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Regulatory Changes Compel Adoption of Energy Management Services in Brazil, Finds Frost & Sullivan


News provided by

Frost & Sullivan

04 Apr, 2013, 14:26 GMT

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- Need to prevent excessive energy consumption fuels EMS market growth

SAO PAULO, April 4, 2013 /PRNewswire/ -- Stiff competition has impelled several companies to look for cost reduction methods particularly in terms of energy consumption, leading to the development of energy management systems (EMS) in Brazil. Regulatory changes to stimulate production and revive the economy have added to the need to manage energy use and lent momentum to the EMS market in the country.

New analysis from Frost & Sullivan (http://www.energy.frost.com), Opportunity Analysis of the Energy Management Services in Brazil, finds that the market earned approximately $697.3 million in 2012 and estimates this to reach $1,164.5 million in 2017.

Brazil was ranked fourth in the world for number of sustainable buildings. The rising demand for sustainability and added value in the country is driving the number of registrations for energy labels and certifications, necessitating the adoption of EMS. The Brazilian labeling program for electrical equipment and buildings will also spur market revenues.

"The current Brazilian contracting model requires power consumption levels to be stated in advance, and the customer is fined if actual utilization exceeds the estimated value," said Frost & Sullivan Energy and Environmental Leader Juliana Passadore. "Therefore, energy-intensive industries and commercial building owners are turning to EMS to prevent excessive consumption."

Sustainable and certified infrastructure for events such as the FIFA World Cup in 2014 and the Olympic Games in 2016, and homes for the poor built through construction programs, will boost the country's EMS market. Government regulations for peak and off-peak tariffs as well as mini and micro electricity generation will intensify customer concern on energy consumption and aid uptake.

Despite these growing concerns on saving energy, however, awareness on energy costs and regulations remains low and reduces market potential. Certain EMS vendors' lack of qualification and the poor services they offer have given rise to the perception that the market as a whole is unprepared or unqualified, further curbing market value.

"EMS providers need to improve their technical and managerial capabilities and provide quality services to widen their customer base," noted Passadore. "Access to capital and partnering with well-known brands will be crucial to stay competitive."

Small- and medium-sized competitors will look to stand apart by catering to niche segments such as the residential and commerce sectors.

If you are interested in more information on this research, please send an email to Francesca Valente, Corporate Communications, at francesca.valente@frost.com, with your full name, company name, job title, telephone number, company email address, company website, city, state and country.

Opportunity Analysis of the Energy Management Services in Brazil is part of the Energy & Power Growth Partnership Service program. Frost & Sullivan's related research services include: Latin America Large Hydro Turbine Market, Natural Gas Power Plant Market in Brazil, Peruvian and Uruguayan HV Transformer Market, Mexican Solar Power Market, Southern Cone Wind Turbine Markets, Power Generation from Municipal Solid Waste in Brazil, and Brazilian Distribution Energy Losses Management, among others. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.

Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

  • The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
  • The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.

For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

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Opportunity Analysis of the Energy Management Services in Brazil
NBDA-14

Contact:
Francesca Valente
Corporate Communications – Latin America
P: +54 11 4777 5300
F: +54 11 4777 5300
E: francesca.valente@frost.com

http://www.frost.com

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