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HomeNewsletterLatest NewsletterSmart building solutions market grows to $2 billion by 2026

Smart building solutions market grows to $2 billion by 2026

The next collection of “smart” building solutions is expected to increase at a 32 per cent compound annual growth rate (CAGR) during the next eight years, leading to $2 billion in software and services revenues by 2026, Smart Cities World’s Sue Weekes reports.

Global tech market advisory firm ABI Research stated the smart building market has started to grow and move away from traditional utilities and solutions like HVAC, lighting, access control and safety to more advanced needs.

Smart building solutions help improve building sustainability

Applications like space management, environmental monitoring, asset management and cleanliness and hygiene management are being made available as standalone solutions or to complement current building automation systems for better building sustainability, according to Smart Cities World. CRE owners, tenants and general contractors are focusing on these new sectors as their concerns, goals and data access increase.

For example, space management solutions are being built and designed with different sensors that include contact, motion and occupancy, according to Smart Buildings 2.0: Building Automation. Space management solutions are usually put into office buildings, but are now finding a home in bigger commercial buildings like stadiums and airports.

“Occupancy and motion sensors can be used to help improve the speed in which travelers can maneuver themselves through the airport,” ABI Research analyst Harriet Sumnall told Smart Cities World. “Real-time insights mean that managers can deploy staff as needed to relevant areas of the building.”

Meanwhile, environmental monitoring comprises sensors that track noise levels, air quality and natural lighting systems. These solutions provide real time insights into a building’s condition in specific areas. By monitoring rooms in real time, CRE owners can quickly make efforts to improve tenants’ wellness and comfort.

Healthcare is one of the industries that have found asset management solutions to be critical to their craft. Hospitals use asset management solutions to improve inventory management, decrease their operating costs and automate their clinical inventory processes, Weekes writes.

Traditional building management solutions look for a place in a “smart” building world

The traditional HVAC, lighting, access control and fire and life safety solutions work together in order to create the standard BMS (building management solutions) apps that market leaders offer. However, BMS vendors have company in this space now as the smart building market continues to evolve. Now consumable and construction material OEMs are adding supplemental Internet of Things (IoT) solutions, according to ABI.

“The more important competitive dynamic to recognize is that newer suppliers, most with wireless solution offerings, can more easily sell into the untapped market of older and smaller buildings,” Sumnall told Smart Cities World. “This won’t necessarily change the focus of the traditional BMS vendors. However, their competitiveness will be greatly diminished if their systems are not interoperable with solutions from these newer suppliers. In this more complex supplier market with more applications, interoperability will be what differentiates all market participants.”

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