Building energy management systems sales to reach $5.6B by 2020

BuildingEnergyManagement_IconThe market for building energy management systems (BEMSs) continues to grow, driven by technology advances as well as a growing familiarity among customers with the benefits that BEMs provide. A number of new and existing companies are developing software-based platforms to help customers squeeze cost-reducing energy efficiency and operational benefits out of their building portfolios. According to a new report from Navigant Research, worldwide revenue for BEMSs will reach $5.6 billion annually by 2020, more than doubling from the 2013 level.

While many BEMS vendors have developed platforms with commercial and government customers in mind, the utility sector is playing an increasingly important role in the BEMS market, according to the report. Utilities face a growing number of regulations, such as energy efficiency resource standards in the United States, that require them to play a proactive role in reducing the energy consumption of their customer base. A BEMS deployed by a utility to its customers provides energy efficiency gains that utilities can claim in compliance with such regulations.

An Executive Summary of the report is available for free download on the Navigant Research website.

Demand for weather-resistant barriers to reach nearly $5B 2016

principiaDemand for weather resistant barriers (WRB) is increasing at double-digit annual growth rates and is expected to reach nearly $5 billion by 2016, consulting firm Principia. The growing need for energy efficient buildings is driving this demand, and advances in building science, combined with new and evolving codes, are causing fundamental shifts in the demand for WRBs and construction practices for residential and commercial buildings.

Green certification, newly adopted codes, homeowner desire to reduce energy costs, and initiatives such as “Zero Energy” in commercial construction are driving WRB innovation and new product development. Whole-systems designs of the building envelope are also driving industry innovation in materials, systems and installation as the focus is moving from single components to whole-system designs.

Ken Jacobson, a Principia partner, said, “The WRB industry continues to innovate as evidenced by the wide variety of new product introductions from year to year, including fluid applied air and water barrier systems; fluid applied flashing; tapes and sealers; continuous insulation systems; integrated rain screen ventilation matting combined with house wrap; and house wrap with a 3-D pattern that retains drainage space in any wall installation. New product and system innovations will be a mainstay in this rapidly-evolving industry.”

In preparing the report, Principia conducted interviews with 200 professionals representing building product manufacturers, distributors, dealers, and contractors, builders and architects. The Resistant Barriers 2014 – Residential and Commercial Construction launches in the third quarter of 2013 and will be delivered to subscribers by in the first quarter of 2014.

New Research Shows Dramatic Increase in Use of Building Information Modeling (BIM) in North America

McGraw-Hill ConstructionMcGraw-Hill Construction recently presented highlights of its new research showing the rapid advance of Building Information Modeling (BIM) usage by architects, engineers, contractors and owners in North America. Comparing results from its similar research in 2007 and 2009, McGraw-Hill Construction finds:

  • The percentage of companies using BIM jumped from 17% in 2007, to 49% in 2009, to 71% in 2012;
  • For the first time ever, more contractors (74%) are using BIM than architects (70%);
  • All users report increased business benefits from BIM including better profits, more accurate documentation, less rework, reduced project duration, fewer claims and the ability to offer new services;
  • Almost 40% of BIM users are heavily committed to it, doing over 60% of their work in BIM. This group has surged by 44% since 2009;
  • As a sign of its increasing acceptance and maturity, almost half (49%) of BIM users have five or more years experience using it.

The full results of this research will appear in The Business Value of BIM in North America SmartMarket Report, part of the continuing McGraw-Hill Construction SmartMarket Report series and released to the general public at the end of November 2012. The premier partner of the research is Autodesk, with corporate partner Parsons. Other contributing sponsors include Barton Malow, buildingSMART alliance, Charles Pankow Foundation, Hensel-Phelps, HOK, Mortenson Construction, NRI, Pinnacle Infotech, and Satterfield & Pontikes.

Report Predicts Intelligent Lighting Controls Market to Surpass $4.3 Billion Worldwide by 2020

Lighting controls offer significant potential for reducing energy use in commercial buildings. New technologies  have emerged in recent years that have enabled a wide range of innovative strategies, from room-level awareness of occupancy and daylight sensing to building-wide coordination of a fully networked system. According to a new report from Pike Research, these new technologies will help grow the global market for intelligent lighting controls from $1.5 billion in 2012 to more than $4.3 billion in 2020.

