Frost & Sullivan (www.buildingtechnologies.frost.com) finds that the European building management and control system products market earned revenues of $1.62 billion in 2004 and estimates this to reach $1.84 billion in 2011.
The addition of varied building functionalities at lower costs through building management and control systems (BMCS) is underlining its growing popularity. Increased energy efficiency of buildings and decreased operating expenses are among the primary benefits offered by BMCS. As macroeconomic conditions improve and greater awareness is created about its multiple advantages, lucrative opportunities will arise for the European BMCS products market.
In addition to solving a host of enduser needs related to building management, a completely automated BMCS offers further advantages. For instance, endusers can monitor the system and control it from a remote location with the help of wireless technology. Also, an automated system has the intelligence to solve minor issues without manual intervention.
“Using limited hardware systems, the scope of BMCS products is expanding, based on combinations of various building functionalities including control and monitoring functions,” noted Frost & Sullivan Research analyst Manoj Kumar. “Endusers are looking to reduce their operational costs by combining various functionalities such as heating, ventilation, fire and other safety measures, lighting controls, security measures, and monitoring all the functionalities with a single or, at the very least, a limited number of controlling points.”
However, with the cost of a BMCS system often raising the value of the building up to 4%, many endusers are looking at it as an expensive investment. Moreover, conservative endusers want a system that will address just the basic functionalities. Market participants will therefore have to convince such endusers of the multiple benefits of BMCS products.
“More than 60% of buildings in Europe lack a proper system in place to manage varied building functionalities,” explained Kumar. “There are considerable market opportunities for BMCS services in Europe if all buildings adopt the complete management system — a trend which companies will have to reinforce through awareness raising campaigns on the multiple benefits of a comprehensive BMCS.”
Also, in order to leverage market potential, BMCS products manufacturers will have to establish close working relations with service providers. Companies that can establish a foothold in both the product and services market will gain a competitive edge, since winning a service contract will allow them to install their own products.
“Successful companies in the BMCS market are those that can create a presence in both products and services sectors,” said Kumar. “Companies that specialize only in product manufacture should forge partnership deals with BMCS service providers and jointly and aggressively market their brands for a win-win situation." IBT
