The use of big data in smart commercial buildings across the world will experience robust growth, according to Memoori Business Intelligence, which estimates that the market will grow from US$15.6 billion in 2018 to US$35.8 billion in 2023, registering an 18% compound annual growth rate.
The use of big data in smart commercial buildings across the world will experience robust growth, according to
Memoori Business Intelligence, which estimates that the market will grow from US$15.6 billion in 2018 to US$35.8 billion in 2023, registering an 18% compound annual growth rate.
The growth slowed slightly compared with Memoori’s earlier estimate, on the back of steady market maturation, price competition and concerns over data privacy and security.
It is worth noting that security threats will increase in 2019. Memoor predicts that there will be more targeted attacks against vulnerable components of smart buildings in the year.
In terms of
using big data, application software currently represents the largest portion of sales in the market. End users are investing heavily into business intelligence tools, dashboards and other data visualization and reporting functionality.
Application software sales are expected to grow rapidly at a rate of 19.8% over the forecast period. This segment will make up 36% of the market share, with total sales reaching US$12.9 billion by 2023.
Commercial office as growth driver
“Growth in the commercial offices market is largely untapped so far,” Memoori says. The majority of big data investments by businesses focused on minimizing operational costs and energy expenditure.
In the foreseeable future, productivity and occupant experience related investments will drive market growth. In addition, significant market spending is projected in relation to a variety of
predictive analytics AI and machine learning initiatives.
By 2023, the commercial office's segment is expected to generate revenues of over US$15 billion, growing at a compound annual growth rate of 16.4%, from just over US$7 billion in 2018.
When it comes to user preferences, Memoori points out that “End users are predominantly interested in investing in comprehensive end-to-end solutions. They are seeking assurances that any investments made will deliver integrated, tried-and-tested solutions that work seamlessly together.”
This allows them to simplify the implementation process and avoid having to deal with multiple vendors, Memoori added.
Collaboration in the industry
Building IoT is also becoming increasingly complex for both vendors and end-users to navigate.
“Few (if any) organisations have the expertise in both IT and OT domains to thoroughly dominate the landscape, so it becomes important for vendors both new and old to carefully evaluate the markets in which they want to focus and establish partnering relationships in other areas of the supply chain to strengthen their market positioning,” Memoori says.
Partnerships will also be important at the platform level. The reason is that developers may piggyback on platform capabilities that enable data integration, device management and analytics. This way, developers can focus on creating compelling software offerings.
Few vendors to dominate
In 2019 a limited number of IoT vendors are likely to dominate the market, “allowing customers to select one and stick to it for any additional connected devices,” Memoori cited a statement from Ahmed Banafa, author of the book: Secure and Smart IoT Using Blockchain and AI.
Being able to integrate data sets from different vendors is critical. And this is something that vendors need to pay attention to.
As end-user expectations around data accessibility and data integration evolve, and more companies seek to integrate building system data into wider enterprise data platforms, established market players will need to move steadily away from their legacy market models.
Siloed systems and tools that require specific expertise to manage and operate are ill-suited to the evolving requirements of building IoT. Vendors will need to embrace open standards and improve their metadata management procedures to ensure data can be integrated more seamlessly.