Smart Building device connections are expected to grow from $2.7bn in 2015 to $11.2bn in 2021, according to a new report The Internet of Things in Smart Commercial Buildings 2016 to 2021 from Memoori.
This prediction demonstrates the burgeoning strength of the smart building market within the internet of things (IoT) era. In fact, connected devices in smart buildings represent approximately one third of global connected devices, which are expected to rise from $9.8bn in 2015 to $31.5bn in 2021.
The continuing progress of the IoT has been driven by a steady increase in high performance, energy efficient sensors. And as the number of units has increased the costs have dropped significantly, encouraging greater deployment of connected “things”. In fact, the cost of a sensor has dropped by more than 50% in ten years, with the average sensor now priced at $0.60 from $1.30 a decade ago.
However, it is not just the low cost of sensors that is facilitating this new era, “both processing costs and cost of bandwidth have also declined significantly, enabling more devices to be not just connected, but smart enough to know what to do with all the new data they are generating or receiving,” according to the report.