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Southeast Asia moves towards smarter buildings

Rising electricity tariffs boost growth opportunities for building energy management systems in Southeast Asia

Thailand: one of the fastest growing markets thanks to "hectic" construction activity
Thailand: one of the fastest growing markets thanks to "hectic" construction activity

The market for building energy management systems (BEMS) in Southeast Asia is set to grow at a compound annual growth rate of 12.2 per cent from 2015 to 2020, new research finds.


According to Frost & Sullivan’s BEMS Market in Southeast Asia, Forecast to 2020, next-generation IT solutions such as big data analytics, cloud computing and the Internet of Things (IoT) are enabling the development of a new class of mathematics-based BEMS that offer both comfort and optimised energy performance.


These systems hold great promise for commercial and industrial buildings as they can facilitate remote monitoring, energy efficiency, and system optimisation, the consulting and research firm said. Their relevance in Southeast Asia has received a huge boost with the proliferation of smart cities and smart buildings.


The research finds that the market is at a nascent stage and as such customers will require technical and troubleshooting support. Multinational giants that complement their solutions with excellent service and support are best positioned to be market leaders.


“Cloud applications will soon become ubiquitous in the Southeast Asian BEMS market,” said Viswesh Vancheeshwar, energy and environment research analyst, Frost & Sullivan.


“Most market players, even from those outside the traditional building automation market, have already begun to introduce cloud-based BEMS platforms and services. This will open doors and broaden the pool of potential BEMS vendors in the coming years.”


Another important reason for the increased interest in BEMS in Southeast Asia is the rising costs and demand for electricity, stringent regulations to promote energy conservation, and growth in building construction.


There is particular focus on energy efficiency in buildings as they are responsible for more than 40 per cent of the primary energy consumption in a country. This energy usage is set to rise further due to new construction spurred by high economic growth and the soaring demand for cooling due to Southeast Asia’s hot and humid climate.


“Although BEMS technology is not completely new and its costs have decreased over the years, the initial costs are still high. In the cost-conscious Southeast Asian market, this makes it difficult for manufacturers to persuade small commercial and industrial facilities to invest in the systems,” added Vancheeshwar.


“This price sensitivity will prompt suppliers to roll out training and awareness programs to improve end users’ commitment to energy conservation and management.”


Among Southeast Asian nations, Singapore leads in market revenues, as its upgraded service qualification and supporting strategies for energy management provide substantial opportunities for BEMS.


The fastest-growing markets are likely to be Thailand, thanks to strong supporting regulations for energy efficiency and hectic building construction activity, and Indonesia due to its rapid city development and consequent widening of the BEMS market.


Even though Vietnam is a small revenue market, a surge in the uptake of BEMS is expected specifically in the industrial segment between 2015 and 2020.


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