May 13 2010
Research and Markets (http://www.researchandmarkets.com/research/6b8ddb/south_african_mark) has announced the addition of Frost & Sullivan's new report "South African Market for Building Management Systems" to their offering.
Building Management Systems Crucial in Conserving Energy in Preparedness of the Impeding Energy Crisis
Building management systems have traditionally been considered an unnecessary capital expenditure in South Africa, as energy prices were too low to justify a realistic payback period for the investment. However, South Africa is facing an impending energy crisis, where the increasing cost of power is significantly raising energy and operational expenditure for companies. Additionally, non-residential buildings account for approximately 40 per cent of the global energy usage. Besides lowering the operational costs of a building and providing greater staff comfort and productivity levels, building management systems offer a way to reduce energy consumption by up to 30 per cent, thereby allowing the initial investment to be redeemed. The current generation capacity crisis and associated rise in the price of power are and will continue to be the main drivers of growth of the South African building management systems market, says the analyst of this research. South African electricity is fast becoming an expensive commodity accounting for approximately 20 per cent of a company's operating costs in 2009, as compared to 10 per cent three years ago.
Business cases for energy-efficient projects, deemed too expensive and unnecessary a few years ago, are now being approved due to the energy crisis. This is spurring the demand for the installation of building management systems to monitor, control and optimise building functions and equipment, thereby considerably minimising energy and operational costs. Eskom, the public utility supplying national power, has proposed a 35 per cent annual price hike for electricity usage over the next 3 years, with a further 12 per cent increase in the fourth and fifth years. If accepted, these increases will render South African power tariffs among the most expensive in the world.
Manufacturers to Offer Clients a Scalable and User-friendly Building Management System
While systems for controlling various building equipment have been in use ever since commercial buildings have existed, the concept of an integrated building management system to control and optimise building functions continues is new in South Africa. A large majority of building owners and tenants are unable to fully understand the benefits of these systems and are often discouraged by the capital outlay involved. This low level of awareness is a significant challenge for the South African building management systems market. Currently, only the largest and most complex buildings consider the installation of building management systems, explains the analyst. The concept of a building management system is largely misunderstood or misinterpreted to imply a large capital outlay, with no realistic return-on-investment (ROI).
Offering clients a scalable and user-friendly building management system, with measurable ROI and energy savings, is not only important to secure contracts, but also critical in fostering customer loyalty and awareness. Establishing a strong and trustworthy reputation through a systems delivery of timely, integrated and reliable information will guarantee the manufacturer a strong market share and ultimately provide noteworthy value to the client. Despite a low awareness from end-users, the demand for building management systems in response to the energy crisis is expected to accelerate the maturity of the industry in South Africa, concludes the analyst. Increasing demand for building management systems is also likely to result in more companies entering the market, thereby leading to a reduction in the price of certain system components and the enhancement of system quality.
This Frost & Sullivan research service titled South African Market for Building Management Systems provides a strategic overview of the total building management systems market. The report examines the current trends in building management systems and the methods by which manufacturers may take advantage of the opportunities expected to arise within this market. In this research, Frost & Sullivan's expert analysts thoroughly examine the following markets by end users: commercial offices, hospitals, retail, airports, hotels and financial services.
Source: http://www.researchandmarkets.com/