Smart Building Technology Spending Forecast to Grow to $17.4 Billion in 2019, According to IDC Energy Insights
30 March 2015 - 11:30PM
Business Wire
Aggressive adoption in Asia/Pacific, North
America, and Western Europe
An increasing number of case studies are emerging to demonstrate
the business case and benefits associated with developing smart
buildings. According to a new IDC Energy Insights report, leading
organizations around the world are encouraged to evaluate their
current smart building status and to implement short to medium term
plans to capture those benefits. In fact, the new report, Business
Strategy: Global Smart Building Technology Spending 2015–2019
Forecast (Doc #EI254932), forecasts smart building technology
spending to grow from $6.3 billion in 2014 to $17.4 billion in
2019, registering a compound annual growth rate (CAGR) of 22.6%.
The most aggressive adoption will be in Asia/Pacific, North
America, and Western Europe.
- ClicktoTweet: #SmartBuilding
#Technology Spending Forecast to Grow to $17.4 billion in 2019
& registering 22.6% CAGR - @IDC Aggressive adoption
expected
After several years of slower-than-expected growth, the smart
building technology market is expected to grow rapidly as there is
increasingly broad market awareness of the business values
generated by deploying smart building solutions. Smart buildings
enable facility optimization through the convergence of information
technology and building automation. Building owners and key
decision makers are increasingly aware of the business value of
these solutions. In fact, the 2015 IDC MarketScape on Smart
Building solutions (forthcoming) shows that over 90% of firms will
increase their investment in smart building technologies once the
methodology for valuing those investments becomes more widely
accepted and standardized.
Key findings from the report include:
- Although the overall pace of adoption
is slightly lower than predicted last year, more competitive
pricing and technology advances will result in a higher level (and
more "smarter" buildings) in the years ahead.
- Despite the aggressive growth of the
smart buildings market (a global CAGR of 22.6%), adoption still
represents a small share of the total addressable market. The
continued development of case studies and best practices by early
adopters will promote awareness and support longer-term
expectations for market expansion.
- In 2015 and beyond, adoption is
anticipated to recover as the economic recovery takes hold and as
energy costs remain a large and variable component of building
operation.
The adoption of smart building solutions in North America,
Europe and Asia/Pacific is particularly positive due to a
combination of policy and business dynamics, which help drive
market awareness of the business value of these solutions and as a
result the market demand. There are also growing regulations at the
local, regional, and national levels driving awareness of the
benefits of energy efficiency and energy benchmarking. In addition,
a number of large corporations have made commitments to
sustainability and energy management. Smart building solutions are
attractive tools for energy management because they provide
visibility into system-wide operational and energy efficiency and
provide tools for analyzing, tracking, and communicating the impact
of energy-efficiency improvements.
In developing this forecast, several trends were identified. The
first is that vertical industries have a large impact on the rate
of adoption of smart building technologies. Buildings managed in
the government or healthcare verticals, for example, tend to be
more mature in their appreciation of the benefits of smart
buildings and more advanced in their deployment. Secondly,
investments over the past several years have focused on HVAC
systems. Customers are now beginning to expand their evaluation to
lighting, plug load, equipment maintenance, and other issues.
From a geographic perspective, North America will continue to
implement smart building technology driven largely by corporate
objectives of controlling and reducing energy costs. Many European
nations will continue to expand their investments in smart building
technology, driven by continued EU and local governmental
regulations. And within Asia/Pacific, China's rapid building boom
continues apace, resulting in new construction with many smart
building capabilities designed in from the beginning.
"While the 'Internet of Things' is a topic of much speculation
in the consumer market, smart building technology has steadily been
increasing its footprint and impact among commercial buildings.
Smart building solutions are valuable technologies for deploying
energy management strategies that generate operational
efficiencies, cost containment, and sustainability benefits that
appeal to key stakeholders in building management," said Jill
Feblowitz, Vice President, IDC Energy Insights.
For additional information about this report or to arrange a
one-on-one briefing with Jill Feblowitz, please contact Sarah
Murray at 781-378-2674 or sarah@attunecommunications.com. Reports
are available to qualified members of the media. For information on
purchasing reports, contact insights@idc.com; reporters should
email sarah@attunecommunications.com.
About IDC Energy InsightsIDC Energy Insights assists
energy businesses and IT leaders, as well as the suppliers who
serve them, in making more effective technology decisions by
providing accurate, timely, and insightful fact-based research and
consulting services. Staffed by senior analysts with decades of
industry experience, our global research analyzes and advises on
business and technology issues facing the utility and oil and gas
industries. International Data Corporation (IDC) is the premier
global provider of market intelligence, advisory services, and
events for the information technology market. IDC is a subsidiary
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company. For more information, please visit www.idc.com/energy,
email info@idc-ei.com, or call 508-935-4400. Visit the IDC Energy
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IDCHeather Hargraves, 508-935-4162Senior Marketing
Specialisthhargraves@idc.comorAttune CommunicationsSarah Murray,
781-378-2674Partnersarah@attunecommunications.com