Report: Supplier revenues for smart building applications to grow 150%

Annual expenditures of integrated smart building applications, as measured by equipment supplier revenues, will grow globally by 150% by 2017, according to a new report released by IHS.

01/07/2014



Annual expenditures of integrated “smart” building applications, as measured by equipment supplier revenues, will grow globally by 150% by 2017, according to a new report released by IHS.

The global market for integrated equipment in buildings is forecast to grow at an average annual rate of 20.3%—from $12.6 billion in 2012 to $31.6 billion by 2017. As a proportion of overall building equipment investment, smart applications are forecast to increase from 8% to 14% over the same period.

For purposes of the report, smart building systems are deemed to be those in which the products are unified into a single system, combining and integrating different functions into one solution. Building systems integrated together can include energy management software and services, door automation equipment, intruder alarms, lighting controls, and HVAC systems, among others.

“One of the key drivers for integrating systems and making buildings more intelligent is the energy efficiency savings that can be achieved,” said William Rhodes, senior market analyst, building technology, for IHS, and the author of the report entitled “Opportunities in Smart Buildings.” “While energy efficiency measures represent only one aspect of intelligent building design, their effectiveness is easily quantified and building owners can immediately see the return on their investment.”

The report groups smart building investments by their level of integration, Level One being the highest. This group—in which building systems are centrally managed to drive energy and operational efficiencies—represents the fastest-growing category of smart building investment, with global supplier revenues forecast to grow at an average annual rate of 55.6% over the forecast period.

By geographic region, Asia is forecast to have the highest growth rate in supplier revenues on integrated building applications, increasing from $4 billion in 2012 to $15.7 billion in 2017. The North American market will see the second-fastest growth rate, with revenues increasing from $4.7 billion to $8.9 billion.

Currently, while the majority of new equipment installed in buildings remains stand-alone—non-integrated—systems, most large, newly constructed or refurbished buildings have at least a basic level of integration—and that level of integration is expected to increase. Economies of scale apply to larger buildings that create faster payback on investment than in smaller and medium-sized buildings.



No comments
The Top Plant program honors outstanding manufacturing facilities in North America. View the 2013 Top Plant.
The Product of the Year program recognizes products newly released in the manufacturing industries.
The Engineering Leaders Under 40 program identifies and gives recognition to young engineers who...
The true cost of lubrication: Three keys to consider when evaluating oils; Plant Engineering Lubrication Guide; 11 ways to protect bearing assets; Is lubrication part of your KPIs?
Contract maintenance: 5 ways to keep things humming while keeping an eye on costs; Pneumatic systems; Energy monitoring; The sixth 'S' is safety
Transport your data: Supply chain information critical to operational excellence; High-voltage faults; Portable cooling; Safety automation isn't automatic
Case Study Database

Case Study Database

Get more exposure for your case study by uploading it to the Plant Engineering case study database, where end-users can identify relevant solutions and explore what the experts are doing to effectively implement a variety of technology and productivity related projects.

These case studies provide examples of how knowledgeable solution providers have used technology, processes and people to create effective and successful implementations in real-world situations. Case studies can be completed by filling out a simple online form where you can outline the project title, abstract, and full story in 1500 words or less; upload photos, videos and a logo.

Click here to visit the Case Study Database and upload your case study.

Maintaining low data center PUE; Using eco mode in UPS systems; Commissioning electrical and power systems; Exploring dc power distribution alternatives
Synchronizing industrial Ethernet networks; Selecting protocol conversion gateways; Integrating HMIs with PLCs and PACs
Why manufacturers need to see energy in a different light: Current approaches to energy management yield quick savings, but leave plant managers searching for ways of improving on those early gains.

Annual Salary Survey

Participate in the 2013 Salary Survey

In a year when manufacturing continued to lead the economic rebound, it makes sense that plant manager bonuses rebounded. Plant Engineering’s annual Salary Survey shows both wages and bonuses rose in 2012 after a retreat the year before.

Average salary across all job titles for plant floor management rose 3.5% to $95,446, and bonus compensation jumped to $15,162, a 4.2% increase from the 2010 level and double the 2011 total, which showed a sharp drop in bonus.

2012 Salary Survey Analysis

2012 Salary Survey Results

Maintenance and reliability tips and best practices from the maintenance and reliability coaches at Allied Reliability Group.
The One Voice for Manufacturing blog reports on federal public policy issues impacting the manufacturing sector. One Voice is a joint effort by the National Tooling and Machining...
The Society for Maintenance and Reliability Professionals an organization devoted...
Join this ongoing discussion of machine guarding topics, including solutions assessments, regulatory compliance, gap analysis...
IMS Research, recently acquired by IHS Inc., is a leading independent supplier of market research and consultancy to the global electronics industry.
Maintenance is not optional in manufacturing. It’s a profit center, driving productivity and uptime while reducing overall repair costs.
The Lachance on CMMS blog is about current maintenance topics. Blogger Paul Lachance is president and chief technology officer for Smartware Group.