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New Commercial and Industrial Development Projects to Drive BEMS Market until 2020, study suggests


HeatingSave Building Energy Management System

The next-generation Building Energy Management Systems’ (BEMS) market is expected to grow at a CAGR of more than 11% during the period 2016-2020, with the new construction projects in the commercial and industrial sectors being the main growth drivers.

A new market research paper from Techavio suggests that the American market is the largest regional player in the segment, mainly because of the higher adoption rate of BEMS among end-users in this region than those in other regions.

The paper also suggests that increased awareness and rising concerns about energy usage by end-users have contributed to market growth in the EMEA region. According to the European Commission, buildings account for 40% of the energy use. Therefore, the sector has huge savings potential and will aid in achieving the goal of reduced CO₂ emissions by 20% and achieving 20% renewable generation by 2020. The PPP on energy-efficient buildings under the European economic recovery plan attracted high participation.

According to the new EU framework program, Horizon 2020, a contractual PPP on energy-efficient buildings, will aim to innovative affordable building technologies and solutions, facilitating the road toward development of smart cities and application of BEMS. The European energy management standard EN16001 plays a crucial role in the implementation of BEMS across various sectors. It ensures the integration of these management systems into organizational business structures to save energy and costs, and improve business performance. Technological benefits combined with government support will provide the necessary impetus for market growth.

Another major factor for growth will be the market in the APAC region, which is growing significantly because of new construction projects in the commercial and industrial sectors. China, Japan, and India are the main contributors to market growth in this region. These countries are increasingly building and expanding their commercial and industrial landscapes to serve the needs of their growing populations. Higher energy consumption and rising energy prices also contribute to the demand for BEMS in these countries, and present strong opportunities for venture capitalists and investors to enter the market.

APAC contributed a share of 28.5% to the global next-generation BEMS market in 2015. The market share of APAC is largely contributed by countries such as China, Japan, Taiwan, Singapore, and Australia. The governments in these countries are also taking steps to improve energy efficiency in buildings.

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