NEW YORK, June 30, 2020 /PRNewswire/ -- Read the full report: https://www.reportlinker.com/p05917857/?utm_source=PRN
The global smart buildings (nonresidential buildings) market is expected to decline from $49.23 billion in 2019 and to $41.72 billion in 2020 at a compound annual growth rate (CAGR) of -15.26%. The decline is mainly due to the COVID-19 outbreak that has led to restrictive containment measures involving social distancing, remote working, and the closure of industries and other commercial activities. The entire supply chain has been disrupted, impacting the market negatively. The market is then expected to recover and reach $54.94 billion in 2023 at CAGR of 9.61%.
The smart buildings (nonresidential buildings) market consists of sales of smart buildings (nonresidential buildings) and related services. Smart buildings have automated processes and increase operational efficiency of a non-residential, commercial as well as industrial buildings. The smart building (nonresidential buildings) involves the use of sensors, actuators, microchips to automatically control the processes of the building such as heating, ventilation, air conditioning, lighting, security and other systems.
The use of 5G technology is the latest trend in the smart building (nonresidential) market. 5G technology is the upcoming cellular technology that reduces the time it takes for devices over wireless network to communicate with each other. 5G implementation in smart buildings will considerably enhance the usage of wireless edge devices providing rich multimedia experiences. 5G will also improve the security check applications for a commercial building. For smart hospital buildings, the use of 5G is estimated to improve the wayfinding that will enable smart wheelchairs and beds to move immobile patients. Following the trend in 2019, Ericsson, a Sweden-based networking and telecommunications company, announced investing $100 million to develop a smart factory in Texas implementing 5G technology by 2020. The factory is expected to manufacture advanced antenna system radios to enable rapid 5G deployments. The use of 5G technology is expected to improve the connectivity in smart buildings thus, forming a trend that is witnessing a huge capital investment by the major players in the smart building (nonresidential) market.
The smart buildings (nonresidential buildings) market covered in this report is segmented by automation type into intelligent security system; building energy management system; infrastructure management system; network management system. It is also segmented by application into government; airports; hospitals; institutes manufacturing & industrial facilities; others.
The risk of potential cyber-attack restricts the growth of the smart buildings (nonresidential) market. A smart building (nonresidential) uses a complex network of devices connected over internet that uses sensors and controllers used to control the elevators, ventilation systems, heating systems, lighting, water, video surveillance systems, alarms, and other critical functions. Thus, any security breach caused due to malicious cyber-attack affects the remote monitoring of temperature, system performance, and other variables of a smart building as a whole thus restraining the smart building (nonresidential) market. Any breach in cyber security of a smart office building may result in the exploitation of remote access privileges to gain access to the facility. For instance, in 2016, the cyber attackers used false emails to gain access to the software network of German steel mill and eventually destroyed the production management software destroying human machine interaction points, the blast furnace systems causing significant operational damage. Further, as reported by Kaspersky, in 2019, in Italy 48.5% of all smart buildings were affected by cyberattacks leading to the loss of control of the computers that control smart building automation systems. Thus, the growth of smart buildings (nonresidential) market is restricted by the risk of cyber causing operational damage.
In 2018, Panasonic, a Japan based electrical equipment company, entered into a definitive partnership with Schneider Electric for building energy management for commercial buildings. Through this partnership Panasonic's AC Smart Connectivity solution is integrated with Schneider Electric's EcoStruxture Building Solution and Intelligent Room Controllers to provide smart building solution. The new integrated solution optimizes the energy consumption thus reducing the operating costs for building operators. Schneider Electric is a multinational corporation that is based in France and provides electrical solutions globally.
The smart building (nonresidential) market is driven by the increasing demand to automate tasks by using IoT (Internet of Things) devices. IoT involves sending and receiving data by a network of sensors, appliances, meters and other devices in a smart building. The IoT enabled sensors and devices are used to increase the efficiency of the appliances in a smart building making it more efficient, sustainable, safer such as a few IoT enabled sensors are capable of automatically turning the lights on sensing the presence in a room thus adding a distinctive attribute to the smart building. Thus, the increased adoption of IoT technology boosts growth of the smart building market. For instance, in 2018, the IoT-based connected devices used in smart commercial buildings was an estimated of 151 million units. Thus, the increased use of IoT devices in smart building increases the growth of smart building (nonresidential) market.
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