Commercial Integrator May 2021 - 10

#TECHTRENDING THE BUZZ ON TECHNOLOGY AFFECTING INTEGRATORS
#Lighting
Control
Where Pro AV and
Smart Buildings Meet
THANKS TO THE proliferation
of the Internet of Things, artificial intelligence, automation
and consumer-facing companies including Google and Amazon, the smart home market
is taking off, and is expected to
grow at an annual clip of 25.3%
between now and 2026.
That is boosting a market for
smart commercial buildings as
those technologies, standards
and ideas begin to bleed into
the enterprise and provide
companies with the same level
of connectivity, automation,
convenience, and digital tools
as residential counterparts.
According to Mordor Intelligence, the smart home market
was valued at $79.13 billion in
2020 and is expected to reach
nearly $314 billion by 2026, a
compound annual growth rate
(CAGR) of 25.3%.
For smart buildings, that opportunity is also growing. Per
Mordor Intelligence, the smart
building market was valued at
$82.55 billion in 2020 and is
expected to reach $229.1 billion by 2026, good for a CAGR
of more than 18.5%.
The pro AV industry and
system integrators are a growing
part of those markets, and due
to the proliferation of the Internet of Things and a rapid acceleration towards a digital transformation due to COVID-19, the
smart building opportunity has
never been larger.
During a recent RISE Spotlight event on smart buildings,
AVIXA senior director of market
intelligence Sean Wargo said
AV system integrators are well
equipped to seize some of that
potential growth since integra-

tors are already providing similar services to smart building
markets.
According to Wargo, these
are the largest smart building
markets, their annual revenue
and their CAGR

entertainment:
$22.3 billion, 5.3%
›C
 ommand and control:
$13.6 billion, 6.1%
› S imulation and visualization: $12.8 billion, 7.5%

›C
 orporate:
$52.0 billion, 5.9%

›M
 edia and entertainment: $37.9 billion, 7.8%

›V
 enues and events:
$28.0 billion, 7.6%

› E ducation:
$22.4 billion, 4.7%

› Retail: $19.7 billion, 6.7%
›G
 overnment and military:
$16.1 billion, 7.3%

› R esidential:
$12.4 billion, 2.0%

› T ransportation: $11.7
billion, 9.5%

›H
 ospitality: $8.7 billion,
5.9%

› E nergy and utility:
$7.3 billion, 10.4%

›H
 ealthcare:
$5.4 billion, 5.4$

› Cinema: $3.1 billion, 5.3%
" As you look across the
broad array of markets that pro
AV serves - from corporate,
media, entertainment, residential, transportation - it's really
everywhere, " Wargo said.
Integrators are also already
well-versed in the same kind of
technology solutions involved
in smart buildings.
Those solution areas, their
annual revenue, and CAGR are:

" So if you took a little bit
across these, you might start to
realize how large an opportunity this is, " Wargo says.
The pandemic forced
employees around the world
into their homes, and now as
the pandemic is beginning
to subside, organizations are
transitioning to a hybrid work
environment in which some employees will return to the office
and some will remain at home.
Now, building developers and designers need to
future-proof commercial
spaces for those kinds of uses,
Angelica Krystal Donati, CEO
of development firm Donati
Immobiliare Group, said during
a roundtable discussion during
the RISE event.
" I do feel strongly that (the
pandemic) was the push we
needed to realize that a lot
more flexibility can be introduced and can become structural to our way of working, "
Donati said.
Just like workers need remote
access to company systems and

networks, smart buildings offer
facility managers remote access
to key building systems.
" One aspect we can't ignore
is the efficient remote management of buildings, which is only
feasible if you have interconnected sensors, " Donati said.
This technology not only tells
the customer if its systems are
running property, but also how
many people are in the building
at any given moment, when
they come in, when they leave
and where they are.
" The whole point of smart
buildings is to increase connectivity, but also to increase the
data that the building provides
so the building can be run more
efficiently, " Donati said.
Due to a variety of cultural
and organizational factors,
marrying intelligent technology and building infrastructure
has historically been difficult,
especially as technology more
marketed to the consumer or
smart home buyer makes its
way into commercial spaces.
Corporate markets may not
be ready for some of that technology, but the larger issues
are cultural and organizational,
said Julian Phillips, senior vice
president of global workplace
solutions at AVI-SPL.
›› #LightingContol,
@Google, @Amazon, @AVIXA,
@zwargo1, @avisplinfo

› Conferencing and collaboration: $38 billion, 3.3%

› Learning: $33 billion, 3%
›D
 igital Signage:
$31 billion, 7.5%

›C
 ontent distribution and
media: $29 billion, 5.5%

› S ecurity, surveillance and
safety: $24.6 billion, 11.4%
› L ive events:

10  Commercial Integrator  MAY 2021	

CM2105 pp08,10 TT-NovaStar.indd 10

$22.7 billion, 7.9%

› P erformance and

Commercial integrators could take a page out of the residential integration handbook when it comes to smart tech.

commercialintegrator.com

4/12/21 10:26 AM
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Commercial Integrator May 2021

Table of Contents for the Digital Edition of Commercial Integrator May 2021
