Rising government initiatives, growing energy concerns, consumer demand, and various environmental, social, and governance (ESG) factors are driving the growth of the smart buildings market, which is expected to grow at a CAGR of ( CAGR) will exceed 23%.

What is a smart building?

Smart building solutions are part of a growing ecosystem of Internet of Things (IoT) and connected sensors. Smart buildings use connected technologies to reduce costs and make buildings more efficient, sustainable and safe. It does this by automating the processes that control building infrastructure, security systems, lighting, heating, air conditioning systems, occupancy, ventilation, and more.

From smart hospitals to office buildings, recreational facilities, educational institutions, residences and more, smart buildings around the world are leveraging actionable data from local devices, sensors, services and systems.

Why does the world need smart buildings?

One of the main reasons smart buildings are in the spotlight is their ability to achieve net-zero carbon reduction targets, save energy and increase energy efficiency. Therefore, smart buildings are expected to play an important role in addressing climate change goals.

Energy costs are rapidly increasing around the world, and environmental concerns are high on the agenda. Governments, the private sector, NGOs and civil society are exerting increasing pressure to implement energy-efficient and carbon-reducing solutions. As the need for energy efficiency becomes more important, the demand for smart buildings is also increasing.

Smart Building Solutions

Smart building technologies such as artificial intelligence (AI), Internet of Things, big data, and blockchain connect buildings, transportation, and infrastructure. This creates a new connected ecosystem that minimizes energy waste, utilizes more renewable energy and reduces carbon emissions.

In addition to improving energy efficiency and sustainability, smart building systems can automate the way buildings are managed and controlled. This automation allows for more efficient allocation of human resources and the collection of higher quality and quantity data. Investors, property owners, property managers and developers can use this data to implement value-added improvements.

Smart systems also help increase the productivity of building occupants, improving and monitoring air quality, lighting, thermal comfort, personal safety and hygiene.

The result is minimized overhead, less environmental impact, and happier and more productive occupants.

Key Smart Building Market Trends to 2022

While smart applications in buildings have existed for decades, the future lies in comprehensive bi-directional connectivity across applications and data. This will transform the building into an efficient and dynamic high-performance facility.

smart is worth it

Adoption of smart building technologies is rapidly becoming a business imperative. An article from the MIT Center for Real Estate projects that buyers and tenants will pay an 8.2 percent premium for rent and a 23.7 percent premium for smart buildings with personalized living experiences. Commercial landlords are under pressure from investors to get the higher rents that net-zero properties can get.

Compliance

Governments across the globe are taking steps to strengthen sustainability and energy efficiency regulations. These supporting industry standards and regulations are creating more opportunities in the smart buildings market. ESG pressures are also driving property owners to invest in getting their properties certified.

Smart City

Along with the growth of stand-alone smart buildings, the demand for smart cities increases as governments start to realize the benefits of integrating IoT. The development of more smart buildings is a natural by-product of adding smart infrastructure to cities.

Internet collaboration

Many people have been forced to work from home during the COVID-19 pandemic. This creates a new office environment culture. Now, managers need to focus on how to use connected technology to communicate and enable employees to operate in a hybrid environment.

Considering these factors, there is no doubt that the only future is a smart future. To help with the transition to smarter building solutions, it makes sense to work with a smart technology partner who can guide you in becoming a facility for the future.