This report evaluates the smart buildings market including technologies, players, and solutions. The report analyzes smart buildings challenges and opportunities, assesses market potential, and provides accompanying smart buildings market sizing, globally as well as regionally, and by market segment for 2021-2026. The report includes an analysis of technologies supporting smart building automation, IWMS, and smart workplace applications and services. Smart building technology integration areas addressed within the report include 5G, AI, data analytics, and edge computing.
Select Report Findings
Smart building automation software and systems will reach $20.5B in North America by 2027
AI-enabled IoT (AIoT) systems will drive IWMS efficiencies and automation to an entirely new level by 2026
Smart facility water management systems will represent an $850M market opportunity in Europe by 2027
The post-COVID19 world will challenge building operations management in terms of public health compliance
Life cycle cost management for facilities is becoming a key factor in building selection for corporate giants such as Amazon
Leading solution providers such as IBM are changing the smart building landscape through a multi-dimensional approach to investment ROI
The key to success in the smart building market is to intelligently integrate data, systems, processes, and assets for enterprise and industrial operations
Collectively speaking, residential dwellings, offices, educational campuses, indoor recreation, and public service facilities are where people in the developed world spend up to 90% of their time. As urbanization leads to increasingly smarter cities, buildings are an integral part of a city's ecosystem and are increasingly shaping both the standard of living and quality of life of inhabitants. Intelligent buildings lead to improved economics for both owners and users as well as improved satisfaction, safety, and wellbeing of occupants.
The smart buildings market consists of warehouses, factories, office buildings, and other enterprises, industrial, and government structures. Intelligent structures leverage a variety of interdependent technologies such as Artificial Intelligence (AI), broadband wireless (including WiMAX, LTE, 5G, and indoor wireless such as improvements coming with WiFi version 6), cloud computing (including edge computing), and Internet of Things (IoT) networks and systems to improve operational efficiency and enable a safer and more productive environment.
The smart buildings market is related to the smart workplace market, which includes some important enterprise and industrial automation systems and solutions such as integrated workplace management systems (IWMS), decision support systems utilizing advanced data analytics, and business asset management. The author sees IWMS solutions as crucial to the smart buildings market, as enterprise organizations are able to optimize asset utilization, energy consumption, technology deployment, building, and infrastructure efficiency, and overall workplace productivity to gain substantial savings in CAPEX and OPEX. The analyst sees the confluence of AI and IoT (AIoT) having a particularly large positive impact on the IWMS solutions market.
Leading companies within the commercial real estate sector are realizing tangible benefits by leveraging smart buildings market solutions as owners are able to charge higher fees for technology-enabled intelligent buildings. Accordingly, over 78% of new construction will involve at least one facet of IoT and/or related smart buildings market-related technologies over the course of the next five years. However, it is important to note that roughly 83% of legacy buildings in developed economies have issues that will require substantial retrofitting. The author sees this statistic improving over time, but remains a major head-wind in terms of capital investment for the smart buildings market.
What makes a Building "Smart"? Intelligence is Distributed and Autonomous
The term smart or intelligent building refers to an enterprise structure that is supported by software and systems to ensure more efficient and effective operations. Additional goals are to enhance the health and well-being and protect enterprise assets. Intelligent buildings are also closely associated with the concept of the smart workplace, which extends beyond a centralized work zone to include distributed and remote employees and corporate assets. Smart buildings are also integrated beyond IWMS to include data analytics and AI-based decision support systems that allow enterprise systems such as ERP, SCM, and other logistics areas to more fully respond to both resource needs and operational changes within commercial building infrastructure.
An important factor driving investment in smart buildings remains the fact that commercial real estate owners are able to charge higher lease fees for intelligent buildings for a variety of reasons including lower operational costs as well as support for improved safety, comfort, security, and productivity for workers. This is a major factor in certain urban environments such as Seattle, Washington in which rapid growth is occurring due to high-tech company growth from the likes of Amazon, which desires the most efficient facilities possible. Smart workplace benefits facilitated by intelligent buildings include work process improvement, workflow improvement, internal and external supply chain management optimization.
Smarter Building Data Analytics will Emerge through AI and IoT Convergence
Many of the solutions that make buildings smarter involve IoT capabilities. However, data and information systems to enable better decision-making are also critically important. AI may be implemented in conjunction with big data tools to enable enhanced data analytics. Analytics solutions identify patterns in unstructured data and supplementing them with AI can provide the additional benefit of learning from experience.
Since enterprise verticals in many different Industries rely on buildings for operation, many market segments can benefit. For example, AI algorithms in an office building can learn from the patterns of workers to determine the optimal time to adjust lighting and HVAC. In another example, AI support at healthcare facilities can help with critical care, ensuring that resources are available where they are needed the most based on historical patterns of occupancy and resource allocation.
Integrated Workplace Management Systems crucial to Smart Building Operations
The most efficient and effective smart buildings are those that include an Integrated Workplace Management System (IWMS). An IWMS solution is leveraged to both support a more integrated building control system as well as optimizing the workplace. This includes orchestrating workflow in processes relative to building resources and the environment in terms of things like optimal lighting, heating, and ventilation for workers.
IWMS solutions rely heavily upon IoT technology and data processing for optimal operation. The integration of AI can make these systems more efficient. For example, AI can assist IWMS solutions in determining the optimal allocation of building resources based on environmental factors, workflow, and the availability and location of personnel and organizational assets. This is particularly useful in a corporate campus environment or university where there are multiple buildings that are often multi-purpose and shared among departments.
Emerging Developments in the Smart Buildings Market since the Last Report
The analyst anticipates that the economic environment of the next five years will be characterized as asset deflation and commodity inflation, which will place a high degree of emphasis on maximizing the value of depreciating assets while reducing the cost of inputs to production, service delivery, and reducing commodities as a whole. In other words, enterprise asset values will go down while operational input costs for materials and energy will go up.
