Upgrading a Building’s Intelligence

A smart building integrates standalone automated systems with additional support features such as cloud integration. An individual automated system generates information via smart sensors and actuators and integrates the processed information with building-management control system. Contractors will need to understand how this market is changing in order to build connected structures.

The latest trend gaining momentum is the growing concept of building the Internet of Things. The global smart buildings market is set to rise 11.67 percent during the next five years.

One of the major drivers for this market is increasing demands to conserve energy. According to U.S. Energy Information Administration, energy consumed by the building sector, which comprises residential and commercial buildings, accounts for around 20 percent of the total energy consumption and is expected to increase at an average of around 1.5 percent from 2012 to 2040. Non-Organization for Economic Cooperation and Development (OECD) countries will account for double growth compared to OECD nations. More disposable income and modernization are adding to the increasing consumption of energy.

A major road block hindering the growth of this market is the interoperability challenge. The upgrade of building automation to the smart building is the biggest challenge for the smart building industry. Most building-management systems have been deployed a decade ago and are not compatible to be upgraded with new tools. They need to be replaced, which increases the cost of implementation of smart systems and deters the adoption of smart buildings in old structures.

Still, the demand for smart buildings will only increase and the contractors who are prepared to deliver these solutions will have the advantage in getting the work.

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