Global Building Energy Management Systems Market Size, Share & Trends Analysis Report By Category (Software, Hardware, and Service), By End-User (Residential, Commercial & Institutional, and Industrial), By Regional Outlook and Forecast, 2023 - 2030
The Global Building Energy Management Systems Market size is expected to reach $13.4 billion by 2030, rising at a market growth of 11.1% CAGR during the forecast period.
The concept of smart buildings, equipped with advanced energy management, security, and automation technologies, is gaining popularity in North America. Consequently, the North America region captured $1,533.22 million revenue in the market in 2022. Increased awareness about the benefits of energy management and sustainability practices has prompted organizations in North America to explore solutions like BEMS.
The major strategies followed by the market participants are Product Launches as the key developmental strategy to keep pace with the changing demands of end users. For instance, In November, 2023, ABB Ltd. introduced ABB Ability OPTIMAX to the green hydrogen market. The software helps hydrogen production companies cut electricity-based expenses by up to 20 percent by measuring power flows and carbon dioxide emissions, providing contextual data for optimal energy consumption levels and waste minimization. Additionally, In March, 2023, Schneider Electric SE introduced Next Generation EcoStruxure Building Operation in India, enhancing occupant comfort and building value. The new product offers data accessibility, standardization, and security aided by AI and machine learning.
Based on the Analysis presented in the KBV Cardinal matrix; Siemens AG, Hitachi, Ltd., Honeywell International Inc. are the forerunners in the Market. For Instance, In March, 2023, Honeywell International Inc. introduced Blenze Pro, a premium wiring device line for the Indian market, catering to high-end wiring needs in residential, commercial, and hospitality buildings, aiming to expand its presence and meet growing demand for premium products. Companies such as Schneider Electric SE, ABB Ltd., Eaton Corporation PLC are some of the key innovators in Market.
Market Growth Factors
The global urbanization wave is leading to more residential and commercial buildings being constructed. As urban areas expand, the demand for BEMS rises to ensure that these structures are equipped with efficient energy management systems. Infrastructure development involves numerous construction projects globally. BEMS becomes integral to new construction projects, ensuring the buildings are energy efficient. BEMS is integrated into these structures to align with sustainability goals and reduce energy consumption. Urban infrastructure includes transportation hubs and smart infrastructure projects. BEMS manages energy consumption in transit terminals, airports, and other critical urban transportation facilities. Thus, because of the global urbanization and infrastructure development, the market is anticipated to increase significantly.
Additionally, Cybersecurity measures help prevent unauthorized access to BEMS platforms, ensuring that only authorized personnel can control and monitor energy systems. This protects against potential malicious activities and secures the integrity of energy data. Implementing secure communication protocols is essential for protecting data transmitted between different components of the BEMS. Cybersecurity solutions help establish encrypted channels, reducing the risk of interception and tampering during data transmission. Human error remains to be a substantial contributor to cybersecurity incidents. A focus on cybersecurity includes employee training and awareness programs to educate personnel about best practices, phishing threats, and security protocols within BEMS. Hence, rising focus on cybersecurity solutions has been a pivotal factor in driving the growth of the market.
Market Restraining Factors
High initial costs contribute to a risk-averse decision-making environment, especially in industries focusing on immediate financial returns. Organizations may hesitate to invest in BEMS without a clear and quick payback period. Organizations face various capital expenditure priorities, such as equipment upgrades, facility expansions, and technology investments. The fear of investing in a system that can become outdated may contribute to hesitations in committing to high initial costs. The high initial costs of BEMS implementation can strain organizations’ cash flow, particularly those with tight financial positions. This strain may lead to delayed or scaled-down investments in energy management. Thus, high initial costs of BEMS can slow down the growth of the market.
By Category Analysis
By category, the market is categorized into service, software, and hardware. The service segment covered a considerable revenue share in the market in 2022. Installation and deployment services involve the physical setup, configuration, and integration of BEMS hardware and software components within a building’s infrastructure. This ensures that the BEMS system is properly installed and ready for operation. Training services provide educational programs for end-users, facility managers, and maintenance staff to ensure they understand how to use and manage the BEMS system effectively. This includes training on system functionalities, troubleshooting, and best practices.
