The global market for commercial intelligent building (IB) solutions has experienced double-digit growth in the past decade and is slated to keep growing through 2030, according to a new report from Guidehouse Insights.
IB solutions assist in remotely managing and controlling multiple building automation systems (BASs), such as HVAC controls, lighting controls, fire and life safety, security and access, and building management systems, so that they can operate as an integrated whole. The report says this integration produces operational efficiencies, helps better manage capital assets, and offers tools for building management. Furthermore, IB solutions assist in managing the tradeoffs associated with the competing priorities of operational efficiency, tenant comfort, and health and safety.
According to the report, IB solution revenue is anticipated to grow globally from $38.2 billion in 2021 to $127.9 billion by 2030 at a compound annual growth rate (CAGR) of 14.4%.
The report expects Asia Pacific, Europe, and North America to be the leading regions, as their economies are poised to support the trend toward greater building automation and the use of advanced data techniques. In North America, specifically, the revenue for IB solutions is expected to increase from nearly $11.4 billion in 2021 to $36.7 billion in 2030 at a CAGR of 13.9%
“The coronavirus pandemic could have slowed the adoption of IB solutions in 2020 and 2021. Several building segments faced dramatic decreases in use, including retail, transportation, and office space, while others, such as healthcare, faced exceptional demand,” says William Hughes, principal research analyst with Guidehouse Insights. “In practice, however, demand increased in all building types in all geographic regions and will likely continue to grow in double digits through 2030.”
Despite the many compelling reasons to adopt IB solutions, the report says there are also market barriers, including cybersecurity threats; the significant cost of hardware, software, and services; challenges when integrating multiple BASs; other building investment priorities; and new sensor requirements to ensure optimal performance.
More info on the report, Market Data: Intelligent Buildings, is available here.