Technavio, a global technology research and advisory company, released its latest report on the global energy management systems market for the healthcare sector, providing an analysis on trends expected to impact the market outlook from 2016-2020. Technavio defines an emerging trend as a factor that has the potential to significantly impact the market and contribute to its growth or decline.
Sayani Roy, a lead analyst from Technavio, specializing in research on the smart grid sector, says, “The global energy management systems market for the healthcare sector is expected to grow at a steady rate throughout the forecast period mainly driven by the need to reduce the costs of healthcare. Healthcare facilities adopt energy management systems that enable them to lower energy consumption while improving the productivity of the employees.”
The top three emerging trends driving the global energy management systems market for the healthcare sector according to Technavio energy research analysts are:
- Increasing need for cost reduction
- Rising need for energy conservation
- Increasing certification
Increasing need for cost reduction
Healthcare facilities are one of the most energy intensive users, as they involve the use of equipment which runs round the clock for the upkeep of its in-house patients. With the increase in aging population, rise in population, and chronic diseases, there is a growth in demand for healthcare services.
Simultaneously, there is also a steady increase in electricity prices, which has increased the operating cost of the healthcare facilities leading to a direct impact on the healthcare facilities’ bottom line expenses. By implementing energy management practices, a typical building can save 10%-20% of the power consumption and extend it above 30% with a comprehensive energy plan. “The need to reduce healthcare expenditure has been driving the need for energy management systems such as intelligent HVAC controls, LED lighting, and sensors, to be installed for efficient power management,” says Sayani.
Rising need for energy conservation
Hospitals consume significant amounts of electricity due to the installation of various kinds of infrastructure and equipment such as 24-hour operation theaters, large volume rooms and corridors, along with surgical and diagnostic equipment.
With depleting energy resources, energy management is considered to be one of the most efficient methods to reduce the energy usage in this sector. There are various processes involved in energy management, which include recording, normalizing, analyzing, targeting, monitoring, reporting, and controlling. This involves finding opportunities for improvement and installing devices such as sensors, HVAC and lighting controls for conserving power.
Energy management products also facilitate the creation of targets for reducing energy consumption, monitoring the use to check if it matches the set targets, and reporting the outcome to the end-user. This enables a reduction in energy usage and reduces overall costs, which is one of the major factors driving the growth of the energy management systems market in the healthcare sector.
Globally the need for reducing energy consumption has led to government intervention in the form of awarding Energy Star labels to products that help reduce power consumption.
Energy Star is a voluntary public-private partnership program that was established in the year 1992 by the US EPA. The program helps businesses and other organizations to monitor, estimate, and reduce the energy consumption as well as evaluate the financial implications of the improved energy performance. The program rates a building on 1-100 based on data from 12 consecutive months enabling them to identify areas of improvement and devise the most efficient way to save energy.
Energy Star-rated products are about 30% more efficient than a non-labelled product thus saving on energy consumption. Apart from the Energy Star, LEED is another such program that is being adopted in the healthcare industry. It is one of the most popular and widely recognized green building rating systems that was developed by the U.S. Green Building Council (USGBC). LEED-certified buildings use less amount of water and energy, and reduce GHGs and costs.