Global Market Size, Forecast, and Trend Highlights Over 2025-2037
Building Energy Management Solution Market size was valued at USD 10.7 billion in 2024 and is estimated to reach USD 39.5 billion by the end of 2037, expanding at a CAGR of 10.7% during the forecast period, i.e., 2025-2037. In 2025, the industry size of building energy management solutions is estimated at USD 12.2 billion.
The prime factor influencing the building energy management solution (BEMS) trade is the supply chain of component production, software integration, systems assembly, and deployment. The components used in building energy management solutions, such as HVAC sensors, smart meters, and lighting controls, are being widely sourced from the U.S., Germany, Japan, and China. This is because of their leadership in technological innovations. These are further processed and assembled in cost-effective markets such as Mexico and Malaysia owing to low labor costs.
Furthermore, the study by the U.S. International Trade Commission (USITC) reveals that the import value of electrical apparatus for switching or protecting electric circuits crossed USD 18.9 billion in 2023. China and Mexico captured more than 40% of the total import volume. Also, the Census Bureau states that between 2022 and 2023, imports of intelligent building automation components increased by 8.7% YoY. This reflects that the digital shift is propelling the use of building energy management solutions.
Building Energy Management Solution Sector: Growth Drivers and Challenges
Growth Drivers
- Energy efficiency mandates: The zero-emission goals and climate commitments adopted by a majority of countries are creating profitable opportunities for building energy management solution producers. The focus on the reduction of carbon footprint is fueling the use of building energy management solutions in optimizing HVAC, lighting, and overall power consumption. The AI-integrated building energy management systems reduce energy usage by nearly 19 to 25% in commercial structures. This encourages end users to invest in technologically advanced building energy management solutions.
- Infrastructure modernization: The smart city initiatives and infrastructure development projects are accelerating the sales of advanced building energy management technologies. For instance, the Smart Cities Mission of India is a more than USD 30.3 billion urban digital infrastructure initiative. Such robust investment strategies are attracting numerous building energy management solution investors to earn lucrative returns. The digital shift in both public and private construction sectors is poised to double the revenues of building energy management producers in the coming years.
Technological Innovations in the Market
The technological advancements are set to double the revenues of building energy management solution producers during the study period. The modernization of infrastructure systems is propelling the demand for innovative building energy management technologies. For instance, the integration of AI and ML is poised to boost the productivity and effectiveness of building energy management platforms. The table below reveals the current technological trends and their outcomes.
|
Technology Trend |
Industry |
Company/Use Case |
Statistic/Outcome |
|
AI Predictive Analytics |
Manufacturing |
ArcelorMittal with Schneider Electric EcoStruxure |
27.5% energy minimization across facilities |
|
IoT-Integrated HVAC |
Telecom |
Verizon’s smart facilities |
Cut HVAC energy use by 19.3% in major data centers |
|
Cloud-Based BEMS |
Finance |
JPMorgan Chase – cloud-integrated BEMS in 500 branches |
Fall in energy cost by $40.3M annually |
AL and ML Integration in the Building Energy Management Solution Market
|
Company |
Integration of AI & ML |
Outcome |
|
Johnson Controls |
AI-driven product design and energy modeling in the OpenBlue platform |
30.3% cut in time-to-market for the BEMS product line |
|
Honeywell |
ML-based predictive maintenance and energy use optimization |
25.5% fall in building operational costs |
|
Schneider Electric |
AI-based EcoStruxure Building Advisor for analytics and demand forecasting |
Enhanced energy efficiency by 29.4% across large commercial installations |
Challenges
- High initial investment: The high installation and maintenance costs are limiting the sales of building energy management solutions. The high upfront costs associated with the hardware and software deter small-scale end users from investing in the latest technologies. The integration of building energy management solutions with existing infrastructure is also a complex and cost-intensive process, which can hinder the overall market growth.
- Lack of skilled workforce: The low availability of skilled workforce in developing regions limits the adoption of building energy management solutions. Trained professionals or technicians are vital for the proper handling and maintenance of building energy management technologies. Price-sensitive markets often face these issues, which limit the investment opportunities. However, industry giants are expected to expand their operations in these regions by employing strategic public-private investment strategies.
Building Energy Management Solution Market: Key Insights
| Report Attribute | Details |
|---|---|
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
10.7% |
|
Base Year Market Size (2024) |
USD 10.7 billion |
|
Forecast Year Market Size (2037) |
USD 39.5 billion |
|
Regional Scope |
|
Building Energy Management Solution Segmentation
Component Analysis
The software segment is projected to capture 39.5% of the global building energy management solution market share by 2037. The growing need for cloud-based analytics and real-time energy monitoring solutions is fueling the adoption of software platforms. The integration of AI in building energy management solutions is set to enhance predictive maintenance capabilities. In 2024, software-led solutions led to 62.4% of energy-saving gains in federal buildings in the U.S. The continuous technological innovations are set to aid in cutting energy waste and optimizing consumption.
