A new report from Navigant Research says the revenue associated with the global market for Internet of Things (IoT) solutions aimed at small and medium-sized buildings, including hardware, software, and services, is expected to increase from $533.8 million in 2018 to over $4.0 billion in 2027 at a compound annual growth rate of 25.1%.
While owners and occupants of small and medium-sized buildings have not been aggressive adopters of IoT technologies, signs of growth beyond the early adopters are emerging. As increasingly compelling IoT products and services come to market and strong use cases for small and medium-sized buildings become more apparent, market traction is increasing.
“Among the key market drivers are prices that continue to drop for IoT hardware and vendors that are willing to bundle solutions for use cases that provide benefits to the building owners and tenants,” says Neil Strother, principal research analyst with Navigant Research. “At the same time, prices for data processing and analytics related to IoT solutions have dropped, creating further interest in this market segment.”
Other drivers of adoption include viable use cases for small and medium buildings, according to the report. For example, a well-designed IoT-enabled lighting or HVAC system can produce double-digit energy savings for a tenant or building owner. The payback might not be immediate, but over the course of a few months or a year, the savings can be apparent.
