Overview: Collectively speaking, residential dwellings, offices, educational campuses, indoor recreation and public service facilities are where people in the developed world spend up to 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 well-being of occupants.
The smart buildings market consists of warehouses, factories, office buildings and other enterprise, 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 analyst 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 75% 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 85% of legacy buildings in developed economies have issues that will require substantial retrofitting. The analyst 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. Almost Analytics Solutions are good at looking for patterns and unstructured data, supplementing them with AI can provide 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.
The analyst sees current IoT systems in support of smart buildings as largely deterministic in nature, relying upon autonomic systems making decisions based on predetermined rules that take action based upon the occurrence of specific events. The Artificial Intelligence of Things (AIoT) will become increasingly important as the AIoT market evolves to allow IoT networks and systems to become more cognitive. The emerging AIoT market will enable systems to become increasingly more cognitive, making decisions based on context and experience.
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 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 47% of global resources to be consumed by residential and commercial buildings by 2027. Of this amount, over 65% of global energy (mostly electricity, but also natural gas and fuel oil) will be used by enterprise and industrial facilities along with over 30% 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.
As asset tracking is increasingly becoming an important aspect of overall enterprise and industrial operations, the smart building market is viewed as the focal point for a variety of corporate capital infrastructure governance, including monitoring, traceability, and accountability for custody of care, utilization, and performance. Accordingly, there is an emerging market opportunity for integration of asset tracking solutions with IWMS and other building related systems.
As companies begin to open up operations in the wake of the COVID-19 pandemic, building operation managers will be tasked with identifying the most efficient and effective means of determining if personnel should be allowed in offices and other places of work. In addition, ongoing monitoring will be required to determine if someone has potentially become ill. Accordingly, many of the smart building systems put in place to monitor workspace utilization will be augmented and expanded to include thermal imaging and other tools to help in this regard.
Smart Building Market Report 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 2020 – 2025. The report includes 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.
Target Audience: • IoT companies • Smart building companies • Broadband service providers • Telecom infrastructure suppliers • Communications component providers • Cloud services and data center companies • Smartgrid and energy management companies • Local, State, and Federal government organizations
Report Benefits: • Smart buildings market sizing from 2020 to 2025 • Market sizing for edge computing in smart buildings market • Identify smart buildings market challenges and opportunities • Understand the smart buildings marketplace including players and solutions • Identify how key technologies such as AI and IoT support intelligent structures • Identify how integrated workplace management systems support smart buildings
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
Companies in Report: • ABB Group • Abundant Power • Accenture PLC • Aeon Labs LLC • Affinegy, Inc • Affinity Automation, LLC • American Auto-Matrix • American Digitals • American Energy Management • AMMAMSIC Technology Corp • Analytikia • Appin Associates • Assodomotica • Athena Engineering, Inc • Automated Control Inc. • Azbil • Be Home247 • Belimo • Brandt Automation, Inc • Building IQ • Building Robotics • Cadillac Fairview • Central Coast Environmental Controls • Cisco Systems Inc. • Copper Tree Analytics • Crestron • CSR • Current Analytics, Inc. • Cylon • Delta Controls • Distech Controls • E.M.S. Technologies • Eagle Energy, Inc • EATON • Ecova • EFT Energy • Elemco Building Controls • Energent • Energy ETC, Inc. • EnergyCAP • EnerNOC • Enovity, Inc. • eSight Energy • Frazier Service Co. • General Electric • Genesis Automation • GridPoint • Hawkeye Energy Solutions • Hitachi • HomeLink Technologies • Honda Smart Home • Honeywell International Inc. • Horizon Controls • HTNG • Hubbell Building Automation • IBI group • IBM Corporation • Ingersoll Rand • Ingersoll-Rand Inc. • Inncom • Intellastar • Inter Logix • Intermatic • J2 Innovations • Johnson Controls • KMC Controls • Legrand • Lon Mark International • LowV Systems, Inc. • Lynx Spring • Near Future, LLC • Network and Automation Systems • NEXIA • NexTek Power Systems • OME • Phoenix Energy Technologies • Priva • Progressive Engineering & Design • Ramco Electrical Contracting Corp. • RBH Access Technologies, Inc. • Reliable Controls • Sawyers Control Systems, Inc. • Schneider Electric • Shenitech • Siemens AG • Smardt • Somfy • Sullivan & McLaughlin Companies, Inc. • Surveillance Grid Company • Switch Automation • Synergetic Systems • Syska Hennessy • TA Canada (Convergint0 • Taco Comfort • TE connectivity • TerraBridge Innovations in Technology, Inc. • Thermo-Trol Systems, Inc. • Trane • Trend Controls • Tridium • Unilectric • United Technologies • Vantage • Verdigris Technologies Inc. • Viconics • Vykon • Wind River • XanTech
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