Source:Energy Manager Today
With commercial building operators facing pressure to reduce energy consumption and IT-based controls and monitoring becoming widespread, a perfect storm of factors has led to new software platforms for building energy management systems (BEMS), says Navigant Research, which predicts that the BEMS market will grow from $1.8 billion to $5.6 billion by 2020. The Navigant report, Building Energy Management Systems — IT-Based Monitoring and Control Systems for Smart Buildings: Global Market Analysis and Forecasts, says the BEMS market represents one of the fastest-growing and most promising waves of innovation ever to occur in the building industry.
It cites factors such as the increased knowledge and proliferation of digital controls within the building stock in the industry, the high priority focus on energy efficiency among corporations and governments, and the advent of cloud-based data management and Big Data as the reason behind the explosive development of the BEMS market.
Corporate sustainability and energy management initiatives around the world continue to create demand for systems that can dramatically simplify the process of documenting and reporting reductions in energy consumption and carbon emissions, Navigant says. And there is growing awareness that BEMS 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 facilities worldwide.
Regulatory requirements across the world also support the adoption of BEMS — like in Europe, where large energy consumers have to develop energy management plans in line with the EU’s energy efficiency directive, and Navigant says this will drive companies to look for sophisticated tools to help reduce consumption. It’s also the case in Australia, which requires that companies benchmark and disclose their energy consumption.
The report observes that while BEMS vendors have developed platforms just for government and commercial customers, utilities are now beginning to play an important role in the BEMS market. Utilities face a host of growing regulations that require them to proactively help their customers reduce energy consumption. By deploying a BEMS model, utilities can stay compliant with such regulations.
In December, Pike Research (now Navigant) published a report predicting that BEMS for utility customers’ global spending will reach $41 million in 2012, growing at a compound annual growth rate of 29.2 percent through 2020, when the market will reach $319 million worldwide. The US will remain the largest market over the forecast period, and is expected to be more than double the size of Western Europe, the next largest market, the report says.
Corporate sustainability and energy management initiatives around the world continue to create demand for systems that can dramatically simplify the process of documenting and reporting reductions in energy consumption and carbon emissions, Navigant says. And there is growing awareness that BEMS 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 facilities worldwide.
Regulatory requirements across the world also support the adoption of BEMS — like in Europe, where large energy consumers have to develop energy management plans in line with the EU’s energy efficiency directive, and Navigant says this will drive companies to look for sophisticated tools to help reduce consumption. It’s also the case in Australia, which requires that companies benchmark and disclose their energy consumption.
The report observes that while BEMS vendors have developed platforms just for government and commercial customers, utilities are now beginning to play an important role in the BEMS market. Utilities face a host of growing regulations that require them to proactively help their customers reduce energy consumption. By deploying a BEMS model, utilities can stay compliant with such regulations.
In December, Pike Research (now Navigant) published a report predicting that BEMS for utility customers’ global spending will reach $41 million in 2012, growing at a compound annual growth rate of 29.2 percent through 2020, when the market will reach $319 million worldwide. The US will remain the largest market over the forecast period, and is expected to be more than double the size of Western Europe, the next largest market, the report says.