Year | Value |
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2023 | USD 5.18 Billion |
2032 | USD 10.55 Billion |
CAGR (2024-2032) | 8.22 % |
Note – Market size depicts the revenue generated over the financial year
The next-generation building energy management systems market is estimated to reach USD 5.18 billion by 2023 and is estimated to reach USD 10.55 billion by 2032. This growth will be reflected in a high CAGR of 8.22% from 2024 to 2032. The main factors driving the market are the increasing emphasis on energy efficiency, energy conservation, and the integration of smart building management systems. The need to optimize energy consumption and reduce operating costs is driving the need for advanced BEMS solutions. Moreover, the advent of the Internet of Things, artificial intelligence, and machine learning is transforming the building management practices by enabling real-time monitoring and data analysis. This trend has prompted companies such as Honeywell, Schneider Electric, and Honeywell to launch new products and solutions. Recent collaborations between technology companies and energy service companies aim to provide integrated solutions that not only improve energy efficiency, but also improve occupant comfort and resilience. Strategic initiatives such as these will play a key role in shaping the future of building energy management.
Regional Market Size
The market for next-generation BEMS is growing at a fast pace, mainly driven by the increasing energy efficiency demands, technological advancements, and government initiatives. The North American BEMS market is characterized by a strong focus on smart building and energy management solutions, as a large number of commercial and residential buildings adopt advanced energy management solutions. Europe is characterized by the rise of carbon emission reduction regulations, while Asia-Pacific is characterized by rapid urbanization and energy consumption growth. Middle East and Africa are beginning to invest in energy management systems as part of their sustainable development goals, while Latin America is focusing on BEMS to help improve energy efficiency in its rapidly growing cities.
“Approximately 30% of energy used in commercial buildings is wasted due to inefficient management systems, highlighting the significant potential for Next-Generation BEMS to enhance energy efficiency.” — U.S. Department of Energy
The Next Generation Building Energy Management (NBEM) systems play a key role in enhancing energy efficiency and sustainability in commercial and residential buildings. This market is currently growing strongly, driven by the growing cost of energy and the growing importance of reducing carbon emissions. The demand is also fueled by stricter government regulations on energy efficiency and a growing preference for smart, connected, and energy-efficient solutions. At the moment, the adoption of NBEM is in the expansion stage, with notable leaders such as Siemens and Honeywell deploying their innovative solutions in different regions, especially in North America and Europe. The major applications include real-time energy monitoring, predictive maintenance, and integration with renewable energy sources. The implementation of NBEM is mainly in the commercial building industry, and there are some notable cases in the United States, such as the smart building project in the United States and the smart building project in Singapore. However, as the Internet of Things, artificial intelligence, and machine learning evolve, the capabilities of NBEMs are further improved.
The Next-Generation Building Energy Management System (BEMS) Market is set to grow at a significant CAGR of 8.22% from 2023 to 2032, increasing from USD 5.18 billion to USD 10.55 billion. This growth will be driven by the increasing need for energy efficiency and sustainability in building operations, driven by both regulatory frameworks and CSR initiatives. The integration of BEMS with artificial intelligence, machine learning, and IoT will enable improved energy management and operational efficiency in commercial and residential buildings. In particular, real-time data analytics and predictive maintenance are set to revolutionize the way energy consumption is monitored and managed. The growth of smart cities and smart grids will also be a key driver for the market. The integration of renewable energy sources will further accelerate the adoption of next-generation BEMS. In 2032, it is estimated that over 60% of new buildings will be equipped with next-generation BEMS, thereby indicating a shift towards smarter and more sustainable building practices.
Covered Aspects:Report Attribute/Metric | Details |
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Growth Rate | 10.90% |
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