Sensors and Controls for Building Energy Management Systems to Top $4 Billion in 2020

BOSTON–(BUSINESS WIRE)–The U.S. market for sensors and controls for building energy management systems (BEMs) will rise at a 17% compound annual growth rate to $2.14 billion in 2020, while its European counterpart will reach $1.93 billion in 2020, a 19% CAGR. The market growth will be fueled by the strength of advanced technologies, downward price pressure, and government incentives, according to a Lux Research report.

“Advanced sensors and controls promise to significantly reduce the payback period of building energy management system investments for the small building market — the highest hanging but plumpest fruit in the global building stock”

Key to this growth is a slew of advanced non-invasive, cost-effective, and quick-to-install sensor and control technologies that can overcome the capital barriers of installing BEMs in an estimated 5.8 million commercial buildings under 50,000 square feet in the U.S. and 4.5 million similar buildings in Europe.

“Advanced sensors and controls promise to significantly reduce the payback period of building energy management system investments for the small building market — the highest hanging but plumpest fruit in the global building stock,” said Ryan Castilloux, Lux Research Analyst and the lead author of the report titled, “Sensors and Controls for BEMS: Providing the Neural Network to Net-Zero Energy.

Lux Research developed a demand-side forecast to quantify opportunities for BEMS applications and building automation system (BAS) applications. Among its findings:

  • Market is shifting toward BEMS. The building energy management market is rapidly transitioning from a BAS-dominant one to a BEMS-reliant one. In 2020, about 77% of the $2.14 billion U.S. market will comprise BEMS applications, and 40% will come from buildings below 50,000 square feet.
  • Policy is a promising enabler. In the U.S., 20 states have energy efficiency resource standards that will boost uptake of efficient building systems. The European Union has been similarly aggressive with goals such as 20% lower energy consumption levels by 2020. Together, these policies will foster growth of the market for sensors and controls.
  • Opportunities at the bottom of the pyramid. Developers such as Lutron, Leviton, Johnson Controls, and Honeywell will embrace advanced sensors and controls and shift strategies in order to hone in on buildings below 50,000 square feet — in 2020, the number of such buildings with BEMs will be almost 40 times what it is today.

The report, “Sensors and Controls for BEMS: Providing the Neural Network to Net-Zero Energy,” is part of Lux Research’s Efficient Building Systems Intelligence service.

About Lux Research

Lux Research provides strategic advice and on‐going intelligence for emerging technologies. Leaders in business, finance and government rely on us to help them make informed strategic decisions. Through our unique research approach focused on primary research and our extensive global network, we deliver insight, connections and competitive advantage to our clients. Visit www.luxresearchinc.com for more information.

Contacts

Lux Research, Inc.
Carole Jacques, 617‐502‐5314
carole.jacques@luxresearchinc.com

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  • http://blog.kwiqly.com/ James Ferguson @kWIQly

    “Advanced sensors and controls promise to ” – I see a huge problem with this statement.

    Simple thermostats can prevent energy spend but simple people can override them.

    In a survey of 2000 meter feeds from European buildings from Germany, England and Switzerland last year we found that none of the associated buildings had the BEMS adjust for local Daylight Saving Time.

    All of these systems had the capability, but use of the functionality was not specified.

    So buying a capable BEMS is trivial, but exploiting it effectively is “a promise”, by an industry who had better start delivering on promises.

    So long as specification is a commodity (you can literally download off-the-shelf specifications – though they are “generifications”) to enable the sale of boxes as commodities BEMS will not meet their promise.