IoT a $76 billion market by 2020

June 09, 2015 by John Hatcher
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IoT a $76 billion market by 2020

Building automation is transforming into the building Internet of Things (IoT), creating a $76 billion market by 2020, according to a new research report from Memoori Business Intelligence.

For a quarter of a century, the building automation systems (BAS) industry has been working hard at delivering full connectivity across all the different building services. They have been successful in achieving this goal but, according to Memoori, the solutions have been expensive, lacked flexibility and robustness, and while they improved the optimization of the buildings’ performance, they could not be fully automated.

With the arrival of IoT, we now have the capability to join devices together more efficiently and cost effectively in a building. This technology can collect data from all sensors and devices. Then using big data software, we can analyze and immediately optimize the building, fully automating performance.

Memoori estimates that the value of the BAS hardware associated with building IoT projects at installed prices in 2014 was $35.15 billion accounting for approximately a 55 percent share, while enablement hardware took a 13 percent share, network communication services 17 percent, and IoT data services secured 15 percent.

Projecting the sales of these four major components through to 2020 shows a significantly changing picture with IoT data services increasing its share to 26.5 percent, network communication services rising to 22.5 percent, with the contributions from enablement hardware and BAS services declining to 11 percent and 40 percent, respectively.

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