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Building Energy Management Systems Market size was valued at USD 13.24 billion in 2023 and is expected to reach USD 36.88 billion by 2036, registering around 8.2% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of building energy management systems is assessed at USD 14.11 billion.
Building Energy Management Systems (BEMS) are hardware-software systems that are installed in buildings to observe and regulate the energy requirements of a building and to ensure the efficiency and optimum utilization of the energy. They monitor a building's energy consumption by electrical and mechanical equipment such as heaters, ventilators, air conditioners, and lighting to increase energy efficiency, and reduce energy costs. These systems are advanced with increasing attention to the usage of data in commercial buildings driven by technological trends such as the Internet of Things (IoT) and cloud networking.
Presently, the world is facing two important trends: a rise in fossil fuel prices and distresses for the climate change. Both of these trends inspire energy conservation. According to the World Business Council for Sustainable Development, globally buildings consume more than one-third of total end-use energy and are a root cause of a fifth of total greenhouse gas emissions. Reducing energy use in buildings is vital for climate change, but at the same time, it is also a substantial business opportunity.
Growth Drivers
Evolution of technology
Emerging technologies such as the Internet of Things (IoT) and cloud networking are surfacing as a major contributor for more advanced systems. It has been observed that to monitor multiple buildings at the same time and integrate their tasks have become feasible. The heating and the cooling necessities among buildings can be pooled, resulting in energy saving and management of an individual building to the optimal.
Innovations in the global and regional markets are taking place with the majority of dominant players coming up with improved solutions. These factors are driving the growth of the building energy management systems market.
Challenges
Huge investment and deployment
The market growth might be hampered by enormous initial investment for design and installation, high operation and maintenance cost, and establishing appropriate policies for the building energy management systems.
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Base Year |
2023 |
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Forecast Year |
2024–2036 |
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CAGR |
8.2% |
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Base Year Market Size (2023) |
USD 13.24 billion |
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Forecast Year Market Size (2036) |
USD 36.88 billion |
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Regional Scope |
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The building energy management systems market is segmented by component, communication technology, end-user, and region. Among product component segmentation, the software segmentation is expected to grab major share in the market. This is attributed to the integration of data analytics software in existing modules that help the organizations to run algorithms for optimized solutions. Dominant market players such as Honeywell International Inc., IBM Corporation, and Schneider Electric have assimilated the data analytics software to their existing energy management system modules for the effective monitoring of the data. The advent of new technologies such as IoT and others are also significantly contributing towards the growth of this segment.
Our in-depth analysis of the global market includes the following segments:
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By Component |
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By Communication Technology |
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By End-User |
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Geographically, the building energy management systems market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa region.
North America industry is set to dominate majority revenue share by 2036, owing to technological maturity, well-established infrastructure network, widespread adoption of building energy management systems across verticals, and massive growth of the industrial sector in the region. The major players operating in the market are from North America only and the existing datacentre facilities are also further observing expansion.
Europe is projected to witness decent growth in the coming few years owing to favorable government projects, environmental concerns, and high adaptation of technology. The Powerhouse Brattorkaia, in Trondheim, Norway designed by the Powerhouse alliance, is the world’s northernmost energy-positive building.
The energy management systems market is expected to witness the rapid growth in the Asia Pacific region on account of technological advancements, increasing commercial and residential development, rapid industrialization, rebates, and tax incentives from various administrations across the region, particularly in China, Japan, and India, which are estimated to further stimulate the market growth.
Latin America and the Middle East & Africa represent immense potential in terms of the adoption of building energy management systems solutions. Huge population growth and rapid industrial development are few reasons to drive the growth of building energy management systems in the region. Growing environmental distress has led the Middle Eastern region to make sturdy progress in energy consumption and efficiency through sustainable development. The new Bee’ah Headquarters under construction in Sharjah, United Arab Emirates has the aim of being the smartest and most sustainable building in the Middle East region.
January 22, 2020: According to the World Economic Forum’s Annual Meeting, climate change can be controlled by transforming our cities and buildings. The article explained how decarbonizing our cities and buildings are both crucial and as well as very complex but digitalization will be the most important enabler of this revolution.
October 14, 2019: C3.ai, AI software provider and ENGIE, an electric utility company, announced their collaboration to drive the AI-powered energy management solution for universities, municipalities, corporate campuses, and hospitals. They will help large institutions to attain their sustainability and financial objectives through energy optimization, capital planning, and campus engagement.
Author Credits: Dhruv Bhatia
Copyright © 2024 Research Nester. All Rights Reserved
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