Global Smart Commercial Buildings Internet of Things (IoT) Market Opportunities

The BIoT Market recovery through 2021 was healthy, growing 21% to rise above the 2019 market total, at just over $47 billion. A publisher forecasts that the market will continue to grow at a healthy 12% CAGR, rising from $47.07 billion in 2021 to a forecasted $92.88 billion by 2027.

There is an increasing industry push towards improving the value of data generated by the BIoT through improved systems integration, as opposed to limited siloed systems. To achieve this within buildings, a layered horizontal systems architecture is increasingly being advocated for, which is technology agnostic, by using open standards, open protocols, and non-proprietary solutions.

The BIoT digital divide. The pandemic has gone on to validate the BIoT investments of more forward-thinking building owners and operators. Effectively demonstrating the value of many previously existing BIoT solutions to deliver more resilient and efficient business operations. For example, remotely accessing building system networks and devices to monitor and configure performance during the pandemic proved challenging for those without the pre-requisite systems already in place. In many cases this led to energy being wasted on heating virtually empty buildings. Whilst office building occupancy dropped to near zero in some countries, energy use only fell by 10-15%.

The competitive landscape for BIoT remains incredibly complex and varied. The level of fragmentation the publisher continues to observe in the market can act as a source of confusion and frustration for buyers, with many vendors of point solutions and platforms vying for attention. Leading platform solution providers are beginning to emerge, however, and the user base seems likely to coalesce around a more limited number of platform providers, with those unable to maintain a sustainable user base being forced to merge or withdraw from the market.