Building Energy Management Services Market in India 2016-2020

Overview of the building energy management (BEM) services market in India

According to Technavio’s market research analyst, the market for BEM services in India will experience profound growth and post an impressive CAGR of almost 29% by 2020. Much of this market’s growth in India can be attributed to the increasing number of real estate buildings. The real estate sector in India is slotted to witness rapid growth due to developmental activities in both the commercial and residential sectors. Commercial buildings, especially office buildings, are anticipated to drive the prospects for growth in the real estate segment with an absorption of 35 million sq. ft. of office space in 2015. Among office buildings, the IT/ITES sector will account for the highest contribution of office spaces, followed by the banking sector. The office buildings sector is expected to record a CAGR of 8% during the forecast period. Similarly, the housing sector will also contribute to the growth of the real estate activity by growing at a CAGR of 11% during the forecast period.

The adoption of renewable sources of energy is another key factor that will result in the impressive growth of the market. Recently, there has been a recent thrust on implementing sustainable energy practices in India. As a result, the government has laid out plans for building owners to adopt cleaner and renewable sources of energy for power generation. During the forecast period, it is expected that the installed capacity of renewable energy sources such as solar, wind, thermal, and geothermal energy will increase to approximately 1.5 times. Since the increasing energy demands cannot be fulfilled by traditional energy sources such as fossil fuels due to the limited availability and constant depletion of resources, the need to generate energy from renewable sources has increased substantially.

Competitive landscape and key vendors

The BEM services market in India has a high growth potential due to the economic expansion opportunities available across end-user industries. The Government of India has also emphasized the need to conserve and optimize energy in various facets of business. This provides a vast scope of growth for BEM services vendors in the country.

Key vendors in this market are -

• Honeywell
• Schneider Electric
• Bosch
• Secure Meters
• Siemens

Other prominent vendors analyzed in this market study are Delta India Electronics, TCS, Allied Digital, and CMS Computers.

Segmentation by services and analysis of the BEM services market in India

• Consulting services
• System integration
• Maintenance and support

According to this market research, the system integration services segment dominated this market during 2015 and is anticipated to retain its dominant market position until the end of the forecast period. System integration services include design and engineering of customized and efficient energy management systems for end-users. This also includes the installation and commissioning of BEM services. Services offered by system integrators for buildings have a significant impact on the life cycle cost of building facilities. Impact areas include operations and energy consumption.

End-user segmentation and analysis of the BEM services market in India

• Commercial buildings
• Residential buildings
• Education
• Healthcare

At present, the commercial buildings segment dominates this market and is anticipated to strengthen its hold over the market by 2020. Technavio’s market research analysts have noted that the real estate sector in India has been recording a robust growth in recent years due to infrastructural development initiatives by the government. Among all Indian cities, Mumbai has emerged as the most promising city in terms of commercial real estate investment. This city is expected to register a significant return of around 15% during the forecast period, in terms of real estate.

 Key questions answered in the report include

• What will the market size and the growth rate be in 2020?
• What are the key factors driving the BEM services market in India?
• What are the key market trends impacting the growth of the BEM services market in India?
• What are the challenges to market growth?
• Who are the key vendors in the BEM services market in India?
• What are the market opportunities and threats faced by the vendors in the BEM services market in India?
• Trending factors influencing the market shares of India.
• What are the key outcomes of the five forces analysis of the BEM services market in India?

Technavio also offers customization on reports based on specific client requirement.

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