Residential and commercial buildings consume approximately 60% of the world’s electricity. So, it is encouraging to read Navigant Research’s latest report on the Building Energy Management Systems (BEMSs) global market which appears to be growing steadily.
According to the report, Building Energy Management Systems, several market trends, including growing corporate awareness of the Internet of Things and rising demand for data-driven decision support tools, are accelerating the adoption of BEMSs. The report assesses the expected market trends through to 2024.
Energy efficiency becomes cost-effective
As the cost of monitoring and control technology falls, BEMSs are becoming more cost-effective options for a broader set of customers. According to the report, worldwide revenue from BEMSs is expected to grow from US$2.4 billion in 2015 to nearly US$10.8 billion in 2024.
“Building energy management systems represent an important evolutionary step in the approach to facilities and operations management,” says Casey Talon, senior research analyst with Navigant Research. “As the market matures, more integrated and sophisticated BEMS solutions are delivering energy efficiency improvements while also enabling comprehensive business intelligence and strategic management.”
Diverse customer needs
BEMSs include offerings in four categories, according to the report: visualization and reporting, fault detection and diagnostics, predictive maintenance and continuous improvement, and optimization. Solutions may span these categories or provide tools within one specific category, and they vary in technology maturity based on functionality and integration.
This variability in solution design and functionality reflects the newness of the market and diverse customer needs, the report finds.
Is the utility onboard?
The utility will need to prepare its business for the development of this growing market so that opportunities are not lost. [Engerati-Utilities Could Miss The Growth in the Smart Building Sector.] Existing buildings generally represent significant energy saving opportunities because their performance level is frequently far below current efficiency potentials.
Buildings typically drop their energy consumption by 20% or more after smart technology has been installed. Smart buildings are ideal candidates for automated demand response, load control and similar programmes.
Furthermore, “smart buildings will play a central role in stabilizing the future grids thanks to the buildings’ flexibility regarding energy consumption and energy storage”, says Andreas Gmuer, Marketing Manager, Siemens Building Technologies Division. This flexibility of buildings could help balance power generation and consumption, an increasing challenge for grid operators, especially considering the unpredictable nature of renewable energy sources. [Engerati – Energy Efficiency Strategies to Transform the Smart Building Market.]
This is a good time for utilities to rethink their load growth projections and an even better time for them to jump onboard the BEMS wagon- a perfect opportunity for diversification. [Engerati – Energy Transition – A Rebirth for Utilities.]