Smart Building Technology Spending Reaches $17.4B in 2019
According to a new IDC Energy Insights report, “Business Strategy: Global Smart Building Technology Spending 2015–2019 Forecast,”* smart building technology spending will grow from $6.3 billion in 2014 to $17.4 billion in 2019, registering a compound annual growth rate of 22.6 percent. The most aggressive adoption will be in Asia/Pacific, North America, and Western Europe.
After several years of slower-than-expected growth, the smart building technology market is expected to grow rapidly as there is increasingly broad market awareness of the business value. Smart buildings enable facility optimization through the convergence of information technology and building automation.
In developing this forecast, several trends were identified. One trend is that vertical industries have a large impact on the rate of adoption of smart building technologies. Buildings managed in the government or healthcare verticals, for example, tend to be more mature in their appreciation of the benefits of smart buildings and more advanced in their deployment. Secondly, investments over the past several years have focused on HVAC systems. Customers are now beginning to expand their evaluation to lighting, plug load, equipment maintenance and other issues.
From a geographic perspective, North America will continue to implement smart building technology driven largely by corporate objectives of controlling and reducing energy costs. Many European nations will continue to expand their investments in smart building technology, driven by continued EU and local governmental regulations. And within Asia/Pacific, China’s rapid building boom continues apace, resulting in new construction with many smart building capabilities designed in from the beginning.
* (Doc #EI254932)
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