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The overall market
for building management systems is relatively stable with an estimated value of
£352m in 2003 at manufacturers selling prices. A substantial proportion of the
cost of a complete system is accounted for by design, installation and
commissioning costs, with the value of the advanced control product market
valued at £113m in the same year.
Although the market
experienced positive conditions during the late 1990's, recent performance has
been more subdued reflecting relatively stable conditions in the overall
construction sector and low levels of penetration in the 'small' commercial
building sector. In addition, the concept of energy efficiency has not tended to
motivate the market to the extent that had at first seemed possible, although in
the long term it is envisaged that legislation will become increasingly more
detailed, complex, and 'tougher'. This is likely to have the effect of providing
additional motivation for BMS in the long term.
The outlook for the
market is relatively positive in the medium to long term influenced by a number
of factors including:
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Variable levels
of construction investment with health, education and infrastructure viewed
as more positive in the short to medium term in terms of the levels of new
projects and building programmes, etc.
-
Long term
low-level motivation from an expanding range of controls and extended BMS's
arising from the slowly increasing installation of solar heating and solar
photovoltaic cells.
-
Long-term
motivation from energy-efficiency and building regulations in refurbishment
and retrospective applications.
-
Niche sub-sector
growth opportunities - for example security, protection and detection,
access, surveillance (including lighting), fire, temperature control, FM,
etc.
-
Opportunities
for market penetration facilitated by the flexibility, accessibility and
cost efficiencies arising from the introduction of BMS systems utilising
existing IT infrastructures.
-
Growth of
facilities management contracts with long-term maintenance agreements
encouraging more emphasis on minimising building operational costs.
However, there are
also a number of factors which may act to constrain market growth including:
-
The adverse
impact of the relatively recent but severe decline in commercial
construction.
-
The relatively
high 'front-end' capital investment and difficulty in assessing the pay back
period for BMS packages under the present economic climate in the UK which
tends to act as a 'disincentive' to potential installers of BMS's.
-
Difficulties
experienced in market penetration of the small commercial building sector
where 'adequate' operational levels of control are already in place and
where significant opportunities for capital investment programmes are
relatively restricted.
The structure of the
BMS market is complex, involving design, installation and commissioning, in
addition to the manufacture of controls and other hardware products.
The companies who
supply the market fall into a number of broad categories including Controls
Manufacturers, many of whom supply complete turnkey installations as well as
advanced controls, System Integrators who buy in controls and other hardware
products but carry out design, software engineering, installation and
commissioning, and M & E contractors installing and commissioning systems,
also Contract Energy Management Systems suppliers and Panel Builders.
The market is
dominated by the controls manufacturers, with key companies including Honeywell,
Johnson, Satchwell, (Invensys), Siemens Building Technologies, Inviron and Trend
(Novar), as well as TA Controls, York, Serck, Tyco and Andover Controls (Balfour
Beatty). Systems Integrators include E-Squared, Schneider, Zutec, etc.
Whilst the earlier
types of building management system usually controlled Heating, Ventilation and
Air Conditioning, there has been an underlying trend towards more integrated
building management systems which control the full range of building services
including HVAC, Lighting, Fire, Security and Access, as well as data and
telecommunications, etc. This trend is likely to continue as integrated systems
provide more efficient management and monitoring of the growing range of
services installed within modern buildings.
Technological
developments facilitating the further extension of BMS's include the adoption of
communications standards from IT to operate building control field devices,
building automation devices, and management/supervisory functions using the
existing IT infrastructure. This avoids the capital costs of separate dedicated
systems and also facilitates accessibility, multiple entry, etc, although it is
indicated that web technology is unlikely to completely displace the more
'robust' systems to implement fire security emergency, and other
safety/reliability functions, etc.
The distribution of
advanced control products is highly concentrated. The most common route to
market is via systems houses, with direct to end user also representing a
significant distribution channel. Other distribution channels include via M
& E contractors and OEM companies.
The commercial
sector represents the most significant end use sector accounting for some 50% of
sales, with key end users including offices, hotels, shops and leisure
activities. The public sector currently accounts for some 40% of installations
and is driven by PFI schemes and underlying growth in government expenditure on
hospitals and schools in the short, medium and long term.
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