June 28, 2010
Totaling approximately 70 billion square feet of space, commercial buildings in the United States are a major source of energy consumption, and as such they represent a significant opportunity for energy efficiency improvements and reduction in carbon emissions. The sheer scale of this opportunity is stimulating a new “gold rush” in the Energy Management Systems (EMS) market in which hardware suppliers, software/application vendors, service providers, and energy services companies (ESCOs) are all active participants. A recent report from Pike Research forecasts that all of this supply-side activity, combined with the favorable economics of deploying EMS in the commercial and industrial sectors, will drive the market to exceed $6 billion in annual revenue by 2014.
“For years, energy efficiency in commercial buildings has been an afterthought, but that is rapidly changing,” says research analyst Jevan Fox. “Institutional, office, and retail buildings will all be major market segments for energy management systems during the next several years. And as the industry continues to expand, the variety of energy efficiency applications and the level of integration with existing building systems will continue to increase as well.”
Fox adds that the competitive landscape in the EMS market is quite dynamic at the moment. Building systems incumbents such as Honeywell, Johnson Controls, and Siemens are being challenged by IT heavyweights including Cisco and IBM, who are seeking to expand their reach in the building management sector. Meanwhile, application vendors such as Archibus, Comverge, and EnerNOC are engaging the market with a software-based approach to energy management. Pike Research anticipates that the competitive intensity will only become fiercer in the next few years.
Pike Research’s study, “Energy Management Systems for Commercial Buildings”, analyzes the emerging market for commercial building EMS in depth. Based on extensive supply-side and demand-side analysis, the report provides a comprehensive examination of business models, market drivers, technology issues, and the competitive landscape. It also includes detailed market forecasts through 2020 along with profiles of key industry players. An Executive Summary of the report is available for free download on the firm’s website.
Pike Research is a market research and consulting firm that provides in-depth analysis of global clean technology markets. The company’s research methodology combines supply-side industry analysis, end-user primary research and demand assessment, and deep examination of technology trends to provide a comprehensive view of the Smart Energy, Clean Transportation, Clean Industry, Corporate Sustainability, and Building Efficiency sectors. For more information, visit www.pikeresearch.com or call +1.303.953.9765.