Pike Research report: Building energy management systems help bring commercial buildings to the Smart Grid, increase energy savings.

SOURCE: Pike Research

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According to a new report from Pike Research, the building energy management systems (BEMS) sector is an important and fast-growing application area within the broader Smart Grid movement, and the cleantech market intelligence firm forecasts that BEMS revenue in the U.S. will increase from $900 million in 2010 to $2.4 billion annually by 2016 under an average forecast scenario.

Pike Research's report, Building Energy Management Systems, analyzes the market opportunity for BEMS in commercial buildings throughout the U.S. The report provides a study of the market drivers, barriers and industry dynamics in today's market, along with three scenarios for future growth.

The BEMS market represents a convergence point for IT vendors, Smart Grid companies, utilities, building management system vendors, curtailment service providers and other energy-efficiency companies. As a result of this market convergence, BEMS offerings will become more sophisticated, providing energy savings to the end user that in many cases will be reinvested in additional energy-efficiency applications, according to the report.

Pike Research's analysis indicates that the healthcare, university and commercial office space vertical markets are the most important three segments for the growing BEMS business. Over the next few years, many decision-makers in these markets will choose BEMS rather than updating a legacy BMS, given the cost advantages and versatility of working with multiple technologies, according to the report.