Nov. 25, 2013: Smart Building Applications Revenue to Grow 150 Percent by 2017
A Key Driver for Making Buildings More Intelligent Is the Energy Efficiency Savings
LONDON — Annual expenditures on integrated smart building applications, as measured by equipment supplier revenues, are forecast to grow globally by 150 percent by 2017, according to a new report from IHS.
The global market for integrated equipment in buildings is forecast to grow at an average annual rate of 20.3 percent — from $12.6 billion in 2012 to $31.6 billion by 2017. As a proportion of overall building equipment investment, smart applications are forecast to increase from 8 percent to 14 percent over the same period.
For purposes of the report, smart building systems are defined as those in which the products are unified into a single system, combining and integrating different functions into one solution. Integrated building systems can include HVAC systems, energy management software and services, security systems, and lighting controls, among others.
“One of the key drivers for integrating systems and making buildings more intelligent is the energy efficiency savings that can be achieved,” said William Rhodes, senior market analyst, building technology, for IHS, and the author of the report entitled Opportunities in Smart Buildings. “While energy efficiency measures represent only one aspect of intelligent building design, their effectiveness is easily quantified and building owners can immediately see the return on their investment.”
The report groups smart building investments by their level of integration, Level One being the highest. This group — in which building systems are centrally managed to drive energy and operational efficiencies — represents the fastest-growing category of smart building investment, with global supplier revenues forecast to grow at an average annual rate of 55.6 percent over the forecast period.