By End-User Analysis
Based on end-user, the market is classified into residential, commercial & Institutional, and industrial. In 2022, the residential segment witnessed the largest revenue share in the market. Growing environmental awareness has prompted individuals to seek sustainable practices, including reducing their carbon footprint. Residential BEMS enable homeowners to make environmentally conscious choices by optimizing energy usage, reducing waste, and contributing to energy conservation. Residential BEMS can contribute to demand response initiatives, allowing homeowners to adjust their energy consumption based on grid signals. This responsiveness aids in grid stability and reliability during peak demand periods.
By Regional Analysis
Region-wise, the market is analysed across North America, Europe, Asia Pacific, and LAMEA. In 2022, the Asia Pacific region led the market by generating the highest revenue share. The Asia Pacific region is experiencing rapid urbanization and infrastructure development, leading to new commercial buildings, residential complexes, and industrial facilities being constructed. Rising urbanization, industrialization, and population expansion drive energy demand in the Asia Pacific region. The use of renewable energy sources, like solar and wind power, is growing across the Asia Pacific region. The Asia Pacific region's fast-expanding commercial and industrial sectors have raised energy demand.
Recent Strategies Deployed in the Market
- Jan-2024: Honeywell International Inc. came into partnership with NXP Semiconductors, a Dutch semiconductor designer and manufacturer, to enhance building energy management. The collaboration aims to enhance building operations intelligently by incorporating NXP Semiconductors' neural network-enabled, industrial-grade applications processors into Honeywell's building management systems (BMS).
- Jan-2024: Honeywell International Inc. has launched Advance Control for Buildings platform; an automated building management system meant to support energy efficiency and improve operational effectiveness. The system includes built-in cybersecurity and technology for faster network speeds while also using existing wiring, allowing for reduced installation costs, time, and waste generation.
- Nov-2023: ABB Ltd. introduced ABB Ability OPTIMAX to the green hydrogen market, aiming in cost reduction by offering real-time visibility of energy consumption. The software helps hydrogen production companies cut electricity-based expenses by up to 20 percent by measuring power flows and carbon dioxide emissions, providing contextual data for optimal energy consumption levels and waste minimization.
- Oct-2023: Hitachi Energy, a subsidiary of Hitachi, Ltd., acquired eks Energy, a leading supplier of power electronics and energy management solutions, from Powin LLC (Powin), a top global energy storage system provider. This strategic investment enhanced their position in power electronics and energy management solutions.
- Aug-2023: GE Vernova, a part of General Electric Co, acquired Greenbird Integration Technology AS, a Norwegian software firm, to expedite GridOS innovation and simplify energy data integration for utilities. Greenbird's utility-centric technology and data integration specialists will enhance the capabilities of the GridOS software portfolio, enabling grid operators to seamlessly connect systems and scale data integration efforts.
- ABB Ltd.
- General Electric Company
- Honeywell International, Inc.
- Hitachi, Ltd.
- Siemens AG
- Schneider Electric SE
- Emerson Electric Co.
- Rockwell Automation, Inc.
- Eaton Corporation PLC
- mCloud Technologies Corp.
By Category
- Software
- Hardware
- Service
- Residential
- Commercial & Institutional
- Industrial
- North America
- US
- Canada
- Mexico
- Rest of North America
- Europe
- Germany
- UK
- France
- Russia
- Spain
- Italy
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- South Korea
- Singapore
- Malaysia
- Rest of Asia Pacific
- LAMEA
- Brazil
- Argentina
- UAE
- Saudi Arabia
- South Africa
- Nigeria
- Rest of LAMEA
- Chapter 1. Market Scope & Methodology
- 1.1 Market Definition
- 1.2 Objectives
- 1.3 Market Scope
- 1.4 Segmentation
- 1.4.1 Global Building Energy Management Systems Market, by Category
- 1.4.2 Global Building Energy Management Systems Market, by End-User
- 1.4.3 Global Building Energy Management Systems Market, by Geography
- 1.5 Methodology for the research
