Utilities around the world are facing unprecedented challenges and complexities. The longstanding business objective of generating affordable and reliable electricity has been made significantly more complicated by increasing environmental and generation costs, rising demand, grid instability from renewables and electric vehicles, and increasingly stringent regulations on demand management, energy efficiency, and greenhouse gas emissions. Vendors of commercial building energy management systems (BEMS) are also facing business challenges in a rapidly evolving market landscape. New and innovative market entrants are competing with large and well-established energy companies and equipment manufacturers, information technology giants, and a host of other commercial energy management product and service providers.
Forward-thinking utilities are looking toward BEMS technologies for solutions to their challenges and for new benefits to provide to their customers. Commercial BEMS offerings help utilities boost the effectiveness of their energy efficiency (EE) and demand-side management (DSM) programs, understand customer energy use patterns, and engage multiple segments of their commercial client base with new and innovative money-saving programs. At the same time, commercial energy management vendors are finding that they can gain access to large new customer bases that were previously cost-prohibitive to access. The market for BEMS for utility customers is nascent, with most of the leading activity being driven by utilities in the United States and Canada. Pike Research estimates that global spending will reach $41 million in 2012, growing at a robust compound annual growth rate (CAGR) of 29% through 2020, when the market will reach $319 million worldwide.
This Pike Research report examines the growing BEMS market for utility customers, with a focus on the inroads that utilities and commercial building energy management vendors are making as they partner with each other on innovative new programs, products, and services. The report details the drivers and hurdles on both the demand and supply side, as well as key market dynamics that have influenced this pairing. Characteristics of the key customer segments of large commercial clients as well as small to medium-sized businesses are presented, with discussion of future trends and market evolution in all global regions. Key industry players are profiled in depth and market forecasts for spending, broken down by region and by market segment, extend through 2020.
Key Questions Addressed:
- What are the key market dynamics influencing the partnership of utilities and commercial building energy management vendors?
- How can BEMS vendors adapt their product and services offerings to become more attractive to utilities and their programs?
- What key characteristics must a BEMS offering for utilities contain?
- What challenges do BEMS vendors face when attempting to partner with utilities?
- What regulatory and market factors in each world region will influence BEMS for utility customers spending in those regions?
- Who are the top market players in the BEMS for utility customers market?
- Who are the leading utilities that are influencing market dynamics and market growth?
- What are the forecasts for spending by utilities on BEMS through 2020?
Who needs this report?
- Building energy management system vendors
- Building equipment vendors
- Utilities
- IT hardware vendors
- Commercial building owners and managers
- Energy service companies (ESCOs)
- Government agencies
- Investor community
Table of Contents
1. Executive Summary
1.1 BEMS for Utility Customers Overview
1.2 Market Opportunities
1.3 Market Overview
2. Market Issues
2.1 BEMS for Utility Customers – A Market Solution
2.2 Definition of BEMS for Utility Customers
2.2.1 The Global Utility Landscape
2.3 Types of Utilities
