The global Building Energy Management Systems (BEMS) market is expected to grow at a CAGR of 12.5% from 2024 to reach USD 12.8 billion by 2031. North America dominated the market in 2023, accounting for 35% share. The growth is driven by increasing focus on energy efficiency, government regulations promoting green buildings, and adoption of IoT and AI in building management.
Market Trend: Integration of AI and IoT Driving BEMS Adoption
The incorporation of artificial intelligence (AI) and Internet of Things (IoT) technology into building energy management systems is a significant trend driving market expansion. AI algorithms optimise energy consumption by analysing data from IoT sensors and predicting and adjusting building systems in real time depending on occupancy, weather, and other variables. This allows for highly efficient and automatic energy management.
Market Driver:
Increasing Focus on Energy Efficiency and Sustainability
One of the primary drivers of the BEMS industry is the increased emphasis on energy efficiency and sustainability. Building owners and facility managers are increasingly using BEMS systems to reduce energy usage, operational expenses, and the environmental effect of their structures. Government requirements and green building certifications are driving BEMS use.
Market Restraint: High Initial Investment and Complexity of Integration
The high upfront costs of adopting full BEMS solutions, as well as the complexities of integrating them with existing building systems, are significant barriers to industry expansion. Many building owners, particularly those in the small and medium-sized segments, struggle to justify the initial investment despite the potential for long-term energy savings.
Software Segment to Witness Highest Growth
The software segment is predicted to have the highest CAGR of 15% during the projection period. The increase is due to the growing need for data analytics, visualisation, and reporting solutions that provide actionable insights for improving building performance. BEMS software also supports interaction with other building systems and remote monitoring.
Siemens introduced a new cloud-based BEMS software suite in April 2024 that uses artificial intelligence for predictive maintenance and energy optimisation. Several big commercial real estate firms have already utilised the platform.
According to a recent Johnson Controls poll, 75% of facility managers want to invest in BEMS software upgrades over the next two years to improve their building's operational efficiency and sustainability.
North America: Largest Market Share
North America dominates the worldwide BEMS market because to the extensive implementation of smart building technology, strong energy efficiency laws, and the presence of major BEMS providers in the region. The United States dominates the market, owing to an increased emphasis on green buildings and energy retrofit projects in the commercial and industrial sectors.
In January 2024, the US government announced new tax breaks and subsidies of $ XX million to encourage the use of energy management systems in federal buildings, providing a considerable boost to the sector.
The North American BEMS market generated $ XX billion in revenue in 2023 and is expected to reach $ YY billion by 2031, growing at a CAGR of 10.5% over the forecast period.
The global BEMS market is highly competitive, with Honeywell, Johnson Controls, Schneider Electric, Siemens, and Eaton Corporation leading the way. These firms provide comprehensive BEMS solutions and make significant investments in R&D to create cutting-edge technologies such as AI, IoT, and cloud computing.
Mergers and acquisitions are an important strategy for market leaders to broaden their product offerings and geographic reach. Honeywell expanded its BEMS offerings by acquiring a top AI-based energy analytics firm in March 2024.
Partnerships with technology providers and system integrators are also critical to success. Schneider Electric recently collaborated with Microsoft to create a new cloud-based BEMS platform that utilises Azure IoT.
The BEMS industry is seeing the entry of several new competitors, notably in the software and services areas, increasing competition. Established firms are focussing on product differentiation, customisation, and value-added services to sustain their competitive advantage.
The BEMS market prognosis remains favourable, buoyed by the growing relevance of energy efficiency, sustainability, and smart building technologies. The convergence of AI, IoT, and cloud technologies will be a game changer, allowing for intelligent and autonomous energy management. However, high initial costs and complexity continue to be difficulties, especially for small and medium-sized building owners.
The increased emphasis on upgrading older structures creates a considerable opportunity. BEMS vendors should concentrate on creating scalable and modular solutions that can be seamlessly integrated with legacy systems. Energy-as-a-Service models and performance-based contracts will gain popularity, allowing consumers to implement BEMS with low upfront costs.
As the industry matures, BEMS solutions must evolve beyond energy management to deliver a comprehensive building optimisation platform that considers occupant comfort, productivity, and well-being. Integration with smart city projects and grid interactivity will be important future themes to watch for.
Honeywell International Inc.
Johnson Controls International plc
Schneider Electric SE
Siemens AG
Eaton Corporation plc
ABB Ltd.
BuildingIQ, Inc.
CISCO Systems, Inc.
Emerson Electric Co.
