Source: Eifeh Strom | Original Article
There is no denying buildings are getting smarter. By 2022 the global smart building market is expected to reach US$31.7 billion, at a compound annual growth rate (CAGR) of 33.7 percent from 2017 to 2022, according to a report by MarketsandMarkets. A growing demand for integrated security and safety systems, along with increasing government initiatives for smart building projects are among those driving market growth.
The smart cities market is also growing rapidly, and smart buildings are playing an integral role. In fact, smart buildings will make up 7 percent of the total global smart city market in 2025, according to Frost & Sullivan. Furthermore, with several research firms expecting the global smart cities market to surpass $1 trillion in the next few years, the opportunity for growth is exponential.
Smart City Initiatives Boosting Adoption
As more and more governments around the world strive to make their cities smart, buildings are looking for ways to increase operational and financial efficiency to keep up with the smart trend. According to MarketsandMarkets, increased initiatives to build smart and intelligent structures by European governments is why the region is expected to account for the largest market share during the period 2017 to 2022.
Terrence McManus, VP of Business Development at BuildingIQ argued the adoption of smart building technologies should be supported and driven by infrastructure-based utilities, cities, governments and building owners, in support of climate change initiatives. “This adoption effort should be led by cities (i.e., those closest to the buildings) to provide macro guidance for all buildings within a city, and the governments to provide interstate/territorial collaboration."
Building codes and regulations are also driving smart building adoption. In the area of safety, energy management and sustainability, codes and regulations over the last 20 to 30 years have been increasing for the benefit of building occupants, owners and the community at large. These codes and regulations also improve the building facility to promote health and well-being in the workplace.