The building management systems (BMS) market tends to get less attention as it’s historically been a pure efficiency play. But buildings in the U.S. account for a whopping 65 percent of electricity consumption and 36 percent of total energy use. Surely, the EPA is defining “building” quite broadly in this data but still that’s a sizable market to hit if you have an innovative management system to help building managers save on cash from their major expense areas—heating, cooling and lighting.
To that end, Australian based BuildingIQ has raised a $9 million round from the strategic investment arms at Siemens, Alstom and Schneider Electric. The next generation of BMS systems will have advanced software systems with built in algorithms that crunch usage data, historical data, and weather data to optimize the efficiency of a commercial building space. BuildingIQ’s platform does all that.
Moreover, BuildingIQ’s platform works in demand response programs, which is meaningful because taking advantage of these programs offers an easy revenue line for buildings looking to pick up cash. Utilities will need more and more demand response enabled customers as more renewable energy comes online, creating periods of fluctuating energy supply. As the energy supply fluctuates, customers must respond by turning their power consumption up or down. Commercial building owners don’t always intuitively take advantage of these programs because they can appear cumbersome and because of concern over not having control of a building’s power supply. But a software layer that makes two way communication between a building and a utilities seamless and low risk could change that.