European market is mature, and the growth will be realised due to the replacement of decades-old smart buildings systems
The global smart buildings market is forecast to grow at a compound annual growth rate (CAGR) of around 12 per cent through to 2021 as the demand to conserve energy intensifies, a new study indicates.
According to the Global Smart Buildings Market 2017-2021 report from Technavio, demand for efficient utilisation of energy and upcoming intelligent offices will increase smart building revenues over the next five years.
The market will be largely driven by the construction of new buildings across the regions (EMEA, APAC, and the Americas) which will largely focus on the maximum energy utilisation with the help of smart systems, the report states.
Smart building is the integration of building automation with analytical tools of all standalone systems to make the whole structure intelligent.
The market is segmented based on product, which includes BMS, HVAC, lightning control, security and access control, emergency alarm and evacuation system, and audio and visual effects.
“Major investments in real estate and infrastructure development with increasing awareness about sustainable utilisation of energy are major drivers of growing smart solutions in the [Americas],” said Raghav Bharadwaj Shivaswamy, a lead analyst at Technavio for research on automation.
“Increasing population and rapid economic growth will lead to heavy investments in automation of residential buildings to enhance the comfort and energy efficiency.”
The US and Canada are the major markets in the Americas. Rapid industrial and commercial growth in Brazil, Colombia, Mexico, and other countries are anticipated to deploy more smart solutions during the forecast period.
Europe accounts for the highest share in the smart buildings market, owing to the awareness among end-users to enhance energy efficiency, comfort, and operational capability of buildings.
The European market is mature, and the growth will be realised due to the replacement of decades-old smart buildings system, said Technavio. Germany, UK, France, Belgium, Denmark, Italy, and the Netherlands are the major markets in the region.
Meanwhile, APAC is identified as a rapidly growing region in terms of smart buildings due to increasing commercialisation and industrial development activities in growing economies countries such as India, China, Taiwan, South Korea, Singapore, and Australia.
Increasing awareness regarding smart solutions among end-users and respective governments efforts to curb the emissions and save energy are the major drivers in the region.
The commercial sector will show the maximum growth, especially hospitals, airports, and commercial offices. Growing economies countries are making heavy investments in infrastructure development to attract the business and foreign investments, which fuels the demand for smart solutions.
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