The bulk of the revenue will stem from North America and Western Europe, as large buildings in these regions implement cloud-based smart building platforms or integrate existing building management systems to smart building platforms.
According to a report from ABI Research, the lack of initiative from incumbent service providers opens opportunity for device OEMs, system integrators, security companies, telcos, and platform vendors to offer managed building services. Two main services will be smart lighting and more intuitive HVAC control systems, which according to the report is estimated to respectively account for 32% and 49% of revenue from smart buildings by 2021.
"IoT platforms, such as GE's Predix, IBM's Watson, and SAP's HANA, in collaboration with facility service providers, like CBRE, ISS World, and ENGIE, are gradually creating inroads by integrating multiple building automation systems to deliver a unified facilities management solution," says Adarsh Krishnan, Senior Analyst at ABI Research. "But most facility service providers are still in the early stages of evaluating smart building solutions and face the 'make or buy' dilemma of whether to develop the solution in-house or collaborate with a third-party technology vendor."