Building Energy Simulation Software Market is Estimated to Witness...

Building Energy Simulation Software Market is Estimated to Witness Robust Growth Due to Rising Construction Activities Globally

Posted 2024-01-17 05:34:21

Building energy simulation software allows engineers and architects to design energy-efficient, sustainable, and economical buildings. It helps in optimizing a building's energy consumption for heating, cooling, ventilation, lighting, and other systems. Building energy simulation software takes into account local climate conditions, architectual design, construction materials, heating & cooling systems, occupancy patterns, and other factors to evaluate a building's energy needs and its impact on utility bills. Some key components the software may analyze include thermal performance, airflow, natural lighting levels, and renewable energy generation.

The global building energy simulation software market is estimated to be valued at US$ 4.9 Bn in 2023 and is expected to exhibit a CAGR of 4.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:
The global building energy simulation software market has been witnessing robust growth owing to rising construction activities globally, accelerated by rapid urbanization and infrastructure development projects in developing economies. According to estimates, the global construction industry will grow by 85% to hit USD 15.5 trillion by 2030. Furthermore, stringent government regulations and building codes regarding energy efficiency are also driving increased adoption of building energy simulation software by builders and architects to comply with sustainability guidelines. The rising costs of energy is another key factor compelling the industry to optimize building designs for minimizing energy consumption and reduce long-term operational costs. Additionally, increasing awareness about efficiency, cost-savings, and availability of more user-friendly building energy simulation tools is propelling the market growth.

SWOT Analysis

Strength: Building energy simulation software helps architects and building engineers optimize building designs and meet energy efficiency standards in a cost-effective manner. It allows users to test various design alternatives with minimal additional costs and time investment compared to physical construction and testing. The software offers users the ability to evaluate lighting, HVAC, and renewable energy systems in building designs.

Weakness: The learning curve to fully utilize advanced features in building energy simulation software can be steep, requiring extensive training. Smaller architecture and engineering firms may not have the budget to invest in the high-end paid versions of these programs. Additionally, the software requires detailed building specification inputs that take time and expertise to compile correctly.

Opportunity: Government regulations and initiatives aimed at reducing greenhouse gas emissions from the built environment are increasing demand for energy efficient building design. Building energy simulation software helps comply with demanding energy codes and certification standards such as LEED. Rapid advances in computing capability are enabling more complex simulations to be run with greater ease.

Threats: Free and open-source energy modeling alternatives with basic capabilities threaten the market for paid building energy simulation programs. Accuracy of simulation results depends on the underlying algorithms and assumptions, which may not always align with actual building performance factors.

Key Takeaways

The global Building Energy Simulation Software market Share is expected to witness high growth over the forecast period of 2023 to 2030 due to stricter energy efficiency policies and standards worldwide. The global Building Energy Simulation Software Market is estimated to be valued at US$ 4.9 Bn in 2024 and is expected to exhibit a CAGR of 4.7% over the forecast period 2023 to 2030.

Regional analysis. The Asia Pacific region is projected to grow at the fastest pace through 2030 due to strong commitments by China, India, and other Asian countries to lower carbon emissions from buildings. China alone accounts for over a third of the global buildings energy simulation software market currently. Other major markets include North America and Europe where energy codes have matured.

Key players. Key players operating in the Building Energy Simulation Software market are Alchemie, DesignBuilder Software, IES Virtual Environment, EQUA Simulation AB, Siemens, and EnergyPlus. Alchemie is a leader in the architectural design segment while IES Virtual Environment dominates the engineering side. Siemens offers an integrated solution for new and existing building stock with its Technologies portfolio.