Skip to main content

How IoT Transforms Commercial Building Management

The commercial building management systems (BMS) market has been the epitome of a steady market for several years. However, growing BMS connectivity and rising energy prices now mean that this is a market that is closely mirroring developments within other technology driven markets.

The growing integrated building management systems market is now estimated to be worth $34 billion, according to the latest worldwide market study by ABI Research.

More than eight million building management systems will be integrated with some form of Internet of Things (IoT) platform, software application or service offering by 2020.

However, like many suppliers in established markets today, commercial building management system vendors face both opportunities and threats when navigating the emerging IoT ecosystem.

The opportunity is IoT integration transforms the traditional BMS from an unconnected monolithic system to part of a wider and integrated sensing and control network.

Support for open BMS connectivity to third-party applications means BMS operation can be informed by a range of external events such as changing weather conditions or variable energy pricing.

At the same time, new sensors and actuators within the building environment can control the BMS according to space allocation, building occupancy and other dynamic factors.

"But the increased flexibility and functionality for BMSs offered by IoT technologies and services is also creating a more complex competitive environment," said Jonathan Collins, principal analyst at ABI Research.

In fact, ABI believes that new BMS competitors such as SaaS energy management platforms, M2M AEP platforms, and even PC energy management players are now also potential new partners in this evolving marketplace.

While BMS players understand they cannot deliver a full range of services on their own they are also wary of losing control over BMS implementations and missing out on new IoT-enabled revenue opportunities.

Apart from the hardware sales -- such as sensors and wireless networking devices -- open source software applications and professional services that will likely drive much of the incremental value from the Internet of Things integrated BMS solutions in the future.

Popular posts from this blog

How a Digital-First CEO Leads Transformation

Some leaders reject the notion that "wait and see" is the best response to disruptive change. Savvy senior executives are already driving digital business transformation throughout their organization in an effort to gain a bold strategic advantage. According to the latest market study by International Data Corp (IDC), Digital-First CEOs plan to drive at least half of their income from digital business products, services, and experiences by 2027 -- that's ahead of the market average of 39 percent. Driven by their response to the COVID-19 pandemic, these business leaders have changed how they think about the relationship between business and technology, and how they approach the next digital transformation era -- from scaling digital technology to guiding a viable digital business. Digital Business Market Development IDC defines digital business as value creation based on technology, which entails: 1) Automated customer-facing processes and internal operations; 2) Provision

Digital Solutions for Industrial & Manufacturing Firms

Executive leaders of fast-moving consumer goods (FMCG) are seeking guidance on how to apply new business technology in their manufacturing operations. CIOs and CTOs are tasked with gaining insight into the best solutions for digital transformation. ABI Research evaluated the impact politics, regulation, the economy, supply chain, ESG, and technology are having on FMCG, pharma, producers of steel, chemicals, pulp and paper -- as well as the mining and oil & gas sectors. Digital Transformation Market Development "Our assessment found that the FMCG sector is under pressure from all sides," says Michael Larner, industrial & manufacturing research director at ABI Research . Securing raw materials is challenging considering lockdowns in China and limited grain supplies from Ukraine. Supply shocks are raising input costs, and operating costs are rising with higher energy costs coupled with the pressure to pay higher wages and work sustainably. "We all hoped that with th

Retail Transformation Gains New Momentum

Forward-thinking retailers now have a bright future. In contrast, those that failed to enhance their business model via digital transformation have struggled, declined, and their assets were eventually liquidated. The key difference between these two business outcomes is applied strategic foresight. Even as the world continues to emerge from a global pandemic, retail is growing at levels not seen in the last two decades. Retail sales grew by 7 percent in 2020 and by over 14 percent in 2021, which is in stark contrast to the 3.7 percent annual growth between 2010 and 2019. The increased demand for retail has put a strain on supply chains and retail operations worldwide. As a result, retailers and stakeholders are turning to automation solutions such as mobile robotics for operational ease. Retail Transformation Market Development According to the latest market study by ABI Research, worldwide commercial robot revenue in retail stores will have a Compounded Annual Growth Rate (CAGR) of o