Smart Building Managed Services Will be Critical to Building Energy Management Initiatives

The growth of building energy management systems (BEMS) has driven significant gains in energy efficiency and the understanding of how buildings truly operate.

Realizing the full potential of these management systems, however, requires a level of sophistication that many current building operations and maintenance staff lack.  That gap has led to growing demand for smart building managed services (SBMS), which are essentially outsourced versions of BEMS.  According to a recent report from Pike Research, a part of Navigant’s Energy Practice, the SBMS market will grow more rapidly over the remainder of the decade than the wider BEMS market.

Worldwide spending on these outsourced services, which include data acquisition and analytics, as well as building maintenance contracts, will grow from $291 million in 2012 to $1.1 billion by 2020, the study concludes.  That equates to a compound annual growth rate of nearly 18 percent, compared to the BEMS market rate of 14 percent.

“Dwindling resources and diminishing skill levels have significantly impaired the effectiveness of efficiency initiatives in many commercial buildings,” says senior research analyst Eric Bloom.  “Turning these initiatives over to experts who continuously monitor the facilities, searching for opportunities to reduce energy costs and improve operations, enables building owners to access the full capabilities of BEMS.”

SBMS vendors, however, face significant competition, particularly from the proliferation of utility demand-side management (DSM) programs. Looking for ways to engage with their customer bases and, more importantly, ways to manage the increasing demand for electricity production, utilities have created DSM offerings that provide many of the benefits of SBMS.  As a result, many building owners and operators now expect that many of the services SBMS vendors provide are already available from their local utilities.

The report, “Smart Building Managed Services”, examines the global smart building managed services market trends, along with opportunities and challenges, business strategies, and key industry players.  The report examines the technology issues in the SBMS market and includes profiles of 18 vendors.  Market forecasts include total market growth from 2012 through 2020, market share and growth rate comparisons, and projections for five world regions.

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