LONDON — Overall connectivity penetration rates across all building systems are currently only around 16 percent; this connectivity penetration rate will rise steadily over the coming years, and with it the market potential for the Building Internet of Things (BIoT), says Memoori in a new research report. The report projects that the global market for the BIoT will increase from approximately $23 billion in 2014 to over $85 billion in 2020.
The networking and related services segment of the market is expected to show a steady growth of 22.6 percent compound annual growth rate (CAGR) rising to approximately $32 billion in 2020, which will represent 37 percent of overall revenues by 2020. Effective network deployment, in order to keep up with the rising bandwidth demands of the BIoT, will be crucial to the efficient delivery of services and the management of data flows.
Underlying figures indicate that the overall market for systems in buildings will also grow from approximately $111 billion in 2014 to $181 billion in 2020, with physical security, lighting control, and fire detection and safety representing the three largest segments.
The value in the Internet of Things is as much in the data as the device, notes Memoori. Collecting data from more building services and equipment will provide a much more granular view of exactly how each building is performing. Building equipment manufacturers and providers must start selling systems that collect, store, and analyze data in the cloud, so they can use it to provide better operational efficiency for their clients.
For more information on the report, The Internet of Things in Smart Buildings 2014 to 2020, click here.
Publication date: 11/3/2014