Spending on smart-building managed services to grow at 18% CAGR to 2020: report

Global spending on smart-building managed services (SBMS) is forecast to hit $1.1 billion in 2020, up from just $291 million in 2012, thanks to the growing demand for a “sophistication” that many operations and maintenance staff currently lack.

That is the finding of a new report from Pike Research that says SBMS will become a critical part of energy management initiatives in the next few years.

Global spending on smart-building managed services (SBMS) is forecast to hit $1.1 billion in 2020, up from just $291 million in 2012, thanks to the growing demand for a “sophistication” that many operations and maintenance staff currently lack.

That is the finding of a new report from Pike Research that says SBMS will become a critical part of energy management initiatives in the next few years.

The growth of building energy management systems (BEMS) has led to major gains in terms of energy efficiency, says Pike Research, but SBMS – which include data acquisition and analytics, as well as building maintenance contracts – will enable those systems to realize their full potential.

“Dwindling resources and diminishing skill levels have significantly impaired the effectiveness of efficiency initiatives in many commercial buildings,” said Eric Bloom, a senior research analyst for Pike Research.

“Turning these initiatives over to experts who continuously monitor the facilities, searching for opportunities to reduce energy costs and improve operations, enables building owners to access the full capabilities of BEMS,” he said.

Nevertheless, vendors of SBMS will face plenty of competition from utility demand-side management (DSM) programs.

Providing many of the same benefits as SBMS, these are taking off as utilities look for new ways to engage with their customers and manage the increasing demand for electricity production.

Indeed, according to Pike Research, many building owners and operators now expect many of the services SBMS vendors provide to be available from their local utilities.

As a result, many building owners and operators now expect that many of the services SBMS vendors provide are already available from their local utilities.