This growth of over 150% reflects increasing demand for energy efficiency from businesses and residents alike, as energy costs spike.
Juniper Research, which specialises in identifying and appraising high growth market sectors, released the prediction in its new research report, Smart Buildings: Key Opportunities, Competitor Leaderboard & Market Forecasts 2022-2026.
This detailed analysis offers a very optimistic vision of the evolution of the smart buildings market.
Juniper Research says it defines a smart building as one that uses connectivity to enable economical use of resources. It does so while creating a safe and comfortable environment for occupants.
The research found that by enabling buildings to monitor and automate common functions, significant efficiency gains can be made.
Demand for building analytics platforms
The report recommends that vendors focus on building analytics platforms for the most value to be driven from deployments.
Non-residential smart buildings are projected to account for 90% of smart building spend globally in 2026; at a similar level to 2022. This is due to the larger economies of scale in commercial premises driving this spend, as well as the commercial focus of most smart building technologies.
Research co-author Dawnetta Grant commented, “Smart building platform vendors will understandably focus on non-residential use cases, as these provide a stronger return on investment, but they should not neglect the importance of residential deployments, as environmental concerns intensify.”
Gavin Holvey, Priva’s UK & Ireland General Manager says Juniper’s report will be warmly welcomed across the Priva business. “I am not surprised that there is such a high level of demand for connected, intelligent buildings – although the numbers that Juniper have predicted are phenomenal, albeit on a global basis. To get there, much will need to be done – particularly in the UK – to address the skills gap in training more people to engineer and commission smart building technologies. We know that our colleagues at the BCIA are working hard to address this and many of our Priva Partners are working hard to train and recruit new talent. All in all, the future looks very bright indeed.”
Juniper says global shipments of sensors used in smart buildings will exceed 1 billion annually in 2026 from 360 million in 2022; a growth of 204%.
Sensors, when combined with intelligent management platforms, allow smart buildings to adapt to conditions. Elements such as lighting, heating and ventilation are thus matched to live requirements.
Juniper’s report recommends that smart building vendors partner with AI vendors to maximise the benefits of automation, including reduced energy costs and improved working environments.
Juniper’s paper is available online.
