Rising concerns about increasing energy price volatility and growing adoption of energy-saving solutions across various sectors set to expand the market growth
Energy prices in Europe have witnessed extreme volatility in recent years. Various European countries have adopted renewable energy on a large scale with the ultimate goal of decarbonizing energy production by 2050; however, due to the intermittent nature of renewable energy such as wind and solar, energy generation experiences variation. The variation in energy generation leads to price volatility, especially during peak demand. Europe's major industrial manufacturing base relies on cheap, stable power to maintain its competitive edge against other regions. High energy price volatility leads to erosion of European industrial competitiveness. Furthermore, consumers and business owners face high energy bills.
To hedge against energy volatility, the adoption of building energy management systems in the European industrial sector has expanded dramatically. A building energy management system is a framework for managing industrial energy consumption. It assists businesses in identifying and improving energy-saving technology, particularly those that may not require a large upfront expenditure. An industrial enterprise can get real-time energy awareness to identify targeted areas to optimize and increase the efficiency and profitability of operations with a building energy management system.
BEMS focuses on reducing the need for energy by optimizing energy usage through integrated hardware and software components. Building energy management systems provide efficient and economical energy utilization as these systems control the energy needs of residential and commercial buildings. For example, if a utility initiates a demand response event, a BEMS can receive the utility's external signal and respond by sending control instructions to building systems.
BEMS may command lights to dim in specific locations, increase the temperature setpoint or switch from utility production to a battery storage system to reduce overall load. Commercial enterprises such as schools, office buildings, retail stores and hospitals have traditionally been major energy users. Building energy management systems would help commercial entities optimize energy usage and reduce energy bills.
At the back of the factors, along with research and development, the region's BEMS market size is on the course to surpass US$ XX Bn mark by the end of 2030.
Technological innovations in building energy management systems to augment market growth
Building energy management systems is witnessing a technological revolution by implementing various technologies, including artificial intelligence, rising Internet of Things (IoT) enabled devices, data analytics, edge analytics, cloud solutions and business model innovation. For instance, the New Energy and Industrial Technology Development Organization (NEDO) and Hitachi, Ltd. began a cloud-based Advanced Energy Management System demonstration. A cloud-based Advanced Energy Management System (AEMS) installed at a data center would connect Battery Energy Storage Systems (BESS) installed on the consumer side within the demonstration area, energy management systems (xEMS) installed in factories, buildings and homes and a distribution management system (DMS) installed at an electricity distribution company to provide services.
The latest breakthrough in commercial building energy management is IoT-based analytics solutions. Facilities managers can gain unprecedented visibility into their building systems via an IoT-based platform, allowing them to oversee operations and the overall building environment proactively. Because the IoT complements traditional building management systems, IoT-based BEMS are more than just a control system. By understanding where, when and how their building consumes energy, facilities managers can use load-shedding schedules to actively and purposefully reduce energy demand. Wireless IoT sensors installed throughout the building provide real-time, precise information on the energy use of the building.
The adoption of emerging technologies such as artificial intelligence and machine learning is gaining traction within building energy. AI and ML used data analytics to interpret vast amounts of data collected from BEMS sensors. It will greatly enhance the efficiency and productivity of building energy management systems. Innovative technologies in energy management solutions are a driving factor for market growth.
COVID-19 Pandemic had a positive impact on the market
During the forecast period, the COVID pandemic has benefited the building energy management system market, owing to a shift in working culture. Residential energy demand increased greatly during the pandemic period as work from home (WFH) was instituted by many companies. The use of home appliances and electronics increased along with cooling, heat and ventilation equipment.
The COVID-19 pandemic caused profound changes to energy consumption patterns. The need for better energy usage management and optimization was greatly felt during the pandemic. Commercial buildings are slowly returning to normal operations with the receding pandemic and energy demand is expected to exceed pre-pandemic levels. Building energy management systems will likely increase in commercial and industrial buildings in Europe in the coming years.
