Technology Advances and Enhanced Building Functionality at Lower Operating Cost to Create Growth Opportunity in European Building Management Market

LONDON, May 4 - The addition of varied building functionalities at lower costs through building management and control systems (BMCS) is underlining its growing popularity. Increased energy efficiency of buildings and decreased operating expenses are among the primary benefits offered by BMCS. As macro economic conditions improve and greater awareness is created about its multiple advantages, lucrative opportunities will arise for the European BMCS products market.

Frost & Sullivan (http://www.buildingtechnologies.frost.com) finds that the European Building Management and Control Systems - Products Market earned revenues of US$1.62 billion in 2004 and estimates this to reach US$1.84 billion in 2011.

In addition to solving a host of end-user needs related to building management, a completely automated BMCS offers further advantages. For instance, end users can monitor the system and control it from a remote location with the help of wireless technology. An automated system has the intelligence to solve minor issues without manual intervention.

"Using limited hardware systems, the scope of BMCS products is expanding, based on combinations of various building functionalities including control and monitoring functions," notes Frost & Sullivan Research Analyst Manoj Kumar. "End users are looking to reduce their operational costs by combining various functionalities such as heating, ventilation, fire and other safety measures, lighting controls, security measures and monitoring all the functionalities with a single or, at the very least, a limited number of controlling points."

However, with the cost of a BMCS system often raising the value of the building up to 4 per cent, many end users are looking at it as an expensive investment. Moreover, conservative end users want a system which will address just the basic functionalities. Market participants will therefore have to convince such end users of the multiple benefits of BMCS products.

"More than 60 per cent of buildings in Europe lack a proper system in place to manage varied building functionalities" explains Mr. Kumar. "There are considerable market opportunities for BMCS services in Europe if all buildings adopt the complete management system- a trend which companies will have to reinforce through awareness raising campaigns on the multiple benefits of a comprehensive BMCS."

Also, in order to leverage market potential, BMCS products manufacturers will have to establish close working relations with service providers. Companies that can establish a foothold in both the product and services market will gain a competitive edge, since winning a service contract will allow them to install their own products.

"Successful companies in the BMCS market are those that can create a presence in both products and services sectors," says Mr. Kumar. "Companies that specialise only in product manufacture should forge partnership deals with BMCS service providers and jointly and aggressively market their brands for a win-win situation."

European Building Management and Control Systems - Products Market is part of the Building Technologies Subscription, which also includes research in the following markets: European Building Management and Control Systems - Services Market. All research included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. Interviews are available to the press.

If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the latest analysis of the European Building Management Control Systems -Products Market then send an e-mail to Magdalena Oberland- Corporate Communications at magdalena.oberland@frost.com with the following information: your full name, company name, title, telephone number, e-mail address, city, state, and country. We will send you the information via email upon receipt of the above information.

Source : Frost & Sullivan

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