| dc.description.abstract | This dissertation aims to study the building management system industry in Taiwan. It is used to monitor and manage the operation status and performance of electromechanical, air conditioning, access control, fire alarm and other equipment in buildings. It helps management personnel can quickly detect and solve problems to ensure the stable operation of all electromechanical facilities and control systems in the building. The building management system has been developed in Taiwan for over 40 years. With the continuous advancement of technology and the increasing demand of people for the safety, comfort, and intelligence of buildings, the number of domestic and foreign players has also been increasing and growing their business.
This dissertation uses the S-C-P model to analyze the characteristics of Taiwan′s monitoring system industry, studies whether the market structure, manufacturer behavior, and industry performance are interrelated, in order to gain a better understanding of the current development of this industry and analyze the trends and future of the monitoring system industry and propose countermeasures and suggestions.
The research found that on the supply side of the basic conditions, customers can obtain the software and hardware equipment, controllers, and sensing components needed for building monitoring systems through the original factory′s branch, subsidiary, or authorized dealer in Taiwan without obstacles. However, professional knowledge is difficult to be established in short time, there is a general shortage of personnel, serious gaps, or a lack of young successors in Taiwan′s building management system industry.
In addition, regarding the demand side of basic conditions, the building management system is an integrated service industry. With the continuous increase in the market and users′ requirements for intelligent, safe, healthy, comfortable, and energy-saving and sustainable building management systems, the price elasticity of demand is small. For the building management system industry or project, the substitutability is low. However, customers can choose different building management system manufacturers, so for a single manufacturer, there may be substitutability. The procurement mode of monitoring system projects, whether public tender or inviting specific manufacturers to participate in bidding, the decision-making process is usually determined by the client, including budget, payment terms, and project deadlines, so it belongs to a buyer′s (Party A) market. Monitoring project cases are built with the construction of public works or private enterprise investment, and therefore more affected by the macroeconomic environment.
In terms of government policy, there are no restrictions or regulations on building management system manufacturers in Taiwan.
In terms of market structure, the larger building management system manufacturers in Taiwan are foreign companies, including Siemens, Honeywell, Johnson Controls, and Schneider. These four companies have a larger market share and monopolistic degree in the monitoring market in Taiwan, especially in the more complex and more difficult to deliver of high-end market. Their success can be attributed to their advantages in brand recognition, technical strength, and product quality in the global market. Overall, Taiwan′s building management system industry has become a mature market, with limited growth potential. Large customers have mostly been covered by existing players. The development of industry professionals is not easy, and there are many factors such as intense competition, high project funding costs, and potential risks in cash flow management and project execution, which make it difficult for new players to enter the market.
It was found that, like most industries, building management system market in Taiwan face competition from numerous small and medium-sized enterprises in the market. Although foreign companies have taken advantage of their advantages in supply and structural aspects in the high-end market in the industry, they still face inevitable price competition with each other. However, the number of customers (projects) in the high-end market and the growth rate are limited, so there is still fierce competition among foreign investors, and after decades of development, even the current market structure is oligopolistic competitive market.
Therefore, each manufacturer has developed different business (competition) strategies and directions, such as binding special specification standards, focusing on existing main customers, or developing emerging markets, to avoid vicious cycles as much as possible.
The building management system industry in Taiwan has undergone decades of development through free competition and keeping pace with technological advances. It has evolved into a monopolistic competition market structure. Overall, although the building management industry in Taiwan continues to grow positively, it has faced increasingly severe external challenges in recent years. These challenges come not only from the ongoing impact of the COVID-19 pandemic, resulting in material shortages, price increases, and delivery delays, but also from the influence of factors such as the US-China trade war, the Russia-Ukraine conflict, and geopolitics concerns. Faced with changes in the political and economic environment, manufacturers have also made rapid responses by adjusting their business and competitive strategies to cope with the challenges.
However, industry performance in terms of manufacturer profit margin has shown a slow growth trend. Nevertheless, manufacturers continue to enhance product technology to provide people with optimize building management systems, creating healthier, more comfortable, safer, and smarter living environments, which are essential values for the monitoring industry. | en_US |