APAC Building Energy Management Systems Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 12.30 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | North America |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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APAC Building Energy Management Systems Market Analysis
The Asia-Pacific Building Energy Management System (BEMS) Market is anticipated to register a CAGR of 12.3% during the forecast period. The increasing demand for reduction in energy consumption level and continuing growth of energy use, owing to a rising number of commercial buildings, created a need to develop innovative techniques to reduce and optimize building energy use.
- Bigger buildings require advanced building and predictive analytics, building optimization and continuous optimization, demand response, automated building control, auto, and enterprise integration, while small-sized buildings require a system that can provide information on incentive availability, historical billing analysis, and behavioural, educational, and retrofit suggestions. BEMS plays a crucial role in fulfilling these requirements. Companies are also offering BEMS solutions for medium-sized buildings, in which they are providing energy monitoring, retro and continuous commissioning, NOC availability, maintenance, trouble ticket management, AMI data analysis, and retrofit program suggestions.
- As China's economy expands quickly, the building sector in that country is witnessing an unprecedented boom. This directly affects China's levels of greenhouse gas emissions (GHG) brought on by energy usage in buildings. In October 2021, China's Ministry of Housing and Urban-Rural Development issued national standards for energy conservation and renewable energy use in buildings to enhance the energy efficiency, promote renewable energy, and reduce carbon emissions of buildings. To assist decision-makers in developing building energy performance policy packages that can enhance the energy performance of new and existing buildings in China and restrain the rise of building-related CO2 emissions could boost the growth of the studied market.
- Singapore is also at the forefront of forming favorable government initiatives to support the adoption of smart buildings. Coupled with its Smart Nation initiative, the government introduced the Green Mark Scheme with a target of 80% of buildings to be certified as green under this scheme by 2030. Such initiatives are likely to augment the demand for building energy management systems in the region.
- The Asia Pacific region is also witnessing several innovations catering to efficient energy management for buildings through investments in R&D, collaborations, and mergers. For instance, in October 2022, Tata Power Trading Company announced that it signed an agreement with 75F Smart Innovations India to jointly promote building automation and energy-efficiency solutions in the commercial building space. 75F Smart Innovations is a prominent Internet of Things (IoT)-based building management system firm headquartered in Washington DC. TPTCL, a wholly-owned subsidiary of Tata Power, announced that it would collaborate with 75F Smart Innovations India to offer energy-efficiency solutions across industry verticals, including IT/information technology-enabled services (ITeS), banking financial services and insurance (BFSI), hospitality, health care, education, government, and retail.
- With the growth of technology, smart buildings are growing more and more complex, requiring quicker follow-up looks via retro-commissioning. Adding to that, the risks associated with sustained operational integrity are also mounting. Hence, the demand for comprehensive building energy management systems is expected to spike. It is very important to establish necessary communication between the system providers/designers and owners of the buildings, to understand the functioning of the building. However, market growth is expected to be hindered due to a lack of competent experts skilled in assessing smart solution systems. Professionals operating in the field need to be aware of the design changes and installation in the context of future needs. Failing to do so may lead to complications.
- Moreover, the Covid-19 outbreak has hampered the growth of the building energy management system solution industry due to lockdown measures in the region and delays in the manufacturing and production of BEM products and solutions used in HVAC and non-HVAC applications. The pandemic has also heightened attention on resilience and how society and vital sectors, such as the energy supply, may improve their ability to withstand shocks like the COVID-19 pandemic.
APAC Building Energy Management Systems Market Trends
This section covers the major market trends shaping the APAC Building Energy Management Systems Market according to our research experts:
The Increase in Demand from the Residential Segment is Expected to Drive the Market
- According to China Construction Industry Association, Residential buildings accounted for the largest share of completed construction in China in 2021. Buildings intended for housing accounted for over 67% of the finished floor space. As the country's economy grows, people migrate from rural areas to major cities, increasing demand for residential accommodation in these locations. Furthermore, apartments utilized as investment properties drive up demand. Such a large share of residential buildings would create an opportunity for the market players to develop new products to cater to a wide range of needs of customers.
- Further, according to Housing & Development Board, In the fiscal year 2021/2022, the Housing Development Board in Singapore has 83 thousand residential units under construction. In comparison to the previous year, demand for HDB units had grown.
- Innovative technologies often incentivized through prescriptive utility energy efficiency programs include advanced occupancy and vacancy controls that work with lighting and HVAC systems, daylighting controls, intelligent power strips, smart plugs, and BMS. The Government of India developed 'The Energy Conservation Building Code' (ECBC), which sets minimum energy performance standards for residents and includes the building envelope, heating, ventilation, and air conditioning. Hence, the growing adoption of smart lighting systems could help the country save energy.
