Building-to-Grid Technology: Introduction
- Electric grid is an interconnected network that delivers electricity from producers to consumers. Generating stations produce electric power. With the help of electrical substations, electrical voltages are stepped up for transmission and subsequently stepped down for distribution. Limited one-way interaction is used by the current grid setup.
- Aging grid infrastructure leads to ineffective demand side management, thereby resulting in electricity deficit. Smart grid technology has been introduced to overcome this challenge. Smart grid is an electricity grid that is used to deliver electricity through a two-way technology to enable communication between consumers and the utility. Smart grid manages the demand for electricity in a reliable, efficient, and sustainable manner. Smart grid involves a network of sub-stations, transformers, and electric lines that help in delivering electricity from power plant to business offices and homes. Akin to the Internet, smart grid involves the use of computers, automation, controls, and new technologies that work in conjunction with each other.
- According to the International Energy Outlook 2016 report, total world delivered commercial sector energy consumption is expected to grow by an average of 1.6% per year from 2012 to 2040 and is the fastest growing energy demand sector
- Building-to-grid (B2G) technology is an integration that refers to the interface of the commercial and industrial building sector with the electric grid. This integration helps maintain electricity system reliability by enabling buildings to contribute to changes in electricity supply and/or demand.
Key Drivers and Restraints of Building-to-Grid Technology Market
- According to the International Energy Agency, total energy consumption for commercial sector stood at 4, 12,627 Ktoe in 2018 and is anticipated to rise during the forecast period. Secondary power plants are used for electricity generation during peak times. These use fossil fuels as an energy source. The outlook for the buildings-to-grid technology appears bright, as it helps achieve even distribution of electricity.
- The average number of units consumed per sq. feet in commercial building is high, as building-to-grid technology is primarily considered for commercial as well as industrial applications. Continuous rise in unit consumption is expected to boost the building-to-grid technology market.
- Building-to-grid technology consists of capturing real time data. Proper technical infrastructure is required for this purpose. The cost incurred in developing such infrastructure and designing of such robust mechanism is high. This is anticipated to restrain the market in the near future.
COVID-19 Impact Analysis on Power Demand
- Governments of several countries across the globe have imposed stringent lockdowns to limit the spread of the coronavirus. Movement of individuals and economic activities, related to goods and services, have come to a halt because of lockdowns. This has adversely affected the demand for electricity for commercial purposes. In turn, this has hampered the global building-to-grid technology market.
Building-to-Grid Technology Market Segmentation
- The global building-to-grid technology market can be segmented into sector and service
- In terms of sector, the global building-to-grid technology market can be bifurcated into commercial and industrial. The commercial sector is developing rapidly vis-à-vis the industrial sector. Therefore, demand for building-to-grid technology in the commercial sector is anticipated to rise at a faster pace during the forecast period.
- In terms of service, the global building-to-grid technology market can be classified into automation, energy storage, and others. The automation service segment can be divided into software and hardware.
Building-to-Grid Technology Market: Regional Segmentation
- In terms of region, the global building-to-grid technology market can be split into Middle East & Africa, Latin America, Asia Pacific, Europe, and North America
- The building-to-grid technology market in the U.S. is anticipated to expand at a faster pace. Utilities in the U.S. invested approximately US$ 144 Bn in electricity generation, transmission, and distribution infrastructure in 2016. Investment in annual smart grid setup in the U.S. rose from US$ 3.4 Bn in 2014 to US$ 4.8 Bn in 2016. These investments are projected to rise to US$ 13.8 Bn in 2024.
- According to the International Energy Agency, demand for electricity in India is projected to reach 1900 terawatt-hours during 2021 to 2022. Carbon dioxide emission from coal combustion is anticipated to reach 3.3 gigatons (Gt) in 2030. The usage of the building-to-grid technology can help buildings curb unnecessary usage of electricity. This can lead to achievement of even distribution of electricity without power outage, thus driving the building-to-grid technology market during the forecast period.