- Chapter 2. Market at a Glance
- 2.1 Key Highlights
- Chapter 3. Market Overview
- 3.1 Introduction
- 3.1.1 Overview
- 3.1.1.1 Market Composition and Scenario
- 3.2 Key Factors Impacting the Market
- 3.2.1 Market Drivers
- 3.2.2 Market Opportunities
- 3.2.3 Market Restraints
- 3.2.4 Market Challenges
- Chapter 4. Competition Analysis - Global
- 4.1 KBV Cardinal Matrix
- 4.2 Recent Industry Wide Strategic Developments
- 4.2.1 Partnerships, Collaborations and Agreements
- 4.2.2 Product Launches and Product Expansions
- 4.2.3 Acquisition and Mergers
- 4.3 Top Winning Strategies
- 4.3.1 Key Leading Strategies: Percentage Distribution (2019-2023)
- 4.3.2 Key Strategic Move: (Mergers & Acquisition: 2020, Mar – 2023, Oct) Leading Players
- 4.4 Porter’s Five Forces Analysis
- Chapter 5. Global Building Energy Management Systems Market by Category
- 5.1 Global Software Market by Region
- 5.2 Global Hardware Market by Region
- 5.3 Global Service Market by Region
- Chapter 6. Global Building Energy Management Systems Market by End-User
- 6.1 Global Residential Market by Region
- 6.2 Global Commercial & Institutional Market by Region
- 6.3 Global Industrial Market by Region
- Chapter 7. Global Building Energy Management Systems Market by Region
- 7.1 North America Building Energy Management Systems Market
- 7.1.1 North America Building Energy Management Systems Market by Category
- 7.1.1.1 North America Software Market by Country
- 7.1.1.2 North America Hardware Market by Country
- 7.1.1.3 North America Service Market by Country
- 7.1.2 North America Building Energy Management Systems Market by End-User
- 7.1.2.1 North America Residential Market by Country
- 7.1.2.2 North America Commercial & Institutional Market by Country
- 7.1.2.3 North America Industrial Market by Country
- 7.1.3 North America Building Energy Management Systems Market by Country
- 7.1.3.1 US Building Energy Management Systems Market
- 7.1.3.1.1 US Building Energy Management Systems Market by Category
- 7.1.3.1.2 US Building Energy Management Systems Market by End-User
- 7.1.3.2 Canada Building Energy Management Systems Market
- 7.1.3.2.1 Canada Building Energy Management Systems Market by Category
- 7.1.3.2.2 Canada Building Energy Management Systems Market by End-User
- 7.1.3.3 Mexico Building Energy Management Systems Market
- 7.1.3.3.1 Mexico Building Energy Management Systems Market by Category
- 7.1.3.3.2 Mexico Building Energy Management Systems Market by End-User
- 7.1.3.4 Rest of North America Building Energy Management Systems Market
- 7.1.3.4.1 Rest of North America Building Energy Management Systems Market by Category
- 7.1.3.4.2 Rest of North America Building Energy Management Systems Market by End-User
- 7.2 Europe Building Energy Management Systems Market
- 7.2.1 Europe Building Energy Management Systems Market by Category
- 7.2.1.1 Europe Software Market by Country
- 7.2.1.2 Europe Hardware Market by Country
- 7.2.1.3 Europe Service Market by Country
- 7.2.2 Europe Building Energy Management Systems Market by End-User
- 7.2.2.1 Europe Residential Market by Country
- 7.2.2.2 Europe Commercial & Institutional Market by Country
- 7.2.2.3 Europe Industrial Market by Country
- 7.2.3 Europe Building Energy Management Systems Market by Country
- 7.2.3.1 Germany Building Energy Management Systems Market
- 7.2.3.1.1 Germany Building Energy Management Systems Market by Category
- 7.2.3.1.2 Germany Building Energy Management Systems Market by End-User
- 7.2.3.2 UK Building Energy Management Systems Market
- 7.2.3.2.1 UK Building Energy Management Systems Market by Category
- 7.2.3.2.2 UK Building Energy Management Systems Market by End-User
- 7.2.3.3 France Building Energy Management Systems Market
- 7.2.3.3.1 France Building Energy Management Systems Market by Category
- 7.2.3.3.2 France Building Energy Management Systems Market by End-User
- 7.2.3.4 Russia Building Energy Management Systems Market
- 7.2.3.4.1 Russia Building Energy Management Systems Market by Category
- 7.2.3.4.2 Russia Building Energy Management Systems Market by End-User
- 7.2.3.5 Spain Building Energy Management Systems Market
- 7.2.3.5.1 Spain Building Energy Management Systems Market by Category
- 7.2.3.5.2 Spain Building Energy Management Systems Market by End-User
- 7.2.3.6 Italy Building Energy Management Systems Market
- 7.2.3.6.1 Italy Building Energy Management Systems Market by Category
