Building Energy Management Systems Market Size - By Component, By Application, Analysis, Share, & Forecast, 2025 - 2034

Building Energy Management Systems Market Size

The global building energy management system market was valued at USD 14.7 billion in 2024 and is estimated to grow at a CAGR of 7.5% from 2025 to 2034, due to the advanced technology adoption and supportive government regulations. Policymakers’ efforts towards energy conservation are forcing the owners of commercial and industrial buildings to deploy more sophisticated energy management systems. ExxonMobil reports that industrial sector energy demand will be projected to reach 123 quadrillion British thermal units by 2040, that will be highlighting the utmost importance of implementing robust energy management solutions.
 

The ongoing use of IoT devices, clouds solutions, and wireless communication devices,  has fueled this market by enabling remote supervision and automation of power system energy management. The rising price of electricity has led many companies to purchase smart meters, HVAC intelligent optimization solutions, and advanced analytic software for better efficiency.
 

The rising trend of renewable energy in building infrastructure is driving the need for integrated energy storage and demand response solutions, that will help the market grow significantly in coming days. In July 2024, Verra launched, ABACUS Label that aims to mark transition towards stronger transparency protocols and improving the quality assurance standards alongside adopting innovative strategies towards greenhouse gas removal.
 

The regions including North America and Europe still prevail with major market share owing to the rigid energy policies and large players in the economy, while the Asia Pacific’s rapid urbanization and government support for smart cities and green buildings facilitate the highest growth rate.
 

Many companies are doing a partnerships and collaboration to get technological advantage as business strategy. These strategies are helping the BEMS market grow significantly all over the world. For example, Oracle and Nvidia announced that it plans a new, multi-year agreement with Oracle to assist clients in their accelerated use of AI in October 2022.
 

Building Energy Management Systems Market Trends

• The government is doing the better execution in laying out the strategies to adopt building energy management systems and solutions by putting a lot of money into this field. For example, the Department of Energy has made a USD 250 million investment in 2023 with the aim of promoting the use of BEMS in different federal constructions, with the goal of reducing energy use by 50% by 2030.
   
• The building energy management system market is witnessing significant impacts due to digital transformation, the adoption of renewable energy, and the decentralization of energy grids. The International Energy Agency estimates that in 2023, the world’s renewable energy generation capacity reached over 500 gigawatts, which greatly increases the demand for advanced grid infrastructure needed to ensure grid stability.
   
• The Europe is doing considerable investment in the energy sector with billions of dollars for the utility and programs regarding that. According to the Ministry for Economic Affairs, Germany aims to reduce primary energy consumption by 30% by 2030 compared to 2008 levels, exemplifying the region-wide push toward energy efficiency.
   
• Multiple companies in this market are bringing significant product innovation and product launch, driving the market in the Europe. The companies are opting partnerships and collaboration to give the edge to drive the BEMS utility in the industry. For instance, Siemens partnered with Microsoft to integrate its BEMS solutions with Microsoft’s Azure IoT platform.
   
• Multiple government are also taking initiative with the large funding to promote renewable energy. The global associations are also contributing significantly to these initiatives. As per the IEA, the U.S. government in 2022 launched GRIP program, which offered a funding opportunity of USD 10.5 billion towards the grid modernization and integration of smart technologies.
   
• A large numbers of grid infrastructure across the globe are over 20 years old and require modifications to cope with the growing energy demand. As per IEA, over 80 million of grid infrastructure is required to be refurbished globally by 2040 in order to deal with the soaring energy demand. This in turn will augment the business growth.
   

Building Energy Management Systems Market Analysis

• The building energy management system industry was valued at USD 11.9 billion, USD 13.3 billion and USD 14.7 billion in 2022, 2023 and 2024 respectively. Government and companies, along with the mitigating operational costs, complying with governmental regulations, and meeting climate goals are constantly trying to achieve crucial output in this market. They are making considerable investments in BEMS technology to reach those aims.
   
