Global Building Energy Management System Market

Global Building Energy Management System Market (by Components, End-User, & Region): Insights and Forecast with Potential Impact of COVID-19 (2022-2027)

Market Insight:

The building energy management system is a multifaceted system comprised of hardware, software, and services. The system aids in energy management by utilizing a variety of strategies such as information and communication technology, among others. Furthermore, BEMS technology monitors, automates, and controls building systems such as heating, ventilation, and air conditioning, as well as lighting, to increase energy efficiency and comfort.

The rise in urban population, increased consumer knowledge about the evolution and application of cutting-edge technological products, and an increase in the number of new construction of buildings, institutes, and complexes would drive market expansion in the coming years. The global building energy management system market is estimated to rise to US$6.60 billion in 2023, growing at a CAGR of 12.68%, during the forecast period.

Segment Covered:

• By Component: The market report has bifurcated the global building energy management system market into three segments, in terms of the component: Services, Software, and Hardware. Services held the largest share in the market. On the other hand, the software segment is expected to grow at the highest CAGR in the forthcoming years owing to the rise in technological innovation, increased acceptance of data analytics and cloud technology, and growth in the development of customer-centric models.
• By End-User: On the basis of end-user, the report splits the market into three segments: Residential, Commercial & Institutional, and Industrial. The residential sector held the maximum share in the market. The market's expansion is aided by the rising use of products with high electricity consumption, such as pool heaters, water heaters, batteries & chargers, attic fans, etc.

Geographic Coverage:

• According to this report, the global building energy management system market is divided into following regions: Europe, North America, Asia Pacific, and the Rest of the World. The countries covered in North America region include the US, Canada, and Mexico, while Europe includes Germany, The UK, France, Italy, Spain, and Rest of the Europe. Moreover, China, Japan, South Korea, India, and Rest of the Asia Pacific are included in the Asia Pacific region.

Europe held the dominant share in the market owing to the rising government regulation regarding greenhouse emissions and favorable policies for adopting green building energy management systems. In North America, Mexico is expected to be the fastest growing region in the forecasted period. Whereas, in the Asia Pacific region, China held major share in the market owing to the energy policies of China that emphasize electricity, natural gas, cleaner, high-efficiency, and digital technologies.

Top Impacting Factors:

Growth Drivers

• Rapid Urbanization
• Surging Energy Consumption
• Growth in Adoption of Smart Home Products
• Rise in Carbon Dioxide Emission

Challenges

• High Installation Cost
• Lack of Trained Experts

Trends

• Cloud Technology
• Surge in Adoption of Internet of Things (IoT)
• Decline in Fossil Fuel
• Government Initiatives and Regulations
• Driver: Surging Energy Consumption

With the rise in the global population, the energy consumption of different energy sources is also raising. The different energy sources include renewables, coal, natural gas, etc. The people living in urban areas are more addicted to numerous products and equipment which consume such energy sources. The rise in energy consumption led to the increase in electricity production, which directly influenced the production as well as consumption cost. Therefore to minimize the burden, people have started to adopt conservative methods to reduce the consumption of these resources. Hence, BEMS being an energy-conservative technology would attract more people to efficiently manage the use of natural resources and reduce the cost burden of electricity prices.

• Challenge: Lack of Trained Experts

The BEMS technology market growth would be restrained because of a lack of skilled labor in the industry. The BEMS technology is a collection of different equipment and technology, which are implemented and operated by a specialized team to deliver the desired functions of the equipment without any fault. The building energy management technology is used for a variety of purposes like automation and control of building systems, managing operation of energy distribution in the building, etc. Additionally, the systems are installed in numerous manufacturing industries, institutions, etc. Therefore, any faulty setup of the system can cause improper output or physical hazards to the user. Hence, only skilled laborers can implement the setup of the BEMS technology.

• Trend: Cloud Technology

Cloud computing provides different services through the internet, inclusive of servers, data storage, database, networking, etc. The cloud-based storage allows the user to save files remotely and access them as per the need. The evolvement and rise in cloud technology have extended BEMS from traditional energy visualization and energy analytics to demand response systems. The integration of cloud technology with BEMS provide enhanced management like management of smart sensors through numerous different location, access to a wide range of energy data through convenient terminals, enables energy management between multiple buildings, etc. Hence, the progressive growth of cloud technology is expected to support the growth of the market.

The COVID-19 Analysis:

The COVID-19 pandemic has negatively impacted the market growth in the year 2020. Industrial and commercial building energy demand has declined significantly in many countries, accompanied by an increase in residential energy demand. Restricting social distancing has resulted in a sharp drop in the utilization of commercial buildings. However, in 2021, the stabilization of the global economy and the clearance of the roadblocks in industrial manufacturing has resulted in tremendous growth in the BEMS market.

Analysis of Key Players:

The global building energy management system market is moderately fragmented, with a large number of small- and medium-sized manufacturers accounting for a major revenue share. The key players in the global building energy management system market are:

• Siemens AG
• Johnson Controls International PLC
• ABB Group
• Honeywell International Inc.
• Enel S.p.A (Enel X)
• General Electric Company (GE)
• Schneider Electric SE
• Emerson Electric Co.
• Robert Bosch GmbH
• IBM Corporation
• Azbil Corporation
• Landis+Gyr

Some of the strategies among key players in the market for building energy management systems are product launches, mergers, acquisitions, and collaborations. For instance, in 2021, Emerson Electric Co. acquired OSI, an operations technology software provider, which broadens and complements Automation Solutions’ software portfolio and ability to help customers in the global power industry. Whereas, Landis+Gyr acquired True Energy A/S, which complements the company’s portfolio by expanding its smart infrastructure.