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When Homes and Buildings Become Smart

Yole_smartbuildingsThe smart homes and buildings market segment is ready for take-off. “We are currently at the very beginning of the smart homes and buildings adoption curve,” asserts Dr. Eric Mounier, senior technology & market analyst, Yole Dveloppement (Yole). As part of the famous global IoT world, this sector is showing a lot of promise, with impressive market figures.”

Sensors and related modules are critical elements for the development of smart homes and buildings for better energy management and safety, as they will collect data. Yole has identified three main areas that sensors will contribute to: comfort, energy control and security.

According to Yole’s estimations, the sensor market for smart homes and buildings will be worth $1.73 billion by 2022. In parallel, sensor diffusion will allow the sale of subscriptions and services, forecast to be a $11 billion market in 2022.

Sensor innovation for smart home applications will also contribute to the growth of voice-activated personal assistants. For example, in 2016, Amazon had already shipped 4 million Alexa systems, including 1 million just in December 2016.

Although the smart homes and buildings sector looks very promising because of our society’s development, Yoles MEMS & Sensors team has identified market and technical barriers. A new technology and market report, entitled “Sensors and Sensor Modules for Smart Homes & Buildings” and produced by Yoles MEMS & Sensors team, is available details connected home and buildings and office applications. Yole’s investigation was developed at the sensor and sensor module level, and offered a deep understanding of the value chain, infrastructure and players.

“The home and buildings market has a very complex and fragmented supply chain, from suppliers of raw materials like concrete, to software and IT companies like IBM and Cisco that are entering the game,” said Yole’s Dr. Mounier. “Competition is particularly tough between BMS players and GAFAM.”

Building control manufacturers are traditional candidates for the adoption of sensors for smart buildings. On the other side, GAFAM and IT players bring intelligence throughout the supply chain by offering to connect software and solutions. These companies are entering the race for AI to analyse the huge amounts of data that will come from smart homes and buildings. These players are well-positioned to extract value from the data and provide new services to end customers. By selling their product to consumers via the internet, these players bypass traditional building channels.

Nevertheless, other companies in the supply chain will play a role as well. Although they are far from the electronics, suppliers of raw materials have started thinking about how to add intelligence to construction materials to create extra functionalities. Yole’s analysts have listed energy providers (who are becoming more and more aware of home electricity, water and gas consumption), internet service providers and telecoms firms with their entry points in homes.

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