Gartner Research

Forecast Analysis: Building Automation Internet of Things Endpoint Electronics and Communications Revenue, Worldwide

Published: 08 July 2019

ID: G00389354

Analyst(s): Bill Ray , Kay Sharpington


IoT spend on building automation will grow by $9 billion from 2018 through 2028. Energy saving drives revenue growth in connected lighting and HVAC systems, while structure monitoring has highest CAGR (29%). 3GPP LPWA is the fastest growing communications installed base with a 65% CAGR worldwide.

Table Of Contents
  • Forecast Assumptions
  • Market Impacts
  • Notable Changes

Forecast Data Summary

Forecast Model Summary

Influencing Factors and Assumptions

  • Influencing Factor: Increased Automation Offers Building Owners New Ways to Save Money
    • Forecast Assumption: Connected lighting devices in U.S. commercial buildings will grow from 1 per 310 m 2 in 2018 to 1 per 27 m 2 in 2028 to save money and energy.
    • Forecast Assumption: Drones monitor U.S. building health more inexpensively, so their usage will grow from one drone for 470 commercial buildings in 2018 to 1 for 25 in 2028.
  • Influencing Factor: Building Regulations Mandate Energy Saving to Combat Climate Change
    • Forecast Assumption: Controlled power outlets in the U.S. will grow from 3 per 100 employees in 2018 to 25 per 100 employees in 2028.
  • Influencing Factor: Energy Efficiency as a Service Drives Wider Adoption of Connected Energy Management
    • Forecast Assumption: Connected HVAC systems in U.S. buildings under 5,000 m 2 will grow from 1 per 10,000 m 2 in 2018 to 1 per 2,000 m 2 in 2028.
  • Influencing Factor: New Communications Technologies Bring New Opportunities
    • Forecast Assumption: Low-cost 3GPP LPWA availability will drive increased WAN connectivity, growing from less than 1% of worldwide building automation devices in 2018 to 6% by 2028.
    • Forecast Assumption: Bluetooth will grow from 8% of building automation devices worldwide in 2018 to 24% in 2028 as it supports additional functionality.

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