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Integrators Seek Differentiation in Building Automation Market
El Segundo, Calif.
(Oct. 7, 2013)—With competition growing in the building automation
market, systems integrators are placing increasing emphasis on product
choice and adding value to traditional systems to better position
themselves toward enhancing customer satisfaction, according to new
findings from a report from IHS Inc. (NYSE:IHS).
Revenue for global building automation systems installation and aftermarket services was estimated to be worth $26.4 billion in 2012. Small- and medium-sized independent integrators accounted for an estimated 57 percent of the overall takings.
This is a highly competitive space with no single independent integrator holding more than a 1 percent market share. Here independent integrators look for ways to differentiate themselves in order to win business. Such an activity is likely to take two forms: enhanced product representation; and adding value to traditional service contracts.
“Integrators will choose the brands they represent very carefully,” said William Rhodes, senior market analyst, building technology, for IHS. “Many are finding that different users value varying levels of cost and specifications for the equipment, and integrators will try to cover most scenarios with their brand choice. In this case, the desire to have the latest technology must be balanced against reliability and the capability to integrate with legacy solutions.”
Integrators often will identify the products that customers are likely to be asking for in the future, and start testing and analyzing them early with a view to integrating the products before demand picks up.
“Integrators also are looking for more ways to add value to the service they provide and improve their competitive positioning,” Rhodes continued. “Some integrators have started to provide building analytics to help customers save energy—through either building optimization or fault detection. With building analytics, integrators are able to provide proactive energy savings, which improves customer satisfaction.”
The brands that building automation integrators represent and the products they specify will become increasingly important for integrators that want to differentiate their offerings. Adding value to traditional service contracts will be critical for integrators to win market share in an increasingly competitive landscape.
About IHS (www.ihs.com)
IHS (NYSE: IHS) is the leading source of information, insight and analytics in critical areas that shape today's business landscape. Businesses and governments in more than 165 countries around the globe rely on the comprehensive content, expert independent analysis and flexible delivery methods of IHS to make high-impact decisions and develop strategies with speed and confidence. IHS has been in business since 1959 and became a publicly traded company on the New York Stock Exchange in 2005. Headquartered in Englewood, Colorado, USA, IHS is committed to sustainable, profitable growth and employs approximately 8,000 people in 31 countries around the world.
IHS is a registered trademark of IHS Inc. All other company and product names may be trademarks of their respective owners. Copyright © 2013 IHS Inc. All rights reserved.
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