Executive Briefings

Market for Energy Management Systems in Healthcare Industry to Top $2Bn by 2024, Report Says

Rising healthcare costs, competitive industry pressures, and concerns over stable power supplies in the face of recent severe natural disasters have generated a new and concentrated focus on the ways in which healthcare facilities procure, use and manage energy, according to a report from Navigant Research. These forces are driving governments and organizations to adopt new technologies to monitor and control energy use in in healthcare facilities. Global healthcare facility energy management system revenue is expected to grow from $948.8m annually in 2015 to $2.2bn in 2024.

"While energy management technologies have been employed in commercial buildings for the past two decades, they remain far from ubiquitous in the healthcare sector," says Casey Talon, senior research analyst with Navigant Research. "The average hospital uses 2.5 times the amount of energy compared to other commercial buildings, and energy management systems (EMS) provide an important mechanism for reducing energy costs while ensuring the reliability of power supplies."

The EMS sector for healthcare is highly competitive, according to the report, with a variety of mature providers as well as some notable recent market entrants. Incumbents such as Johnson Controls, Honeywell, Siemens and Schneider Electric bring deep solutions portfolios related specifically to healthcare facility energy management. EMS investments are also growing in markets outside the traditional large hospitals. In particular, software-as-a-service solutions, made possible by the adoption of open protocols, can help overcome the up-front capital barriers of hardware-intensive solutions.

The report, Energy Management for Healthcare Markets, examines the state of the global market for healthcare EMS and technologies. It summarizes the market drivers and barriers for advanced HVAC controls, lighting controls, building energy management systems, and microgrid software across the policy and technology landscape in five regions. Global market forecasts for revenue, segmented by offering type, building type (inpatient vs. outpatient), and region, extend through 2024. The report also examines the key technologies related to healthcare EMS, as well as the competitive landscape.

Source: Navigant Research

"While energy management technologies have been employed in commercial buildings for the past two decades, they remain far from ubiquitous in the healthcare sector," says Casey Talon, senior research analyst with Navigant Research. "The average hospital uses 2.5 times the amount of energy compared to other commercial buildings, and energy management systems (EMS) provide an important mechanism for reducing energy costs while ensuring the reliability of power supplies."

The EMS sector for healthcare is highly competitive, according to the report, with a variety of mature providers as well as some notable recent market entrants. Incumbents such as Johnson Controls, Honeywell, Siemens and Schneider Electric bring deep solutions portfolios related specifically to healthcare facility energy management. EMS investments are also growing in markets outside the traditional large hospitals. In particular, software-as-a-service solutions, made possible by the adoption of open protocols, can help overcome the up-front capital barriers of hardware-intensive solutions.

The report, Energy Management for Healthcare Markets, examines the state of the global market for healthcare EMS and technologies. It summarizes the market drivers and barriers for advanced HVAC controls, lighting controls, building energy management systems, and microgrid software across the policy and technology landscape in five regions. Global market forecasts for revenue, segmented by offering type, building type (inpatient vs. outpatient), and region, extend through 2024. The report also examines the key technologies related to healthcare EMS, as well as the competitive landscape.

Source: Navigant Research