The market of Building Energy Management System (BEMS) in the US is emerging as lucrative sector for investors as it is expected to grow by more than double by the year 2030.
With the Cumulative Annual Growth Rate (CAGR) at around 6%, the BEMS market is estimated to reach US $1860 million by 2030 from US $872 million at present.
The innovation in technology is expected to accelerate the market of BEMS further. This is because BEMS platform integrated with technology ensures optimal utilization of energy with better customer experience.
Development of smart cloud-based and web-based networks well supported by the Internet of Things (IOT), wireless technologies, facility management solutions and integrated building solutions are extending the technological boundaries of BEMs. Moreover, increasing demand for consolidated security solutions is an additional factor propelling the overall market growth.
To tap into the growing opportunity of BEMS market exposed by innovation in technology, major market players in the US such as Johnson Controls, Honeywell, Siemens and Schneider Electric are gradually increasing their Research and Development budget.
The connectivity with BEMS is also transforming the paradigm of BEMS market from hardware based to software based. It has reduced the operational complexities and ensured better operation of BEMS. The software market of BEMS has generated almost 67% revenue of the total market revenue last year.
Nonetheless, factors such as high-cost of initial setup coupled with extensive maintenance requirement may limit widespread BEMs adoption. In addition, lack of skilled technicians to operate such advanced systems is another major restraint in the market.
Besides innovation in technology, the incentive and rebate program extended by state government of the US (all states), customers commitment towards sustainability and high peak demand charges are also propelling the demand for BEMS in the US. Moreover, the new policy to reduce energy consumption and growing concern regarding carbon emissions are likely to inflate the market of BEMS further in the near to mid term.
Subarna Poudel is a researcher with Frost & Sullivan. He can be reached at email@example.com
Sapan Agarwal drives content and marketing for Frost & Sullivan. Sapan is based out of Kuala Lumpur Malaysia and can be reached at firstname.lastname@example.org | +603 6204 5830