- 7.2.3.6.2 Italy Building Energy Management Systems Market by End-User
- 7.2.3.7 Rest of Europe Building Energy Management Systems Market
- 7.2.3.7.1 Rest of Europe Building Energy Management Systems Market by Category
- 7.2.3.7.2 Rest of Europe Building Energy Management Systems Market by End-User
- 7.3 Asia Pacific Building Energy Management Systems Market
- 7.3.1 Asia Pacific Building Energy Management Systems Market by Category
- 7.3.1.1 Asia Pacific Software Market by Country
- 7.3.1.2 Asia Pacific Hardware Market by Country
- 7.3.1.3 Asia Pacific Service Market by Country
- 7.3.2 Asia Pacific Building Energy Management Systems Market by End-User
- 7.3.2.1 Asia Pacific Residential Market by Country
- 7.3.2.2 Asia Pacific Commercial & Institutional Market by Country
- 7.3.2.3 Asia Pacific Industrial Market by Country
- 7.3.3 Asia Pacific Building Energy Management Systems Market by Country
- 7.3.3.1 China Building Energy Management Systems Market
- 7.3.3.1.1 China Building Energy Management Systems Market by Category
- 7.3.3.1.2 China Building Energy Management Systems Market by End-User
- 7.3.3.2 Japan Building Energy Management Systems Market
- 7.3.3.2.1 Japan Building Energy Management Systems Market by Category
- 7.3.3.2.2 Japan Building Energy Management Systems Market by End-User
- 7.3.3.3 India Building Energy Management Systems Market
- 7.3.3.3.1 India Building Energy Management Systems Market by Category
- 7.3.3.3.2 India Building Energy Management Systems Market by End-User
- 7.3.3.4 South Korea Building Energy Management Systems Market
- 7.3.3.4.1 South Korea Building Energy Management Systems Market by Category
- 7.3.3.4.2 South Korea Building Energy Management Systems Market by End-User
- 7.3.3.5 Singapore Building Energy Management Systems Market
- 7.3.3.5.1 Singapore Building Energy Management Systems Market by Category
- 7.3.3.5.2 Singapore Building Energy Management Systems Market by End-User
- 7.3.3.6 Malaysia Building Energy Management Systems Market
- 7.3.3.6.1 Malaysia Building Energy Management Systems Market by Category
- 7.3.3.6.2 Malaysia Building Energy Management Systems Market by End-User
- 7.3.3.7 Rest of Asia Pacific Building Energy Management Systems Market
- 7.3.3.7.1 Rest of Asia Pacific Building Energy Management Systems Market by Category
- 7.3.3.7.2 Rest of Asia Pacific Building Energy Management Systems Market by End-User
- 7.4 LAMEA Building Energy Management Systems Market
- 7.4.1 LAMEA Building Energy Management Systems Market by Category
- 7.4.1.1 LAMEA Software Market by Country
- 7.4.1.2 LAMEA Hardware Market by Country
- 7.4.1.3 LAMEA Service Market by Country
- 7.4.2 LAMEA Building Energy Management Systems Market by End-User
- 7.4.2.1 LAMEA Residential Market by Country
- 7.4.2.2 LAMEA Commercial & Institutional Market by Country
- 7.4.2.3 LAMEA Industrial Market by Country
- 7.4.3 LAMEA Building Energy Management Systems Market by Country
- 7.4.3.1 Brazil Building Energy Management Systems Market
- 7.4.3.1.1 Brazil Building Energy Management Systems Market by Category
- 7.4.3.1.2 Brazil Building Energy Management Systems Market by End-User
- 7.4.3.2 Argentina Building Energy Management Systems Market
- 7.4.3.2.1 Argentina Building Energy Management Systems Market by Category
- 7.4.3.2.2 Argentina Building Energy Management Systems Market by End-User
- 7.4.3.3 UAE Building Energy Management Systems Market
- 7.4.3.3.1 UAE Building Energy Management Systems Market by Category
- 7.4.3.3.2 UAE Building Energy Management Systems Market by End-User
- 7.4.3.4 Saudi Arabia Building Energy Management Systems Market
- 7.4.3.4.1 Saudi Arabia Building Energy Management Systems Market by Category
- 7.4.3.4.2 Saudi Arabia Building Energy Management Systems Market by End-User
- 7.4.3.5 South Africa Building Energy Management Systems Market
- 7.4.3.5.1 South Africa Building Energy Management Systems Market by Category
- 7.4.3.5.2 South Africa Building Energy Management Systems Market by End-User
- 7.4.3.6 Nigeria Building Energy Management Systems Market
- 7.4.3.6.1 Nigeria Building Energy Management Systems Market by Category
- 7.4.3.6.2 Nigeria Building Energy Management Systems Market by End-User
- 7.4.3.7 Rest of LAMEA Building Energy Management Systems Market
- 7.4.3.7.1 Rest of LAMEA Building Energy Management Systems Market by Category
- 7.4.3.7.2 Rest of LAMEA Building Energy Management Systems Market by End-User
- Chapter 8. Company Profiles
- 8.1 ABB Ltd.