General Electric Company
Rockwell Automation, Inc.
United Technologies Corporation
In June 2024, Johnson Controls introduced a new AI-powered BEMS platform for predictive maintenance and remote optimisation.
In April 2024, Siemens launched a cloud-based BEMS software suite that uses AI and IoT technologies to optimise energy.
1. INTRODUCTION
1.1. Market Definition
1.2. Study Scope
1.3. Currency Conversion
1.4. Study Period (2022- 2031)
1.5. Regional Coverage
2. RESEARCH METHODOLOGY
2.1. Primary Research
2.2. Secondary Research
2.3. Company Share Analysis
2.4. Data Triangulation
3. EXECUTIVE SUMMARY
3.1. Global Building Energy Management Systems (BEMS) Market (2018 – 2022)
3.2. Global Building Energy Management Systems (BEMS) Market (2023 – 2031)
3.2.1. Market Segment By Component (2023 – 2031)
3.2.2. Market Segment By Communication Technology (2023 – 2031)
3.2.3. Market Segment By Application (2023 – 2031)
3.2.4. Market Segment By End-User (2023 – 2031)
4. MARKET DYNAMICS
4.1. Market Trends
4.1.1. Integration of AI and machine learning for predictive maintenance and optimization
4.1.2. Increasing adoption of cloud-based BEMS solutions
4.1.3. Growing integration of renewable energy sources in BEMS
4.2. Market Drivers
4.2.1. Rising energy costs and increasing focus on sustainability
4.2.2. Stringent government regulations on energy efficiency
4.2.3. Advancements in IoT and smart building technologies
4.3. Market Restraints
4.3.1. High initial implementation costs and complexity of integration
4.3.2. Concerns over data security and privacy
4.4. Porter's Five Forces Analysis
4.4.1. Threat of New Entrants
4.4.2. Bargaining Power of Buyers/Consumers
4.4.3. Bargaining Power of Suppliers
4.4.4. Threat of Substitute Products
4.4.5. Intensity of Competitive Rivalry
4.5. Supply Chain Analysis
4.6. Pricing Analysis
4.7. Regulatory Analysis
4.8. Pipeline Analysis
5. BY COMPONENT (MARKET VALUE (US$ MILLION) – 2022-2031*)
5.1. Hardware
5.2. Software
5.3. Services
6. BY COMMUNICATION TECHNOLOGY
6.1. Wired
6.2. Wireless
7. BY APPLICATION
7.1. Commercial
7.2. Residential
7.3. Industrial
8. BY END-USER
8.1. Building Owners
8.2. Facility Managers
8.3. Energy Service Companies
9. GEOGRAPHY
9.1. North America
9.1.1. United States
9.1.2. Canada
9.1.3. Mexico
9.2. South America
9.2.1. Brazil
9.2.2. Argentina
9.2.3. Rest of South America
9.3. Europe
9.3.1. Germany
9.3.2. United Kingdom
9.3.3. France
9.3.4. Italy
9.3.5. Spain
9.3.6. Russia
9.3.7. Rest of Europe
9.4. Asia-Pacific
9.4.1. China
9.4.2. Japan
9.4.3. India
9.4.4. Australia
9.4.5. South Korea
9.4.6. Rest of Asia-Pacific
9.5. Middle-East
9.5.1. UAE
9.5.2. Saudi Arabia
9.5.3. Turkey
9.5.4. Rest of Middle East
9.6. Africa
9.6.1. South Africa
9.6.2. Egypt
9.6.3. Rest of Africa
10. COMPETITIVE LANDSCAPE
10.1. Key Developments
10.2. Company Market Share Analysis
10.3. Product Benchmarking
11. SWOT ANALYSIS
12. COMPANY PROFILES
12.1. Siemens AG
12.2. Schneider Electric SE
12.3. Honeywell International Inc.
12.4. Johnson Controls International plc
12.5. ABB Ltd.
12.6. Emerson Electric Co.
12.7. Cisco Systems, Inc.
12.8. Trane Technologies plc
12.9. Eaton Corporation
12.10. General Electric Company
12.11. BuildingIQ
12.12. GridPoint (*LIST NOT EXHAUSTIVE)
13. MARKET OPPORTUNITIES
By Component:
- Hardware
- Software
- Services
By Communication Technology:
- Wired
- Wireless
By Application:
- Commercial
- Residential
- Industrial
By End-User:
- Building Owners
- Facility Managers
- Energy Service Companies
By Region:
- North America
- Europe
- Asia-Pacific
- Latin America
- Middle East & Africa
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