/A Closer Look at the Market of Energy Management Systems

A Closer Look at the Market of Energy Management Systems

The Energy Management Systems (EMS) market is highly fragmented. It has a lot of offerings which range from simple energy monitoring dashboards to complex energy management software with maximum analytics.

Emerging players offering innovative technologies and expertise may have successfully made a mark by creating value innovation for their users; but the execution of energy management systems in the future will majorly depend upon stringent government policies issued in interest of energy efficiency and conservation. Educating the end-users about the importance of energy saving and management will also help in achieving the bottom line of many companies.

Market for Building Energy Management Systems

Due to technological developments as well as increasing familiarity among consumers, the market for Building Energy Management Systems (BEMSs) continues to grow.

Digital controls continue to flourish. Many companies are implementing energy efficiency and sustainability in their developmental strategies. Policies regarding building owners and resources to reduce energy consumption have become more stringent at many levels of government – thereby creating a suitable environment for BEMS adoption.

Use of Technology

The use of cloud-based BEMS technology is not just changing the way this technology is used, but it is also transforming its business model, from licenses to subscriptions. While BEMSs usually focus on two major functions – energy visualization and energy analytics, the market continues to cater into many more functions, including demand response and property management. Such an approach will give a boost to the capabilities of next-generation BEMSs and introduce a wide spectrum of participants in the building market. It is estimated that the BEMS market will grow from $1.8 billion in annual revenue of 2012 to about $5.6 billion in 2020, according to Navigant Research.

Owing to their worldwide presence, domain expertise, and established infrastructure, some of the strategies implemented by major companies in the EMS market include developing innovative technologies and customized solutions for their consumers. Although technology is developing at a snappy pace, consumers may not be adopting these technologies as quickly as they are developing. Many potential consumers of energy management systems are yet to realize the benefits of implementing these systems, and prefer to make most out of the basic technology and applications. “This is due to resource constraints as well as the early stage of progress of understanding energy consumption and energy efficiency in which these companies find themselves”, Navigant says.

More advanced energy consultants and energy management system users are feeling that the line between production and the corporate world is fading. Energy is now just another data source that can be blended with other business intelligence activities to supply a more holistic representation of overall business performance.

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