Smart buildings employ pervasive sensors, wireless connectivity, and the Internet of Things (IoT) technologies to communicate and analyze data. A combination of IoT solutions can control and optimize building management systems, automate security systems, lighting systems, HVAC (Heating, Ventilation, and Air Conditioning) systems, access control, and more.
Smart building solutions provide safety, comfort, greater efficiency, and cost savings that are aligned with the goals of property owners, managers, and tenants.
Smart building solutions increase the integrated safety, security, comfort, and convenience of living at home for young and old alike. According to a Honeywell study, people spend around 80% to 90% of their lives inside buildings.
As a place of work/residence/entertainment, a building primarily exists to service its occupants; in other words, commercial buildings must be secure, monitor intruders, provide safety measures, disaster response measures, and account for the health and safety of workers/occupants. Therefore, buildings must account for the safety of the people, vehicles, and materials inside them, and this can be achieved with the adoption of smart building solutions. Smart building solutions can help older people live independently in their homes for longer. Automation makes everyday life easier while reliable alarm systems provide round-the-clock security.
Additionally, Johnson Controls conducted the Energy Efficiency Indicator (EEI) survey in 2018, which examined current and planned investments in the smart building market. According to the survey, investments in global building system integration increased by 23% in 2019, as compared to 2018, and fire and life safety integration (61%), and security system integration (58%) were the top two priorities for organizations. Further, companies such as ABB, Honeywell, and Johnson Controls offer high-performance building safety and security components that integrate into today’s intelligent buildings.
Energy-as-a-Service is the next logical step in the power and smart building industry. Several different technologies available today can reinforce grids and improve smart buildings with IoT becoming prevalent in the smart building market.
With the help of cloud computing and sensors, Energy-as-a-Service will provide optimization methods for more efficient energy consumption, better fault detection and diagnosis, and better feasibility for building energy management systems in smart buildings.
The increasing adoption of smart buildings has raised concerns over data and information security, like data sharing. Smart building data will be valuable to suppliers and other parties and, keeping this information secure is imperative. Without proper governance, which can manage and oversee security, smart buildings may become vulnerable.
Another security issue that building owners often worry about is the security of Internet-connected management devices; as buildings become more interconnected, the number of security breaches is bound to increase. Therefore, IT and smart building industries must create strategies to mitigate cybersecurity-related and other information threats.
The pandemic had caused a lockdown in almost all the countries across the world backed up by strict government regulations such as social distancing and quarantine. A severe effect of the lockdown was observed on the economy of various countries which further canceled certain construction projects temporarily or permanently.
Further, immediate long-term effects were seen in the supply chain and the deployment of smart solutions required in the smart buildings. However, the ease offered and the multiple benefits of the smart building solutions are anticipated to increase the deployments during the time.
The hardware segment caters to the maximum share followed by the software segment. Smart building solutions comprise various types of hardware, including home appliances, lighting, safety/security, energy, and HVAC systems. Each piece of hardware is made smarter with the integration of new technologies and thus, provides an entirely new dimension in services. There are three main hardware components in a smart building system:
Innovation in various technologies drives the growth of the smart building market. The introduction of LED technology has brought about an enormous transformation in the area of lighting hardware. Many light sensors can adapt the brightness of indoor lighting to the amount of available ambient light (Daylight connection).
Occupancy sensors make it possible to automatically turn off lamps that are not in use. Innovative features and user interfaces that support internet connectivity and remote access through mobile apps drive the adoption of smart HVAC devices.
Smart building solutions enhance energy efficiency and improve overall building operations, translating cost savings for organizations, offices, hotels, and public buildings. Thus, the transition to smart building solutions is vital to the growth of organizations.
The commercial buildings, including large office buildings, commercial parks, malls, shopping stores, hotels, restaurants, and other non-manufacturing commercial buildings that involve the use of automated technology, hold a significant share in the global smart building market. Further, Schneider Electric’s EcoStruxure™ Building platform offers smart building solutions for hotels, offices, and healthcare institutions.
Apart from this, several commercial buildings in the country have adopted building automation systems and energy management systems offered by Cisco and Honeywell. Among all commercial buildings, hotel buildings are expected to drive significant growth in the intelligent building market, wherein climate control, room access, and other features improve the guest experience.
The Building Energy Management System segment caters to the maximum share followed by the communication and Network management segment. A Building Energy Management System (BEMS) monitors and controls a building's energy needs.It is more advanced than a general energy management system and controls a large variety of other aspects such as ventilation, heating, air conditioning (HVAC), lighting, and security in residential as well as commercial buildings.
The technology can locate potential hazards within the workplace, notify emergency response teams, and inform personnel about the potential danger. Many buildings in Europe and around the globe are equipped with Building Energy Management Systems (BEMS) to intelligently regulate energy use.
Currently, BEMSs are being replaced with Building Management Systems (BMSs), which are not restricted to energy management, and encompass all computer-based control systems including lighting, elevator, and security systems) worldwide.
North America's smart building market size is on the rise, owing to the technological advancements in the region. The tech-savvy population in the region, coupled with high consumer spending, contributes to market growth. The populace is foreseen to be the early adopters of technology. Moreover, they seek convenience, safety, and seamless control while choosing a building for residential or commercial purposes.
Furthermore, as stated in the report published by CompTIA Properties, LLC entitled 'IT Industry Outlook,' the U.S. technology industry by the end of 2020, will reach approximately USD 1.7 trillion. The Associated General Contractors of America (AGC) states that the U.S. Government creates a structure worth approximately 1.3 trillion every year. Thus, the rising investments in the construction sector have bolstered the growth of the smart buildings market.