Report: Energy Management for Industry to Reach $5bn in 2020
Energy management solutions for industrial and manufacturing companies are a billion-dollar opportunity for energy management software and services vendors, according to a new report from Pike Research, Energy Management Systems for Industrial Markets. And sustainability is becoming a critical requirement for the competitiveness of these companies, Pike says.
The report says that energy management software and services spending in the industrial sector will reach $960 million in 2011 and more than $5.5 billion in 2020. Pike estimates that the compound annual growth rate (CAGR) from 2011 to 2020 will be over 21%, with growth in the early years of the forecast period being significantly higher.
Pike says that because of the increasingly accurate and detailed information about industrial energy use, energy management software and services are giving clients a clearer picture of their energy inputs.
As well, the Pike report says that industrial and manufacturing companies are faced with increasing sustainability demands from their supply chain partners, consumers, and other stakeholders, and that the brand’s image with respect to sustainability efforts is a significant feature on the future competitive landscape.
The industrial sector, as a whole, has used energy management systems for decades, the report says, but the improved information and added scrutiny on green image of the corporate brand are important elements to the growth in opportunity for vendors.
According to the EIA Annual Energy Review 2010, the industrial sector took a 31 percent share of total U.S. end-use energy consumption in 2010, more than the transportation (at 28 percent), residential (at 23 percent) or commercial (19 percent) sectors.
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