Investments in smart building technology hit a record level in 2018, drawing $2.4 billion to startups in the sector. The sizeable investments are a reflection of the advancements made in smart building tech, as well as a sign of what’s to come for the growing industry.
The total amount invested in smart home tech isn’t the only part of the industry that’s growing. From 2009 to 2018, 600 new startups entered the smart building market, with 60% of those entrants coming over the past two years.
Smart building startup acquisitions also hit a record number during this period. Over 109 acquisitions have taken place over the past seven years, further demonstrating the growing level of interest in the sector.
Those that have been watching the smart building market shouldn’t be surprised to see continued growth; however, the level and acceleration of growth have been substantial. Since 2012, the smart building sector has seen roughly $6.8 billion in investments. That means that over one-third of the total investment in the past six years came in 2018 alone.
This past year was record-breaking, but if the rate of growth is any indicator, then 2019 should set the bar even higher.
The Smart Building Industry Is Expected to Keep Growing
Globally, the smart building market is expected to be nearly $62 billion by 2024, good for a compounded annual growth rate of 34%. That’s massive growth for an industry that’s just starting to scratch the surface of what’s possible.
Smart building tech finds more efficient ways for buildings to use energy, often by controlling lighting and heating while improving conditions for workers. This leads to smaller energy bills and a reduced carbon footprint, the latter of which is a growing concern for buildings around the world.
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Increased safety and security is another big draw. Tech can map facilities and send data back to you, alerting you of potential issues as, or even before, they happen. Smart tech also backs up all your data on the cloud, ensuring its safety in the event of a disaster.
Lastly, better resource management should continue to be a selling point for smart building tech. With the ability to map complex infrastructures, such as your electrical infrastructure, you can quickly find any issues and send someone to make the fix.
Because smart building technology is cloud-based, you can do all of this remotely, shortening response times and removing the need to search through stacks of paper for the right information.
Innovation Is a Driving Factor in Smart Building Growth
Innovation has played a key role in the growth of the smart building industry, and it will continue to do so.
The future of smart buildings will revolve around using data to make more environmentally conscious decisions. Greener decisions will mean lower energy consumption — a huge driving factor, considering that energy scarcity and costs are expected to increase.
Also, as the internet of things (IoT) expands, more devices and services will be able to connect. This means more data for smart buildings to work with, and this could further reduce costs.
You can also expect to see more buildings built with smart technology in mind. Areas designed for smart tech will be more efficient and will be able to better serve everyone in the building.