April 25, 2011: Building Energy Management Systems Investment to Top $10 Billion by 2016
April 25, 2011
BOULDER, Colo. - As property owners and managers look for ways to reduce their energy expenditures and environmental impact through efficiency measures, they are increasingly adopting smart building technologies including automation and controls, high-efficiency systems and equipment, and a broadening array of energy management services. These enhancements are being unified in building energy management systems (BEMS), which are information technology (IT)-based hardware and software systems being employed in a holistic approach to optimize the efficiency of buildings’ energy consumption. According to Pike Research, the BEMS market holds significant opportunity for growth in the next few years, and the firm forecasts that investment in the sector will reach $10.1 billion in the United States during the period between 2010 and 2016, with a compound annual growth rate of 17.4 percent.
“When it comes to energy use, commercial buildings are getting smarter all the time,” said research analyst Jevan Fox. “This intelligence, which encompasses everything from sensor networks to predictive supply and demand algorithms to high-efficiency HVAC systems, will require a greater level of control and coordination than legacy building management systems (BMS) can provide. The benefits of BEMS will create a growing market opportunity for a variety of industry players, ranging from traditional building systems companies and energy service companies (ESCOs) to the expanded influence of IT vendors on facilities management.”
Fox added that this convergence will yield a new era of innovation in how energy is managed and consumed in the building sector, beginning with campus environments and large commercial buildings and eventually influencing small and medium-size buildings as well. Building energy management systems include software-based controllers for building systems, monitoring and measurement devices, and cloud-based energy services such as demand response (DR) that connect buildings to the smart grid.
Publication date: 04/25/2011