May 2016

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The Harmonization of the Smart Grid and Smart Building Markets has Begun!

The Smart Grid and Smart buildings markets are beginning the tricky process of harmonization as major global firms look to capitalise on opportunities surrounding distributed energy.

Allan McHale
Allan McHale,
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Memoori’s brand new report shows that the combined market for Energy Software in Smart Buildings (comprised of Enterprise Energy Management, BECS Supervisory Software and Smart Building to Smart Grid Interface Software) will rise to nearly $10Bn by 2020, with related software on the Smart Grid side growing at a healthy 12% CAGR to nearly $2bn by 2020.

Markets, Trends

North America Leads the Way on Demand Response: North America leads the way in terms of smart building to smart grid software sales with some 70% of the overall market, thanks to a pioneering approach to demand response and a conducive policy environment; But other regions are catching up to the possibilities and their access to quality data is being boosted by government mandated smart meter rollouts.

Significant Barriers continue to encumber market growth. A lack of common standards and cyber security concerns continue to encumber market growth, with energy and buildings executives commonly citing these two factors as the key challenges to effective smart energy solution implementation and improved integration between smart grids and smart buildings.

ESCOs consolidate their market positions across the energy value chain. The large energy services companies (ESCOs) such as Siemens, Schneider Electric, Honeywell and Johnson Controls are all pursuing aggressive acquisition policies to shore up and expand their capabilities across the energy value chain.

Reliable Controls Largely driven by these ESCOs, the report shows a total of 459 deals pertaining to the market between 2010 and 2015 as these firms look to build the big data skill sets required to leverage the opportunities around the Internet of Things and develop new Enterprise Energy Management Systems (EEMS), Demand Response Management Systems (DRMS), Distributed Energy Management Systems (DERMS), and Distributed Energy Storage Systems offerings.

The IoT offers new opportunities but plenty of challenges too. We believe that the combined developments related to the key technological forces that underpin the IoT, namely Big Data, cloud computing and mobility are having a profound disruptive effect on business models and operational models in the Energy and Smart Buildings markets. More than 500 smart grid vendors are already competing and partnering to take advantage of the opportunities.

Within its 149 pages and 30 charts and tables, for only USD $999 (single user license) the report provides valuable information into how Smart Building energy companies can develop their business strategy –


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