Energy efficiency is increasingly being recognized as one of the most important and cost-effective solutions to reduce greenhouse gas emissions. There is an increased focus on energy efficiency in the buildings sector, as buildings account for more than 40 percent of primary energy consumption. With this in mind, the construction industry can benefit from the market increase.
The BEMS (building energy management systems) market currently in the budding stage is expected to grow strongly at a CAGR (compound annual growth rate) of 10-15 percent from 2015 to 2020. The market is expected to be worth more than $180 million by 2020. In addition to rising electricity prices and expanding building construction and energy services, demand will be spurred by increasing electricity policies along with strict regulations promoting energy conservation.
While Singapore and Malaysia will be the biggest markets in terms of revenue, Indonesia and Thailand are expected to be the fastest growing markets. Commercial buildings remain as the leading end-user segment, but the residential segment is picking up momentum in the BEMS market.
Cloud-based BEMS will continue to gain in popularity, while real-time BEMS will become a reality by the last year of the study period. Building energy management systems will become a cornerstone of sustainability and an important part in the construction process in years to come.