- 8.1.1 Company Overview
- 8.1.2 Financial Analysis
- 8.1.3 Segmental and Regional Analysis
- 8.1.4 Research & Development Expense
- 8.1.5 Recent strategies and developments:
- 8.1.5.1 Product Launches and Product Expansions:
- 8.1.5.2 Acquisition and Mergers:
- 8.1.6 SWOT Analysis
- 8.2 General Electric Company
- 8.2.1 Company Overview
- 8.2.2 Financial Analysis
- 8.2.3 Segmental and Regional Analysis
- 8.2.4 Research & Development Expense
- 8.2.5 Recent strategies and developments:
- 8.2.5.1 Acquisition and Mergers:
- 8.2.6 SWOT Analysis
- 8.3 Honeywell International, Inc.
- 8.3.1 Company Overview
- 8.3.2 Financial Analysis
- 8.3.3 Segmental and Regional Analysis
- 8.3.4 Research & Development Expenses
- 8.3.5 Recent strategies and developments:
- 8.3.5.1 Partnerships, Collaborations, and Agreements:
- 8.3.5.2 Product Launches and Product Expansions:
- 8.3.6 SWOT Analysis
- 8.4 Hitachi, Ltd.
- 8.4.1 Company Overview
- 8.4.2 Financial Analysis
- 8.4.3 Segmental and Regional Analysis
- 8.4.4 Research & Development Expenses
- 8.4.5 Recent strategies and developments:
- 8.4.5.1 Product Launches and Product Expansions:
- 8.4.5.2 Acquisition and Mergers:
- 8.4.6 SWOT Analysis
- 8.5 Siemens AG
- 8.5.1 Company Overview
- 8.5.2 Financial Analysis
- 8.5.3 Segmental and Regional Analysis
- 8.5.4 Research & Development Expense
- 8.5.5 Recent strategies and developments:
- 8.5.5.1 Partnerships, Collaborations, and Agreements:
- 8.5.5.2 Product Launches and Product Expansions:
- 8.5.5.3 Acquisition and Mergers:
- 8.5.6 SWOT Analysis
- 8.6 Schneider Electric SE
- 8.6.1 Company Overview
- 8.6.2 Financial Analysis
- 8.6.3 Segmental and Regional Analysis
- 8.6.4 Research & Development Expense
- 8.6.5 Recent strategies and developments:
- 8.6.5.1 Partnerships, Collaborations, and Agreements:
- 8.6.5.2 Product Launches and Product Expansions:
- 8.6.5.3 Acquisition and Mergers:
- 8.6.6 SWOT Analysis
- 8.7 Emerson Electric Co.
- 8.7.1 Company Overview
- 8.7.2 Financial Analysis
- 8.7.3 Segmental and Regional Analysis
- 8.7.4 Research & Development Expense
- 8.7.5 Recent strategies and developments:
- 8.7.5.1 Product Launches and Product Expansions:
- 8.7.5.2 Acquisition and Mergers:
- 8.7.6 SWOT Analysis
- 8.8 Rockwell Automation, Inc.
- 8.8.1 Company Overview
- 8.8.2 Financial Analysis
- 8.8.3 Segmental and Regional Analysis
- 8.8.4 Research & Development Expenses
- 8.8.5 SWOT Analysis
- 8.9 Eaton Corporation PLC
- 8.9.1 Company Overview
- 8.9.2 Financial Analysis
- 8.9.3 Segmental and Regional Analysis
- 8.9.4 Research & Development Expense
- 8.9.5 Recent strategies and developments:
- 8.9.5.1 Partnerships, Collaborations, and Agreements:
- 8.9.5.2 Product Launches and Product Expansions:
- 8.9.5.3 Acquisition and Mergers:
- 8.9.6 SWOT Analysis
- 8.10. mCloud Technologies Corp.
- 8.10.1 Company Overview
- 8.10.2 Financial Analysis
- 8.10.3 Regional Analysis
- 8.10.4 Research & Development Expenses
- 8.10.5 SWOT Analysis
- Chapter 9. Winning imperative of Building Energy Management Systems Market
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