Commercial real estate lenders financing energy-efficient properties might be interested to know that worldwide revenue from building energy management systems (BEMS) – the software, hardware, and services associated with the monitoring and management of energy – is forecast to increase at a compound annual growth rate of nearly 14% through the rest of this decade, reaching just under $6 billion by 2020, according to a new report issued by Denver-based Pike Research.
‘Over the last year, the convergence of building equipment and [information technology] has advanced at a rapid pace, enabling a higher degree of control over building energy and operations than ever before,’ says Eric Bloom, research analyst at Pike Research. ‘The BEMS market is evolving rapidly and is enjoying a burst of innovation, leading to an explosion in the amount of data that is available on the energy performance of commercial buildings.’
North America continues to lead the global market for BEMS, but Pike Research expects growth to accelerate worldwide, particularly in the Asia Pacific region. While interest in BEMS and energy efficiency is high in Western Europe, Asia Pacific will take its place as the second largest market in coming years, due to the extremely rapid pace of construction in the region as well as the challenge of meeting soaring energy demand with limited supply.
Outside of these three regions, the BEMS market will generally experience single-digit growth and modest levels of overall spending over the forecast period. In every region, the existing building stock is a large market for BEMS sales – particularly buildings constructed or modernized within the last 30 years with moderately sophisticated building management systems, according to Pike Research.
The new report is available at the Pike Research website.