Revenue From Building Energy Management Systems to Reach $6 Billion by 2020
According to the U.S. Department of Energy (DOE), 18 per cent of all the energy produced in the United States is employed to cool, heat, light, or accomplish other functions within commercial buildings. Given the challenging business and economic environment of recent years, governments, building owners, building tenants, and companies in general are looking for ways to become more efficient both fiscally and environmentally. One key mechanism for achieving greater efficiency is building energy management systems (BEMS), defined as the software, hardware, and services associated with the intelligent (i.e., information and communication technology-based) monitoring, management, and control of energy, specifically for reducing overall energy consumption and lowering energy costs. Recent advances in technology and the availability of much more detailed data and information on how buildings can use energy more efficiently have sparked growing interest in, and rising sales of, these systems. According to a new report from Pike Research, worldwide revenue from building energy management systems will increase at a compound annual growth rate (CAGR) of nearly 14% through the rest of this decade, reaching just under $6 billion a year by 2020.
“Over the last year, the convergence of building equipment and IT has advanced at a rapid pace, enabling a higher degree of control over building energy and operations than ever before,” says research analyst Eric Bloom. “The BEMS market is evolving rapidly and is enjoying a burst of innovation, leading to an explosion in the amount of data that is available on the energy performance of commercial buildings.”
North America continues to lead the global market for BEMS, but Pike Research expects growth to accelerate worldwide, particularly in Asia Pacific. While interest in BEMS and energy efficiency is high in Western Europe, Asia Pacific will take its place as the second largest market in coming years, due to the extremely rapid pace of construction in the region as well as the challenge of meeting soaring energy demand with limited supply. Outside of these three regions, the BEMS market will generally experience single-digit growth and modest levels of overall spending over the forecast period. In every region, the existing building stock is a large market for BEMS sales – particularly buildings constructed or modernized within the last 30 years with moderately sophisticated building management systems.
Pike Research’s report, “Building Energy Management Systems”, examines the global market for building energy management systems hardware, software, and services, along with trends in new product offerings, new technologies, business models and business strategies, and key industry players. Market forecasts in this report include total revenue growth from 2011 through 2020, as well as segmentation for seven global regions. The forecasts also include segmentation by software, services, and hardware spending, along with projections for the leading market segments by building type for each region. An Executive Summary of the report is available for free download on the firm’s website.
Publish your content with EB Premium
It's not about how many you reach. It's about who. Get your news, events, jobs and thought leadership seen by those who matter to you.
