Greentech Lead America: A new report from Frost &
Sullivan on North American building automation systems market finds that the
market earned revenues of $535.3 million in 2011 and estimates this
to reach $615.4 million in 2016.
The increasing focus on energy efficiency, adoption of
sustainable measures and supportive policies are driving the growth of building
automation systems in North America, says Frost & Sullivan.
With legislation that imposes certain energy efficiency
standards on buildings, such as the Energy Policy Act of 2005 and the Energy
Independence and Security Act of 2007, building owners and facility managers
are opting to install building automation systems to meet the more stringent
requirements.
Since buildings account for 40 percent of all energy use
in the United States, the need to monitor systems within the building to
reduce energy consumption is a key factor prompting growth in the building
automation systems market.
“The potential to achieve energy savings by
installing building automation systems is a major driver in the market,”
said Frost & Sullivan industry analyst Alejandra Lozano. “In
addition, supportive policies and energy mandates that set higher energy
efficiency requirements fuel the demand for building automation.”
On the other hand, the perception of high cost and lack
of common protocols are limiting revenue growth. The economic downturn and
slowdown in construction activity are also anticipated to restrict growth in
the short-term.
“Suppliers are faced with end users that are
scrutinizing every purchase and demanding cost-effective systems that also
provide energy savings,” said Lozano. “Although building owners and
facility managers are increasingly realizing the benefits of installing
building automation systems, the high initial cost continues to be a
concern.”
Educating customers about the lifecycle cost benefits of
installing a building automation system and highlighting the energy savings
that are achievable with it will also be crucial for success in the market.
“Many building owners have the perception that the
cost of installing a building automation system is high due to the cost of the
equipment as well as the cost of the integration and installation
services,” said Lozano. “Manufacturers need to steer customer focus
away from the initial cost towards the long-term benefits of installing a
building automation system.”