by Joseph Aamidor
August 15, 2018

This is the first in a GTM Squared series on the companies, technologies, applications, and opportunities in the U.S. building energy management system market.

As we continue the series, we’ll dive deeper to quantify the BEMS vendor landscape. The articles to follow will answer key questions about the market:

  • Which vendors have significant market share? Which are growing fastest?
  • How much vendor turnover has there been in the market?
  • What is the current penetration of BEMS within commercial buildings?
  • Which building types offer growth opportunities?

​Click here to read Part 2.

The building energy management system market is top of mind for building owners, vendors and investors. There are a total of 5.5 million commercial buildings in the U.S., which together account for 18 percent of all energy consumed.

These commercial buildings spent a total of $149 billion on energy in 2012 (the most recent year of data). While 4 million of these buildings are less than 10,000 square feet in size, there still is a robust market of large buildings that require building energy management software. Moreover, many small retail and restaurant buildings are owned and operated by large enterprises.

In aggregate, these small buildings account for significant energy spend. According to the Commercial Building Energy Consumption Survey, commercial buildings spend $1.44 per square foot per year on electricity and $0.30 per square foot per year on natural gas.

In 2017, GTM Research found that $650 million in venture capital had been invested since 2010, going to 48 different companies. In reality, there are more than 48 vendors providing BEMS capabilities. There are some signs of consolidation, as a few firms recently have been acquired by larger building solutions providers.

For example, Acuity acquired Lucid and Ingersoll Rand purchased Agilis Energy, a firm that it had partnered with extensively. Additionally, Italian utility Enel purchased EnerNOC about a year ago, a deal that included acquisition of a robust energy management software solution.

Selected Energy Management Platform Providers Within the Building Energy Landscape

Source: GTM Research

But despite these signs of consolidation, the market remains fragmented and complex. Among industry participants and observers, there is demand for a more detailed look at the total market penetration of BEMS, the market shares of key vendors, and the growth opportunities within the market.

Most small firms do not release sales or revenue data, which makes it hard to estimate their actual performance. Large firms, which may have their own BEMS offerings, provide limited detail on adoption due to the relative immateriality of these solutions compared to their other products and services.

However, many of these firms do benchmark their customers’ buildings through Energy Star, which publishes a list of the participating vendors and the number of buildings each has benchmarked.

Most of the key vendors in the BEMS market are included in the Energy Star data set. Furthermore, it’s a good source because a significant number of commercial properties in the U.S. have been benchmarked. Combined with high-level data from the Commercial Building Energy Consumption Survey (CBECS), we’re setting out in this GTM Squared three-part series to estimate the market penetration for building energy management systems, and future growth prospects based on currently unaddressed buildings...