It is estimated that urbanization will cause up to 51% of global resources to be consumed by residential and commercial buildings by 2027. Of this amount, over 68% of global energy (mostly electricity, but also natural gas and fuel oil) will be used by enterprise and industrial facilities along with over 32% of the overall global water consumed. This will put a substantial drain on increasingly more expensive and scarce resources as well as the bottom line of corporations.
Key Topics Covered:
1 Executive Summary
2 Introduction
3 Smart Building Challenges and Opportunities 3.1 Smart Building Challenges 3.1.1 Need to Retrofit Existing Buildings and Facilities 3.1.2 Barriers towards IoT integration with Smart Buildings 3.1.2.1 IoT Interoperability: Devices, Gateways, Platforms, and Apps 3.1.2.2 Cross-Building Feature/Functionality Applications Differences 3.2 Smart Building Opportunities 3.2.1 Building Automation Systems Optimize Operations 3.2.2 Leverage Building Operational Data 3.2.3 Leverage Artificial Intelligence 3.2.4 Edge-to-Cloud Services in Smart Buildings
4 Smart Building Organizations and Initiatives
5 Company Analysis 5.1 Abundant Power 5.2 Aeon Labs LLC 5.3 Affinegy, Inc 5.4 Affinity Automation, LLC 5.5 American Auto-Matrix 5.6 American Digitals 5.7 American Energy Management 5.8 AMMAMSIC Technology Corp. 5.9 Appin Associates 5.10 Assodomotica 5.11 Athena Engineering, Inc 5.12 Automated Control Inc. 5.13 Azbil 5.14 Be Home247 5.15 Belimo 5.16 Brandt Automation, Inc 5.17 Building IQ 5.18 Building Robotics 5.19 Cadillac Fairview 5.20 Central Coast Environmental Controls 5.21 Copper Tree Analytics 5.22 Crestron 5.23 CSR 5.24 Current Analytics, Inc. 5.25 Cylon 5.26 Delta Controls 5.27 Distech Controls 5.28 E.M.S. Technologies 5.29 Eagle Energy, Inc 5.30 EATON 5.31 Ecova 5.32 EFT Energy 5.33 Elemco Building Controls 5.34 Energent 5.35 Energy ETC, Inc. 5.36 EnergyCAP 5.37 EnerNOC 5.38 Enovity, Inc. 5.39 eSight Energy 5.40 Frazier Service Co. 5.41 Genesis Automation 5.42 GridPoint 5.43 Hawkeye Energy Solutions 5.44 HomeLink Technologies 5.45 Honda Smart Home 5.46 Horizon Controls 5.47 HTNG 5.48 Hubbell Building Automation 5.49 IBI group 5.50 Ingersoll Rand 5.51 Inncom 5.52 Intellastar 5.53 Inter Logix 5.54 Intermatic 5.55 J2 Innovations 5.56 KMC Controls 5.57 Lon Mark International 5.58 LowV Systems, Inc. 5.59 Lynx Spring 5.60 Near Future, LLC 5.61 Network and Automation Systems 5.62 NEXIA 5.63 NexTek Power Systems 5.64 OME 5.65 Phoenix Energy Technologies 5.66 Priva 5.67 Progressive Engineering & Design 5.68 Ramco Electrical Contracting Corp. 5.69 RBH Access Technologies, Inc. 5.70 Reliable Controls 5.71 Sawyers Control Systems, Inc. 5.72 Shenitech 5.73 Smardt 5.74 Somfy 5.75 Sullivan & McLaughlin Companies, Inc. 5.76 Surveillance Grid Company 5.77 Switch Automation 5.78 Synergetic Systems 5.79 Syska Hennessy 5.80 TA Canada (Convergint) 5.81 Taco Comfort 5.82 TE connectivity 5.83 TerraBridge Innovations in Technology, Inc. 5.84 Thermo-Trol Systems, Inc. 5.85 Trane 5.86 Trend Controls 5.87 Tridium 5.88 Unilectric 5.89 United Technologies 5.90 Vantage 5.91 Viconics 5.92 Vykon 5.93 Wind River 5.94 XanTech 5.95 Honeywell International Inc. 5.96 Siemens AG 5.97 Cisco Systems Inc. 5.98 IBM Corporation 5.99 General Electric 5.100 Schneider Electric 5.101 ABB Group 5.102 Johnson Controls 5.103 Hitachi 5.104 Accenture PLC 5.105 Ingersoll-Rand Inc. 5.106 Legrand 5.107 Verdigris Technologies Inc. 5.108 Analytikia
6 Smart Building Market Analysis and Forecasts 2021-2026 6.1 Global Smart Buildings Market 2021-2026 6.2 Smart Buildings by Market Segment 2021-2026 6.3 Smart Buildings Market by Hardware and Infrastructure Type 2021-2026 6.4 Smart Buildings Market by Automation Software and System Type 2021-2026 6.5 Smart Buildings Market by Service Type 2021-2026 6.6 Smart Buildings Market by Building Type 2021-2026 6.7 Smart Buildings Market by New vs. Retrofit Building 2021-2026 6.8 Smart Buildings Market by Business Model 2021-2026 6.9 Smart Buildings Market by Connectivity Protocol Type 2021-2026 6.10 AI-Powered Smart Buildings Market 2021-2026 6.11 Edge Computing Enabled Smart Buildings Market 2021-2026 6.12 3D Printing in Smart Buildings Market 2021-2026 6.13 5G in Smart Buildings 2021-2026 6.14 Smart Buildings Regional Market 2021-2026
