Building Energy Management Systems Market Size, Share, Industry, Forecast and outlook (2024-2031)

Global Building Energy Management Systems Market is segmented By Product Type (Software, Hardware, Services), By Building Type (Commercial(Healthcare, Hospitality, BFSI, RetailEntertainment, Education, Others), Residential, Industrial, Government), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2023-2030

Building Energy Management Systems Market Overview

[212 pages] Global Building Energy Management Systems by DataM Intelligence estimates the market to grow at a CAGR of 17.2% during the forecast period 2023-2030. Demand from commercial and residential buildings in Asia Pacific is booming. Competitive rivalry intensifies with Cisco Systems Inc, Johnson Controls, Schneider Electric and others operating in the market.

Electrical control systems, called building energy management systems (BEMS), are used to track and manage a building's energy requirements. Additionally, these systems can offer a comfortable and healthy indoor environment and cost-effective operation of the facility in terms of manpower and energy. Both residential and business structures can employ these systems.

Heating, ventilation, air conditioning, lighting, fire alarm systems, security, maintenance and energy management are all included in the building energy management systems. Computers and distributed microprocessors are used in these systems for monitoring, data storage and communication. BEMS systems can be installed using wired or wireless systems, maintenance contracts or manufacturer installations.

Building Energy Management Systems Market Scope and Summary

Building Energy Management Systems Market Trends and Dynamics

The increased energy savings concerns and technological advancements are two main reasons driving the global building energy management systems market. However, high deployment costs may restrain market expansion. 

Growing energy-saving concerns 

A cutting-edge energy management system for commercial buildings, building energy management systems (BEMS) provide monitoring and information on energy use and demand systems that facility managers can utilize to make savings. Facilities managers can take action based on the monitoring and information provided by a BEMS to reduce energy use and demand.

BEMS can also monitor, aggregate and process data at a fundamental level to inform logic-controlled reactions. BEMS are still predominantly utilized reactively to resolve issues and to anticipate and improve future building performance.

The market is propelled by increasing demand for building energy management systems with rising concerns regarding energy saving. Energy conservation has an important impact on national economic performance. BEMS aims to reduce energy needs by altering energy users' mindsets and behavioral patterns. 

Technological advancements

Building energy management systems is witnessing a technological revolution by implementing various technologies, including AI, rising Internet of Things enabled devices, data analytics, edge analytics, cloud solutions and business model innovation. A cloud-based Advanced Energy Management System installed at a data center would connect Battery Energy Storage Systems (BESS) installed on the consumer side within the demonstration area, energy management systems (xEMS) installed in factories, buildings and homes and a distribution management system (DMS) installed at an electricity distribution company to provide services. 

High costs of BEMS

Building energy management systems has a high deployment cost, limiting industry expansion. Generally, installing a basic building energy management system costs at least US$ 2.50 per square foot. Often the respective price might be as much as US$ 7.00 per square foot or at least US$ 250,000 for a 100,000 square foot structure. The respective price could vary as per the hardware and software specifications used.

Similarly, Software expenditure is an important factor in BEMS systems. Most software expenditures are split into one upfront cost and an ongoing recurring cost that is usually assessed yearly. The initial installation, configuration charge, and software license are included in the upfront costs.

COVID-19 Impact on Building Energy Management Systems Market

Following the proclamation of the COVID-19 pandemic and the surge in cases globally, millions of people's normal daily routines were disturbed as the world fought to contain the virus's spread. As a result, homes were transformed into makeshift offices, classrooms, restaurants and entertainment hubs. Remote learning, in which most students finish their studies from home on a computer or tablet, has replaced in-person classroom situations. Furthermore, business operations were temporarily halted, resulting in non-essential personnel being forced to work from home, furloughed or laid off. 

As per U.S. Bureau of Labor Statistics report, over 35% of the workforce worked from home in May 2020, totaling 48.7 million workers in U.S. PwC surveyed employees and employers on remote working, finding that four out of five executives want to expand remote work options compared to pre-pandemic periods, the majority of employees would prefer to be remote for at least three days per week. Most executives would prefer employees to be in person for at least three days per week.

Building Energy Management Systems Market Segmentation Analysis

By product type, the global building energy management systems market is software, hardware and services.

Advancements in BEMS hardware drive its growth

Rapid advancements in hardware, such as sensors and communication highways, have made BEMS a preferred management system. The rapid developments significantly reduced the costs of a sophisticated management system. Technological advances have also improved the opportunities for a BEMS and, therefore, increased its potential.

Wireless sensors, such as wireless CO2 sensors, occupancy sensors and photosensors, are energy-harvesting or battery-powered sensors with integrated radios enabling wireless data communication. Wireless occupancy and photosensors may be deployed in a factory or office without causing disruption, resulting in a cost-effective lighting management system for even the most price-sensitive market sector. 

Global Building Energy Management Systems Market Geographical Share

The expanding construction activities in Asia-Pacific

Asia-Pacific is dominating the global building energy management systems market, accounting for the largest market share in 2020 due to the rising installation of building energy management systems for commercial and residential buildings with the increasing energy consumption because of rapid industrialization and urbanization. For instance, As of 2018, Asia-Pacific's energy intensity had increased by 22%, putting it on track to fulfill its goal of a 45% increase by 2035. Renewable energy has raised its contribution to Asia-Pacific energy consumption from 6.0 % to 8.7% in 2018. 

 China is the only large economy to see a growth in electricity demand, accounting for 28% of global electricity generation. Thus tremendously improving energy consumption and the growing shift of countries like India and China towards renewable energy sources have created huge opportunities for the BEMS companies to grow their business in Asia-Pacific.

Building Energy Management Systems Companies and Competitive Landscape 

The global building energy management systems market is moderately consolidated and competitive. The major players are adopting several new strategies to dominate the market, such as launching new technologies, upgrades, acquisitions, partnerships and collaborations responsible for global growth. Major global building energy management systems market companies include General Electric, Engie, Schneider Electric, IBM, Cisco Systems Inc, Honeywell International Inc, Siemens, Johnson Controls, ABB Ltd and Others.

Cisco Systems Inc. 

Overview: Cisco Systems Inc. is a leading Internet networking company. The company was formed in 1984 by two Stanford University computer scientists who wanted to make it easier to connect different types of computer systems. Cisco Systems launched its first product in 1986 and employed over 60,000 people in over 115 countries; it is a multinational corporation. Americas, Europe, Middle East & Africa and Asia-Pacific are the three regional divisions in which the company operates. 

Product Portfolio: The company provides Cisco Universal Power over Ethernet (Cisco UPOE) switches for in-ceiling building systems such as lights, blinds, controllers and sensors for the Enterprise SD-Access fabric edge.

Key Development: In January 2022, Cisco announced the expansion of its Cisco Catalyst 9000 range, built on the powerful Unified Access Data Plane (UADP) ASIC silicon, to provide more enterprise-grade switching capabilities to the industrial edge for industries like utilities, oil & gas and highways & rail. As companies focus on increasing economies, employee safety and business agility & promote hybrid work, functional connectivity in industrial areas rises exponentially. 

The global building energy management systems market report would provide access to an approx. 61 market data table, 51 figures and 212 pages.