2.3.1 Investor-owned Utilities
2.3.2 Public and Consumer-owned Utilities
2.3.2.1 Public Utilities
2.3.2.2 Consumer-owned Utilities
2.3.3 Vertically Integrated Utilities
2.3.4 Distribution Only Utilities
2.3.5 Independent Power Producers
2.3.6 Retail Suppliers
2.3.7 Federal Power Marketing Agencies
2.4 Market Forces
2.4.1 Rising Global Electricity Demand
2.4.2 Utility Demand-side Management and Energy Efficiency Programs
2.5 Statistics on Demand-side Management
2.6 Types of United States DSM and EE Programs
2.7 Energy Efficiency and the Cost of New Generation
2.8 Future Value of Energy Efficiency
2.9 Utility Challenges of the 21st Century
2.10 Utilities as a Market Channel for BEMS Vendors
2.10.1 Defining the Vendor – Utility – Customer Relationship
2.10.1.1 No-cost BEMS Offers
2.10.1.2 Discounted BEMS Offers
2.10.1.3 Pursuing the BEMS – Utility Relationship
2.10.2 The Vendor Perspective
2.10.2.1 Broader Distribution, Fewer Customers
2.10.2.2 Access to SMBs
2.10.2.3 High Awareness of BEMS among Utility Clients
2.10.3 The Utility Perspective
2.10.3.1 New Technology for DSM and EE Programs
2.10.3.2 Increasingly Stringent EE Regulatory Environment
2.10.3.3 Visibility into Customer Behavior
2.11 Effects of Utility Involvement in Commercial Energy Management Systems: Strategy and Marketing
2.11.1 Supply-side
2.11.1.1 Utilities are Competition for BEMS Vendors
2.11.1.2 Utility versus Enterprise as BEMS Customer: Benefits and Risks
2.11.1.3 Individualized Product Development
2.11.1.4 Incentives Drive BEMS for Utility Customers
2.11.2 Demand-side
2.11.2.1 Deeper Customer Relationships
2.11.2.2 Public Relations Benefits
2.12 Market Drivers
2.12.1 Supply-side
2.12.1.1 Access to Significant Client Base
2.12.1.2 Nascent Market with Significant Growth Potential
2.12.2 Demand-side
2.12.2.1 Legislative Drivers (Utilities)
2.12.2.2 Additional Revenue Generation Opportunities
2.12.2.3 Deferral of Investment in Generation, Transmission, and Distribution Assets
2.12.2.4 Persistence of Energy Efficiency
2.12.2.5 Load Management
2.12.2.6 Customer Outreach
2.13 Market Hurdles
2.13.1 Supply-side Hurdles
2.13.1.1 Long Sales and Approval Cycle
2.13.1.2 Finding the Right Comprehensive Solution
2.13.1.3 Each Utility Customer is Unique
2.13.1.4 Inconsistent Regulatory Landscape
2.13.2 Demand-side Hurdles
2.13.2.1 Uncertainty/Mismatch of BEMS Capabilities and Utility Program Needs
2.13.2.2 Upfront Costs
2.13.2.3 Program Documentation Requirements
2.14 Regional Market Factors
2.14.1 North America
2.14.1.1 United States
2.14.1.2 Canada
2.14.2 Western Europe
2.14.3 Eastern Europe
2.14.4 Asia Pacific
2.14.4.1 China
2.14.4.2 South Korea
2.14.4.3 Australia
2.14.4.4 Japan
2.14.4.5 Other Asia Pacific Countries
2.14.5 Latin America
2.14.6 Middle East/Africa
3. Technology Issues
3.1 Technology Overview
3.2 Commercial Customer Profiles for BEMS Utilization Programs
3.2.1 Large Clients
3.2.2 Midsize Clients
3.2.3 Small Clients
3.3 Summary of the Characteristics of Utility Customer Base
3.4 BEMS Functionality
3.5 Segmentation of BEMS Functionality by Utility Customer
3.6 Progression of Market Dynamics for Utility Use of BEMS Programs – Near, Medium, and Long Term
3.7 Measurement and Verification and IPMVP – a Key Component of BEMS
3.8 Considerations for the Future
4. Key Industry Players
4.1 Accenture
4.2 Building IQ
4.3 Cimetrics
4.4 Ecova
4.5 Elster
4.6 EnerNOC
4.7 FirstFuel
4.8 GridPoint
4.9 Noesis Energy
4.10 Phoenix Energy Technologies
4.11 Pulse Energy
4.12 Retroficiency
4.13 Schneider Electric
4.14 SCIenergy
4.15 Verizon
4.16 Vigilent
4.17 Utilities
4.17.1 BC Hydro
4.17.2 Pacific Gas and Electric
4.17.3 Duke Energy
5. Market Forecasts
5.1 Forecast Introduction
5.2 Overview
5.3 Methodology
5.3.1 Primary Research
5.3.2 Secondary Research
5.4 Scope
5.4.1 Office
5.4.2 Retail
5.4.3 Education
5.4.4 Healthcare
5.4.5 Hotels and Restaurants
5.4.6 Institutional/Assembly
5.4.7 Warehouse
