The global building analytics market is evaluated at US$5,909.921 million for the year 2019 and is projected to grow at a CAGR of 16.27% to reach a market size of US$16,980.42 million by the year 2026.
Buildings are becoming more complex, with more interconnected devices and massive data generation. Building analytics converts the data which is created by the building management system into actionable intelligence. This enables the real-time monitoring, identification, and prioritization of cost-saving opportunities, threats to occupant comfort, connectivity, and mechanical system inefficiencies. Building analytics is based on statistical analysis, performance reporting, and automated diagnosing. It works by taking the daily, monthly, and quarterly data for the specified period and comparing it with history. With this, trends and patterns emerge which identifies opportunities for cost reduction. Additionally, it also considers outside factors and their impact like, for example, consideration of weather and its impact on energy consumption.
The growth of the building analytics market is driven by the rapid growth of the construction industry along with the increasing investment by the various industries to streamline the construction process in the increasing urbanization and industrialization. It is also supported by various government initiatives and steps. For example, the United States Department of Energy has launched the ‘Smart Energy Analytics Campaign’, which encourages the use of energy management and information system technologies and ongoing monitoring practices to help uncover energy-saving opportunities and improve building performance. The rising living standard and increasing disposable income throughout the globe will also lead to growth in demand. Furthermore, the greater concern about ensuring compliance with strict regulations in many regions regarding the design of structures and safety of workers is also boosting the demand for the market. However, the lack of awareness among the people and the high cost associated with building analytics is a concern for the market as it can hamper its growth.
Furthermore, due to the discernment of business intelligence among emerging countries, demand for building analytics solutions is proliferating. Governments and many vendors are readily investing in technologies in construction services, principally engineering, and architecture. Moreover, an improvement in the adoption of smart building and cloud computing technologies are strengthening the growth of the building analytics market. As the world’s urban population grows by more than 2.5 billion, primarily to urban areas by 2050, according to MDPI, the construction of new, energy-efficient buildings and cities will be essential to the transformation of the economy. Moreover, the building and construction sector must be decarbonized by 2050 to meet the Paris Agreement's goals.
The advent of COVID-19 had an adverse impact on the global building analytics market. The immense downturn in the global construction industry has been a significant reason for the decline in the demand for Building analytics at a global level. The pandemic resulted into several construction projects being stalled during the period owing to the restrictions imposed in several countries in order to curb the widespread of the virus. Even though the industry has been referred to as a crucial industry for shaping the global economy, it witnessed a significant decline in the public funding on which infrastructure projects rely and the general economic health of the nation both threaten to significantly slow down the market. The longer term construction projects are expected to witness slow recovery as the governments face rising deficits and moreover the projects are impacted by the lack of employment and a slow GDP growth during the period. The industry plays a crucial role in the economic stability of several countries and thus the efforts to trigger its recovery has been significant. This in turn is expected to drive the market for building analytics during the forecast period.
The segmentation of the global building analytics market has been done into offering, deployment model, application and geography. By offering, the classification of the market has been done into Solution, Services. By deployment model, the classification of the market has been done into On-Premise, Cloud. By application, the classification of the market has been done into Residential, Commercial, Industrial. Furthermore, on the basis of geography, the global market has been distributed as North America, South America, Europe, Middle East and Africa, and the Asia Pacific.
Several technological developments in the construction sector and the upcoming investments is expected to drive the market during the forecast period.
The growth of the Building analytics market is fuelled by the increasing investment being done in the sector in order to urbanize the sector. The increasing penetration of the concept of Internet of Things in the sector is expected to further increase the demand for building analytics solutions amongst the consumers. Moreover, the increasing awareness about the data utilization is expected to be a tailwind for the market in the coming years. Some of the key technological developments in the sector includes, Schneider Electric launched the Altivar Process 6000 medium voltage service-oriented device, on 20th August 2019, that can help optimize businesses by enabling process optimization, improving energy management, and enhancing asset management. Similarly, Johnson Controls released Enterprise Management 2.0 on 3rd June 2019. The platform enables enterprises to take a proactive approach to manage a building or an entire portfolio from a single pane of glass by using artificial intelligence and machine learning technologies. Furthermore, Honeywell International Inc. in February 2018 announced its Xtralis VCA Suite of security software available for licensing from third parties, which will expand connected building solutions by offering edge video analytics software to security OEMs.
Competitive Insights
The players in the global building analytics market are implementing various growth strategies to gain a competitive advantage over their competitors in this market. Major market players in the market have been covered along with their relative competitive strategies and the report also mentions recent deals and investments of different market players over the last few years. The company profiles section details the business overview, financial performance (public companies) for the past few years, key products and services being offered along with the recent deals and investments of these important players in the market.
Segmentation
By Offering
By Deployment model
By Application
By Geography
The growth of the building analytics market is driven by the rapid growth of the construction industry along with the increasing investment by the various industries to streamline the construction process in the increasing urbanization and industrialization. It is also supported by various government initiatives and steps. For example, the United States Department of Energy has launched the ‘Smart Energy Analytics Campaign’, which encourages the use of energy management and information system technologies and ongoing monitoring practices to help uncover energy-saving opportunities and improve building performance. The rising living standard and increasing disposable income throughout the globe will also lead to growth in demand. Furthermore, the greater concern about ensuring compliance with strict regulations in many regions regarding the design of structures and safety of workers is also boosting the demand for the market. However, the lack of awareness among the people and the high cost associated with building analytics is a concern for the market as it can hamper its growth.
