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Market Overview: Industrial Energy Management

Date: 21 June 2013

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24 pages, 9 figures

Executive Summary

This report provides an overview of the current industrial energy management (IEM) market from a customer and supplier perspective. Verdantix conducted 12 interviews with customers of IEM services and solutions, held in-depth interviews with 17 suppliers of IEM services or solutions and analysed 137 responses from industrial firms to the Verdantix Energy Leaders Survey. The study finds that since the turn of the century rising fuel prices, increasing legislation and potential supply limitations has seen firms move from a tactical to strategic approach to energy management. As the demand for IEM is increasing, so is the number and diversity of suppliers resulting in a very competitive and confusing marketplace. This report helps senior executives who operate in the energy consulting, equipment, services and software markets to understand the current and future IEM landscape, the barriers and drivers behind IEM spending, and evolving IEM requirements. This report also provides insights for executives responsible for energy management within industrial sectors to help them understand the supplier landscape.

TABLE OF CONTENTS

MARKET OVERVIEW: INDUSTRIAL ENERGY MANAGEMENT

THE STATE OF INDUSTRIAL ENERGY MANAGEMENT

The IEM Market Will Follow The Same Path As The EHS Market A Decade Before It

BIG ENERGY DATA CATALYSES THE SLOW BUT SWEEPING INDUSTRIAL ENERGY MANAGEMENT REVOLUTION

Budgets Grow Modestly While Governance Structures Evolve
Cost Savings Are The Primary Driver For Increasing Spend
Uncertain Financial Returns Is The Biggest Barrier To Investment
Robust Granular Data Management Provides The Foundation For IEM

TWO TYPES OF SUPPLIERS DOMINATE THE INDUSTRIAL ENERGY MANAGEMENT LANDSCAPE

Energy Consultants And Engineers with IEM Service Propositions
Equipment, Hardware and Software Suppliers Of IEM System Solutions

SUPPLIERS ARE ALL BATTLING FOR THE SAME BUDGET

Two Main Approaches To Industrial Energy Management Currently Exist
Firms Look To Fill The Void With End-To-End Energy Services

TABLE OF FIGURES

Figure 1. Three Phases Of Industrial Energy Management Market Development
Figure 2. Brent Crude Oil Monthly Spot Price 1989-2013
Figure 3. Industrial Firms Are Moving Towards Strategic Energy Management
Figure 4. Industrial Sector Definitions
Figure 5. Annual Change In Spend On Energy Management By 2014
Figure 6. Cost Savings Drive Investments In Industrial Energy Management
Figure 7. Low Financial Returns Are A Barrier To Investing In Energy Efficiency
Figure 8. Industrial Firms Need To Improve Their Data Management Systems
Figure 9. Two Approaches To Industrial Energy Management

ORGANIZATIONS MENTIONEDORGANIZATIONS MENTIONED

ABB, Andina Brasil, AspenTech, AT Kearney, Bergen Energi, CH2M HILL, Chevron, Citect, Coca-Cola, Comverge, Deloitte, Dow Chemical, DuPont, Ecova, Endress+Hauser, EnerNOC, ERM, ExxonMobil, Fellon-McCord, GE, IHS, Honeywell, Iconics, Imperial Tobacco, International Organization for Standardization, Kimberly Clark, Lightapp, M&C Energy, McKinsey, OSIsoft, Owens Corning, Pace Global, Rockwell Automation, SAP, SCADAgroup, Scanenergi, Schneider Electric, Siemens, S-OIL, Stroud, Summit Energy, US Energy Information Administration, US Environmental Protection Agency, Utilyx, Verco, WSP Environment & Energy