5.4.8 Transport
5.4.9 Industrial
5.5 Assumptions
5.5.1 Customer Segmentation
5.5.2 BEMS Spending Estimates and Definition
5.5.3 Regulatory Landscape Assumptions
5.5.4 Other Forecast Influences
5.6 North America
5.7 Western Europe
5.8 Asia Pacific
5.9 Rest of the World
5.10 Conclusion and Recommendations
5.10.1 Building-to-Grid Integration
5.10.2 Conclusions
5.10.3 Recommendations
6. Company Directory
7. Acronym and Abbreviation List
8. Table of Contents
9. Table of Charts and Figures
10. Scope of Study, Sources and Methodology, Notes
List of Charts and Figures
- Building Energy Management Systems for Utility Customers Spending, World Markets: 2012-2020
- Electricity Generation Growth, OECD and non-OECD Nations: 2008-2035
- Utility Spending and kWh Saved, United States: 1989-2009
- Demand-side Management Programs Cost, United States: 1989-2009
- Levelized Cost of New Generation by Source, United States: 2012
- PJM EE and DSM Planning Figures, United States: 2012-2025
- Cost of Energy Efficiency Resources vs. New Generation, PJM: 2012-2025
- Comparison of Energy Efficiency Spending by State, Top Ten States, United States: 2012
- Building Energy Management Systems For Utility Customers Spending by Market Segment, North America: 2012-2020
- Building Energy Management Systems For Utility Customers Spending by Market Segment, Western Europe: 2012-2020
- Building Energy Management Systems For Utility Customers Spending by Market Segment, Asia Pacific: 2012-2020
- Building Energy Management Systems For Utility Customers Spending by Market Segment, Rest of World: 2012-2020
- Utility Capabilities and Business Components, U.S. Markets, 2012
- Example Regulated and Deregulated Utility Structures, United States, 2012
- Commercial and Residential Energy Consumption Scenarios, United States: 2010-2035
- Gas and Electric Decoupling by State, United States: 2012
- Energy Efficiency Resource Standards by State, United States: 2012
- Status of Canada’s Electricity Markets, Canada: 2012
- Energy Efficiency Spending by Province, Canada: 2011
- Size and Savings Opportunities for Utility Customer Segments, Global Markets, 2012
- BEMS Functionality by Utility Customer Segment
- Summary of IPMVP M&V Options
List of Tables
- Overview of the Types of Utility Businesses and Their Roles
- Timeline of Utility Demand-side Management Programs, United States, 1970-2012
- Electricity Demand-side Management Program Types and Application Rates, North America
- Financial, Operational, and Environmental Challenges Facing Utilities, Segmented by Traditional and New Challenges
- Energy Efficiency Resource Standards by State, United States: 2012
- Summary of the Characteristics of Utility Clients by Client Segment
- List and Description of Common BEMS Functionality
- Near-, Medium-, and Long-Term Projections of the BEMS for Utility Client Markets
- Utility Spending and kWh Saved, United States: 1989-2009
- Demand-side Management Programs Cost, United States: 1989-2009
- Levelized Cost of New Generation by Source, United States: 2012
- PJM EE and DSM Planning Figures, United States: 2012-2025
- Cost of Energy Efficiency Resources vs. New Generation, PJM: 2012-2025
- Building Energy Management Systems For Utility Customers Spending by Region, World Markets:
2012-2020 - Building Energy Management Systems For Utility Customers Spending by Market Segment, North America, 2012-2020
- Building Energy Management Systems For Utility Customers Spending by Market Segment, Western Europe: 2012-2020
- Building Energy Management Systems For Utility Customers Spending by Market Segment, Asia Pacific: 2012-2020
- Building Energy Management Systems For Utility Customers Spending by Market Segment, Rest of World: 2012-2020
- Electricity Generation Growth, OECD and non-OECD Nations: 2008-2035
- Comparison of Energy Efficiency Spending by State, Top Ten States, United States: 2012