Advanced IT Solutions Enhance the Sophistication and Application of BEMS in North America
Customer engagement, flexible payment models, and open-source platform strategies will boost new growth opportunities for building energy management system, finds Frost & Sullivan's Energy & Environment team
SANTA CLARA, California, Sept. 12, 2017 /PRNewswire/ -- Next-generation IT solutions and increased connectivity such as Big Data analytics, cloud computing and the Internet of Things (IoT) are enabling the development of a new class of intelligent building energy management systems (BEMS) that offers safety, energy performance, and technology-enabled business model innovation. These systems hold great promise for commercial and industrial buildings as they can facilitate remote monitoring, energy efficiency, and system optimization. They received a huge boost in North America with state incentives for buildings installed with energy management systems and high peak demand charges.
Frost & Sullivan's market research, "North American BEMS Market, Forecast to 2021," finds that the North American BEMS market generated revenues of $822.8 million in 2016 and is expected to register a compound annual growth rate (CAGR) of 5.1 percent through 2021. The research provides an analysis of current and expected market developments, drivers, restraints, and revenue forecasts across segments and end-user groups. Market share and competitive landscape for major players such as Johnson Controls, Honeywell, Schneider Electric, and Siemens are provided.
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"Customer engagement, flexible payment models, and open-source platform strategies are critical success factors for companies to stay competitive in the market," said Frost & Sullivan Energy & Environment Research Analyst Anirudh Bhaskaran. "More acquisitions and partnerships between building service providers, BEMS suppliers, and technology giants will enable product portfolio strengthening and edge analytics by utilizing the full potential of IoT."
Growth in the North American BEMS market will be supported by:
- Increased electricity costs;
- Multiple federal regulatory programs for energy efficiency in the US and Canada;
- Adoption of BEMS solutions such as utility bill management budgets and forecasts, and benchmarking to reduce peak demand charges;
- Commercial customer commitment to sustainability;
- High growth opportunities in industries, office, hospitality, utilities, and education; and
- Partnership and acquisition activities between BEMS suppliers and utilities to provide value-added customer services.
"Although the North America BEMS market is poised for healthy growth over the next five years, key concerns such as increasing cyber threats leading to data theft, data ownership uncertainties, and the Trump administration's stand on energy management programs are factors that will hinder adoption rates and growth," noted Bhaskaran.
North American BEMS Market, Forecast to 2021 is part of Frost & Sullivan's Homes & Buildings Growth Partnership Subscription, which covers segments such as hardware, including controllers that control field-level devices and gateways that interface with the management layer; software-like dashboard applications and cloud-based optimization; and services, for example software implementation and software maintenance and support. End-user verticals such as industrial, office, retail, hospitality, healthcare, education, government, and utilities are also assessed.
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North American BEMS Market, Forecast to 2021
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Contact:
Jaylon Brinkley
Corporate Communications – North America
P: (210) 247.2481
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E: jaylon.brinkley@frost.com
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