Although small and medium-sized commercial buildings represent a majority of buildings both in terms of number of buildings and square footage, they have not seen the same level of penetration of building energy management systems (BEMSs) as larger facilities. That is changing as the cost savings enabled by BEMSs become more evident and new construction and regulations promote the installation of BEMS technology, creating new demand for the associated services and software. According to a new report from Navigant Research, worldwide revenue for BEMSs for small and medium buildings will grow from $277 million annually in 2014 to $1.3 billion in 2022.
“The BEMS market for smaller buildings is expanding as building owners and managers, particularly portfolio managers, demand more energy savings and easier ways to manage energy use in their facilities,” says Noah Goldstein, research director with Navigant Research. “Innovative BEMS solutions are being tested in the market, while increased digital control infrastructure is being installed in both new buildings and retrofits to comply with more stringent building codes. At the same time, executives are pushing for more enterprise energy management to manage costs.”
Software, which forms the backbone of all BEMSs, accounts for nearly half of all BEMS revenue in small and medium buildings. Services account for the next largest proportion and the hardware segment represents the balance of revenue in the sector. These three offering types will increasingly converge as the market matures, according to the report. Buildings will need all three offerings as they become networked and managed either centrally or remotely. Small, medium, and large commercial buildings will need different combinations of these offerings, given their specific management and operational goals.
The report, “Energy Management for Small and Medium Buildings”, analyzes the global market for BEMSs that are deployed in small and medium-sized commercial buildings. It provides an analysis of the market issues, including trends, drivers and barriers, and stakeholders, associated with the sector. Global market forecasts for revenue, segmented by region, offering and building type, and building segment, extend through 2022. The report also examines the main technologies related to BEMSs for small and medium buildings, and profiles the key industry players.