Integrators seek differentiation in building automation market

Integrators are putting an increasing emphasis on product choice and adding value to systems to better position themselves in a growing market where small- and medium-sized independent integrators accounted for 57 of the overall takings.

11/13/2013


With competition growing in the building automation market, systems integrators are placing increasing emphasis on product choice and adding value to traditional systems to better position themselves toward enhancing customer satisfaction, according to new findings from a report from IHS Inc. (NYSE:IHS). 

Revenue for global building automation systems (BAS) installation and aftermarket services was estimated to be worth $26.4 billion in 2012. Small- and medium-sized independent integrators accounted for an estimated 57% of the overall takings, as presented in the figure below.

This is a highly competitive space with no single independent integrator holding more than a 1 percent market share. Here independent integrators look for ways to differentiate themselves in order to win business. Such an activity is likely to take two forms: enhanced product representation; and adding value to traditional service contracts. 

“Integrators will choose the brands they represent very carefully,” said William Rhodes, senior market analyst, building technology, for IHS. “Many are finding that different users value varying levels of cost and specifications for the equipment, and integrators will try to cover most scenarios with their brand choice. In this case, the desire to have the latest technology must be balanced against reliability and the capability to integrate with legacy solutions.” 

Revenue for global building automation systems installation and aftermarket services was estimated to be worth $26.4 billion in 2012. Small- and medium-sized independent integrators accounted for an estimated 57 percent of the overall takings. Courtesy: I

Integrators often will identify the products that customers are likely to be asking for in the future, and start testing and analyzing them early with a view to integrating the products before demand picks up.

“Integrators also are looking for more ways to add value to the service they provide and improve their competitive positioning,” Rhodes continued. “Some integrators have started to provide building analytics to help customers save energy—through either building optimization or fault detection. With building analytics, integrators are able to provide proactive energy savings, which improves customer satisfaction.”

The brands that building automation integrators represent and the products they specify will become increasingly important for integrators that want to differentiate their offerings. Adding value to traditional service contracts will be critical for integrators to win market share in an increasingly competitive landscape.



The Top Plant program honors outstanding manufacturing facilities in North America. View the 2015 Top Plant.
The Product of the Year program recognizes products newly released in the manufacturing industries.
Each year, a panel of Control Engineering and Plant Engineering editors and industry expert judges select the System Integrator of the Year Award winners in three categories.
A new approach to the Skills Gap; Community colleges may hold the key for manufacturing; 2017 Engineering Leaders Under 40
Doubling down on digital manufacturing; Data driving predictive maintenance; Electric motors and generators; Rewarding operational improvement
2017 Lubrication Guide; Software tools; Microgrids and energy strategies; Use robots effectively
The cloud, mobility, and remote operations; SCADA and contextual mobility; Custom UPS empowering a secure pipeline
Infrastructure for natural gas expansion; Artificial lift methods; Disruptive technology and fugitive gas emissions
Mobility as the means to offshore innovation; Preventing another Deepwater Horizon; ROVs as subsea robots; SCADA and the radio spectrum
Power system design for high-performance buildings; mitigating arc flash hazards
Research team developing Tesla coil designs; Implementing wireless process sensing
Commissioning electrical systems; Designing emergency and standby generator systems; Paralleling switchgear generator systems

Annual Salary Survey

Before the calendar turned, 2016 already had the makings of a pivotal year for manufacturing, and for the world.

There were the big events for the year, including the United States as Partner Country at Hannover Messe in April and the 2016 International Manufacturing Technology Show in Chicago in September. There's also the matter of the U.S. presidential elections in November, which promise to shape policy in manufacturing for years to come.

But the year started with global economic turmoil, as a slowdown in Chinese manufacturing triggered a worldwide stock hiccup that sent values plummeting. The continued plunge in world oil prices has resulted in a slowdown in exploration and, by extension, the manufacture of exploration equipment.

Read more: 2015 Salary Survey

Maintenance and reliability tips and best practices from the maintenance and reliability coaches at Allied Reliability Group.
The One Voice for Manufacturing blog reports on federal public policy issues impacting the manufacturing sector. One Voice is a joint effort by the National Tooling and Machining...
The Society for Maintenance and Reliability Professionals an organization devoted...
Join this ongoing discussion of machine guarding topics, including solutions assessments, regulatory compliance, gap analysis...
IMS Research, recently acquired by IHS Inc., is a leading independent supplier of market research and consultancy to the global electronics industry.
Maintenance is not optional in manufacturing. It’s a profit center, driving productivity and uptime while reducing overall repair costs.
The Lachance on CMMS blog is about current maintenance topics. Blogger Paul Lachance is president and chief technology officer for Smartware Group.
The maintenance journey has been a long, slow trek for most manufacturers and has gone from preventive maintenance to predictive maintenance.
Featured articles highlight technologies that enable the Industrial Internet of Things, IIoT-related products and strategies to get data more easily to the user.
This digital report will explore several aspects of how IIoT will transform manufacturing in the coming years.
Maintenance Manager; California Oils Corp.
Associate, Electrical Engineering; Wood Harbinger
Control Systems Engineer; Robert Bosch Corp.
This course focuses on climate analysis, appropriateness of cooling system selection, and combining cooling systems.
This course will help identify and reveal electrical hazards and identify the solutions to implementing and maintaining a safe work environment.
This course explains how maintaining power and communication systems through emergency power-generation systems is critical.
click me