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 2015 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...
Strategic outsourcing delivers efficiency; Sleeve bearing clearance; Causes of water hammer; Improve air quality; Maintenance safety; GAMS preview
World-class maintenance: The three keys to success - Deploy people, process and technology; 2016 Lubrication Guide; Why hydraulic systems get hot
Your leaks start here: Take a disciplined approach with your hydraulic system; U.S. presence at Hannover Messe a rousing success
Flexible offshore fire protection; Big Data's impact on operations; Bridging the skills gap; Identifying security risks
The digital oilfield: Utilizing Big Data can yield big savings; Virtualization a real solution; Tracking SIS performance
Getting to the bottom of subsea repairs: Older pipelines need more attention, and operators need a repair strategy; OTC preview; Offshore production difficult - and crucial
Applying network redundancy; Overcoming loop tuning challenges; PID control and networks
Putting COPS into context; Designing medium-voltage electrical systems; Planning and designing resilient, efficient data centers; The nine steps of designing generator fuel systems
Package boilers; Natural gas infrared heating; Thermal treasure; Standby generation; Natural gas supports green efforts

Annual Salary Survey

Before the calendar turned, 2016 already had the makings of a pivotal year for manufacturing, and for the world.

There were the big events for the year, including the United States as Partner Country at Hannover Messe in April and the 2016 International Manufacturing Technology Show in Chicago in September. There's also the matter of the U.S. presidential elections in November, which promise to shape policy in manufacturing for years to come.

But the year started with global economic turmoil, as a slowdown in Chinese manufacturing triggered a worldwide stock hiccup that sent values plummeting. The continued plunge in world oil prices has resulted in a slowdown in exploration and, by extension, the manufacture of exploration equipment.

Read more: 2015 Salary Survey

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.
This article collection contains several articles on the vital role that compressed air plays in manufacturing plants.
This article collection contains several articles on the Industrial Internet of Things (IIoT) and how it is transforming manufacturing.
This article collection contains several articles on strategic maintenance and understanding all the parts of your plant.
click me