Building Energy Management Systems Market Size & Forecast Report - 2025 to 2030

The global building energy management systems market size is expected to grow at a significant CAGR of around 12% during the forecast period 2021 to 2027. The increasing demand for energy efficiency and the growing need for minimizing energy costs are some of the major factors driving the market growth. Furthermore, the growing prices of fossil fuels and rising concern about climate change are further anticipated to fuel the market growth over the forecast period. Moreover, the stringent government regulations regarding carbon dioxide emission and the growing focus on renewable energy sources are expected to propel the market.

Market Drivers:

Increasing Focus on Energy Efficiency: With rising energy costs and growing concerns about environmental sustainability, there is a heightened focus on energy efficiency in buildings. BEMS solutions help optimize energy consumption by monitoring, controlling, and optimizing various building systems, such as HVAC, lighting, and occupancy. The demand for BEMS is driven by the desire to reduce energy consumption, lower operating costs, and meet energy efficiency goals.

Government Regulations and Incentives: Governments around the world are implementing regulations and providing incentives to promote energy efficiency in buildings. These regulations often require or encourage the implementation of BEMS solutions. For example, building codes may mandate the use of BEMS in new constructions or retrofit projects. Incentive programs, such as tax credits or rebates, further drive the adoption of BEMS by offering financial benefits to building owners and operators.

Increasing Need for Operational Efficiency: BEMS solutions enable improved operational efficiency in buildings by integrating and automating various systems. By centralizing control and monitoring functions, BEMS allows for proactive management of energy usage, equipment performance, and maintenance. This results in optimized building operations, reduced downtime, enhanced occupant comfort, and better resource allocation.

Rise in Smart Building Initiatives: The concept of smart buildings, which leverage advanced technologies for improved efficiency, comfort, and sustainability, is gaining traction. BEMS is a critical component of smart building infrastructure, enabling real-time data monitoring, analytics, and intelligent decision-making. The growing interest in smart buildings and the Internet of Things (IoT) drives the adoption of BEMS solutions.

Technological Advancements: Technological advancements in sensors, data analytics, cloud computing, and connectivity have significantly enhanced the capabilities of BEMS solutions. Advanced sensors and meters enable accurate monitoring of energy consumption and environmental parameters. Data analytics and machine learning algorithms provide actionable insights and automated control strategies. Cloud-based platforms facilitate remote access, real-time monitoring, and scalability. These technological advancements drive the demand for BEMS as more sophisticated and effective solutions become available.

Demand for Sustainable Buildings and Green Certifications: There is a growing demand for sustainable buildings and green certifications, such as LEED (Leadership in Energy and Environmental Design). BEMS solutions help buildings meet the requirements for energy efficiency and environmental performance set by these certifications. Building owners and operators seek BEMS to demonstrate their commitment to sustainability, attract tenants or buyers, and enhance the value of their properties.

Cost Savings and Return on Investment (ROI): BEMS solutions offer significant cost savings and potential ROI by reducing energy waste, optimizing equipment performance, and minimizing maintenance and operational expenses. The ability to track and analyze energy consumption, identify inefficiencies, and implement energy-saving measures leads to long-term financial benefits. The prospect of cost savings and favorable ROI motivates building owners and operators to invest in BEMS.

Increasing Awareness and Education: Growing awareness about the benefits of energy management and sustainability practices drives the adoption of BEMS. Educational initiatives, industry conferences, and training programs help disseminate knowledge about the importance of BEMS in achieving energy efficiency goals. As more stakeholders become aware of the potential benefits, the demand for BEMS solutions increases.

Market Snapshot:

Market Insights:

The global building energy management systems market is bifurcated into component, communication, end-user, and geography. On the basis of component, the market is further segmented into hardware, software, and services. The software segment is accounted to hold a significant market share in 2020 and is expected to grow at similar trends over the forecast period. The segment growth is attributed to the increasing demand for data management, performance optimization, lighting systems, and application platforms. Furthermore, the increasing investment by the major players such as IBM, Honeywell, and Schneider Electric, in the market is further expected to fuel the segment growth over the forecast period.

On the basis of communication, the global building energy management systems market is bifurcated into wired and wireless sub-segment. The wireless segment is accounted to grow at the fastest growth rate over the forecast period. The rapid growth in digitalization and the growing penetration of smart devices are accounted to drive the segment growth. Furthermore, the higher reliability, low cost, and greater flexibility are expected to drive the segment growth over the forecast period. By the end-user, the commercial segment is accounted to hold the largest revenue share of the market owing to the increasing adoption of the systems in the healthcare, hospitality, and corporate sector.

To know more about the report, request sample papers

The building energy management systems comprehensive study analyzes industry trends, market size, competitive analysis, and market forecast – 2021 to 2027. Research Corridor report provides detailed premium insight into the global market and reveals the potential revenue streams, commercial prospects, market drivers, challenges, opportunities, issues, and events affecting the industry. In addition, the report has a dedicated section covering market forecasts and analysis for leading geographies, profiles of major companies operating in the market and expert opinion obtained from interviews with industry executives and experts from prominent companies.

The building energy management systems market research report presents the analysis of each segment from 2018 to 2027 considering 2020 as the base year for the research. The compounded annual growth rate (CAGR) for each respective segment is calculated for the forecast period from 2021 to 2027.

Historical & Forecast Period

• 2018-19 – Historical Year
• 2020 – Base Year
• 2021-2027 – Forecast Period

Market Segmentation:

By Component:

• Services
• Software
• Hardware

By Communication:

• Wired
• Wireless

By End-User:

• Commercial
• Residential
• Industrial

By Region:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

Geographic Coverage

Geographically, the building energy management systems market report comprises dedicated sections centering on the regional market revenue and trends. The building energy management systems market has been segmented on the basis of geographic regions into North America, Europe, Asia Pacific, and Rest of the World (RoW). The RoW segment consists of Latin America and the Middle East & Africa. The building energy management systems market has been extensively analyzed on the basis of various regional factors such as demographics, gross domestic product (GDP), inflation rate, acceptance, and others. Building energy management systems market estimates have also been provided for the historical years 2018 & 2019 along with forecasts for the period from 2021 – 2027.

Competitive Assessment

Some of the major market players operating in the global building energy management systems market are ABB Ltd., Cisco Systems, Accenture, Schneider Electric, and General Electric. Companies are exploring markets by expansion, new investment, the introduction of new services, and collaboration as their preferred strategies. Players are exploring new geography through expansion and acquisition to gain a competitive advantage through joint synergy.

Key Companies:

• ABB Ltd.
• Cisco Systems
• Accenture
• Schneider Electric
• General Electric
• IBM
• Emerson Electric Co.
• Hitachi Ltd.
• Honeywell international Inc.
• Johnson Controls

Key Questions Answered by Building Energy Management Systems Market Report

• Global building energy management systems market forecasts from 2021-2027
• Regional building energy management systems market forecasts from 2021-2027 covering Asia-Pacific, North America, Europe, Middle East & Africa, and Latin America
• Country-level forecasts from 2021-2027 covering 15 major countries from the regions as mentioned above
• Building energy management systems submarket forecasts from 2021-2027 covering the market by component, by application, by end-user, and geography
• Various industry models such as SWOT analysis, Value Chain Analysis about building energy management systems market
• Analysis of the key factors driving and restraining the growth of the global, regional, and country-level building energy management systems markets from 2021-2027
• Competitive Landscape and market positioning of top 10 players operating in the building energy management systems market