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 percent through the rest of this decade, reaching just under $6 billion a year by 2020.
BEMS include software, hardware, and services associated with the intelligent monitoring, management, and control of energy, specifically for reducing overall energy consumption and lowering energy costs. It’s no wonder BEMS are on a growth trend as the U.S. Department of Energy, reports that 18 percent of all the energy produced in the United States is used to cool, heat, light, or accomplish other functions within commercial buildings. Eric Bloom, research analyst with Pike also credits advances in these systems for the rosy outlook, saying:
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. 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 is a market research and consulting firm that provides in-depth analysis of global clean technology markets.