March 1, 2010
Energy Management Systems (EMS) are being increasingly utilized by commercial building property managers to help optimize energy consumption. Automation and control capabilities enabled by EMS are most frequently focused on heating, cooling, ventilation, and lighting, which together account for approximately 57% of energy consumed in commercial buildings, according to the U.S. Department of Energy. However, a recent Pike Research report finds that despite the strong return on investment for EMS deployments, just 14% of the market potential is being realized, providing a significant opportunity for new industry players.
“With an increasing number of buildings 20 years and older that need to become more energy efficient, the addressable market for EMS will continue to grow,” says managing director Clint Wheelock. “The EMS penetration gap is largely driven by the fact that vendors are just now beginning to fully apply information technology to the energy management challenge.”
Wheelock adds that two other adoption barriers have traditionally included the lack of energy efficiency information available to commercial building tenants, along with a system of split incentives wherein tenants bear the burden of energy bills, therefore building owners have little motivation to invest in efficiency. “However, these barriers are beginning to fall as businesses increasingly view energy as an asset to be managed, rather than simply a cost of doing business.”
Pike Research forecasts that annual EMS revenues in the U.S. will reach $6.8 billion by 2020. During that period, EMS will become more tightly integrated with legacy building management systems (BMS) as well as enterprise IT and networking infrastructure.
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.
