International. Navigant Research projects that revenues for energy management systems will grow by $10.8 billion in 2024 after $2.4 billion in 2015.
Another research firm, Memoori, estimates that cumulative funding for startups specializing in smart building technologies reached $3.9 billion in the period from 2008 to 2016, with nearly 250 companies focused on this segment.
Memoori also estimates that the Internet of Things in commercial buildings — which includes hardware, software and services — will grow at a combined annual growth rate of 20 percent from 2015 to 2021.
Here are three trends on the future of connected buildings:
No. 1: The early stages begin to build momentum
However, these setbacks may have been an adjustment rather than a sign that the demand for smart building software is declining. There are positive signs that smart buildings will have smart value in 2017.
First, fundraising has recovered. Financing is more readily available to companies that have shown initial success in the market.
No. 2: Alliances become more strategic
Small and large businesses also seem to be more comfortable partnering with each other, a phenomenon that will provide better results for facility managers and help reduce duplication and confusion in the market.
In his book "The Third Wave," AOL founder and former CEO Steve Case highlights the need for IoT companies to partner with industry leaders to succeed. Partnerships are especially important in buildings because a smart building solution requires a variety of components: a robust set of sensors and actuators in facilities; the ability to collect and send data to the cloud; analysis capabilities to turn information into useful information; and a user interface to allow internal teams and customers to interact with the product.
No. 3: Key applications are more clearly focused
Many companies that sell smart building software have focused more on particular building types or industry verticals rather than trying to sell through many types of commercial buildings. This beachhead approach, as described by Geoff Moore in "Crossing the Chasm," allows a company to focus on solving a critical mass of problems for a given type of user, rather than partially solving problems for a wide range of users. How to establish and scale a product company.
