The smart grid's next sonic boom: Smart buildings meet the smart grid

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Quick Take: The building automation/energy management market is set to explode, as the research report described below confirms. Why now, after being two years away from the big time for 25 years in a row? First, technology has matured to the point you really can manage an entire building from a single console. 

Second, and more importantly, the smart grid and demand response have created new revenue streams. You don't just get the savings from energy efficiency, you can also tap into DR, time-of-use pricing, white certificates and more, depending on your location. As a result, virtually every big corporation that has anything to do with HVAC, building controls or building automation is launching major new efforts. – Jesse Berst

If there's any doubt that the smart buildings market is finally hitting its stride, a new forecast makes it pretty clear. U.S. investments in building energy management systems (BEMS) are expected to hit $10.1 billion in the period between 2010 and 2016 – with a compound annual growth rate of 17.4%, according to a forecast report from cleantech market analyst firm Pike Research.

Commercial and residential buildings chew up almost two-thirds of the energy used in the country, so it's a natural that building owners and managers are hunting for ways to cut energy costs and environmental impacts. As a result, smart building technologies are on the rise, such as automation and controls, high-efficiency systems and equipment and a wider selection of energy management services. The report, Building Energy Management Systems, says the growth of BEMS is unfolding first in campuses and large commercial buildings and will then move into small and mid-size buildings.

"When it comes to energy use, commercial buildings are getting smarter all the time," research analyst Jevan Fox said. "This intelligence, which encompasses everything from sensor networks to predictive supply and demand algorithms  to high-efficiency HVAC systems, will require a greater level of control and coordination than legacy building management systems can provide."

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