According to the UN Department of Economic and Social Affairs (UN DESA), the statistics for the population living in urban areas is expected to increase from 55% of the world population to 68% by 2050. The world urban population reached the 4.2 billion mark in 2018. Further, as per the U.S. Energy Information Administration (EIA), a 28% increase in the global energy consumption is expected by 2040. This exponential increase in the energy consumption can be attributed directly to the rising urban population.
With growing energy consumption, the need for solutions to manage this energy increases manifold. Over the past few years, the energy management industry has witnessed several developments, and the advent of building energy management systems has been one of the most important ones.
The primary and the most crucial benefit that Building Energy Management Systems (BEMS) offer is enhanced energy efficiency. They help in controlling and reducing energy consumption by monitoring the use of energy and analyzing the environment and temperature. In recent years, BEM Systems are being widely adopted across commercial, residential, and institutional buildings.
Keeping abreast with the technology, BIS Research published a market intelligence report titled “Global Building Energy Management System Market – Analysis and Forecast (2018-2025),” highlighting the projected growth of the BEMS market during the forecast period, 2018-2025.
As per the published report, the global BEMS market, which was valued at $5.86 billion in 2018, is anticipated to reach $12.72 billion by 2025, witnessing growth at 11.71% CAGR during the forecast period. Further, the report by BIS Research examines the market in terms of four broad aspects, namely components, systems, end user, and region.
At present on the basis of systems, the inclination of the market is more toward wireless BEMS than the wired ones. This can be attributed to the low cost of the wireless systems along with their advantages such as enhanced building performance and reduced energy cost.
Despite commercial and institutional buildings being the largest end users of BEMS, residential buildings are also expected to generate large revenues by 2025. In addition to the primary benefits, the incorporation of BEMS in residential buildings also ensures a safe and secure living environment for the users.
A BEMS constitutes of three key components, hardware, software, and services. These components alone or combined have their own significance. For instance, hardware and software components, when integrated together, help in monitoring and further controlling the lighting and HVAC systems generated data for consumption of energy in real time. Moreover, this also helps in improving business operations.
Owing to the large scope in the growth of the BEMS market, several prominent players are investing in the market and are adopting strategies such as product launches to strengthen their position in the market. Some of the leading players include CISCO Systems Inc., ENGIE, General Electric, International Business Machines Corporation (IBM), Siemens AG, and Schneider Electric.
Additionally, eminent research institutes, such as CSIRO and the Fraunhofer Institute, are also focusing on developing advanced energy management solutions, thus fueling the growth of the building and HVAC industry.