BEMS Market For Smaller Commercial Buildings Set for Growth

June 6, 2014 By Leon Walker

bemsThe global building energy management systems market for small and medium commercial buildings will grow from $231.3 million in 2013 to $1.3 billion in 2022 at a compound annual growth rate of 20.9 percent, according to Navigant Research.

The largest growth in the BEMS market for small and medium commercial buildings will be in Europe and Asia Pacific, where new construction and regulation are promoting the installation of building energy management system equipment and in turn creating demand for associated services and software. In the North American market, sales will be concentrated in software, driven by utility and regulatory initiatives that promote energy efficiency and building energy reporting, according to the report, which is titled Energy Management for Small and Medium Buildings.

The market is divided along the three main offering types: software, services, and hardware. Software, which forms the backbone of all BEMS, represented the largest segment of the market in 2013, accounting for 47 percent of revenue. Services accounted for the next largest proportion in 2013 at 35 percent and the hardware segment represented 18 percent of revenue in the small and medium commercial buildings market. These three offering types reflect the nascent stage of the market. Buildings are going to need all three offerings as they become networked and managed, either centrally or remotely, the report says.

In the global market for building energy management software, six suppliers – Envizi, eSight, IBM, Schneider Electric, Siemens and Verisae – are market leaders, according to a report from independent analyst firm Verdantix released in April.

Verdantix’s report, Green Quadrant Building Energy Management Software 2014, compares 14 building energy management applications to help corporate buyers select energy management software. The analysis is based on live product demonstrations, an assessment of suppliers on 130 criteria and interviews with an independent panel of 15 customers representing firms with revenues of $348 billion.

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