Global Building Energy Management System Market Research Report: Forecast (2021-2026)

Market Defination

Building Energy Management System (BEMS) is a sophisticated system used for monitoring & controlling a building's energy needs like lighting or security measures, Heating, Ventilation & Air Conditioning (HVAC), etc.

Market Insights

The Global Building Energy Management System Market is anticipated to grow at a CAGR of around 14.7% during the forecast period, i.e., 2021-26, says MarkNtel Advisors. The global energy demand is currently rising at an astronomical pace. As per International Energy Agency (IEA), it is likely to surge by 4.6% in 2021, compared to 4% contraction in 2020 and pushing demand 0.5% above 2019 levels. 

Approximately 70% of the expected rise in global energy demand is in emerging economies, which would increase to 3.4% of 2019 levels. This exponentially rising demand is exerting immense pressure on natural resources, which, in turn, propels the need for building energy management systems.

The global building & construction sector accounts for around 40% of energy & process-related consumption, i.e., nearly one-third of the energy consumption worldwide. Hence, the need for Building Energy Management Systems is significantly increasing around the world, further states the research report, “Global Building Energy Management System Market Analysis, 2021.”

Further, the launch of new products by the industry players is also contributing to the market growth. For instance, In February 2020, Honeywell International Inc. had launched its first autonomous building sustainable solution to fight mounting energy consumption, named Honeywell Forge Energy Optimization. It's a cloud-based, closed-loop machine learning solution that automatically adjusts to ideal energy-saving settings without compromising the comfort level by continuously observing the building's energy consumption patterns.

Impact of COVID-19 Outbreak on the Global Building Energy Management System Market

Last year, the COVID-19 pandemic adversely impacted the economy of most countries across the world. Since industrial operations got halted, several businesses experienced severe financial crises. However, the Global Building Energy Management System Market suffered the mixed impact of the pandemic. On one front, the temporary or complete shutdown of prominent industries & production plants declined the energy demand across the industrial sector. Due to lockdown & stringent movement restrictions, countries like the UK, US, India witnessed a decline in their energy demand of around 15%. The repeated waves of the pandemic kept extending movement restrictions and continued to reduce global energy demand across industries & office spaces.

On the other hand, the mounting trends of work-from-home and rapidly expanding e-online shopping, school classes, etc., led to a significant surge in household energy consumption, which, in turn, demanded energy management systems across the residential sector amidst the crisis. Hence, the rapidly increasing household energy needs due to the trends cited above are demanding more energy & electricity, which, in turn, is expected to drive the global market for energy management systems in the coming years.

Market Segmentation

By Component:

Demand for Software-Based Energy Management System to Witness Exponential Growth During 2021-26

The Building Energy Management Software offers control & monitor functions and allows operators to improve their building’s overall performance. The rising demand to centrally monitor devices, such as lighting systems, HVAC units, & other systems located at different locations, using central servers or technologies like cloud & IoT is the prime aspect expected to lead Software-based BEMS to attain the largest market share during 2021-26. It helps calculate the electrical system usage & performance, provides alerts & schedule reports, which, in turn, aids effective energy management & helps optimize energy usage for cost reduction.

Additionally, the burgeoning production of BEMS software by industry leaders also contributes to the overall market growth. For instance, BuildingIQ, a US-based EMS company founded in 2009, uses predictive energy optimization to forecast the energy demand and automatically adjusts a building’s HVAC settings to optimize energy use & peak loads.

By End-User:

Development of High Rise Buildings to Fuel the Demand for Energy Management Systems Through 2026, Commercial Sector Held Significant Share during 2020-21

The demand for building energy management systems in Residential Units is significantly increasing since they offer a cost-effective solution to manage HVAC & lighting systems. These systems monitor the building performance, interact with residents, and optimally control the energy usage, which, in turn, helps reduce energy bills.

Residential energy use accounts for around 20% of greenhouse gas emissions in the US. These include emissions from cooling, heating, and powering households. By 2050, the US will add approximately 70–129 million residents and 62–105 million new homes, which will lead to a surge in energy consumption, and eventually, GHG emissions. Hence, the demand for Building Energy Management systems for Residential units is expected to witness the fastest growth in the coming years.

However, the commercial sector, including corporate companies, retail malls, government offices, hospitality spaces, and healthcare & educational institutes, is responsible for more than 60% of energy consumption, which, in turn, leads to the high demand for building energy management systems.

Regional Landscape:

North America Dominates the Global Building Energy Management System Market

The market growth in North America primarily attributes to the rapid development of the residential sector and increasing installations of energy-consuming devices in buildings. The new ISO 50001 standard for energy management systems offers a practical way to improve energy use by developing an energy management system. It helps organizations to integrate energy management systems into their overall efforts to enhance environmental management.

Further, the North American market is also driven by the rising adoption of advanced technologies like the Internet of Everything (IoE) that allows energy production with minimum waste and helps enhance the efficiency of energy infrastructure to yield significant cost savings.

Market Driver

Mounting Concerns Among People Regarding Energy Savings to Drive the Market

The mounting need to adopt Building Energy Management Systems (BEMS) across residential & commercial sectors is primarily due to mounting concerns regarding energy conservation owing to depleting natural resources & surging costs of fossil fuels. BEMS focuses on data-driven energy usage optimizations to diminish energy consumption by inferring the behavioral patterns of energy users, which, in turn, helps increase energy efficiency reduce energy costs.

Favorable Government Policies for Sustainable Energy Usage to Boost the BEMS Demand

Excessive energy usage & production from conventional sources like coal is a prominent global concern since these are non-renewable sources of energy. Additionally, rapid industrialization is another critical aspect leading to a surge in energy consumption and, in turn, encouraging governments across several countries to adopt Building Energy Management Systems.

Market Challenges

• Lack of awareness regarding the various benefits of BEMS
• High initial installation costs

Key Questions Answered in the Market Research Report:

1. What are the overall statistics or estimates (Overview, Size- By Value, Forecast Numbers, Segmentation, Shares) of the Global Building Energy Management System Market?
2. What are the region-wise industry size, growth drivers, and challenges?
3. What are the key innovations, opportunities, current & future trends, and regulations in the Global Building Energy Management System Market?
4. Who are the key competitors, their key strengths & weaknesses, and how do they perform in the Global Building Energy Management System Market based on a competitive benchmarking matrix?
5. What are the key results derived from surveys conducted during the Global Building Energy Management System Market study?