International. Smart building automation software is projected to reach $20.5 billion in North America by 2027, according to Environment + Energy Leader. Smart building software is becoming popular among facility managers due to its positive effects on operational efficiency and productivity.
Due to this increase in the use of smart building software, leading companies within the commercial real estate sector are reaping tangible benefits, as homeowners can charge higher fees for smart buildings with enabled technology. Consequently, more than 78% of new construction will involve at least one facet of IoT and/or technologies related to the smart building market over the course of the next five years.
A major factor driving investment in smart buildings remains the fact that commercial real estate owners can charge higher lease fees for smart buildings for a variety of reasons, including lower operating costs and increased safety, convenience, safety, and productivity for workers. The most efficient and effective smart buildings are those that include an Integrated Workplace Management System (IWMS). An IWMS solution supports a more integrated building control system and optimizes the workplace.
Energy accounts for about 19 percent of the total expenses of an average building, according to IoT for All. Energy management is another important issue that smart buildings can handle. Smart sensors can be used to adjust lighting and temperature levels, ventilation and more to have a substantial impact on energy consumption. A 10 percent decrease in energy use may mean a 1.5 percent increase in net operating income, according to Energy Star. It's also important to note that changing ventilation levels based on the number of people in a room can reduce operating costs by up to 18 percent.
The report also suggests that the economic environment over the next five years will be characterized by asset deflation and commodity inflation: urbanization is estimated to see up to 51% of global resources consumed by commercial buildings by 2027. Of this amount, more than 68% of the world's energy (mainly electricity, but also natural gas and fuel oil) will be used by industrial and business facilities along with more than 32% of the world's total water consumption. This will mean a substantial loss of increasingly expensive and scarce resources, as well as the results of companies.
The report explains that COVID-19 is forcing facilities managers to rethink many facets of their buildings and have in mind to invest in smart building software. A KRC research report says that up to 70 percent of U.S. facility managers are now more willing to invest in smart building solutions, such as contactless building access and smart parking.
Smart buildings are becoming popular due to an increase in technology, while COVID-19 has reminded facility managers of the importance of a clean and safe environment. The value of automation software will continue to grow as more and more building managers see its value.
