INDUSTRY DATA Buildings are smartening up


The global smart building market is set to grow massively over the next few years, with parking management, water management and elevator management systems joining the more traditional services. Steve Montgomery reports


MORE TECHNOLOGY is currently being installed to manage and control the internal infrastructure of buildings than ever before and that trend is set to rise dramatically. A new report by Markets and Markets investigates and analyses emerging technologies across the range of different systems and sub-systems that contribute to the total smart building concept. Buildings today include a number of separate systems that are often operated individually. To optimise the whole building system and maximise the advantage from real-time systems there is a need for a single platform to manage all these together. The smart building concept refers to the integration of all these systems to maximise the efficiency of all components of the building. Through integration, owners benefit from reduced maintenance and operating costs, occupants enjoy a more comfortable and efficient environment while the


expected to increase massively from $2.6 billion in 2013 to $13.6 billion in 2018. The demand for smart building is very high across the globe. Europe has the largest share of revenue in the smart building market, followed by North America but in the near future the growth rate is expected to be higher from the APAC region. This enormous revenue potential has attracted major companies such as Siemens, IBM, Schneider Electric, Cisco and Accenture to provide sophisticated smart building solutions. Currently, the main challenge to the industry is the high initial capital cost, although this is offset by later savings through energy efficiency and reduced operational costs. HVAC services have been


managed and controlled by smart systems for several years as the primary element of energy management of buildings. Smart buildings will further envelop other essential areas such as


$13.6 million Predicted market value in 2018


environment itself benefits from reduced CO2 emissions and energy consumption. Smart building technologies improve the lifespan of a building by identifying problems immediately or before they occur, enabling corrective measures to be taken.


GROWTH SEGMENTS This report considers the established building automation systems of heating, ventilation and air- conditioning (HVAC), energy management, lighting and physical security as well as the expected growth segments of parking management, water management and elevator management systems. Each of these systems is forecast to rise individually in value with compound annual growth rates (CAGR) of 34% to 45% over the five years to 2018. Collectively, the market is


14 March 2014


physical security, lighting controls and building communication and will evolve to take into consideration less well-established areas as well such as parking management systems, escalators and elevator control. The value of network equipment within buildings is also set to continue increasing; rising at a rate of around 22% to 29% per year across the three transmission technologies: bus, wireless and Powerline. Smart building technology


has reached the next level and utilises Cloud networking, where automation and control data is analysed remotely and subsequent action is taken for better energy management. This is creating further potential for the supply of external management and consultancy services. 


www.marketsandmarkets.com SMART BUILDING TECHNOLOGY SEGMENT REVENUES, $M


$ million Physical Security


2013 2014* 2015* 680 915 1,244 396 551 809


2016* 1,713 1,218 Plumbing and Water Management


249 355 508 729 264 381 552 801


2017* 2018* CAGR (2013 - 18)


2,357


1,799 1,054 1,165


3,241


2,591 1,530 1,694


36.7%


Building Energy Management (BEMS) 911 1,244 1,695 2,286 3,012 3,953 34.1% Building Communication Parking Management


Elevators and Escalators Management 112 159 230 332 Total


Source: Markets and Markets ( * = forecast)


SMART BUILDING-NETWORKING TECHNOLOGIES MARKET, $M


474 669 2,611 3,606 5,038 7,079 9,862


45.6% 43.8% 45.0% 43.0%


13,677 39.3%


SUB-SEGMENT Bus Technology


Powerline Technology Wireless Technology Total


2013 2014*


495 625 533 638 581 740 1,608 2,003


Source: Markets and Markets (* = forecast) www.installation-international.com


2015*


803 777 963


2,542


2016*


1,038 956


1,238 3,232


2017*


1,347 1,167 1,567 4,080


2018*


1,736 1,420 1,974


CAGR


(2013 - 18) 28.6% 21.7% 27.7%


5,130 26.1%


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