The smart building tech sector is believed to explode with investments which will surpass $17 billion mark by 2019. One of the reasons cited for it is the desire of builders and owners to seek savings from decreased energy use and labor costs.
Other reason is the technology explosion, as smart buildings consist of many internet-connected devices that give building managers the ability to monitor and control different facets of their building. These devices include light bulbs, HVAC systems, locks, and more.
According to global research intelligence firm IDC’s new report
- Spending on smart buildings will increase from $7 billion in 2015 to $17.4 billion in 2019
- Asia/Pacific, North America, and Western Europe will lead smart building spending “due to a combination of policy and business dynamics.”
- Asia’s growth will be driven by emerging nations adopting the technology as they construct new buildings.
- North America’s smart building spending will be led by corporations trying to increase their efficiency.
- European growth will be spurred by the EU and local government regulation.
However, the report also claims that the spending will only account for a small share of the total addressable smart building market, meaning there will still be lots of buildings that do not upgrade to smart devices.
Although when the returns on investments are properly exhibited, 90% of major firms will invest in smart technologies to build.