Key Players Operating in Global Market
- Bloom Energy
- Gridscape Solutions
Global Building-to-Grid Technology Market: Research Scope
Global Building-to-Grid Technology Market, by Sector
Global Building-to-Grid Technology Market, by Service
- Energy Storage
Global Building-to-Grid Technology Market, by Region
- North America
- Russia & CIS
- Rest of Europe
- Asia Pacific
- Rest of Asia Pacific
- Latin America
- Rest of Latin America
- Middle East & Africa
- South Africa
- Rest of Middle East & Africa
This study by TMR is all-encompassing framework of the dynamics of the market. It mainly comprises critical assessment of consumers' or customers' journeys, current and emerging avenues, and strategic framework to enable CXOs take effective decisions.
Our key underpinning is the 4-Quadrant Framework EIRS that offers detailed visualization of four elements:
- Customer Experience Maps
- Insights and Tools based on data-driven research
- Actionable Results to meet all the business priorities
- Strategic Frameworks to boost the growth journey
The study strives to evaluate the current and future growth prospects, untapped avenues, factors shaping their revenue potential, and demand and consumption patterns in the global market by breaking it into region-wise assessment.
The following regional segments are covered comprehensively:
- North America
- Asia Pacific
- Latin America
- The Middle East and Africa
The EIRS quadrant framework in the report sums up our wide spectrum of data-driven research and advisory for CXOs to help them make better decisions for their businesses and stay as leaders.
Below is a snapshot of these quadrants.
1. Customer Experience Map
The study offers an in-depth assessment of various customers’ journeys pertinent to the market and its segments. It offers various customer impressions about the products and service use. The analysis takes a closer look at their pain points and fears across various customer touchpoints. The consultation and business intelligence solutions will help interested stakeholders, including CXOs, define customer experience maps tailored to their needs. This will help them aim at boosting customer engagement with their brands.
2. Insights and Tools
The various insights in the study are based on elaborate cycles of primary and secondary research the analysts engage with during the course of research. The analysts and expert advisors at TMR adopt industry-wide, quantitative customer insights tools and market projection methodologies to arrive at results, which makes them reliable. The study not just offers estimations and projections, but also an uncluttered evaluation of these figures on the market dynamics. These insights merge data-driven research framework with qualitative consultations for business owners, CXOs, policy makers, and investors. The insights will also help their customers overcome their fears.
3. Actionable Results
The findings presented in this study by TMR are an indispensable guide for meeting all business priorities, including mission-critical ones. The results when implemented have shown tangible benefits to business stakeholders and industry entities to boost their performance. The results are tailored to fit the individual strategic framework. The study also illustrates some of the recent case studies on solving various problems by companies they faced in their consolidation journey.
4. Strategic Frameworks
The study equips businesses and anyone interested in the market to frame broad strategic frameworks. This has become more important than ever, given the current uncertainty due to COVID-19. The study deliberates on consultations to overcome various such past disruptions and foresees new ones to boost the preparedness. The frameworks help businesses plan their strategic alignments for recovery from such disruptive trends. Further, analysts at TMR helps you break down the complex scenario and bring resiliency in uncertain times.
The report sheds light on various aspects and answers pertinent questions on the market. Some of the important ones are:
1. What can be the best investment choices for venturing into new product and service lines?
2. What value propositions should businesses aim at while making new research and development funding?
3. Which regulations will be most helpful for stakeholders to boost their supply chain network?
4. Which regions might see the demand maturing in certain segments in near future?
5. What are the some of the best cost optimization strategies with vendors that some well-entrenched players have gained success with?
6. Which are the key perspectives that the C-suite are leveraging to move businesses to new growth trajectory?
7. Which government regulations might challenge the status of key regional markets?
8. How will the emerging political and economic scenario affect opportunities in key growth areas?
9. What are some of the value-grab opportunities in various segments?
10. What will be the barrier to entry for new players in the market?
Note: Although care has been taken to maintain the highest levels of accuracy in TMR’s reports, recent market/vendor-specific changes may take time to reflect in the analysis.