by Brianna Crandall — October 10, 2014—As energy prices rise, end users in Europe are adopting home and building energy management systems (HEMS/BEMS) to obtain data on energy consumption. Coupled with advances in big data analytics, cloud-based solutions and Internet of things, this trend is creating strong opportunities for energy management (EM) vendors in the region, according to new analysis from global growth consulting company Frost & Sullivan. Innovative business models will, however, be needed to leverage emerging opportunities such as the demand for integrated solutions that enable communication between subsystems or machine-to-machine interactions.
Frost & Sullivan’s new analysis, European HEMS and BEMS Market, finds that the market earned revenues of $1.14 billion in 2013, and estimates this will reach $2.01 billion in 2018. The study covers the hardware and software products offered by the HEMS and BEMS industries.
Most of the Western European countries are reframing their regulations to align with the European Union (EU) directives on energy efficiency, points out the firm. The rollout of smart meters by 2015 will reportedly create more business opportunities for utilities as well.
“Over the next five to ten years, a combination of factors will drive the market,” says Frost & Sullivan Energy and Environmental Research Analyst Anirudh Bhaskaran. “These include the heating requirements in the Northern European countries, decreasing price of HEMS and BEMS components, and the need to comply with stringent EU directives designed to improve energy efficiency in buildings.”
According to the report, the main challenges HEMS and BEMS vendors face are low consumer awareness and poor uptake among small organizations. In spite of regulations, many consumers remain unaware of the benefits of EMS as well as the adverse impact of poor EM on the climate. This has led to customer disengagement in both the residential and non-residential sectors. Further, HEMS and BEMS remain unaffordable for small organizations even though the cost of EMS components has come down. Nonetheless, continuing long-term investments from large organizations are expected to keep the market on a steady course.
European HEMS and BEMS Market: Technological Advancements and Compliance with EU Directives Drive Double-Digit Growth is part of Frost & Sullivan’s Building Management Technologies Growth Partnership Service program. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.
