Smart Buildings

M&A brings Consolidation & Focus to the Building Performance Software Business

Our report on the Building Performance Software (BPS) business demonstrates that despite some 150 confirmed acquisitions in the last 6 years, the industry has at least 350 established suppliers delivering across 16 different market segments. These segments overlap and cause confusion when building operators are evaluating how they meet their value propositions. This is particularly critical now that the major real estate owners are in the midst of investigating the impact of the Building Internet of Things (BIoT) on their business and they need to know what measures are being made by the BPS industry to meet this challenge. The good news is that our report shows that right across the western world M&A, Investment and Strategic Alliances are bringing together software solutions to meet the BIoT challenge. This is absolutely vital because the data from these software packages will eventually need to be processed by IoT Data Services such as Big Data and Machine […]

Stay ahead of the pack

with the latest independent smart building research and thought leadership.

Have an account? Login

Subscribe Now for just $200 per year per user (just $17 USD per month) for Access to Quality Independent Smart Building Research & Analysis!

What Exactly Do you Get?

  • Access to Website Articles and Notes. Unlimited Access to the Library of over 1,700 Articles Spanning 10 Years.
  • 10% discount on ALL Memoori Research reports for Subscribers! So if you only buy ONE report you will get your subscription fee back!
  • Industry-leading Analysis Every Week, Direct to your Inbox.
  • AND Cancel at any time
Subscribe Now

Our report on the Building Performance Software (BPS) business demonstrates that despite some 150 confirmed acquisitions in the last 6 years, the industry has at least 350 established suppliers delivering across 16 different market segments.

These segments overlap and cause confusion when building operators are evaluating how they meet their value propositions. This is particularly critical now that the major real estate owners are in the midst of investigating the impact of the Building Internet of Things (BIoT) on their business and they need to know what measures are being made by the BPS industry to meet this challenge.

The good news is that our report shows that right across the western world M&A, Investment and Strategic Alliances are bringing together software solutions to meet the BIoT challenge. This is absolutely vital because the data from these software packages will eventually need to be processed by IoT Data Services such as Big Data and Machine Learning algorithms.

The report looks right across the structure and competitive landscape identifying some 358 players within 7 broad sectors reviewing the major players strategy in merger and acquisition, investment and strategic alliance with other players to bring together a business model that will meet the buyers needs over the next ten challenging years.

The highest number of acquisitions occurred last year, 45 in number, 30% of the total number of 150 since 2010. With 27 transactions having already been completed this year up to the end of May, we expect acquisitions of building performance software providers to continue at the same level as 2015, as consolidation continues in this fragmented market.

Although we cannot claim that our database of deals is exhaustive, it is comprehensive and helps to paint a picture of the mood in the market as well as the M&A and partnering strategies of its respective major players.

The BPS business in 2015 was worth $12Bn and we forecast that it will grow to $18.75 by 2020 delivering a CARG of 8.1%. However there is a wide variation of growth and size between the 16 different segments. We believe that the technical market potential for BPS would allow for higher rates of growth but that requires the suppliers to make a much more focused effort to meet the buyers needs.

In Table 11 below, we have shown the breakdown of acquisitions by category from 2010 to May 2016 as a percentage of the total number of acquisitions in the commercial building market. Enterprise Energy Management, Physical Security and Real Estate & Property Management software accounted for 62% of all deals.

This article has been taken from our report published earlier this year - The Market for Building Performance Software 2016 to 2020

[contact-form-7 id="3204" title="memoori-newsletter"]

Most Popular Articles

Distributed Energy Management DERMS
Energy

The Distributed Energy Management Startup Landscape

Building Energy Management is a broad category encompassing energy management software and hardware, energy efficiency services and sustainability and carbon management solutions for buildings. It also includes the technologies involved in creating grid-interactive buildings, such as demand response, virtual power plants, distributed energy management and behind-the-meter energy storage solutions. Within that space, a software category […]

Assa Abloy Strategy Mapping Acquisitions
Security

Mapping the Tech Strategy of Assa Abloy through Acquisitions in Access Control & Identification Solutions

This Research Note examines the technology strategy of Assa Abloy, the global vendor in the access solutions space. We have mapped M&A activity in physical security, access control and identification solutions by categorizing the various acquisitions by technology over the last 2 years (January 2022 to date). The strategy presentation slide (shown below) at the […]

New York Buildings Energy Performance
Energy

Building Energy Performance Codes Pushing Decarbonization Efforts

On Tuesday September 12th, last week, New York City (NYC) Mayor Eric Adams launched “Getting 97 Done,” a new strategy to cut harmful carbon emissions from the city’s many large buildings as obliged under Local Law 97 of 2019. The plan aims to deliver the goals outlined in the broader “PlaNYC: Getting Sustainability Done,” New […]

Subscribe to the Newsletter & get all our Articles & Research Delivered Straight to your Inbox.

Please enter a valid email

Please enter your name

Please enter company name

By signing up you agree to our privacy policy