Healthcare a Slower Market for Energy Management

Energy management technologies remain far from universal in the healthcare sector, according to Navigant Research’s report “Energy Management for Healthcare Markets.”

Healthcare facilities are heavily regulated and undergo continuous maintenance, verification, inspection and recertification to ensure 24/7 operation. Where employed, energy management technologies have proven successful in scaling back non-critical equipment operations when patient traffic is low. The ability to modulate airflow, lighting, and administrative operations such as scheduling can generate significant cost savings annually.

Numerous factors will affect the speed at which EMS technologies are deployed in healthcare facilities. The three most important drivers are:

1. According to the American Society of Heating, Refrigerating, and Air-Conditioning Engineers (ASHRAE), the average hospital uses 2.5 times the amount of energy compared to other commercial buildings. Rising energy costs and general budget constraints in the wake of the 2008 financial crisis and new cost pressures associated with the industry restructuring of ObamaCare have led healthcare facilities managers to seek mechanisms to reduce spending.
2. Competitive pressure between facilities has affected the uptake of EMSs in hospitals. This competition is twofold: both a general trend toward facility consolidation and competition to retain patients and provide the greatest level of occupant satisfaction.
3. After natural disasters such as Hurricane Katrina, Hurricane Sandy, and Typhoon Haiyan, resilience concerns have become a growing factor in implementing EMS technologies in healthcare facilities.

According to Navigant, global revenue for EMSs in healthcare facilities is expected to reach $2,205.6 million by 2024, growing from $948.8 million in 2015 at a compound annual growth rate (CAGR) of 9.8 percent. Although North America and Europe are expected to continue leading in EMS deployments in the near term, Navigant projects increasing investment in Asia Pacific in the mid and long term. Furthermore, forecast demand will grow at differing rates by technology segment (i.e., HVAC controls, lighting controls, BEMSs, and microgrid software).