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Our Connected Future: The Smart Building Market and Forecast
2022-05-17
What is a smart building?
Smart building solutions are part of the evolving Internet of Things (IoT) and interconnected sensor ecosystem. Smart buildings leverage connected technologies to reduce costs and make buildings more efficient, sustainable, and secure. This is achieved by automating processes that govern the operation of building infrastructure, security systems, lighting, heating, air conditioning, occupancy detection, ventilation, and more.
From smart hospitals to office buildings, entertainment facilities, educational institutions, residential homes, and more, smart buildings around the world are leveraging actionable data obtained from local devices, sensors, services, and systems.
Why does the world need smart buildings?
One of the main reasons smart buildings are coming into the spotlight is their ability to achieve net-zero carbon emission targets, conserve energy, and improve energy efficiency. As such, smart buildings are poised to play a crucial role in meeting climate change goals.
Energy costs are rising rapidly around the world, and environmental issues have been placed squarely on the agenda. Governments, the private sector, non-governmental organizations, and civil society are all putting increasing pressure to implement energy-saving and carbon-reduction solutions. As the demand for energy efficiency becomes ever more critical, so too does the demand for smart buildings.
Smart Building Solutions
Smart building technologies such as artificial intelligence (AI), the Internet of Things, big data, and blockchain are connecting buildings, transportation systems, and infrastructure. This is creating a new interconnected ecosystem that can minimize energy waste, harness more renewable energy sources, and reduce carbon emissions.
In addition to enhancing energy efficiency and sustainability, smart building systems can also automate the way buildings are managed and controlled. This automation enables more efficient allocation of human resources and allows for the collection of higher-quality and greater quantities of data. Investors, property owners, real estate managers, and developers can leverage this data to implement value-added improvements.
Smart systems also help enhance the productivity of building occupants by improving and monitoring air quality, lighting, thermal comfort, personal safety, and hygiene.
The result is minimized management costs, reduced environmental impact, and happier, more productive residents.
2022 Key Smart Building Market Trends
Although smart applications in buildings have been around for decades, the future lies in establishing comprehensive, two-way connections across applications and data. This will transform buildings into efficient, dynamic, and high-performance facilities.
Smart is worth it.
Adopting smart building technologies is rapidly becoming a business imperative. According to an article by the MIT Real Estate Center, buyers and tenants are expected to pay an 8.2% premium in rent for smart buildings that offer personalized living experiences, while the premium could rise to as much as 23.7% for such buildings. Commercial property owners are facing pressure from investors to secure higher rents—rents that can only be achieved by net-zero properties.
Compliance
Governments around the world are taking measures to strengthen regulations on sustainability and energy efficiency. These supportive industry standards and regulations are creating more opportunities for the smart building market. ESG pressures are also prompting property owners to invest in obtaining certifications for their properties.
Smart city
As independent smart buildings continue to grow and governments begin to recognize the benefits of IoT integration, the demand for smart cities is also on the rise. The proliferation of more smart buildings is a natural byproduct of integrating smart infrastructure into cities.
Interconnected Collaboration
During the COVID-19 pandemic, many people were forced to work from home. This has given rise to a new office environment culture. Now, managers need to focus on how to leverage connected technologies for communication and enable employees to thrive in hybrid work environments.
Taking these factors into account, there is no doubt that the only future is a smart one. To facilitate the transition to smarter building solutions, it makes sense to collaborate with smart technology partners who can guide you toward creating facilities that are well-suited for the future.
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