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Smart Building Energy Management to Top $1bn by 2020

The automated, or smart, building energy management systems market is to almost quadruple in size and be worth over $1 billion by 2020, according to a report by Pike Research.

Worldwide spending on these services – which include data acquisition and analytics, as well as building maintenance contracts – will grow from $291 million in 2012 to $1.1 billion by 2020, the report, titled Smart Building Managed Services, says.

This represents a compound annual growth rate of almost 18 percent over that time period. This growth rate will outpace growth in the traditional building energy management systems market, the report says.

As part of the effort to cut costs in the global recession, many commercial building owners and managers have installed traditional, non-smart building energy management systems to reduce energy use and operating expenses.

While these systems can provide significant efficiency gains, their sophistication can be beyond the capabilities and resource levels of a building’s operating or maintenance staff. Consequently, smart building managed services are growing in demand and popularity as a means of solving these and other building energy management market issues, Pike says.

Smart building managed services allow building owners to outsource their energy management needs to experts who continuously monitor their facilities, searching for opportunities to reduce energy costs and improve operations, according to the report.

As the need for sophisticated building energy management systems grows worldwide, so will the need for simpler, turnkey solutions that unlock energy efficiency, according to Pike.

Very few players in the current smart building managed services market could be considered purely managed service providers. According to the report, some of the strongest competitors are the large building systems equipment manufacturers, including Johnson Controls, Siemens, and Schneider Electric, which provide a wide variety of products and services in many different areas.

April saw the state of Connecticut select EnerNOC’s EfficiencySmart energy-efficiency system to help it reduce energy use and costs at up to 100 state facilities through 2014.

In July, Siemens Government Technologies announced that it was on schedule to complete, by October, a $39 million energy-efficiency project that will allow the federal General Services Administration to monitor and control dozens of buildings, in four states, from one location. The contract covers 39 General Services Administration buildings across Texas, Louisiana, Arkansas and New Mexico.

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