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Sensor and Control Market to Top $4 Billion in 2020

Aug. 1, 2012
Increased penetration into buildings less than 50,000 sq ft will lead to strong market growth

The for sensors and controls for building-energy-management systems (BEMS) will rise at a 17-percent compound annual growth rate to $2.14 billion in 2020, while the European market will reach $1.93 billion in 2020, a 19-percent compound annual growth rate, according to a Lux Research report.

The report, “Sensors and Controls for BEMS: Providing the Neural Network to Net-Zero Energy,” says the market growth will be fueled by the strength of advanced technologies, downward price pressure, and government incentives.

Key to this growth is a slew of advanced non-invasive, cost-effective, and quick-to-install sensor and control technologies that can overcome the capital barriers of installing building-energy-management systems in an estimated 5.8 million commercial buildings under 50,000 sq ft in the United States and 4.5 million similar buildings in Europe.

Advanced sensors and controls promise to significantly reduce the payback period of building energy management system investments for the small building market—the highest-hanging but plumpest fruit in the global building stock,” said Ryan Castilloux, Lux research analyst and the lead author of the report.

Lux Research developed a demand-side forecast to quantify opportunities for BEMS applications and building-automation-system (BAS) applications. Among its findings:

• The market is shifting toward BEMS. The building energy management market is rapidly transitioning from a BAS-dominant one to a BEMS-reliant one. In 2020, about 77 percent of the $2.14 billion United States market will comprise BEMS applications, and 40 percent will come from buildings of less than 50,000 sq ft.

• Policy is a promising enabler. In the United States, 20 states have energy efficiency resource standards that will boost uptake of efficient building systems. The European Union has been similarly aggressive, with goals such as 20 percent lower energy consumption levels by 2020. Together, these policies will foster growth of the market for sensors and controls.

• Opportunities at the bottom of the pyramid. Developers such as Lutron, Leviton, Johnson Controls, and Honeywell will embrace advanced sensors and controls and shift strategies in order to hone in on buildings below 50,000 sq ft. In 2020, the number of such buildings with BEMs will be almost 40 times what it is today. The report is part of Lux Research's Efficient Building Systems Intelligence service.

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