The building energy management systems market will be worth $5.6 billion annually by 2020, according to a study by Navigant Research.
This is more than double the market’s 2013 value, according to Building Energy Management Systems IT-Based Monitoring and Control Systems for Smart Buildings: Global Market Analysis and Forecasts.
The market’s growth will be driven by technology advances as well as a growing familiarity among customers with the benefits that such systems provide.
Among end users, awareness is growing that energy management systems can help companies not only reduce their energy consumption, but also improve the operational performance of facilities and gain insight into occupancy trends in their buildings worldwide, according to Eric Bloom, senior research analyst with Navigant Research.
A number of new and existing companies are developing software-based platforms to help customers squeeze cost-reducing energy efficiency and operational benefits out of their building portfolios, the report says.
While many building energy management system vendors have developed platforms with commercial and government customers in mind, the utility sector is playing an increasingly important role in the market, according to the report. Utilities face a growing number of regulations, such as energy efficiency resource standards in the United States, that require them to play a proactive role in reducing the energy consumption of their customer base. A building energy management system deployed by a utility to its customers provides energy efficiency gains that utilities can claim in compliance with such regulations, according to Navigant.
In September last year, Pike Research released a study that said that the automated, or smart, building energy management systems market is to almost quadruple in size and be worth over $1 billion by 2020.
Worldwide spending on these services – which include data acquisition and analytics, as well as building maintenance contracts – will grow from $291 million in 2012 to $1.1 billion by 2020, the report, titled Smart Building Managed Services, says.
This represents a compound annual growth rate of almost 18 percent over that time period. This growth rate will outpace growth in the traditional building energy management systems market, the report says.