Revenue for global building automation systems installation and aftermarket services was estimated to be worth $26.4 billion in 2012. Small- and medium-sized independent integrators accounted for an estimated 57 percent.
IHS noted that this is a highly competitive space with no single independent integrator holding more than a 1 percent market share. Here independent integrators look for ways to differentiate themselves in order to win business. Such an activity is likely to take two forms: enhanced product representation and adding value to traditional service contracts.
“Integrators will choose the brands they represent very carefully,” said William Rhodes, senior market analyst, building technology, for IHS. “Many are finding that different users value varying levels of cost and specifications for the equipment, and integrators will try to cover most scenarios with their brand choice. In this case, the desire to have the latest technology must be balanced against reliability and the capability to integrate with legacy solutions.”
Integrators often will identify the products that customers are likely to be asking for in the future, and start testing and analyzing them early with a view to integrating the products before demand picks up.
“Integrators also are looking for more ways to add value to the service they provide and improve their competitive positioning,” Rhodes said. “Some integrators have started to provide building analytics to help customers save energy — through either building optimization or fault detection. With building analytics, integrators are able to provide proactive energy savings, which improves customer satisfaction.”
IHS said the brands that building automation integrators represent and the products they specify will become increasingly important for integrators that want to differentiate their offerings. Adding value to traditional service contracts will be critical for integrators to win market share in an increasingly competitive landscape.
Publication date: 10/14/2013