growth in this segment is fueled by the rapid expansion of digital infrastructure and the increasing importance of energy efficiency in data centers.
The manufacturing industry is a substantial user of energy software, aiming to reduce energy costs and improve sustainability. In 2024, the market revenue for energy software in the manufacturing sector is projected to be $5,829 million USD, accounting for 42.22% of the total market value. This segment benefits from energy software solutions that help optimize production processes, reduce energy consumption, and enhance overall operational efficiency.
Table Global Energy Software Market Size and Share by Application in 2024
Application | Market Size (M USD) 2024 | Market Share 2024 |
|---|---|---|
Oil and Gas | 2691 | 19.49% |
IT and Telecommunication | 4220 | 30.56% |
Manufacturing | 5829 | 42.22% |
Others | 1067 | 7.73% |
6 Global Energy Software Market Size by Region
The United States is expected to lead the global energy software market in 2024, with a projected revenue of $4,906 million USD. This region’s dominance is attributed to its advanced technological infrastructure, significant investment in renewable energy, and strong demand for energy efficiency solutions. The U.S. market is driven by industries such as IT, telecommunications, and manufacturing, which are heavily reliant on energy management software to optimize their operations.
Europe is another major market for energy software, with a projected revenue of $3,986 million USD in 2024. The European market is characterized by strong regulatory frameworks promoting energy efficiency and sustainability. The region’s focus on reducing carbon emissions and transitioning to renewable energy sources has driven the adoption of energy software solutions. Key markets within Europe include Germany, France, and the United Kingdom, which have significant investments in smart grid technologies and energy management systems.
China is expected to be a significant player in the global energy software market in 2024, with a projected revenue of $1,863 million USD. The Chinese market is driven by rapid industrialization, increasing urbanization, and a growing focus on sustainable development. The Chinese government’s initiatives to promote energy efficiency and renewable energy have led to significant investments in energy software solutions. The manufacturing and IT sectors are key drivers of this market, with increasing demand for energy management systems to optimize production processes and reduce energy consumption.
Japan is projected to generate a revenue of $701 million USD in 2024. The Japanese market is characterized by advanced technological capabilities and a strong focus on energy efficiency. The country’s aging population and increasing demand for sustainable energy solutions have driven the adoption of energy software. The IT and telecommunications sectors are key consumers of energy software in Japan, with significant investments in data centers and smart grid technologies.
India is expected to see substantial growth in the energy software market, with a projected revenue of $435 million USD in 2024. The Indian market is driven by rapid economic growth, increasing urbanization, and a growing focus on sustainable energy practices. The manufacturing and IT sectors are key drivers of this market, with significant investments in energy management systems to optimize production processes and reduce energy consumption.
Southeast Asia is projected to generate a revenue of $499 million USD in 2024. The region’s market is driven by increasing industrialization, urbanization, and a growing focus on sustainable energy practices. Key markets within Southeast Asia include Singapore, Malaysia, and Thailand, which have significant investments in smart grid technologies and energy management systems.
Latin America is expected to generate a revenue of $562 million USD in 2024. The region’s market is characterized by increasing industrialization and a growing focus on sustainable energy practices. Brazil and Mexico are key markets within Latin America, with significant investments in energy management systems to optimize production processes and reduce energy consumption.
The Middle East and Africa region is projected to generate a revenue of $279 million USD in 2024. The region’s market is driven by increasing industrialization, urbanization, and a growing focus on sustainable energy practices. Key markets within the Middle East and Africa include the United Arab Emirates, South Africa, and Egypt, which have significant investments in energy management systems to optimize production processes and reduce energy consumption.
Figure Global Energy Software Market Size (M USD) by Region in 2024
7 Global Energy Software Market Analysis by Major Players
Broadcom
Company Profile: Broadcom Inc., headquartered in San Jose, California, is a global infrastructure technology leader with over 50 years of innovation and engineering excellence. Established in 1961, Broadcom offers a wide range of semiconductor and infrastructure software solutions, serving numerous industries worldwide.
Business Overview: Broadcom focuses on technology leadership and provides category-leading semiconductor and infrastructure software solutions. The company combines global scale, engineering depth, and operational focus to deliver innovative products and services that help customers build and grow successful businesses in a constantly changing environment.
Products Offered: Broadcom’s energy software products include Mainframe Operations Management solutions such as CA 1™ Flexible Storage™, Vantage™ Storage Intelligence, SYSVIEW® Performance Intelligence, NetMaster® Network Intelligence, OPS/MVS® Automation Intelligence, MICS® Resource Management, and MIM™ Resource Sharing. These solutions enhance end-to-end visibility, speed up Mean Time to Repair (MTTR), and increase efficiency while reducing costs.
2023 Revenue Summary: In 2023, Broadcom’s energy software revenue reached $2,523 million USD, maintaining its position as a leading provider in the market.
Schneider Electric
Company Profile: Schneider Electric, founded in 1836 and headquartered in Rueil-Malmaison, France, is a global expert in energy management and automation. The company provides digital solutions for efficiency and sustainability across various industries.
Business Overview: Schneider Electric’s business includes Power Management, Process & Machines Management, IT Room Management, Building Management, Security Management, Industrial software design, simulation and optimization, Industrial Automation, Control and safety systems, and instrumentation. The company aims to provide energy and automation digital solutions that enhance efficiency and sustainability.
Products Offered: Key products include EcoStruxure™ Building Advisor, which offers services to unlock the operational performance of facilities. This suite of digital services optimizes building performance and comfort by monitoring systems and identifying faults to proactively address inefficiencies. Benefits include improved maintenance, increased occupant comfort, reduced energy use, and extended asset life.
2023 Revenue Summary: In 2023, Schneider Electric’s energy software revenue reached $1,730 million USD, solidifying its position as a major player in the energy software market.
IBM
Company Profile: IBM, established in 1911 and headquartered in Armonk, New York, is a leading provider of information technology (IT) products and services. The company offers a wide range of solutions, including analytics, artificial intelligence (AI), automation, blockchain, cloud computing, IT infrastructure, IT management, cybersecurity, and software development products.
Business Overview: IBM serves multiple industries, including automotive, banking, financial markets, electronics, energy and utilities, healthcare, insurance, life sciences, manufacturing, metals and mining, retail, and telecommunications. The company’s business portfolio includes ERP, financials, business intelligence, procurement, HCM, SCM, business planning, efficiency, sustainability, innovation, analytics, reporting, and dashboarding.
Products Offered: IBM’s energy software products include the IBM Maximo Application Suite, which provides intelligent asset management, monitoring, predictive maintenance, and reliability planning. This cloud-based platform uses AI, IoT, and analytics to optimize performance, extend asset lifecycles, and reduce operational downtime and costs. Key features include asset management, mobile EAM, predictive maintenance, remote monitoring, and visual inspection.
2023 Revenue Summary: In 2023, IBM’s energy software revenue reached $740 million USD, highlighting its strong presence in the energy software market.