Building Energy Simulation Software Market Report 2025 (Global Edition)

CURRENT SCENARIO OF THE BUILDING ENERGY SIMULATION SOFTWARE MARKET

Key factors driving the Growth of Building Energy Simulation Software Market

• Government regulations to reduce carbon emissions propelling global building energy simulation software market development 

To lower carbon emissions and increase building energy efficiency, governments everywhere are enacting strict laws and policies. The need for building energy modeling software has increased due to the necessity of complying with laws. Architects, engineers, and building owners can manage their energy use and adhere to requirements with the help of this program. It aids in the design of energy-efficient structures, guaranteeing that they adhere to the government's necessary energy norms and requirements. 

For example, The European Union has implemented the Energy Performance of Buildings Directive (EPBD), which requires all new buildings to be nearly zero-energy buildings (NZEB) by the end of 2030. 
(Source:https://energy.ec.europa.eu/topics/energy-efficiency/energy-efficient-buildings/energy-performance-buildings-directive_en)

In New York State, U.S., introduced the Local Law 97 (LL97) penalties. LL97 imposes carbon emission limits on buildings larger than 25,000 square feet, including cases where two or more buildings on the same tax lot collectively surpass 50,000 square feet. Failure to adhere to these regulations would result in fines starting in 2024, with even more severe penalties to be enforced by 2030.

Other countries have implemented similar types of regulations, such as Minimum Energy Efficiency Standards (England and Wales), Buildings Energy Act (Germany), Dubai Green Building Regulations and Specifications, and Carbon Tax (Singapore), to reduce carbon emissions in buildings and construction. 
These regulations have created a strong demand for energy simulation software for buildings, as stakeholders are now required to evaluate and improve the energy performance of their buildings 

• Growing adoption of green buildings leading to growth of the market

The rising awareness about environmental impact has led to a significant increase in the construction of green buildings over the past decade. Green buildings aim to reduce energy and water consumption through efficient design, materials, and renewable technologies. 

• For instance, The United States invested over $86 billion in green building projects in 2021. Building green typically can cost between 1% and 12% more than a similar non-green building project.
(Source: https://www.rubyhome.com/blog/green-building-stats/)

Building energy simulation software plays a crucial role in designing green buildings that meet stringent certification criteria like LEED (Leadership in Energy and Environmental Design) and BREEAM (Building Research Establishment Environmental Assessment Methodology). The software enables construction firms to create sustainable infrastructure with minimal environmental impact. 

• For instance, in May 2023, Autodesk, Inc. is a leading software company specializing in providing solutions for design, engineering, and entertainment industries introduced the inaugural suite of features for Autodesk Forma, a specialized industry cloud designed to integrate processes among the professionals who design, construct, and manage built environments.
(Source: https://investors.autodesk.com/news-releases/news-release-details/autodesk-introduces-forma-next-generation-building-design-cloud)

Key factors hampering the Market growth

• High deployment costs and Accuracy of Simulations to Hamper the Growth of the Market

Even while building energy modeling software has many advantages, implementing it can be expensive, particularly for small businesses. The costs include those associated with software licenses, employee training, workflow integration, and hardware updates that impede adoption. Numerous suppliers just offer on-premise implementation, which drives up the expense of IT infrastructure. The expense of modeling and analysis is further increased by a lack of specialized knowledge. There are various strategies involved in overcoming these obstacles. In order to lower upfront prices, several software companies are shifting toward more accessible pricing models including subscription-based or cloud-based services. 

Furthermore, in an effort to reduce the learning curve and make the software more approachable for a wider spectrum of customers, providers are emphasizing user-friendly interfaces and streamlined training courses.

Moreover, there are sophisticated simulation tools available, but there are still questions about how accurate the results will be. Estimates of energy use can be significantly impacted by slight variations in the input values. Precision is also influenced by elements like occupant behavior prediction and real-time weather data integration. Reliability is hampered by real-world scenario replication limitations, which impede total user confidence. In order to overcome the difficulties associated with creating energy simulation software, a comprehensive strategy is employed with the goal of improving the precision and dependability of simulation outcomes. It is important to keep improving simulation models and algorithms in order to include more complex interactions and a wider range of variables in constructing systems.

Opportunity

• Integration of Artificial Intelligence (AI) and Machine Learning (ML) in Building Energy Simulation Software 

Making improved forecasts, automating the simulation process, and providing real-time insights for energy optimization are all possible outcomes of utilizing AI and ML technology. More sophisticated and effective energy analysis may be possible as a result of the integration, which might also improve the software's accuracy, speed, and intelligence. 

