Abstract
Reduced Incurring Costs to Offset Barriers of High Initial Cost of BAS Installation in the
North American Healthcare Industry
The prospects for the building automation systems (BAS) market in the North American healthcare
industry look bright as real estate investment trusts and other well-financed corporate bodies have
gradually started replacing conservative managers and building owners. Healthcare facility managers
recognize the importance of managing building information to achieve higher returns on investment
through energy-saving initiatives. While the initial costs are prohibitive in hospitals and nursing
homes, lowered energy and operational costs are providing justification for the installation of BAS
in these facilities. In pharmaceuticals warehouses, hospitals, and nursing homes, these systems
assist building engineers by providing them with complete control of the facility parameters such as
air conditioning, ventilation, lighting and maintenance needs. BAS controls are also likely to
become very popular for improving indoor air quality in pharmaceutical companies that have odor
problems and have to comply with the standards for healthcare buildings.
This Frost & Sullivan research service provides an overview of the North American BAS
controls market in the healthcare industry. It includes in-depth discussion on market drivers,
restraints, and industry challenges and also provides information on growth trends, competitive
structure, and market opportunities. It enables companies to align their positioning strategies to
benefit from the changing market and obtain maximum return on investment.
High ROI from BAS-equipped Healthcare Facilities Encourage Growth of BAS Controls in the
Healthcare Industry
The ROI from healthcare facilities with BAS is far greater than those from buildings that do not
use these systems. Integrated BAS provides financial benefits not only by reducing the daily energy
and incurring costs but also by substantially increasing the buildings resale value. Building
owners are willing to invest considerably on the latest technology in BAS, anticipating larger
returns when they sell their buildings.
"During the lifetime of the BAS, this expenditure becomes an asset," says the analyst
of this research service. "When the building is sold after the lifecycle cost of the BAS has
been met, the capital improvement adds directly to the owners bottom line." This encourages
retrofit business in the BAS market.
Improving End-user Awareness about the Benefits of BAS and its Applications to Drive Market
Growth
The administrative departments in healthcare facilities are sometimes reluctant to adopt BAS if
the return on investment is not clearly defined. These end users have to be made aware of the
immense benefits of BAS, which include lower energy, maintenance, repair, and replacement costs as
well as greater patient comfort by optimizing the indoor environment. BAS operates in multiple
systems and facilities, facilitates easier information sharing, and bridges geographical boundaries.
"Economic growth trends, a constant demand for lifestyle products, gradually rising
healthcare expenditures, and healthcare outlays are boosting demand for healthcare facility
automation," notes the analyst. "Both public and private sector healthcare providers are
expected to lay increasing emphasis on cost containment, thereby driving sales of BAS."
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