• The software segment is anticipated to reach more than USD 8.5 billion by 2034 and will significantly grow in coming years mainly due to the rising preference for renewable energy across the world. According to data from Eurostat, renewable sources of energy are around 43% of total energy production in Europe in 2022, leading the continent in energy production.
   
• The networking device segment is also changing with technologies such as AI-supported energy optimization, IoT-based smart meters, and cloud-based analytics. The utility of digital twins since the edge computing is improvising the  ability to monitor systems and perform predictive maintenance in real time which decreases operational downtime. These technologies are creating sustainable environments for the BEMS market.
   
• Control systems segment held approximately 22.6% market share in 2024 and due to growing preference for maximizing energy usage and enabling effective functioning. Companies in this industry are option production innovation with consideration of better energy efficiency. For example, Siemens’ Desi go innovated CC platform controls HVAC as well as lighting to lower energy expenditure by up to 30%.
   
• Metering & field equipment segment was valued at over USD 3.7 billion in 2024. The smart meters and sensors provide metering capabilities by transmitting real-time energy use data, allowing businesses to isolate and correct inefficient energy practices. For example, the Power Logic meters made by Schneider Electric that enable users to monitor energy use by as much as 20% and reduce costs by the same percentage.
   

• In the BEMS market, the power & energy segment has the majority of market share of over 28% in 2024 and will be further projected to grow in the coming years. It is mainly due to the significantly rising demand for energy across the world as well as growing industrialization and urbanization, helping the market grow.
   
• Private players are looking for crucial investment in renewable sector, boosting a need for electricity, there by rising a demand for energy management systems. In January 2023, the government of France had disclosed a policy for R&D projects that will be focusing on communication technologies with advancements.
   
• The building energy management system industry from IT segment is anticipated to grow at a CAGR of over 8.8% through 2034. The IT industry is witnessing tremendous growth due to rising need for the technology including 5G, AI, AR. According to Ericsson, by the end of 2029, global 5G subscriptions are projected to surpass 5.3 billion, representing 58% of all mobile subscriptions.
   
• Manufacturing segment crossed USD 3.3. billion in 2024 owing to the ongoing development in manufacturing sector with development in emerging markets. The manufacturing sector will impose a crucial impact on the BEMS market, as it will create a strong need for energy conservation and energy management. The rising need for energy management will drive the need for energy management systems in infrastructure.
   

• In 2024, Asia Pacific building energy management system market accounted for more than 27.4% revenue share, which is expected to increase further by 2034. The U.S. market for building energy management system in 2022, 2023 and 2024 was valued at USD 2.4 billion, USD 2.7 billion and USD 2.9 billion respectively. The primary shift can be attributed to the increased demand for energy operational management and the modernization of building infrastructure.
   
• BEMS market in North America is likely set to cross USD 7.5 billion mark by 2034 due to growing demand for commercial as well as residential infrastructure. The U.S. department of Energy has issued crucial standards regarding the energy, creating a supportive environment for the use of building energy management systems.
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• China also holds crucial role in the growth of this market since China is a leading supplier of sensors, controllers, and automation equipment that form the backbone of BEMS solutions. Chinese companies including Huawei and Alibaba are contributing massive value in the AI-backed energy management solutions, propelling global BEMS trends.
   
• Europe is an extremely important region for the energy sector since the European government is highly focused on the use of renewable energy sector. The policies and stringent norms are also playing a critical role in this sector, creating a need for the better and efficient energy monitoring systems, thereby creating a demand for building energy management systems.
   
• In Germany, advanced BEMS technologies are developed and incorporated by top-class companies including Bosch, Siemens, and Schneider Electric. These German automates and energy systems are already utilizing smart grids, energy storage, and IoT solutions, and are now starting to get implemented into buildings-especially for commercial and industrial projects in smart cities.
   
