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

Summary

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.

Gartner Recommended Reading

©2020 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its affiliates. This publication may not be reproduced or distributed in any form without Gartner’s prior written permission. It consists of the opinions of Gartner’s research organization, which should not be construed as statements of fact. While the information contained in this publication has been obtained from sources believed to be reliable, Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information. Although Gartner research may address legal and financial issues, Gartner does not provide legal or investment advice and its research should not be construed or used as such. Your access and use of this publication are governed by Gartner’s Usage Policy. Gartner prides itself on its reputation for independence and objectivity. Its research is produced independently by its research organization without input or influence from any third party. For further information, see Guiding Principles on Independence and Objectivity.

Already have a Gartner Account?

Purchase this Document

To purchase this document, you will need to register or sign in above

Become a client

Learn how to access this content as a Gartner client.