Global revenue for IoT in buildings to top $4bn by 2027
November 13, 2018
Global revenue associated with IoT products and services for small and medium commercial buildings is expected to exceed $4bn in 2027, according to Navigant Research.
The report covers hardware, software and services.
While owners and occupants of small and medium-sized buildings have not been aggressive adopters of IoT technologies, signs of growth beyond the early adopters are emerging. As increasingly compelling IoT products and services come to market and strong use cases for small and medium-sized buildings become more apparent, market traction is increasing.
According to the report, global revenue associated with IoT for small and medium commercial buildings is expected to increase from $533.8m in 2018 to over $4bn in 2027 at a compound annual growth rate of 25.1%.
“Among the key market drivers are prices that continue to drop for IoT hardware and vendors that are willing to bundle solutions for use cases that provide benefits to the building owners and tenants,” said Neil Strother, principal research analyst with Navigant Research. “At the same time, prices for data processing and analytics related to IoT have dropped, creating further interest in this market segment.”
Other drivers of adoption include viable use cases for small and medium buildings, according to the report. For example, a well-designed IoT-enabled lighting or HVAC system can produce double-digit energy savings for a tenant or building owner. The payback might not be immediate, but over the course of a few months or a year, the savings can be apparent.
The report analyses the global market for IoT aimed at small and medium-sized buildings, including hardware, software and services. It examines the competitive landscape and use cases and provides case studies highlighting IoT for HVAC, lighting and security applications. Global market forecasts for revenue, segmented by offering type, building type and region, extend through 2027.
The study also examines the market issues, including key drivers and barriers for IoT in small and medium commercial buildings, as well as prevailing and emerging communications protocols for IoT systems.