Smart-building tech market set to triple

The market for smart-building technologies is expected to triple between now and 2018, according to a new report from IDC Energy Insights.

The “Global Smart Buildings Forecast 2013-2018” predicts that spending in the sector will grow from $7.3 billion in 2014 to $21.9 billion in 2018.

The predicted rapid expansion follows several years of slower-than-expected growth for the market, according to IDC.

“As businesses recover following the ‘Great Recession,’ building owners continue to focus on managing their operational energy costs and risks,” said Jill Feblowitz, vice president of IDC Energy Insights. “Often, gathering building data is not the issue, rather combining, interpreting, and prioritizing that data is becoming the key challenge. Smart building solutions are valuable technologies for deploying energy management strategies that generate operational efficiencies, cost containment, and sustainability benefits that appeal to key stakeholders across chain of command in building management.”

The report finds that drivers of investment will differ from country to country. In the US, for example, the smart-building market will be driven more by owners and managers looking to control and reduce their energy costs. In Japan, meanwhile, the main driver will be pressure to meet energy supply challenges.

The most aggressive adoption in the market over the next five years is expected in North America, Western Europe and the Asia-Pacific region.

The IDC report also identified several trends, including a greater maturity in smart-building technology adoption across the government and healthcare verticals. The report also noted that, while investment over the past several years has focused on HVAC systems, it is now expanding to include lighting, equipment maintenance and other issues.