Smart Building Market Insights, Potential Business Strategies, Mergers and Acquisitions, Revenue Analysis | Key Players are ABB, Cisco, Siemens, IBM, Schneider Electric, Honeywell, Johnson Controls
These services play a major role in goal specific approaches, testing and inspection of facility systems, preventive maintenance and emergency service, energy efficiency approaches, operations leveraging, mechanical services for heating, ventilation and air conditioning (HVAC), and pre-construction settings of smart buildings. On account of surging demand for such a varied portfolio of services, the segment is expected to witness a higher growth during the forecast period in the global smart buildings market.
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The building types for global smart building can be segmented into manufacturing facilities, residential buildings, commercial buildings, government and public infrastructure facilities, university, school and hospital buildings and others. Manufacturing facilities include factories, foundries, power plants, wineries, breweries, mills, and water towers. Residential buildings generally include bungalows, apartment blocks, flats, condominiums, dormitories, duplex houses, townhouses and villas.
Europe is expected to witness the largest demand for smart buildings in coming years. Rising government initiatives and support schemes for building smart and energy efficient infrastructure is the key reason behind the high growth rate of the smart building market in the region. The European Union had introduced Energy Performance of Buildings Directive (EPBD) and Energy Efficiency Directive (EED) in 2010 and 2012 respectively, for making mandatory changes to country level building codes. These laws were primarily made to reduce energy consumptions of buildings, promote the use of smart technologies in buildings, and for streamlining the existing regulations regarding these buildings.
The high initial investments required for constructing a smart building is the major factor restraining the growth of smart building market. However, by replacing the traditional energy transfer tools that provide AC power with Power over Ethernet (PoE), the cost factor can be improved. The installation of a PoE network port is cheaper than that of a conduit, wire, or a backbox for an AC outlet. For instance, few years ago, around $350 to $1,000 was the estimated amount saved per device by Purdue university, as it installed over a 1,100 PoE wireless access points instead of traditional AC outlets, across its campus.
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Smart Building Market Competitive Landscape
Some of the major players operating in the smart building market include IBM, ABB Group, Cisco Systems Inc., Siemens AG, Schneider Electric, Honeywell International Inc., Delta Controls, Johnson Controls, BuildingIQ, United Technologies Corporation, and Legrand.
The smart building market is highly fragmented, the number of players is large and the high demand for smart urbanized buildings is intensifying the competition among players.
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