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While the automated building market is not new, it has traditionally focused on four conventional sectors: HVAC, lighting, access control, and fire and security.

Now, new emerging applications in space management, environmental monitoring, asset management, and cleanliness & hygiene management are being offered as either standalone solutions or to augment existing building automation systems for improved building sustainability.

Together, these new solutions will grow at 32% CAGR over the next eight years to create $US2 billion in software and services revenues by 2026, according to a new report from advisory firm ABI Research.

Research analyst, Harriet Sumnall, said space management solutions are being created and engineered with a variety of sensors, including contact, motion, and occupancy.

Typically implemented into office buildings, Sumnall said new space management solutions are becoming more useful in significantly larger commercial buildings, such as airports or stadiums. "Occupancy and motion sensors provide real-time insights so that managers can deploy staff as needed to relevant areas of the building,” she said.

Environmental monitoring consists of sensors that are monitoring noise levels, air quality, and natural lighting systems.

Sumnall said these solutions show the real-time conditions of areas within buildings and monitor the conditions in each room to improve overall occupant wellness and comfort.

For example, Saint-Gobain, manufacturer of high-performance materials, in 2018, created a subsidiary Kandu to offer turnkey IoT service for companies to enhance the quality of their workspaces.

The current HVAC, lighting, access control, and fire and security solutions combine to create the core applications of Building Management Systems (BMS) offered by market leaders, Honeywell, Schneider Electric, Signify, and Siemens.

However, as the smart building market evolves, the ecosystem is no longer limited to the traditional BMS vendors. Now it includes the OEMs of consumables and construction materials adding complementary IoT solutions.

"The more important competitive dynamic to recognize is that newer suppliers, most with wireless solution offerings, can more easily sell into the untapped market of older and smaller buildings,” Sumnall said.

“This won't necessarily change the focus of the traditional BMS vendors however their competitiveness will be greatly diminished if their systems are not interoperable with solutions from these newer suppliers. 

“In this more complex supplier market with more applications, interoperability will be what differentiates all market participants."