Next-Generation Building Energy Management Systems Market CAGR, SWOT Analysis
The need for simplified building operations is likely to spur the next-generation building energy management systems market. A CAGR of 15.3% is predicted to shape the global market in the upcoming period.
The convergence of conventional and advanced components to augment the management and automation of building systems is expected to drive the next-generation building energy management systems market. The upswing in consumer demand for eco-friendly buildings that are energy-efficient is estimated to add impetus to the next-generation building energy management systems market in the upcoming period.
Next-Generation Building Energy Management Systems Market can be segmented:
By Type
- wired
- wireless
By Application
- commercial buildings
- manufacturing facilities
- educational institutions and hospitals
- government establishments
The market is characterised by the presence of several regional and local providers. Some of the key players in the market are:
- Honeywell
- Johnson Controls
- Schneider Electric
- Siemens
- ABB
- CBRE Group
- CISCO
- Daikin
- Echelon
- GridPoint among others.
The market is categorised as: Middle East, Europe, Africa, Asia-Pacific, North America, and South America. Europe is projected to support the biggest segment in the market in the year 2018. The European regional market has been an initial adopter of BMS. The Asia Pacific regional market is estimated to develop at fast rate for the duration of the forecast due to the intensification in demand for the building of industrial and residential buildings.
Building energy management systems BEMS
Building Energy Management Systems (BEMS) are integrated, computerised systems for monitoring and controlling energy-related building services plant and equipment such as heating, ventilation and air conditioning (HVAC) systems, lighting, power systems and so on.
The phrase Building Energy Management Systems is sometimes used interchangeably with Building Management Systems (BMS), however, strictly speaking, Building Management Systems can be used to monitor and control a wide range of building systems, including fire, smoke detection and alarms, motion detectors, CCTV, security and access control, lifts and so on. Building Energy Management Systems relate specifically to energy-related systems.
Small buildings may have independent controls for energy systems, but for larger or more complex buildings, sites with a number of buildings, or organisations with buildings on a number of sites, the integration of systems operation through a single Building Energy Management System offers greater control and can achieve significant savings. NB Increasingly, simple BEMS are being developed that are suitable for even the smallest buildings.
BEMS provide real-time remote monitoring and integrated control of a wide range of connected systems, allowing modes of operation, energy use, environmental conditions and so on to be monitored and allowing hours of operation, set points and so on to be adjusted to optimise performance and comfort. BEMS can also trigger alarms, in some cases predicting problems and informing maintenance programmes. They allow records to be kept of historical performance, enable benchmarking of performance against other buildings or sites and may help automate report writing.
In 2014, BSRIA reported that the global BEMS market was worth $3.5 billion, or 3 billion Euros, and was growing globally at more than 10% per annum. This increasing interest has resulted from the rising cost of fuel, concerns over energy security, increasingly aggressive environmental targets and the reduced cost of sensors, analytics software and data storage.
Claims for the scale of savings that can be achieved by BEMS range from 10% to 25%. Operated properly, they should allow energy use to be optimised without compromising comfort or performance. However this requires a thorough understanding of how buildings are supposed to perform, and how different systems within them interact.
To function correctly they must be properly designed, installed and commissioned and must have a user interface that is easy to operate. They should then be continually assessed and fine-tuned as performance is better understood over a number of seasons and modes of operation, and changes are made to buildings or operations. Maintenance is also necessary to ensure systems continue to operate correctly, for example, replacing sensors and batteries, checking connections, checking the operation of dampers and valves, upgrading software and so on.
BEMS can be independent installations with separate maintenance contracts, or manufacturer installations which include maintenance. They can be wired or wireless systems. To determine whether a wired or wireless system is the most appropriate, buildings should be audited to test how well signals can be received and how likely disturbances are. Choosing the correct BEMS system then depends on the size and usage of the building, the scale of the project and the budget. As a general rule, larger, more extensive projects tend to be best suited to wireless solutions.
BEMS may have remote outstations that can be interrogated locally, or may be accessible from mobile devices. However, major buildings may be vulnerable to cyber attack, especially when they are associated with prominent organisations. This can be a particular issue where functions operate in the 'cloud', such as cloud-based analytics, and the ability to access and manage multiple buildings remotely. The ability to access live analytics, or receive alarm notifications from hand-held devices has great potential benefits, but may also bring additional risks.
[edit] Related articles on Designing Buildings
- Building energy management systems BEMS.
- BACS building automation controls - the information revolution.
- BS EN 15232 Energy performance of buildings: impact of building automation, controls and building management.
- Building Automation and Control System BACS.
- Building energy efficiency - is building automation the answer?
- Building energy management systems (BEMS) for data centres.
- Building energy simulation software.
- Building management systems.
- Commercial building automation market.
Featured articles and news
UK Net Zero Carbon Buildings Standard V1 published
Free-to-access technical standard to enable robust proof of a decarbonising built environment.
Prostate Cancer Awareness Month
Why talking about prostate cancer matters in construction.
The Architectural Technology podcast: Where it's AT
Catch up for free, subscribe and share with your network.
The Association of Consultant Architects recap
A reintroduction and recap of ACA President; Patrick Inglis' Autumn update.
The Home Energy Model and its wrappers
From SAP to HEM, EPC for MEES and FHS assessment wrappers.
Future Homes Standard Essentials launched
Future Homes Hub launches new campaign to help sector prepare for the implementation of new building standards.
Building Safety recap February, 2026
Our regular run-down of key building safety related events of the month.
Planning reform: draft NPPF and industry responses.
Last chance to comment on proposed changes to the NPPF.
A Regency palace of colour and sensation. Book review.
Delayed, derailed and devalued
How the UK’s planning crisis is undermining British manufacturing.
How much does it cost to build a house?
A brief run down of key considerations from a London based practice.
The need for a National construction careers campaign
Highlighted by CIOB to cut unemployment, reduce skills gap and deliver on housing and infrastructure ambitions.
AI-Driven automation; reducing time, enhancing compliance
Sustainability; not just compliance but rethinking design, material selection, and the supply chains to support them.
Climate Resilience and Adaptation In the Built Environment
New CIOB Technical Information Sheet by Colin Booth, Professor of Smart and Sustainable Infrastructure.
Turning Enquiries into Profitable Construction Projects
Founder of Develop Coaching and author of Building Your Future; Greg Wilkes shares his insights.
IHBC Signpost: Poetry from concrete
Scotland’s fascinating historic concrete and brutalist architecture with the Engine Shed.





