DataM Analysis Report
Europe Building Energy Management Systems (BEMS) market is expected to expand at a CAGR of XX% during the forecast period. The growing adoption of legislation across various European countries mandating energy efficiency and concerns regarding energy price volatility is primarily driving its expansion. Building energy management systems govern the energy needs of a residential or commercial building, resulting in efficient and cost-effective energy usage. Market players should monitor new market trends closely and introduce optimal changes in BEMS.
Market Overview
- According to DataM Intelligence's latest research report on the building energy management systems market in Europe for the historic period, 2019 and the forecast period 2020–2030, the rising adoption of energy-efficiency methods due to its advantages in terms of cost reduction and prevention of energy wastage is a factor expected to boost the market in Europe during the forecast period.
- In terms of revenue, the BEMS market size in Europe is estimated to surpass US$ XX Bn by 2030, expanding at a CAGR of XX% throughout the forecast period.
Key Driver
- Rapid advancements in BEMS hardware, such as developing new types of sensors. The development of new hardware has increased considerably in recent years as BEMS systems become more complex. Technological advances have also improved the opportunities for a BEMS and, therefore, increased its potential.
- Wireless sensors, such as moisture sensors, occupancy sensors and photosensors, are being integrated with proprietary software to enable wireless data communication. Wireless sensors can detect occupancy and illumination levels to augment more effective energy usage. Wireless moisture and gas sensors enable the cost-effective functioning of HVAC systems, which are major energy consumers.
- Many companies are currently building hardware and software BEMS components tailored for exclusive use in renewable energy systems. It is mainly due to the growing share of renewable energy in the energy mix of various European countries.
- Thus, focusing on new technological innovations is expected to offer lucrative opportunities for the BEMS market in Europe during the forecast period.
The rise in adoption of BEMS by industrial buildings will propel market growth
- According to industrial analysis, industrial buildings, such as manufacturing units and factories, have the most wasteful energy usage. It leads to massive costs for businesses and the environment.
- Further, energy price volatility across Europe is affecting the competitiveness of many manufacturing industries.
- Many options and solutions are available today to ensure better energy control, including a building energy management system.
- BEMS utilizes integrated hardware and sensors and IoT-based platforms that can monitor and measure different aspects of a building and bring in a variety of other data inputs to draw inferences from anomalies, make correlations and assist end-users in gaining intelligence to make smart operational decisions that affect their bottom line.
- BEMS helps industrial buildings optimize energy usage, waste and energy bills.
- As a result, the rise in adoption of BEMS by industrial buildings is expected to boost the demand in the European market.
Competition Landscape
- Detailed profiles of major market players providing BEMS solutions are provided in the report, including financials, company profile analysis, market revenue analysis, import and export, recent developments and market strategies analysis, key product/service offerings and an overview of the company
- Key players operating in Europe's BEMS market are ABB, Cisco Systems Inc, Nordomatic AB, Engie, Honeywell International Inc, General Electric, Veolia, Johnson Controls, Siemens AG and Schneider Electric, among others.
New Acquisitions and Product Launches
- Major market players of BEMS solutions in Europe include Nordomatic AB, ABB, Schneider Electric and General Electric, focusing on launching new products and technologies to expand their footprint. Some other key market strategies in the BEMS market in Europe are highlighted below:
- In June 2022, Nordomatic AB announced the acquisition of UK-based building energy automation solutions developer Demma. The acquisition is expected to expand the company's presence across mainland Europe.
- In March 2022, Nordomatic AB announced the acquisition of UK-based specialist software solutions developer Spica Technologies Limited for an undisclosed amount.
- In 2022, Schneider Electric unveiled its proprietary energy management cloud-based building energy management software. The company has made the software open-platform to enable the growth of digitization of building energy management systems.
- In Europe Building Energy Management System (BEMS) market report, we have discussed individual strategies, followed by company profiles of providers of BEMS solutions. The 'Competitive Landscape' section is included in the report to provide the readers with a dashboard view and competitive analysis of key players operating in the Europen BEMS market.