In particular, new wireless technologies, along with reductions in prices for LED lights and dimmable ballasts, have made retrofit projects considerably more attractive. As LEDs become more mainstream, lighting controls — in the form of standalone devices or systems integrated into light fixtures — will help maximize their benefits. The number of existing buildings in developed countries, where these technologies have already gained acceptance, is quite large, and the pool of buildings that could benefit from lighting control retrofits in the developing world is vast. While North America will remain the largest market for intelligent lighting controls through the end of the decade, the most rapid growth will come in Asia Pacific, where revenues will rise at a compound annual growth rate (CAGR) of 21%.

Pike Research’s 103-page report, “Intelligent Lighting Controls for Commercial Buildings”, assesses the demand drivers, obstacles, policy factors, and technology issues associated with the lighting controls market. An Executive Summary of the report is available for free download on the firm’s website.

Commercial building automation revenue to hit $146 billion by 2021

According to a new report, the market for commercial building automation systems will double over the next decade, increasing from $72.5 billion in 2011 to $146.4 billion by 2021.

This surge is being driven by two important trends that are transforming the building industry. The first is aggressive energy efficiency goals within the building stock, which is undergoing tremendous growth, particularly in developing Asia Pacific nations. Second is the fact that building automation controls and field devices, which communicate via a range of protocols such as BACnet and LonWorks, are starting to be fitted with Internet Protocol capability so as to utilize the same protocols and infrastructure equipment as the IT network. As a result, the silos that IT, property management, software, and traditional BASs occupied within companies are disappearing.

The report from Pike Research, titled “Commercial Building Automation Systems,” analyzes the global market for commercial building automation and management systems including security and access, HVAC controls, fire and life safety, building management systems, and lighting controls. The study examines current market conditions along with an assessment of the competitive landscape and technology issues that will affect the adoption and success of these systems. Market forecasts through 2021 are provided for seven global regions and five key market segments. An Executive Summary of the report is available for free download on the firm’s website.

Market for Energy-Efficient Buildings to Surpass $100 Billion by 2017

Energy-Efficient BuildingAccording to Pike Research, the  market for energy-efficiency services and equipment is on the rise as national governments look to reduce energy consumption by improving the efficiency of the building stock.  With buildings being one of the largest sources of energy consumption, the opportunity to improve efficiency is significant, ranging from high-efficiency heating, ventilation, and air conditioning (HVAC) systems to the utilization of energy-efficient lighting technologies to business models such as energy performance contracting (EPC) as employed by energy service companies (ESCOs) around the world.  According to a new report from Pike Research, the total market for energy efficiency in buildings will reach $103.5 billion by 2017, an increase of more than 50% from the 2011 market value of $67.9 billion.

 

ESCOs are leading the energy efficiency charge for commercial buildings in many countries, using EPC and other financing mechanisms to install energy efficient equipment and kick-start ongoing energy efficiency services.  The market for energy efficient equipment, including efficient HVAC and lighting systems, is also in a period of transformation, as green building trends drive increase interest in efficient systems and as efficient lighting technologies, such as LEDs, continue to decline in cost.

 

Pike Research’s forecasts indicate that the ESCO market will represent the largest segment of the energy efficient buildings industry in the coming years, with revenues more than doubling from $30.1 billion in 2011 to $66.0 worldwide by 2017, a compound annual growth rate (CAGR) of 14%.   Significant growth will also occur in the market for high-efficiency HVAC systems, which will expand from $3.1 billion to $6.4 billion during the same period.

LED Lighting to Capture 52% of the Commercial Building Market by 2021

According to Pike Research, light-emitting diodes (LEDs) are gaining significant momentum as an alternative to incandescent and fluorescent lighting in commercial buildings, particularly as the cost of LED lighting technology continues its rapid decline. While the market share of LED solid-state lighting (SSL) is currently quite low, Pike Research forecasts that LED share will reach 52% of the commercial lighting market by 2021 as costs for various SSL products drop by as much as 90% over the next decade.

Pike expects that incandescent and less efficient T12 and T8 fluorescent lamps will be almost completely eliminated over the next 10 years. To take more than 50% of the market, LEDs will take share from compact fluorescent lamps (CFLs), high-intensity discharge (HID) lighting, and general linear fluorescents.

The company forecasts that the global market for commercial lighting will reach $42 billion in 2011 and see a peak of nearly $54 billion in 2012 before gradually declining to about $30 billion by 2021. The decline will be due to the extended lamp life of both fluorescents and LEDs as they become the primary lamp types, increasingly displacing demand for replacements for less efficient and shorter-lived incandescent lamps.