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- Gain insightful information about this business for your strategic planning exercises; including the size and structure of the Building Energy Management Systems (BEMS) to Smart Grid Software Market; and its CAGR growth rate to 2030.
- Learn about the global size and structure of the Building Energy Management Systems DDC controls market; including breakdown by product type in 2012 and sales forecast to 2017.
- Discover the valuations and exit multiples paid for companies in this sector. What is driving M&A and Investment in this business?
- Understand how technology is influencing this industries future and the effect it will have on your business and investments. What are the major opportunities and threats to this market?
This report reviews the growing business of “Interfacing Software” between Smart Grid and Smart Buildings to bring about a synergy that increases the return on investment in both businesses. Its objective is to assess the potential size of this market and set out all the important factors that will shape the business in the next 5 years in the leading countries in the world; as well as breaking this down by product category.
This is a relatively New Market and the Business Opportunity will depend on how and where the Smart Grid business develops, the regulatory framework, the part that Smart Buildings can play in reducing energy demand and delivering distributed energy resources.
There is no doubt that the integration of these two separate businesses can play a vital role in maximizing energy conservation in buildings whilst generating income and reducing operating costs. It is imperative that they work together to both achieve the maximum benefits in reducing energy consumption and at the same time for Smart Buildings to feed distributed clean energy into the grid allowing the Utilities to reduce their CO2 emissions by gradually closing down central fossil fired generating plants.
- We estimate that the expenditure needed to provide software interfaces between Smart Grid and Smart Buildings over the next 20 years will amount to $34 billion, an average of $1.7 billion per year with the majority of this being spent on existing Smart Building installations.
- We expect that by 2022 most advanced BEMS systems will provide Automated Demand Response (ADR) using OpenADR and / or this functionality will be provided by the EEM package in Smart Buildings. We therefore expect demand for separate software package to decline after 2022.
- One of the main drivers for interfacing and integrating Smart Grid with Smart Buildings is to take advantage of distributed energy that is available in the many hundreds of thousands of Smart Buildings and industrial sites around the world. This can be achieved through Energy Service Companies (ESCO’s).
- In the USA and UK alone, we estimate some 100,000 buildings are available and suitable to integrate with Smart Grid and this would today account for around 30% of the total world population of buildings. We estimate that in the USA 90,000 sites meet the priority target in the commercial and industrial sector. Of this 40,000 would be in the Industrial and Process Technology sector, and 50,000 in the commercial building sector.
- When you examine in more detail the benefits for the utility companies interfacing with Smart Buildings the proposition looks even more attractive because 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.
The information contained in this report will be of value to all those engaged in managing, operating and investing in BEMS, Energy Management and Smart Grid companies (and their advisors) around the world. In particular those wishing to acquire, merge, sell or find alliance partners will find it particularly useful.
- Executive Summary
- 1. Introduction
- 2. Smart Grid Status & Future Development
- 3. Smart Grid Market Size
- 3.1 Potential Size of Smart Grid World Market by Country
- 3.2 Potential Size of the Smart Grid Market by Country & Product Grouping
- 3.3 The Electrical Utility Industry Requires a New Business Model
- 3.4 Will the New Model Need Conventional Spinning Reserves
- 3.5 Smart Grid Slow Down Will Not Inhibit Interface with Smart Buildings
- 3.6 Distributed Power Must Play an Important Role in the New Model
- 4. Smart Grid Interface with Smart Buildings
- 4.1 Market Size – Consumer Interfaces, HAN, EMS, Storage & EV’s
- 5. Defining & Sizing Smart Building Priority Markets
- 6. Smart Buildings – IT Convergence & the Internet of Things
- 6.1 Smart Buildings – IT Convergence
- 6.2 Smart Grid – The Internet of Energy & Other Things
- 7. Smart Buildings – Demand Response, Distributed Energy Enhanced Through Virtual Power Plants
- 7.1 Demand Response
- 7.2 Why Distributed Energy Will Play a Vital Role
- 7.2.1 Summary
- 7.2.2 The Wider Picture
- 7.3 The Business Model through ESCO’s
- 7.4 The Major ESCO Suppliers
- 8. Market Size of BEMS 2012 and Forecast to 2017
- 8.1 Market Share by Major Regions 2012
- 8.2 Market Size 2006 to 2012 & Forecast to 2017
- 8.3 Breakdown of BEMS by Product Type 2012
- 8.4 Supply Side Structure
- 9. Software Interface Market between BEMS & Smart Grid 2013 and Forecast to 2030
- 9.1 BEMS to Smart Grid Direct Independent Software Market
- 9.2 The Market for Enterprise Energy Management (EEM) Software
- 10. Routes to Market & Business Models
- 10.1 Purchasing Routes to Market
- 10.2 The Development of Business Models
- 10.3 What the Smart Building Owner / Operators Want
- 11. The Roles & Relationships between BEMS, EEM & ESCO Suppliers
- 12. Implementing Strategy through Acquisition
- 12.1 Acquisitions by BEMS Suppliers
- 12.1.1 Schneider Electric
- 12.1.2 ABB
- 12.1.3 Siemens
- 12.1.5 Johnson Controls
- 12.2 Acquisitions by Specialist EEM Software Suppliers
- 12.2.1 GE
- 12.2.2 SCIenergy Inc
- 12.2.3 Serious Energy
- 12.2.4 C3 Energy
- 12.2.5 Oracle
- 12.2.6 Ecova
- 12.3 Acquisitions by Energy Service Companies
- 12.3.1 Partnership & Alliance in Fashion Not Acquisition
- 12.1 Acquisitions by BEMS Suppliers
- 13. Merger & Acquisition in the Smart Grid Business
- 13.1 Major Acquisitions
- The Top 5 Acquisitions in 2012
- The Top 5 Acquisitions in 2011
- The Top 5 Acquisitions in 2010
- 13.2 Acquisitions by Volume & Type 2010 to 2012
- 13.1 Major Acquisitions
- A1.1 – Analysis of Acquisitions by Company and Type of Business
- A1.2 – BEMS & Smart Grid Interface Acquisitions & Funding from 2010
- A1.3 – M&A Activity & Deals Involving Smart Grid Companies 2011 / 2012
- Fig 3.1 – Smart Grid World Investment at Full Potential (US$ Bn)
- Fig 3.2 – Total World Smart Grid Sales from 2010 to 2030
- Fig 3.3 – Smart Grid Investment Potential by Country and Product Sector at Installed Prices (US$ M)
- Fig 4.1 – World Smart Grid Sales for Consumer Interfaces 2010 & Forecast to 2030
- Fig 8.1 – Total Sales of BEMS by Region 2012
- Fig 8.2 – BEMS Sales by Region 2006 – 2012
- Fig 8.3 – Breakdown of BEMS by Product Type 2012
- Fig 9.1 – Total World Market Size for Smart Building Smart Grid Interface Products & Systems 2010 to 2030
- Fig 10.1 – Purchasing Routes of Interface Products 2012
- Table 11.1 – Listing of Suppliers of Smart Building Smart Grid Interface Products & Systems
- Table A1.1 – Analysis of Acquisitions by Company and Type of Business
- Table A1.2 – BEMS & Smart Grid Interface Acquisitions & Funding from 2010
- Table A1.3 – M&A Activity & Deals Involving Smart Grid Companies 2011 / 2012