|
Current News
Global Smart Building to Smart Grid Interface Software Business To Be Worth $1 Billion by 2016
June 1, 2012
[ back ] [ comment ]
In many developed countries, industrial and commercial buildings consume 40% of all generated electrical power. Interfacing the smart grid with this building stock provides large scale opportunities to balance electrical supply and demand, particularly as smart buildings are already fitted with fully automatic DDC controls.
Much of the technology is already in place for both smart grid and smart buildings to benefit from interfacing and integration. It will not require vast sums of money to bring about: a new report from Memoori estimates approximately 1% of the total cumulative investment required to facilitate a global smart grid. The likely slowing down of the development of smart grid, due to the present poor economic conditions, could serve to enhance the prospects of this business.
Memoori predicts that the average annual aggregated spend on both the smart grid side and smart building side for interface software will be approximately $1 billion in 2016 and demand will peak in 2020 at $2.2 billion. The current global spend on interface products for smart buildings is not likely to be exceeding $100 million.
In the US, approximately 80,000 sites in the commercial sector offer a high propensity for smart building to smart grid interfacing. The world population will be over 250,000 buildings. The size of the world market for building energy management systems (BEMS) -- DDC controls that monitor and control environmental plant in commercial and industrial buildings -- was $13.39 billion in 2011.
In many developed countries industrial and commercial buildings consume 40% of all generated electrical power. Interfacing with this building stock provides large-scale opportunities to balance supply and demand, particularly as smart buildings are already fitted with fully automatic DDC controls.
Sales to the retrofit market will account for 65% of this business during the next 5 years, according to the report. Of this, 40% will pass through specialist IT integrators. Energy service management companies will take 40% and the balance of 20% will be direct business between the buyer and software supplier.
Conserving energy through distributed generation coupled with efficient balancing of supply and demand in the smart building is the most cost-effective solution, according to Memoori. This must be one of the most attractive businesses to be a part of today for it benefits society, delivers an attractive return on investment, and has excellent future growth potential.
The report, "The Smart Building to Smart Grid Interface Business" reviews the growing business of interfacing smart grid with smart buildings to bring about a synergy that will increase the return on investment in both businesses. Its objective is to assess the potential size of this market and set out the important factors that will shape the business in the next 5 years. More information on the report is available on the Memoori website.
Source: Memoori
Comments
Please note: By posting a comment, you agree to our Terms & Conditions.
|
|
|
|
|