by Brianna Crandall — July 10, 2017 — The building management system (BMS) or building automation system (BAS) market is growing rapidly as building owners and managers seek to save energy and save money, according to a new report from MarketsandMarkets. But other considerations may be keeping the market from expanding as fast as it could.
The building management system market was valued at USD 6.65 billion in 2016 and is expected to reach $19.25 billion by 2023, at a compound annual growth rate (CAGR) of 16.71% between 2017 and 2023. Professional services continue to hold the largest share, while Europe is expected to hold the largest share geographically during the forecast period.
Significant cost benefits to industrial, commercial, and residential users boost the demand for building management systems. Operating costs are a major concern for building owners and managers, particularly if they lack advanced technology to aid in maintaining the building.
As reducing energy consumption directly translates into reduced spending on energy, saving power provides a good financial opportunity for businesses and helps improve their profitability. Ensuring that BMSs are operating in peak condition enables users to not only improve system efficiency but also reduce operating costs.
However, the lack of technically skilled workers and high initial implementation costs pose a restraining block in the BMS market.
Maintenance and servicing require trained and skilled personnel to ensure that the building management system runs smoothly and has a longer lifespan. In the absence of these conditions, the implementation of building management solutions and services become difficult. For the BMS project, an upfront investment is required at the initial stage of conceptualization, which deters building managers and operators from installing the systems in the buildings.
Professional services hold largest share of BMS market
Professional services are expected to continue to hold the largest share of the building management system market in 2016. As the adoption of building automation solutions increases worldwide driven by regulatory push, amended policy framework, operational efficiencies, cost containment, sustainability benefits, and changing business dynamics, the demand for professional services will also increase.
Security and access control systems are expected to hold the largest portion of the BMS/BAS market during the forecast period. Security and access control systems have become an integral part of the safety and security of the buildings and their occupants, revolutionizing building security and reducing human interventions, notes the report. These systems are installed in buildings to increase the security level and protect assets, staff, and information; monitor activities; and keep a record of people entering and exiting the building.
Europe to hold largest share of BMS market geographically
Europe is expected to hold the largest share of the BMS market in 2016. The region has been an early adopter of building management systems. The Energy Performance of Buildings Directive (EPBD) has been instrumental in boosting the BMS market in the region.
The building management system ecosystem comprises major players such as Honeywell International Inc. (USA), Siemens AG (Germany), Johnson Controls International PLC (Ireland), Schneider Electric SE (France), United Technologies Corp. (USA), IBM Corporation (USA), Ingersoll-Rand Plc (Ireland), and Delta Controls (Canada).
The 137-page Building Management System Market by Software (Facility, Security, Energy, Emergency, Infrastructure Management), Service (Professional, Managed), Application (Residential, Commercial, Industrial), and Geography — Global Forecast to 2023 research report, with 61 tables, 37 figures and 25 company profiles, is available for purchase from the MarketsandMarkets Web site, or through ReportsnReports. The latter also offers a sample copy upon brief registration.