Because AI and ML algorithms can learn from complicated relationships and historical data, they can increase the accuracy of energy simulations. To produce more accurate energy projections, the algorithms take into account a wide range of elements, including weather patterns, occupancy behavior, and building attributes. Architects, engineers, and other building professionals are encouraged to use energy modeling software because of its increased accuracy while making decisions. 

Building energy model development is automated with the use of AI and ML technology. They cut down on the time and work involved in hand modeling. The technologies use inputs including building geometry, materials, and HVAC systems and analyze architectural designs to provide precise energy models. Automation streamlines the simulation process and makes it easier to incorporate energy analysis at an early stage of design. AI and ML algorithms investigate a wide range of design options and recommend enhancements based on predetermined goals, such enhancing comfort or reducing energy use. 

It is anticipated that users of AI-powered energy simulation software will be able to make data-driven choices that result in more energy-efficient buildings. Software for energy simulation with machine learning capabilities can do analysis to project future energy usage, demand patterns, and possible energy savings. These forecasts would support building owners in making well-informed choices about sustainability programs, equipment upgrades, and energy management techniques.

For Instance, in November 2021, PassiveLogic is an innovative company specializing in autonomous building systems unveiled a generative AI platform for self-managing buildings.
(Source: https://passivelogic.com/)

How did COVID–19 Impact the Building Energy Simulation Software Market?

The energy business was significantly impacted by how COVID-19 caused people to change their habits. Both the duration and volume of energy use have significantly altered. Countries all across the world experienced a drop in national energy consumption (and related emissions) during major lockdowns; globally, this reduction was 6% in 2020. The degree of lockdown (complete or partial), local infrastructure, socioeconomic circumstances, environment, and cultural customs all had an impact on these energy shifts, which were not constant.

Buechler et al, a scientist determined the impact of pandemic lockdowns in 58 countries. The results showed stricter lockdowns and low transport mobility related to higher energy savings. Higher energy savings were recorded at the time of the first lockdown; for example, electricity demand in Australia fell by 6.7 % and for Italy by 3–4 %.

With the advent of the COVID-19 pandemic, remote working or telecommunicating was observed by more than 50 % of the population . The increased occupancy impacted both residential HVAC and non-HVAC loads.

If the increased peak loads and energy consumption associated with the new occupancy patterns under the COVID  -19 shutdown are precisely identified, energy systems can function without interruption. Similarly, the occupiers will incur higher energy bills due to prolonged occupancy hours. To make sure the energy grid functions well under the new peak loads and periods under the COVID-19 lockout, it is important to fully comprehend the new occupancy patterns. Low-income households will be directly impacted by these increased energy expenditures; hence energy incentive programs need to be adjusted to account for lockout scenarios. 

Consequently, these alterations need to be well assessed and measured because it is likely that the new occupancy patterns will persist beyond the pandemic. Changes in occupancy patterns and variances in direct energy consumption can be detected using high-resolution data derived from meticulous monitoring of individual buildings.

The most often used technique for forecasting EEM performance is the construction of energy simulation models. Buildings with more energy efficiency measures (EEMs) have a greater potential to reduce carbon emissions and conserve energy. The COVID-19 occupancy profile shift raises questions about the energy and environmental performance of EEMs, and consequently their financial feasibility. 

Few research have looked into the viability of energy efficiency upgrades under COVID-19 occupancy schedules; most studies to date have focused on the pandemic's overall influence on a building's energy usage.

Post pandemic – Overall, compared to the pre-COVID time, there is a rise in the energy consumption of the house for non-HVAC, HVAC, and overall loads. The amount of energy that is raised in each month varies, though.

Also, It was observed that similar to non-HVAC load curves, the curves for overall loads are, on average higher than in pre-COVID years. Interestingly addition of HVAC loads adds more pronounced peaks. Since energy use in the HVAC system is dependent upon local environmental conditions, energy in some months of the year 2019 surpass the peak lockdown period. Hence, considering the influence of external environmental conditions is essential. The increase in energy use is observed for the three lockdown months, March, April, and May. I values for overall loads showed extremely high variations.

Our study will explain complete manufacturing process along with major raw materials required to manufacture end-product. This report helps to make effective decisions determining product position and will assist you to understand opportunities and threats around the globe.

The Global Building Energy Simulation Software Market is witnessing significant growth in the near future.

In 2023, the Electricity Management segment accounted for noticeable share of global Building Energy Simulation Software Market and is projected to experience significant growth in the near future.

The Residential Building segment is expected to expand at the significant CAGR retaining position throughout the forecast period.

Some of the key companies eQUEST , Inc. and others are focusing on its strategy building model to strengthen its product portfolio and expand its business in the global market.

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