- To cater to the evolving needs of consumers, in April 2022, ABB and Samsung Electronics announced that they would collaborate in a global partnership to provide jointly developed technologies for energy management, energy savings, and the smart Internet of Things connection of residential and commercial buildings. As per the companies, buildings generate almost 40% of annual global CO2 emissions. The partnership would create a platform to build a long-term relationship for innovation on smart technology, smart control, and smart devices. The collaboration would enable Samsung and ABB to expand customer access to home automation technologies and better device management while facilitating electricity load shifting.
- Building Energy Efficiency has become a global priority. In Australia, the National Construction Code now includes energy efficiency measures for all building classifications. The National Australian Built Environment Rating System (NABERS) allocates a 0-6 star rating to a building's greenhouse performance and resource efficiency. All Government departments and many businesses are leading the push for more sustainable built environments by no longer taking residency in buildings under 4.5 stars.
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Japan is Expected to Witness a High Market Growth
- The rise in the number of construction orders in the region would create several opportunities for the growth of the studied market. For instance, according to MLIT (Japan), the value of orders for building works received by 50 major Japanese constructors in the fiscal year 2021 was around JPY 15.1 trillion (USD 0.11 trillion), marking a 1.5 % increase over fiscal 2020.
- The region also boasts several laws and regulations regarding energy efficiency that are likely to boost the growth of the studied market. For instance, the National Energy Conservation Law includes building energy requirements in Japan. Various provisions of the Energy Conservation Law pertain to the building sector, such as Criteria for Clients on the Rationalization of Energy Use for Buildings and Design and Construction Guidelines on the Rationalization of Energy Use for Houses. The first relates to non-residential buildings, whereas the second applies to residential buildings. Although these rules are designated as voluntary, several components are enforced. For example, building owners must submit a report on energy conservation measures before new construction, extension, alteration, and significant renovations, which must be reviewed and approved.
- Further, in April 2022, the Bill for the Partial Revision of the Law Concerning the Improvement of Energy Consumption Performance of Buildings to Contribute to the Realization of a Decarbonized Society was adopted by Japan's Cabinet. The law accelerates energy-saving building measures to attain carbon neutrality by 2050 and a 46% decrease in greenhouse gas emissions by 2030 compared to 2013 levels. Energy conservation standards, which are currently restricted to non-residential buildings with a floor area of 300 square meters or more, will become mandatory for all new residential and non-residential buildings beginning in 2025.
- Smart cities in Japan are gradually growing across several prefectures, with progressively more companies joining the Smart City Institute Japan, a non-profit organization that connects sectors engaged in developing smart cities in Japan. Smart cities like Kashiwa-no-ha and Fujisawa are encouraging other investors from Japan and the rest of the world to understand the importance of a smarter future. The robust smart city ecosystem in the nation is anticipated to drive the market's growth.
- Moreover, to cater to the complex demands of consumers, several companies in the region are launching new and advanced products & platforms and collaborating with various organizations to extend their geographic reach. For instance, in December 2021, GE Grid Solutions and Fujitsu announced a partnership to sell GE's EnergyAPM asset performance management solutions in Japan. GE's EnergyAPM, which is designed exclusively for grid electrical assets, assists T&D operators and industrials in developing an intelligent performance plan for managing electrical substations and equipment. EnergyAPM's package of software services improves operational reliability while lowering the total cost of ownership by combining asset data with industry expertise, analytics, and connectivity.
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APAC Building Energy Management Systems Industry Overview
The Asia-Pacific Building Energy Management Systems Market is a moderately fragmented market with several significant players like Siemens AG, Honeywell, ABB Ltd., etc. The market players are constantly striving to innovate new products, platforms & services to cater to the complex requirements of their customers. The market players also aim to expand their geographic reach and technical capabilities through collaborations and mergers.
- July 2022 - Honeywell launched its new carbon and energy management solution for tracking buildings' emissions. The company's energy-management-as-a-service offering allows companies to account for carbon emissions down to a device level fully. As part of the Honeywell Forge platform for data, analytics, and Internet of Things capabilities, the carbon, and energy management solution is a cloud-based service to aid building owners in optimizing energy usage and carbon emissions (Scope 1 and 2), achieving sustainability throughout the enterprise.
- April 2022 - Schneider Electric, the global player in the digital transformation of energy management and automation and acknowledged as the world's most sustainable corporation in 2021 by Corporate Knights Global 100 Index, launched EcoStruxure Energy Hub, a scalable self-service IoT software as a service solution, which simplifies the management of digitalized electrical and energy systems.
APAC Building Energy Management Systems Market Leaders
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Siemens AG
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Honeywell International Inc.
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Schneider Electric SE
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Johnson Controls
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ABB Ltd.
*Disclaimer: Major Players sorted in no particular order
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APAC Building Energy Management Systems Market News
- August 2022 - Johnson Controls, a global player providing smart, healthy, and sustainable buildings, announced that it partnered with Microsoft Beijing Campus for its ongoing retrofit and optimization of building operations, achieving 27.9% energy savings and ensuring critical equipment uptime to 98%. As a result, the campus has been granted an energy-saving endorsement and financial subsidy by the Beijing Municipal Government and the Haidian District Government.
