This report is an assessment of the market for Internet of Things technologies, networks, and services in buildings to 2020. It details market size and discusses opportunities for smart commercial buildings. We project that the global market for the Internet of Things in Buildings
) will rise from $22.93Bn in 2014 to over $85Bn in 2020.
The Building Internet of Things
) is the overlaying of an IP network, connecting all the building services monitoring, analyzing and controlling without the intervention of humans. The value in BIoT is as much in the data as the devices. Collecting data from more building services and equipment will provide a much more granular view of exactly how each building is performing. Building equipment manufacturers must start selling systems that collect, store and analyze data in the cloud, so they can use it to provide better operational efficiency.
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- Market projections for the Internet of Things in Buildings
) including network hardware and data services.
- Understand the figures for the overall market for Systems in Buildings. Physical Security, Lighting Control and Fire Detection & Safety will represent the 3 largest segments by 2020.
- Analyze the current situation in buildings contrasted with the vision for a future BIoT; And discover how business models and market opportunities will shift as BIoT moves from vision to reality.
- What is driving M&A and Investment in this business? Discover the valuations paid for IoT & BIoT companies.
In order to calculate the technical market potential for the BIoT we assessed the additional cost requirement of adding connectivity through sensors to existing or newly installed building systems, as well as projecting the growth in related network hardware and IoT data services that the BIoT would enable to generate.
Our underlying market figures indicate that the overall market for systems in buildings will grow from $110.9Bn in 2014 to $181.1Bn in 2020, with Physical Security, Lighting Control and Fire Detection & Safety representing the 3 largest segments.
- Overall connectivity penetration rates across all building systems are at only around 16%. This connectivity penetration rate will rise steadily over the coming years, but mainstream penetration, i.e. 50% of all building systems devices connected, is unlikely to be achieved before 2025.
- The networking and related services segment of the market will show a steady growth of 22.6% CAGR rising from $9.53Bn in 2014 to $32.43Bn in 2020 which represents 37% of overall revenues by 2020. Similar to the market for connectivity hardware, effective network deployment to keep up with the rising bandwidth demands of the BIoT will be crucial to the effective delivery of services and the management of data flows.
- Over the course of the last 4 years we have tracked a total of 23 acquisitions in the BIoT sphere of influence, ranging in value from $3.7 million to over $3Bn.
- Since 2010, we have also tracked a total of 114 investment deals relating to the BIoT with funding rounds ranging in value from $1 million to over $126 million.
This report includes 31 Charts and Tables, and provides valuable information that can improve yout strategic planning and develop the potential for growing your business through merger, acquisition and alliance.
Why Should You Invest in this Report?
The information contained in this report will be of value to all those engaged in managing, operating and investing in Commercial Smart Buildings
(and their Advisers
). In particular those wishing to acquire, merge, sell, or find alliance partners will find it particularly useful.
Published: November 2014
ABB / ARM Holdings / Robert Bosch GmbH / Cisco Systems / Dell / Echelon Corp / Huawei / Honeywell / HP / IBM / General Electric / Google / Intel / Jasper Technologies / Johnson Controls / Juniper Networks / Microsoft / Oracle / Koninklijke Philips NV / PTC Inc / Qualcomm Inc / Samsung / SAP / Schneider Electric / Siemens AG / Texas Instruments / Tridium / Tyco International / Nest Labs / Dropcam / Enlighted / Neul / Ayla Networks / Redwood Systems / On-Ramp Wireless / Control4 / Estimote / eConais / SmartThings / Thingworx / Ubix Labs / Jasper Wireless / Spark Labs