by Brianna Crandall — May 26, 2017 — The global homes and buildings industry is undergoing an intense evolution and accelerated growth, according to a recent report from global growth partnership company Frost & Sullivan. Transformational technologies such as Internet of Things (IoT), Big Data, data analytics, and the cloud are propelling double-digit growth and market expansion in connected homes and light-emitting diode (LED) lighting sectors. This is augmenting growth in the building automation market and playing an important role in the delivery of products and solutions in traditional sectors such as heating, ventilation and air-conditioning (HVAC), and fire and safety technology.
Global Homes and Buildings Industry Outlook, 2017, part of Frost & Sullivan’s Homes and Buildings Growth Partnership Service (GPS) program, finds that the industry is expected to reach $1,150.75 billion in 2017. The research provides a detailed analysis of growth opportunities, technologies, and transformation trends impacting the industry, and profiles innovative and emerging companies to watch in 2017.
Anirudh Bhaskaran, Energy and Environment senior research analyst, pointed out:
The integration of new technologies such as virtual voice assistants and IoT-enabled products will boost growth, spawn new revenue models and drive partnerships between connected home participants, device suppliers, utilities and technology giants such as Google, Amazon, and Apple.
Other developments driving accelerated growth include:
- Data analytics will penetrate beyond energy management in 2017, e.g. equipment management, people management and supply chain.
- The cloud’s full potential in energy management will be realized by developing a centralized data repository for customers to access the energy data for their connected buildings.
- Connected HVAC systems in the commercial segment will augment predictive maintenance and remote diagnostics capabilities in 2017.
- Germany, Australia, the United States, and Japan will collectively witness over 90 percent growth in photovoltaic (PV)-associated storage capacity additions in 2017.
- Solar PV, LED, and lithium-ion technologies will have a high impact on the industry in the near term, with facilities management (FM) contributing the most revenue to the industry.
- The residential energy storage market will witness significant growth in 2017, largely driven by international rollouts and government incentive schemes.
- The connected homes market will grow beyond $150 billion, with a revenue growth rate of 14.9 percent in 2017. Smart thermostats, Internet protocol cameras, smart door locks, and personalized mobile health services will see strong growth.
- The residential LED lighting market will witness a year-on-year growth rate of 16.7 percent in 2017, largely assisted by the rapid adoption of LED lamps in India, China, South Korea, and other Southeast Asian countries. IoT-enabled LED lighting will fast-track the growth of connected buildings and their services in 2017.
According to Anirudh:
The homes and buildings industry is crowded with both proprietary and open communication protocols, creating challenges related to interoperability and data security. The future industry is moving rapidly toward wireless communication protocols due to scalability and flexibility. To seize a significant growth opportunity, hardware manufacturers must develop products that are compatible with both wired and wireless protocol, while software manufacturers must develop vendor-agnostic, secured, open-source platforms that make all hardware work on a single platform, irrespective of the manufacturer.
The Global Homes and Buildings Industry Outlook, 2017 report is available for purchase from the Frost & Sullivan Web site. For complimentary access to more information on this analysis and to register for a Growth Strategy Dialogue, a free interactive briefing with Frost & Sullivan’s thought leaders, e-mail Anna Zanchi, Corporate Communications.