Proving the Business Case for the Internet of Things

Energy management in hospitality sector to generate $848 million in 2020: Navigant

Iain Morris
June 24, 2014
 
Networked energy management systems for the hospitality industry will generate nearly $848 million in annual revenue by 2020, according to a new study from Navigant Research, as technology moves from “room-centric control” to “property-wide energy management”.

According to the market-research company, hotel operators are coming under increasing pressure to deliver improved financial performance at the property level and turning to building energy management systems in response.

By operating on a property-wide basis – instead of room by room – these smart building systems promise huge savings in energy costs as well as improved levels of guest comfort.

Navigant believes revenues generated from the sale of these systems will grow from $287.9 million in 2014 to as much as $847.8 million in 2020.

“Guest room energy management is going through a dynamic period of transition from autonomous, room-centric HVAC control to property- and portfolio-wide integrated energy monitoring, control and management,” said Eric Bloom, principal research analyst with Navigant Research. “By 2020 these networked systems will represent 88% of total energy management system revenue in the lodging and hotel sector.”

Navigant adds that the similarity in core functionality among products, and the number of vendors now in the industry, are exposing solutions providers to increasingly intense competition.

“These forces are driving a broad shift in the sector as the focus of innovation and differentiation moves from hardware to software and services,” said the company in its statement.
 
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