According to a new report from the research firm, worldwide revenue for BEMS for small and medium buildings will grow from $277 million 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,” said 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 BEMS, 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.