April 20, 2024
Building Energy Simulation Software Market

Building Energy Simulation Software is Estimated to Witness High Growth Owing to Factors such as Growing Focus on Energy Efficiency

Building energy simulation software allows architects and engineers to simulate and evaluate the energy performance of buildings to reduce their energy consumption. These software help in designing energy-efficient buildings by simulating temperature control, ventilation, heating, cooling and lighting needs. Key features of building energy simulation software include thermal analysis, daylighting analysis, HVAC system design and energy cost estimation. The growing focus on energy efficiency and sustainable construction has increased the demand for building energy simulation software.

The Global Building Energy Simulation Software Market is estimated to be valued at US$ 5.65 Mn in 2024 and is expected to exhibit a CAGR of 4.7% over the forecast period 2024 to 2030.

Key Takeaways

Key players operating in the Building Energy Simulation Software are Alchemie Ltd., Asahi Kasei Corporation, BASF SE, BUFA GmbH & Co. KG, Celanese Corporation, Covestro AG, Daicel Corporation, DSM, Eastman Chemical Company, INEOS, Kanoria Chembond Pvt. Ltd, Lanxess AG, LG Chem, Mitsubishi Engineering-Plastics Corporation, Nihon Gosei Kako Co. Ltd, Polynt SpA, Satyen Polymers Pvt. Ltd, Showa Denko KK, Solvay, Sumitomo Bakelite Co. Ltd, and U-PICA Company Ltd.. Major players are focusing on product innovations and partnerships to gain a competitive advantage in the market.

The key opportunities in the market include increasing acceptance of cloud-based simulation software and integration of virtual reality and augmented reality features. Growing adoption of IoT and artificial intelligence technologies by building energy simulation players is also expected to create new growth avenues.

Rising environmental regulations regarding greener construction, especially in developed markets across North America and Europe are driving the global expansion of building energy simulation software market. Growing construction activities in Asia Pacific region along with government initiatives to develop smart cities will further support the demand.

Market drivers

The major driver for Building Energy Simulation Software Market Growth  is the growing focus on sustainable construction practices and stringent energy codes to reduce carbon emissions. Government initiatives promoting energy-efficiency in commercial and residential buildings through regulations and incentives have also boosted the adoption of such software. Integration of building information modeling (BIM) with energy simulation tools have further enhanced their relevance in designing low energy buildings. Favorable policies supporting green building certification worldwide is another key factor fueling the growth of building energy simulation software market.

PEST Analysis

Political: Building energy simulation software helps comply with government regulations and policies related to energy efficiency in buildings. It allows assessing the implication of new codes and standards.

Economic: Rising energy costs are compelling building owners and operators to optimize energy usage through such software. It helps lower operating costs through continual monitoring and analysis of building performance.

Social: Growing environmental awareness among public is increasing demand for green buildings. Such software helps architects, engineers and building owners design and operate sustainable and environment-friendly structures.

Technological: Advances in data analytics, IoT, AI/ML are enhancing the capabilities of building energy simulation tools. Real-time connectivity and predictive analytics now help simulate various scenarios for reducing carbon footprint of buildings.

North America dominates the global market in terms of value, accounting for over 30% share. Presence of leading vendors and strict energy efficiency mandates in countries like the US and Canada have propelled adoption.

The Asia Pacific region is forecast to witness the fastest growth during the forecast period. This can be attributed to rising construction activities, strengthening building codes and growing focus on sustainable infrastructure in major economies of China and India.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it