Abstract
Research Overview
High Investments to Commission BAS Controls in Retail Facility Deters Potential End Users
When retail stores decide to integrate the basic systems in a building such as
security, fire, and heating, ventilation, and air-conditioning (HVAC), they
prefer simple and easy-to-operate controllers that are both cost- and
user-friendly. However, building automation system (BAS) controls are
expensive and require high initial investments, making the task of convincing
the retail facility manager or owner to invest a challenging one. Most of the
potential benefits of BAS controls are 'soft' and therefore hard to quantify,
such as greater productivity or more satisfied tenants due to more comfortable
building environments. Hard costs such as savings in energy and labor as well
as material and operating expenses are more tangible, but can only be realized
much after the initial investment. The impact of this challenge is likely to
be high in the short term but expected to decrease over the forecast period.
This is due to the trend of building owners and managers getting replaced by
real estate investment trusts and other financially strong corporate entities
that realize the importance of investing in BAS controls to manage information
optimally and achieve targets.
Shift in Manufacturers' Focus toward Better Customer Service with Long-term Support Capabilities Drives Market
Current trends in the North American BAS controls market for retail buildings
indicate that manufacturers are focusing on improving their product
portfolios, to provide complete solutions to their customers. Several
companies have already started building up their solutions and services
business to help customers enhance productivity and competitiveness by
improving the overall retail building facility performance. Companies such as
Honeywell and Johnson Controls are working on providing comprehensive
solutions that meet all possible needs of retail chains through their retail
based solution business that comprises a vast range of systems and services.
"Thus, as customers increasingly look for long-term relationships with
manufacturers, companies' ability to forge fluid relationships that can attach
and detach from project to project as needed is becoming critical for
survival," notes the analyst of this research service. In such a scenario, it
is hardly surprising that manufacturers are fast revamping their system
offerings to keep pace with continuous changes in technology and customer
expectations.
Replacing Legacy Systems with Cutting-edge Technology is a Key Goal
Typically, the task of integrating and monitoring multiple parameters in a
retail building such as HVAC, lighting and humidity is undertaken by the
facility manager or qualified technicians. However, open interoperability in
BAS controls can enable the retail facility manager or the owner to monitor
all these parameters from virtually anywhere in the country using the
Internet. Interoperability also empowers the owner to make adjustments as
required in specific parameters deriving from environmental conditions such as
humidity or temperature.
"However, the lack of awareness among end users about these options along with
the method to realize them in their facilities could limit the growth
potential of the BAS controls market for retail buildings," says the analyst.
"Educating end users about these options and inducing them to shift from
legacy systems to advanced technology remains a major goal for BAS controls
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