The U.S. market for building automation equipment is projected to grow by more than 40%—to $2.24 billion—over the next five years, spurred by the need for commercial buildings to consume energy more efficiently, according to a new report from IHS.
Findings suggest that with electricity rates on the rise, driven by increasing wholesale prices and investments in renewable sources of energy, demand for lower energy consumption in buildings is bound to occur.
The cost of electricity is a major factor in the operational efficiency of a commercial building structure, which explains why building automation systems could play an important role. Prices for U.S. retail electric power will increase by 8% from 2012 to 2020, IHS CERA forecasts, with a sizable proportion of the increase in price related to the investments being made by the market in renewable energy.
A similar story is unfolding in Germany, where the Energiewende policy is promoting the move away from nuclear and fossil-fuel power generation and toward renewable sources of energy. Such investments are driving up the cost of energy overall and adding pressure to the already stretched operational budgets of many commercial and government organizations.
The full report can be found at IHS.