Hospitality Energy Management Market to Reach $968M in 2020

by | Mar 14, 2014

NavThe global market for energy management in the hospitality industry – including guest-room energy management systems and enterprise-level energy management software – will grow from $473 million in 2013 to $968 million in 2020, according to a study from Navigant Research.

Energy Management in the Hospitality Industry forecasts that revenue for energy management software in the hospitality sector will grow at a compound annual growth rate of 16.2 percent from 2012 to 2020. The services segment of the global guest-room energy management systems market  is forecast to grow at a CAGR of 13.4 percent over that time period.

Energy management technology has been around for almost 20 years, but remains far from universal in the hospitality sector. For example, according to a Hilton senior executive, only about 20 percent of the nearly 4,000 or so Hilton properties have installed an energy management solution, a level that is largely consistent with the lodging market as a whole, the report says. Only about 20 to 30 percent of the market has chosen to leverage energy management to reduce energy consumption levels on the heating, ventilation, and air conditioning side of the house, the report says.

Guest rooms make up 50 to 90 percent of the conditioned area within a hotel. Today’s general
building energy management systems are rarely designed to meet the technological needs of individual hotel guest rooms, such as distributed control systems, sensors and software algorithms, the report says.

The use of in-room, closed-loop, and standalone smart thermostats with temperature setback features has been the most common, base-level EMS installed to date. Guest room energy management, however, 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. This transition is facilitating the deployment of much more sophisticated energy management strategies.

In May 2013, LG announced that its Packaged Terminal Air Conditioner products for the hospitality market has an energy efficiency rating of up to 13.3, the highest rating now available in the category. With sound pressure ratings as low as 45 dBA and 61 dBA, the PTAC models greatly reduce both in-room and exterior noise levels compared with traditional multi-room HVAC systems.

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