In the construction industry, smart building technology can impact how a project is completed. New research suggests a period of rapid growth may be ahead.

According to IDC Energy Insights, www.idc.com/energy, a subset of IDC (Intl. Data Corp.), a provider of market intelligence for the information technology market, spending on smart building technology could grow from $6.3 billion in 2014 to $17.4 billion in 2019—representing a CAGR (compound annual growth rate) of 22.6%. IDC’s report, entitled “Business Strategy: Global Smart Building Technology Spending 2015–2019 Forecast,” also suggests the most aggressive adoption will be in Asia/Pacific, North America, and Western Europe.

This forecast comes on the heels of a slower-than-expected growth period for the sector, according to the market-intelligence firm, which says more competitive pricing and technology advances will breath life into the smart-building space in the coming years. In addition to competitive pricing and general innovation, awareness about the benefits of the technology is spreading and will contribute to future growth.

Business values created by smart building technology include facility optimization through the convergence of information technology and building automation, IDC says. Building owners and operators are becoming more aware of these business values, which will help prompt a wave of adoption. The company further says more than 90% of firms plan to increase their investment in smart building technologies once the “methodology for valuing those investments” becomes more widely accepted and standardized.

Smart building solutions provide owners/operators the tools to better manage energy use and environmental impact. As more case studies and best practices come to light that document long-term impacts, more will consider smart building technology to be a core business strategy going forward.

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