• Middle East & Africa region is also stepping crucially ahead in this market with multiple ongoing projects in infrastructure. In June 2021, Rockwell Automation signed a partnership deal with three distributors names: Zubair Electric, Naming Dome Trading and Contracting, and Automatic Systems Company for exploring the company's EMS products & services in the Middle East countries such as Kuwait, Yemen, and Oman.
   
• Saudi Arabia has become a hub for technology as well as building infrastructure in the world. For instance, Saudi Arabia started the Rua Al Madinah project in August 2022 to expand the Kingdom's tourism and pilgrimage industries. The building project was designed and carried out by Rua Al Madinah Holding Company, which is owned by PIF and is in line with Saudi Arabia's Vision 2030.
   

Building Energy Management Systems Market Share

In building energy management system market, ABB, Siemens and General Electric hold the crucial share on account of their large network all over the world. The giant companies continuously research the new product and solutions, making them vital player in this industry worldwide. These companies prefer a massive investment specially in R&D. Additionally, these companies executes various business expansion tactics to gain a significant market share in that industry.
 

Building Energy Management Systems Market Companies

• The sales of the energy management company ABB had the net sales of USD 24.26 billion in 2024 (Q3). In 2025,  ABB acquired sensorfact BV, which is an energy management company based in Netherlands. This company offers a scalable software as a service solution that generally operates for energy management solutions.
   
• General Electric maintained a sizeable presence in the building energy management system market with reported revenue of approximately USD 67.95 billion in 2023, spending USD 1.90 billion on research and development for products. In February 2024, GE designed the new solutions Proficy, for sustainability, that will help companies monitor data in the energy sector significantly.
   
• Siemens Energy is focusing and investing strongly in the advanced and efficient electrical infrastructure in order to hold its position in the building energy management system market. In 2024, Siemens partnered with Microsoft to integrate its BEMS solutions with Microsoft’s Azure IoT platform. This collaboration aims to enhance energy efficiency in smart buildings using AI.
   
• The overall sales of Schneider Electric was  USD 28.99 billion after third quarter of 2024. In sept 2024, the company launched AI powered EMS for wiser home that that provides energy monitoring, control, and optimization. These efforts by the company will crucially bring the revolution in the BEMS industry in coming years.
   

Building Energy Management Systems Industry News

• In November 2024, ABB designed OPTIMAX 6.4, software solution that is a key component of their new digital energy infrastructure, The Enhancement Systems, which mainly focuses on endorsing energy efficiency and to accelerate decarbonization. Along with that, the company endorsed their energy platform with cutting edge technology in modular mode.  These innovations are tailored to modern business needs, enabling companies to seamlessly adopt energy-efficient practices while reaping both environmental and economic rewards. It’s a significant leap toward smarter, more sustainable energy solutions.
   
• In October 2024, Schneider Electric, signed a strategic collaboration with the Noida International Airport related to the development of the building and energy management systems. As part of this partnership, Schneider Electric will implement comprehensive building management systems consisting of SCADA and ADMS which are expected to greatly improve the operational efficiency and sustainability of the airport. Schneider Electric supports the sustainability of the airports with the means of forward-thinking solutions for energy efficiency, operational cost reduction, and environmental impact mitigation.
   

This building energy management system market research report includes in-depth coverage of the industry with estimates & forecast in terms of “USD Million” from 2021 to 2034, for the following segments:

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Market, By Component

• Metering & Field Equipment
• Hardware
• Software
• Networking Device
• Control Systems
• Sensors
• Others

Market, By Application

• Power & Building Energy
• IT
• Manufacturing
• Enterprise
• Healthcare
• Others

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • UK
  • France
  • Germany
  • Italy
  • Russia
  • Spain
• Asia Pacific
  • China
  • Australia
  • India
  • Japan
  • South Korea
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Turkey
  • South Africa
  • Egypt
• Latin America
  • Brazil
  • Argentina