IDC Energy Insights Expects Global Smart Building Technology Spend to Reach $21.9 Billion in 2017 | Be Korea-savvy

IDC Energy Insights Expects Global Smart Building Technology Spend to Reach $21.9 Billion in 2017

BedZED (Beddington Zero Energy Development), the UK's largest and first carbon-neutral eco-community: the distinctive roofscape with solar panels and passive ventilation chimneys (Wikipedia)

BedZED (Beddington Zero Energy Development), the UK’s largest and first carbon-neutral eco-community: the distinctive roofscape with solar panels and passive ventilation chimneys (Wikipedia)

FRAMINGHAM, Mass., Mar 21, 2014 (Korea Bizwire) – IDC  Energy Insights today announced the availability of a new report, Global  Smart Buildings Forecast 2013-2018 (Doc #EI247447). The new  report presents the state of the market, drivers for technology  adoption, and the business value generated by developing smart  buildings. In addition, IDC Energy Insights’ shares expectations for  growth in investment across smart building technology segments and  regions. Designed to help vendors better develop the value propositions  and case studies to further advance the market, the forecast projects  spending to grow from $7.3 billion in 2014 to $21.9 billion in 2018,  representing a 28.4% compound annual growth rate (CAGR).

After several years of slower-than-expected growth, the smart buildings  technology market is expected to grow rapidly as there is increasingly  broad market awareness of the business values generated by deploying  smart building solutions. Smart building technologies have matured to  enable facility optimization through the convergence of information  technology and building automation. Building owners and key decision  makers are increasingly aware of the business value of these solutions;  however, adoption of these technologies has been slow due to changes in  business processes required for deployment and utilization. A number of  recent case studies and demonstrations are helping educate the end-user  market around the business case and benefits associated with developing  smart buildings.

Key findings of the report include:

  • Different countries face very different drivers towards the expansion  of smart buildings, including owners and managers seeking to reduce  and control energy costs (U.S.) to governments driving environmental  and energy efficiency objectives (Germany) to meeting energy supply  challenges (Japan).
  • This global smart building technology spending forecast projects the  market to grow from $6.3 billion in 2013 to $21.9 billion in 2017.  Adoption rates are expected to vary by region, with the most  aggressive adoption in North America, Western Europe and Asia/Pacific  over the next five years.
  • Prior to 2013, the global smart building market grew more slowly than  expected due to externalities such as less expensive electricity in  several markets and a slow economic recovery leading to deferred  capital investments. In 2014 and over the next several years, adoption  is expected to recover as the economic recovery takes hold and as  energy costs remain a large and variable component of building  operation.
  • Despite the aggressive growth forecast for the smart buildings market,  adoption still represents a small share of the total addressable  market. The continued development of case studies and best practices  by early adopters will promote awareness and support longer-term  expectations for market expansion.
  • With many basic control and monitoring systems in place, a need is  developing for intelligent software and external services to help  analyze, interpret, and prioritize the data that is being collected.

In developing this forecast, several trends were identified. The first  is that vertical industry has a large impact on the rate of adoption of  smart building technologies. Buildings managed in the government or  healthcare verticals, for example, tend to be more mature in their  appreciation of the benefits of smart buildings, and more advanced in  their deployment. Secondly, investments over the past several years have  focused on HVAC systems. Customers are now beginning to expand their  evaluation to lighting, plug load, equipment maintenance, and other  issues.

“As businesses recover following the ‘great recession,’ building owners  continue to focus on managing their operational energy costs and risks.  Often, gathering building data is not the issue, rather combining,  interpreting, and prioritizing that data is becoming the key challenge.  Smart building solutions are valuable technologies for deploying energy  management strategies that generate operational efficiencies, cost  containment, and sustainability benefits that appeal to key stakeholders  across chain of command in building management,” said Jill  Feblowitz, Vice President, IDC Energy Insights.

This IDC Energy Insights forecast is bullish on the growth of the smart  building technology marketplace. Solution adoption may vary by region,  business segment, and solution type, but it is evident that demand is  growing at the global scale. As business owners see firsthand, the  business benefits associated with deploying the enabling technology  within the smart building ecosystem, IDC Energy Insights expects  continued strong expectations for these solutions in the years to come.

For additional information about this report or to arrange a one-on-one  briefing with Jill  Feblowitz, please contact Sarah Murray at 781-378-2674 or  Reports are available to qualified members of the media. For information  on purchasing reports, contact;  reporters should email

About IDC Energy Insights

IDC Energy Insights assists energy businesses and IT leaders, as well as  the suppliers who serve them, in making more effective technology  decisions by providing accurate, timely, and insightful fact-based  research and consulting services. Staffed by senior analysts with  decades of industry experience, our global research analyzes and advises  on business and technology issues facing the utility and oil and gas  industries. International Data Corporation (IDC)  is the premier global provider of market intelligence, advisory  services, and events for the information technology market. IDC is a  subsidiary of IDG,  the world’s leading technology, media, research, and events company. For  more information, please visit,  email, or call  508-935-4400. Visit the IDC Energy Insights Community at

Source: IDC Energy Insights

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