Market intelligence report: energy management in the built environment

This document provides market intelligence on the concept of Energy Management in the Built Environment (EMBE). For the purposes of this report the definition of EMBE is: products and systems that manage energy use within buildings. The report provides an overview of the EMBE market, sets out key trends, drivers and inhibitors, reviews the outlook for market development and describes a number of market opportunities, one or more of which may form the basis for further ITI activities in this area.

Information was obtained following the principles of market intelligence gathering (otherwise known as foresighting) established by ITI. Both primary and secondary market data were acquired and collated. Primary data was collected by interviewing and surveying experts and practitioners from academia and commerce, and a Scottish experts workshop attended by both industry and academia. The primary data gathering process was augmented by desk-based research which was used to obtain secondary data from internationally recognised analysts and other sources.

The research reports that within the next 10-20 years EMBE is expected to impact increasingly on everyone, both at home and in the workplace. As novel, economically-viable, technologies allow market opportunities to be addressed, the EMBE market for commercial applications should witness significant growth in the medium to long term. This potential EMBE market opportunity could be worth over GBP20 billion by 2030, from a base of around GBP15 billion currently in the EU/US. A number of opportunities that could lead to the creation of technically novel and commercially enabling technology platforms are identified, including: using less fuel to do the same job; using less power to do the same job; smart-metering and building energy management systems; information provision to influence behaviour and diagnostics; and managing energy use in the building to achieve wider performance goals, such as efficient use of power generation facilities, across the entire power grid. It is indicated that that the following opportunities could form the basis for further ITI activity in this area: building sealing, energy budget management, identifying health risks from energy use, and influencing and improving energy use behaviour. Key technological trends in the EMBE sector include: equipment that enables more and better use of existing technology; and innovations that directly improve the way energy is delivered and converted into energy services. A range of political, economic, socioeconomic and technological drivers and inhibitors affecting the market are described. Key drivers include: environmental policy; various regulatory drivers; rising energy costs; falling EMBE costs; energy consumption patterns; control and communications technology; and smart meters. Key inhibitors include: policy focus on energy efficiency; cost competitiveness; energy subsidies; consumer indifference and installation inconvenience; complicated technology; and lack of standardisation.

There were no recommendations as this was not within the remit of the report.