The IoT (Internet of Things) and the smart-building movement both depend on electricity to power them. As the world recognizes the future impact of climate change on all things, electricity generation takes a prominent role in mitigating the potential disaster. Moving away from fossil fuel powered generation is one approach; increasing the efficiency of the home is another.
Today’s new homes are often FEHs (fully electrified houses) that include space heating, water heating, and cooking electrified through the use of air source heat pumps, heat pump water heaters, and induction cooking methods to reduce energy use. These technologies are rapidly becoming more cost-effective and more reliable than fossil fuel systems.
While promising, full electrification faces high transaction costs, low consumer awareness, regional stock unavailability, and other barriers, according to a report by Guidehouse Insights. Regional fuel prices and capital costs of equipment and installation are particularly strong determinants of economic competitiveness for electrified technologies. The report provides forecasts for the number of FEHs in four key segments, including new construction, renovations, single-family, and multifamily.
The growing concern around climate change led to the Paris Agreement in 2016, where 175 parties agreed to address climate change through a reduction of GHG (greenhouse gas) emissions. Given the large share of GHG emissions from the buildings sector, cities will not succeed in reaching their targets without implementing aggressive policies. Energy efficiency is a critical step, and buildings are more desirable with the addition of intelligent building solutions that allow for further insights and analytics into the built environment.
Guidehouse Insights also explores how intelligent building software is a growing market segment as commercial building owners and managers adopt new technologies for reducing energy use, increasing building efficiencies, and satisfying tenant demands for comfort, productivity, and sustainability. Advanced software solutions harness the data to reach these interlocking goals. Legacy software and hardware systems are limited as data volumes and complexities increase. The latest software offerings integrate data from multiple building systems, providing valuable business information previously difficult to obtain with point solutions.
No provider has a complete solution given the complex business challenges buildings present, though some are moving closer to that goal. Some breakthroughs come as companies improve their ability in using building data with AI (artificial intelligence) and ML (machine learning) techniques.
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