-- To sustain expansion pace, market participants must rapidly educate end users on the benefits of energy management systems
LONDON, Sept. 30, 2014 /PRNewswire/ -- As energy prices rise, end users in Europe are adopting home and building energy management systems (HEMS/BEMS) to obtain data on energy consumption. Coupled with advances in big data analytics, cloud-based solutions and Internet of things, this trend is creating strong opportunities for energy management (EM) vendors in the region. Innovative business models will, however, be needed to leverage emerging opportunities such as the demand for integrated solutions that enable communication between subsystems or machine-to-machine interactions.
New analysis from Frost & Sullivan, European HEMS and BEMS Market, finds that the market earned revenues of $1.14 billion in 2013 and estimates this to reach $2.01 billion in 2018. The study covers the hardware and software products offered by the HEMS and BEMS industries.
For more information on this study, please email Chiara Carella, Corporate Communications, at firstname.lastname@example.org
Most of the Western European countries are reframing their regulations to align with the EU directives on energy efficiency. The roll out of smart meters by 2015 will create more business opportunities for utilities as well.
"Over the next 5 to 10 years, a combination of factors will drive the market," says Frost & Sullivan Energy & Environmental Research Analyst Anirudh Bhaskaran. "These include the heating requirements in the Northern European countries, decreasing price of HEMS and BEMS components, and the need to comply with stringent EU directives designed to improve energy efficiency in buildings."
The main challenges HEMS and BEMS vendors face are low consumer awareness and poor uptake among small organizations. In spite of regulations, many consumers remain unaware of the benefits of EMS as well as the adverse impact of poor EM on the climate. This has led to customer disengagement in both the residential and non-residential sectors. Further, HEMS and BEMS remain unaffordable for small organisations even though the cost of EMS components has come down. Nonetheless, continuing long-term investments from large organisations will keep the market on a steady course.
"BEMS and HEMS vendors must launch initiatives to boost end-user awareness on the importance of EMS," pointed out Bhaskaran. "They could also enter strategic partnerships to strengthen their presence in the European market. This would open up opportunities for distributors in the region as well."
European HEMS and BEMS Market is part of the Building Management Technologies (http://www.buildingtechnologies.frost.com) Growth Partnership Service program. Frost & Sullivan's related studies include: Global Building Automation Market, The Future of Building Energy Management Solutions, and European Building Automation Systems Market. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.
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SOURCE Frost & Sullivan