Report: Market for Building Management Systems to Grow to $2.4B by 2016
Building energy management systems sector revenue in the United States will increase from $900 million in 2010 to $2.4 billion annually by 2016, under an average forecast scenario.
According to a new report from Pike Research, building energy management systems (BEMS) sector revenue in the United States will increase from $900 million in 2010 to $2.4 billion annually by 2016, under an average forecast scenario.
The BEMS market, a growing segment of the larger building-efficiency industry, is quickly gaining momentum as an effective means for end-users to implement energy-efficiency applications in commercial buildings. Such solutions range from reactive energy efficiency optimization software to predictive supply and demand side energy management architectures.
“Commercial building efficiency in general, and the building energy management systems market more specifically, are emerging as hot growth areas due to the strong return on investment that such deployments can bring to building owners and managers,” said research analyst Jevan Fox. “Most of the industry focus is on larger buildings today, but over the next few years, vendors who can provide an attractive ROI to buildings smaller than 200,000 square feet will reap large benefits.”
Fox adds that the BEMS market represents a convergence point for IT vendors, smart grid companies, utilities, building management system (BMS) vendors, curtailment service providers, and other energy-efficiency companies. As a result of this market convergence, BEMS offerings will become more sophisticated, providing energy savings to the end-user that in many cases will be reinvested in additional energy-efficiency applications.
Pike Research’s analysis indicates that the healthcare, university, and commercial office space vertical markets are the most important three segments for the growing BEMS business. Over the next few years, many decision-makers in these markets will choose BEMS rather than updating a legacy BMS, given the cost advantages and versatility of working with multiple technologies.