Increasing Need for Energy Efficiency Keeps Demand for Energy Management Strong
North American energy management services market expected to boom over the next five years
MOUNTAIN VIEW, Calif. — The rise in energy prices and consumers’ focus on energy efficiency have compelled facility and home owners in North America to adopt energy-saving solutions, notes Frost & Sullivan. Suppliers are diversifying their portfolios with respect to system design and technology in order to remain competitive and meet the needs of building and home owners.
A report from Frost & Sullivan, “Analysis of the North American Energy Management Systems Market,” finds that the market earned revenues of $8.45 billion in 2014 and forecasts this to reach $11.39 billion in 2020. The study covers home energy management systems (HEMS) and building energy management systems (BEMS). The BEMS market is a higher revenue generator than the HEMS market and is expected to continue to be so throughout the forecast period.
“The North American energy management services market is expected to boom over the next five years,” said Aanchal Singh, Frost & Sullivan Energy & Environmental research analyst. “However, this trend will only catch on once building and home owners understand that apart from hardware and software solutions, energy management services are significant to better address all their unmet needs.”
At the moment, the lack of consumer knowledge on energy management systems and stiff competition due to market maturity are challenges for vendors and distributors in North America. Low motivation of residential home owners as well as high initial investment and confusion among facility owners due to the availability of multiple solutions are also major roadblocks for energy management systems manufacturers in the region.
“Creating consumer awareness on energy-efficient systems and complete energy usage tracking and monitoring will trigger the demand for these products,” said Singh. “Building strong channel partnerships will also help vendors attract new customers.”
The emergence of cloud infrastructure and its associated services, such as software as a service, are expected to deliver a technology leap for the North American market. Thus, energy management systems manufacturers can offer a fresh approach to energy monitoring and tracking by collaborating with or acquiring new entrants that provide cloud-based solutions to utilize their expertise and knowledge.
More information on this report is available here.
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Publication date: 7/13/2015
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