End user Segment Analysis
The commercial segment is poised to account for 48.9% share of the global building energy management solution market throughout the forecast period. Regulatory pressure to cut building emissions is necessitating the commercial sector to employ energy management solutions. The Better Buildings Initiative by the U.S. Department of Energy mandates energy performance tracking in more than 34,500 commercial buildings. This drives high application of BEMS in smart building architecture to boost their operational efficiency.
Our in-depth analysis of the building energy management solution market includes the following segments:
|
Component |
|
|
End user |
|
|
Application |
|
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Customize this ReportBuilding Energy Management Solution Industry - Regional Analysis
APAC Market Insight
The Asia Pacific building energy management solution market is estimated to hold 35.1% of the global revenue share through 2037. The rise in infrastructure development activities is propelling the sales of building energy management solutions. The increasing government spending on ICT infrastructure expansion is also fueling the demand for innovative building energy management solutions. China and India are expected to drive the sales of building energy management solutions owing to the swift rise in urban and industrial activities.
The demand for building energy management solutions in China is expected to increase at a high pace during the study period. Huge government investments and rapid industrial digitization are set to propel the revenues of building energy management solution producers in the years ahead. The Ministry of Industry and Information Technology (MIIT) estimates that the large-scale BEMS deployment is projected to gain traction through subsidies and smart city projects. The study by China Academy of Information and Communications Technology (CAICT) and MIIT further states that spending on building energy management solutions increased by 25.4% between 2018 and 2023. This is expected to drive momentum in the market throughout the assessed period.
The India building energy management solution market is projected to register a 12.5% CAGR from 2025 to 2037. The government initiatives promoting smart infrastructure are fueling the trade in building energy management technologies. The expanding ICT infrastructure and increasing demand for IoT solutions are further creating lucrative space for building energy management technology manufacturers. The government spending on building energy management solutions grew by 18.3% between 2015 and 2023, and nearly 3.6 million businesses incorporated BEMS solutions in 2023.
North America Market Insights
The North America building energy management solution market is expected to expand at a CAGR of 9.1% between 2025 and 2037. Technological innovation and supportive government policies are mainly fueling the sales of advanced building energy management solutions. The rise in upgradation of infrastructure is accelerating the demand for building energy management technologies. The U.S. federal government allocated around 15.5% of its budget to ICT initiatives in FY 2024. Such public spending moves are set to propel the overall market growth in the coming years.
The sales of building energy management solutions in the U.S. are expected to increase at a fast pace through 2037. The smart building connectivity trends are increasing the adoption of energy management technologies. The zero-emission trends are fueling public-private investments in building energy management systems. The National Telecommunications and Information Administration’s (NTIA) Smart Cities and Communities Program contributed nearly USD 150.4 million in projects improving energy efficiency through intelligent management systems. Such programs are directly boosting the adoption of technologically advanced building energy management solutions.
The digital infrastructure upgrades in Canada are propelling innovations in building energy management solutions. The rise in energy efficiency and clean technology projects is also accelerating the demand for innovative building energy management technologies. The Telecommunications Alliance Canada registers a 14.3% year-over-year increase in BEMS-related technology deployments among commercial real estate portfolios. This highlights that booming construction activities are set to double the revenues of key players in the years ahead.
Companies Dominating the Building Energy Management Solution Landscape
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
The building energy management solution market is highly competitive due to the presence of established players and domestic companies. Many industry giants are uplifting their R&D capabilities to enhance their product offerings. They are collaborating with other players to reach a wider customer base. The Japanese and South Korean manufacturers are leading the sales of innovative building energy management solutions owing to their know-how tactics. The digital shift is also opening high-earning opportunities for building energy management solution manufacturers. The key players are set to earn hefty gains from the organic sales in the coming years.
|
Company Name |
Country of Origin |
Revenue Share 2024 |
|
Schneider Electric |
France |
12.6% |
|
Siemens AG |
Germany |
11.9% |
|
Honeywell International Inc. |
USA |
10.8% |
|
Johnson Controls International |
USA |
9.7% |
|
ABB Ltd. |
Switzerland |
8.4% |
|
Emerson Electric Co. |
USA |
xx% |
|
Cisco Systems, Inc. |
USA |
xx% |
|
Delta Electronics, Inc. |
Taiwan |
xx% |
|
LG Electronics |
South Korea |
xx% |
|
Eaton Corporation |
Ireland |
xx% |
|
Legrand SA |
France |
xx% |
|
Schneider Electric Australia Pty Ltd |
Australia |
xx% |
|
Honeywell Automation India Ltd. |
India |
xx% |
|
UEM Edgenta Berhad |
Malaysia |
xx% |
|
Samsung Electronics Co., Ltd. |
South Korea |
xx% |
Below are the areas covered for each company in the market:
Recent Developments
- In May 2024, Johnson Controls introduced an advanced analytics module for its Metasys building automation platform. Within three months of deployment, early adopters reported operational cost reductions of up to 12.4%.
- In February 2024, Siemens AG announced the launch of an upgraded version of its flagship platform, Desigo CC 2.0. This new software led to a 15.3% revenue rise in the first quarter of 2024.
Author Credits: Dhruv Bhatia
- Report ID: 7744
- Published Date: Jun 12, 2025
- Report Format: PDF, PPT