- Match 2022 - WRI India (WRII) inked an agreement with the Energy Management Centre Kerala (EMC-K) to achieve the state's energy efficiency goals. EMC has announced "Oorjayan," a state-wide program to assist Local Self Governments (LSGs) in improving energy efficiency within their domains. As the program's principal implementation agency, EMC-K will support collaboration with LSGIs and other relevant government organizations to benchmark building energy performance and promote energy efficiency in the Kerala building sector. WRII, with its expertise in cross-cutting research-based action across regional, national, and international geographies, will assist EMC in benchmarking the energy performance of government buildings as part of this project.
APAC Building Energy Management Systems Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
- 4.1 Market Overview
- 4.2 Technological Advancements
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4.3 Industry Attractiveness - Porter's Five Force Analysis
- 4.3.1 Threat of New Entrants
- 4.3.2 Bargaining Power of Buyers
- 4.3.3 Bargaining Power of Suppliers
- 4.3.4 Threat of Substitute Products
- 4.3.5 Intensity of Competitive Rivalry
- 4.4 Industry Supply Chain Analysis
- 4.5 Impact of COVID-19 on the Market
5. MARKET DYNAMICS
- 5.1 Market Drivers
- 5.2 Market Restraints
6. MARKET SEGMENTATION
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6.1 By Type of Solution
- 6.1.1 Hardware (controllers and gateways)
- 6.1.2 Software
- 6.1.3 Services
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6.2 By Distribution Channel
- 6.2.1 Direct/Partner Sales/Retail
- 6.2.2 Value-added Resellers/System Integrators
- 6.2.3 Utilities/Energy Service Providers
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6.3 By End-user Application
- 6.3.1 Commercial
- 6.3.2 Educational
- 6.3.3 Industrial
- 6.3.4 Others
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6.4 By Country
- 6.4.1 China
- 6.4.2 Japan
- 6.4.3 Southeast Asia
- 6.4.3.1 Singapore
- 6.4.3.2 Malaysia
- 6.4.3.3 Thailand
- 6.4.3.4 Indonesia
- 6.4.3.5 Rest of Southeast Asia
- 6.4.4 Rest of Asia-Pacific
7. COMPETITIVE LANDSCAPE
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7.1 Company Profiles
- 7.1.1 Siemens
- 7.1.2 Honeywell
- 7.1.3 Schneider Electric
- 7.1.4 Johnson Controls
- 7.1.5 ABB
- 7.1.6 Trane
- 7.1.7 Building IQ
- *List Not Exhaustive
8. FUTURE OUTLOOK OF THE MARKET
APAC Building Energy Management Systems Industry Segmentation
Building Energy Management Systems are integrated, computerized systems for monitoring and controlling energy-related building services plant and equipment like heating, ventilation, air conditioning (HVAC) systems, lighting, power systems, etc.
The Asia-Pacific Building Energy Management Systems Market is Segmented by Type of Solution (Hardware, Software, Services), Distribution Channel (Direct/Partner Sales/Retail, Direct/Partner Sales/Retail, Utilities/Energy Service Providers), End-user Application (Commercial, Educational, Industrial), and Country. The scope of the study tracks the revenue accrued from the sale of building energy management systems (BEMS), which includes hardware products and software applications. The content of the survey comprises controllers/gateways and energy optimization software. The market sizes and forecasts regarding value (USD million) for all the above segments are provided.
| By Type of Solution | Hardware (controllers and gateways) | |
| Software | ||
| Services | ||
| By Distribution Channel | Direct/Partner Sales/Retail | |
| Value-added Resellers/System Integrators | ||
| Utilities/Energy Service Providers | ||
| By End-user Application | Commercial | |
| Educational | ||
| Industrial | ||
| Others | ||
| By Country | China | |
| Japan | ||
| Southeast Asia | Singapore | |
| Malaysia | ||
| Thailand | ||
| Indonesia | ||
| Rest of Southeast Asia | ||
| Rest of Asia-Pacific |
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APAC Building Energy Management Systems Market Research FAQs
What is the current APAC Building Energy Management Systems Market size?
The APAC Building Energy Management Systems Market is projected to register a CAGR of 12.30% during the forecast period (2024-2029)
Who are the key players in APAC Building Energy Management Systems Market?
Siemens AG, Honeywell International Inc. , Schneider Electric SE, Johnson Controls and ABB Ltd. are the major companies operating in the APAC Building Energy Management Systems Market.
Which is the fastest growing region in APAC Building Energy Management Systems Market?
Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in APAC Building Energy Management Systems Market?
In 2024, the North America accounts for the largest market share in APAC Building Energy Management Systems Market.
What years does this APAC Building Energy Management Systems Market cover?
The report covers the APAC Building Energy Management Systems Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the APAC Building Energy Management Systems Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
APAC Building Energy Management Systems Industry Report
Statistics for the 2024 APAC Building Energy Management Systems market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. APAC Building Energy Management Systems analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
APAC Building Energy Management Systems Report Snapshots
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