Frost & Sullivan: Connected World of the

Future Enhances Value Proposition of Smart

Building Systems

Research PREVIEW for

The Smart Building Systems Market in North America

(ND78-19)

Key Highlights

Source: Frost & Sullivan

• A smart building system is a package of sensors, controllers/hardware, and software that

allows a facility to sense its own environment and react to both real-time and historical data for

maximum operational efficiency. The facility will have fully integrated building systems and a

common logic in the control mechanism for those systems.

• For purposes of market sizing in this research, a “smart building” is defined as having these

systems to some degree, whether it be a simple energy management system or the realization

of the total smart building concept. The addressable market is the total built environment in

North America.

• Increased spending on new buildings and plentiful retrofit opportunities drive growth for smart

systems. Increased focus on operational cost savings, occupancy efficiencies, and

environmental sustainability also drive growth.

• Open-source software protocols will continue to erode the base of proprietary systems,

resulting in increased interoperability between manufacturers’ products, market

competitiveness and opportunities for competitive bidding. Further, this will decrease the prices

of systems dramatically proportionately increasing adoption rates of smart building systems.

• The value proposition of smart building systems is not well understood by building owners and

operators. There is a lack of skilled personnel at all stages of the smart building systems value

chain, including architects, engineers, contractors, system integrators, and operations and

maintenance officials.

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Source: Frost & Sullivan

0

2

4

6

8

10 Urbanization

Smart is the new Green

Social Trends

Connectivity and Convergence

Innovating to Zero

Value for Many

Future Infrastructure Development

Future of Mobility

Smart Building Systems

• This study identifies the smart building

systems market as a key area for Mega

Trends analysis, through Frost &

Sullivan’s ranked assessment based on

research and observation. These weights

relate to other identified Mega Trends

affecting this market.

• The identified Mega Trends drive smart

building adoption. Future infrastructure

development , “smart” as the new “green”

and connectivity have the heaviest

impact.

• Smart building systems drive the

realization and implementation of these

Mega Trends in other markets, such as

connected transport, smart grid and

energy optimization, next generation

safety/security, personalized marketing,

and efficient manufacturing.

Mega Trends Analysis

Mega Trends Analysis of the Smart Building Systems Market

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Executive Summary—CEO’s Perspective

2 Occupancy efficiencies can increase workflow productivity.

3 Huge retrofit opportunities exist within aging infrastructure.

4 Increasing connectivity improves a smart building’s value proposition.

5 Monitoring and benchmarking can identify opportunities for improvement.

1 The increasingly competitive landscape makes operational cost savings more important than ever.

Source: Frost & Sullivan

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Contents

Section Slide Number

Executive Summary 4

Effect of Mega Trends on the Smart Building Systems Market 9

Smart Building Systems Market Drivers and Restraints 13

Total Smart Building Systems Market 20

Smart Building Sensors Market 31

Building-level Controllers Market 35

Smart Building Software Market 39

Disruptive Trends in Smart Building Systems Market 43

The Last Word 47

The Frost and Sullivan Story 51

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Interested in Full Access? Connect With Us

Ariel Brown Associate Corporate Communications

(210) 247-2481

ariel.brown@frost.com

Research Authors

Pramod Dibble Visionary Innovation

Consultant Energy & Environment http://bit.ly/1o4fBu3

@PramodEFDibble

Roberta Gamble Partner/ Global Research

Director Energy & Environment http://bit.ly/1nHPzty

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Associated Multimedia

Analyst Blog Frost & Sullivan – Pramod Dibble http://bit.ly/1qb7fEc

Analyst Briefings Energy & Power Systems http://bit.ly/1sFGt8V

SlideShare Presentation Smart Cities – From Concept to Reality http://slidesha.re/1v6NUSs

Mega Trends Article Connected Living http://bit.ly/1pPddZR

GIL Community Site Growth, Innovation & Leadership http://visionary-it.gilcommunity.com/

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Global Perspective 40+ Offices Monitoring for Opportunities and Challenges

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Industry Convergence Comprehensive Industry Coverage Sparks Innovation Opportunities

Automotive &

Transportation

Aerospace & Defense Measurement &

Instrumentation

Information &

Communication Technologies

Healthcare Environment & Building

Technologies

Energy & Power

Systems

Chemicals, Materials

& Food

Electronics &

Security

Industrial Automation

& Process Control

Automotive

Transportation & Logistics

Consumer

Technologies

Minerals & Mining

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