Furthermore, due to the discernment of business intelligence among emerging countries, demand for building analytics solutions is proliferating. Governments and many vendors are readily investing in technologies in construction services, principally engineering, and architecture. Moreover, an improvement in the adoption of smart building and cloud computing technologies are strengthening the growth of the building analytics market. As the world’s urban population grows by more than 2.5 billion, primarily to urban areas by 2050, according to MDPI, the construction of new, energy-efficient buildings and cities will be essential to the transformation of the economy. Moreover, the building and construction sector must be decarbonized by 2050 to meet the Paris Agreement's goals.
The advent of COVID-19 had an adverse impact on the global building analytics market. The immense downturn in the global construction industry has been a significant reason for the decline in the demand for Building analytics at a global level. The pandemic resulted into several construction projects being stalled during the period owing to the restrictions imposed in several countries in order to curb the widespread of the virus. Even though the industry has been referred to as a crucial industry for shaping the global economy, it witnessed a significant decline in the public funding on which infrastructure projects rely and the general economic health of the nation both threaten to significantly slow down the market. The longer term construction projects are expected to witness slow recovery as the governments face rising deficits and moreover the projects are impacted by the lack of employment and a slow GDP growth during the period. The industry plays a crucial role in the economic stability of several countries and thus the efforts to trigger its recovery has been significant. This in turn is expected to drive the market for building analytics during the forecast period.
The segmentation of the global building analytics market has been done into offering, deployment model, application and geography. By offering, the classification of the market has been done into Solution, Services. By deployment model, the classification of the market has been done into On-Premise, Cloud. By application, the classification of the market has been done into Residential, Commercial, Industrial. Furthermore, on the basis of geography, the global market has been distributed as North America, South America, Europe, Middle East and Africa, and the Asia Pacific.
Several technological developments in the construction sector and the upcoming investments is expected to drive the market during the forecast period.
The growth of the Building analytics market is fuelled by the increasing investment being done in the sector in order to urbanize the sector. The increasing penetration of the concept of Internet of Things in the sector is expected to further increase the demand for building analytics solutions amongst the consumers. Moreover, the increasing awareness about the data utilization is expected to be a tailwind for the market in the coming years. Some of the key technological developments in the sector includes, Schneider Electric launched the Altivar Process 6000 medium voltage service-oriented device, on 20th August 2019, that can help optimize businesses by enabling process optimization, improving energy management, and enhancing asset management. Similarly, Johnson Controls released Enterprise Management 2.0 on 3rd June 2019. The platform enables enterprises to take a proactive approach to manage a building or an entire portfolio from a single pane of glass by using artificial intelligence and machine learning technologies. Furthermore, Honeywell International Inc. in February 2018 announced its Xtralis VCA Suite of security software available for licensing from third parties, which will expand connected building solutions by offering edge video analytics software to security OEMs.
Competitive Insights
The players in the global building analytics market are implementing various growth strategies to gain a competitive advantage over their competitors in this market. Major market players in the market have been covered along with their relative competitive strategies and the report also mentions recent deals and investments of different market players over the last few years. The company profiles section details the business overview, financial performance (public companies) for the past few years, key products and services being offered along with the recent deals and investments of these important players in the market.
Segmentation
By Offering
- Solution
- Services
By Deployment model
- On-Premise
- Cloud
By Application
- Residential
- Commercial
- Industrial
By Geography
- North America
- USA
- Canada
- Mexico
- South America
- Brazil
- Argentina
- Others
- Europe
- Germany
- France
- UK
- Others
- Middle East & Africa
- Saudi Arabia
- UAE
- Others
- Asia Pacific
- China
- India
- Japan
- South Korea
- Others
Table of Contents
1. Introduction
2. Research Methodology
3. Executive Summary
4. Market Dynamics
5. Building Analytics Market Analysis, by Offering
6. Building Analytics Market Analysis, by Deployment model
7. Building Analytics Market Analysis, by Application
8. Building Analytics Market Analysis, by Geography
9. Competitive Environment and Analysis
10. Company Profiles
Companies Mentioned
- Schneider Electric
- IBM Corporation
- Johnson Controls International Plc
- Honeywell International Inc.
- Siemens AG
- BuildingIQ
- General Electric Company
- CopperTree Analytics Inc.
- ICONICS Inc.
- Delta Electronics, Inc.
Methodology
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Table Information
| Report Attribute | Details |
|---|---|
| Published | April 2021 |
| Forecast Period | 2019 - 2026 |
| Estimated Market Value ( USD | $ 5909.92 million |
| Forecasted Market Value ( USD | $ 16980.42 million |
| Compound Annual Growth Rate | 16.3% |
| Regions Covered | Global |
| No. of Companies Mentioned | 10 |
