Smart building technology set to surge: Juniper Research

The number of buildings globally deploying smart building technologies will reach 115 million in 2026, up from 45 million in 2022.

The figures are contained in a new report from Juniper Research.

The growth of over 150 percent reflects increasing demand for energy efficiency from businesses and residents alike, as energy costs spike, according to the report's authors.

Juniper Research defines a smart building as one that uses connectivity to enable the economical use of resources while creating a safe and comfortable environment for the occupants.

The new research, Smart Buildings: Key Opportunities, Competitor Leaderboard and Market Forecasts 2022-2026, found that by enabling buildings to monitor and automate common functions, significant efficiency gains can be made while improving the environment for workers and residents.

For vendors in the sector, the researchers recommend focusing on building analytics platforms for the most value to be driven from deployments.

Non-residential Smart Buildings Driving Spend

The research found that non-residential smart buildings will account for 90 percent of smart building spending globally in 2026; at a similar level to 2022. This dominance is due to the larger economies of scale in commercial premises driving this spending, as well as the commercial focus of most smart building technologies.

According to research co-author Dawnetta Grant, “Smart building platform vendors will understandably focus on non-residential use cases, as these provide a stronger return on investment, but they should not neglect the importance of residential deployments, as environmental concerns intensify.”

Sensor shipments accelerating

The research found that the global shipments of sensors used in smart buildings will exceed one billion annually in 2026 from 360 million in 2022; representing a growth of 204 percent. Sensors, when combined with intelligent management platforms, will allow smart buildings to adapt to conditions; matching elements such as lighting, heating and ventilation to living requirements.

The authors also identify an opportunity for smart building vendors to partner with AI vendors to maximise the benefits of automation, such as reduced energy costs and improved working environments.