Our in-depth analysis of the building energy management systems market includes the following segments:
By Communication Technology
Geographically, the building energy management systems market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa region.
North America is predicted to dominate the global building energy management systems market in the next 8 years owing to technological maturity, well-established infrastructure network, widespread adoption of building energy management systems across verticals, and the massive growth of the industrial sector in the region. The major players operating in the building energy management systems market are from North America only and the existing datacentre facilities are also further observing expansion.
Europe is projected to witness decent growth in the coming few years owing to favorable government projects, environmental concerns, and high adaptation of technology. The Powerhouse Brattorkaia, in Trondheim, Norway designed by the Powerhouse alliance, is the world’s northernmost energy-positive building.
The energy management systems market is expected to witness the rapid growth in the Asia Pacific region on account of technological advancements, increasing commercial and residential development, rapid industrialization, rebates, and tax incentives from various administrations across the region, particularly in China, Japan, and India, which are estimated to further stimulate the market growth.
Latin America and the Middle East & Africa represent immense potential in terms of the adoption of building energy management systems solutions. Huge population growth and rapid industrial development are few reasons to drive the growth of building energy management systems in the region. Growing environmental distress has led the Middle Eastern region to make sturdy progress in energy consumption and efficiency through sustainable development. The new Bee’ah Headquarters under construction in Sharjah, United Arab Emirates has the aim of being the smartest and most sustainable building in the Middle East region.
The building energy management systems market is further classified based on region as follows:
The building energy management systems market is expected to attain a notable CAGR over the forecast period, i.e., 2020-2028. The building energy management systems market is segmented by component, communication technology, end-user, and region. Among product component segmentation, the software segmentation is expected to grab major share in the building energy management systems market. This is attributed to the integration of data analytics software in existing modules that help the organizations to run algorithms for optimized solutions. Dominant market players such as Honeywell International Inc., IBM Corporation, and Schneider Electric have assimilated the data analytics software to their existing energy management system modules for the effective monitoring of the data. The advent of new technologies such as IoT and others are also significantly contributing towards the growth of this segment. CLICK TO DOWNLOAD SAMPLE REPORT
Evolution of technology
Emerging technologies such as the Internet of Things (IoT) and cloud networking are surfacing as a major contributor for more advanced systems. It has been observed that to monitor multiple buildings at the same time and integrate their tasks have become feasible. The heating and the cooling necessities among buildings can be pooled, resulting in energy saving and management of an individual building to the optimal.
Innovations in the global and regional markets are taking place with the majority of dominant players coming up with improved solutions. These factors are driving the growth of the building energy management systems market.
Huge investment and deployment
The market growth might be hampered by enormous initial investment for design and installation, high operation and maintenance cost, and establishing appropriate policies for the building energy management systems.
January 22, 2020: According to the World Economic Forum’s Annual Meeting, climate change can be controlled by transforming our cities and buildings. The article explained how decarbonizing our cities and buildings are both crucial and as well as very complex but digitalization will be the most important enabler of this revolution.
October 14, 2019: C3.ai, AI software provider and ENGIE, an electric utility company, announced their collaboration to drive the AI-powered energy management solution for universities, municipalities, corporate campuses, and hospitals. They will help large institutions to attain their sustainability and financial objectives through energy optimization, capital planning, and campus engagement.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Author Credits: Payel Roy, Dhruv Bhatia