Building energy management industry to top $1 billion by 2020, says report

September 10, 2012

Though energy efficient buildings have long been touted as a way to limit rising costs for power and water, the use of management systems for these structures have emerged as a way to increase efficiency even more for commercial structures.

A new report from Pike Research outlined how the market for smart building management systems and products is expected to rise by a significant margin in the coming years, as new technologies and innovations are increasing the operational efficiency for commercial structures around the world.

According to the report, the transition to the use of smart building management systems is occurring for reasons related to efficiency, but also because of a desire by many owners to cut back on the number of people they employ.

By installing "smarter" technology into a building, an owner can increase the efficiency of their operation while also cutting costs associated with maintaining and overseeing practices that reduce consumption.

"Smart building managed service providers have stepped to the fore to address these challenges for building owners and managers. These managed service vendors work closely with clients, effectively becoming an extension of the building’s own staff," said the authors of the report, noting that the competitive landscape for services related to management systems is fueling growth.

The increased use of building energy management services is something that will likely lead the total market for the products from $291 million in 2012 to $1.1 billion by 2020, according to the report.

The growth is likely to be supported by a massive investment by larger companies and not just building owners, according to Environmental & Energy Management News. This rapid expansion of the market is likely to occur at a compound annual growth rate of 18 percent from 2012 to 2020.

National companies, federal efficiency efforts and government efforts are expected to lead the expansion, according to the report.

"Large established market players and OEMs such as Johnson Controls, Siemens, and Schneider Electric have a strong foothold in managed services," said the authors of the report. "More focused companies such as Ecova and Pacific Controls have leveraged their independence from the larger OEMs to build strong relationships with their clients, while large IT companies such as IBM and HP have become strong competitors as well."

Efforts like the Energy Efficient Buildings Hub (EEB Hub) are also helping to support the growth of the industry, as new investments and advances are being made at research centers such as these.