Frost: Cost, Energy-Efficiency Drives Adoption of Intelligent Buildings in N. America

October 22, 2007 // Published as a news service by IHS

According to Frost & Sullivan, the lack of interoperable systems remains a major challenge, but the market will gradually accept the concept of open interoperable communication protocols.

Analysts said manufacturers will also develop wireless devices and protocols, besides web-based services. These technological developments expect to facilitate the easy adoption of intelligent buildings, thus promoting the growth of future markets.

"Reduced operational and maintenance costs became the main driving force encouraging the growth of the North American intelligent buildings market," said Frost & Sullivan senior research analyst Anwesha Bose.

"Intelligent buildings require fewer operational staff as all building subsystems become automated and this, in turn, considerably reduces the cost of running the building."

An intelligent building, through reduced energy consumption, leads to additional cost savings. Analysts said consumption costs became minimized by effectively managing the temperature and lighting of unoccupied spaces.

Proper zone controls, using a schedule based on the time of the day, will reduce energy costs. This, in turn, leads to greater energy savings, also helping reduce carbon dioxide (CO2) and greenhouse gas (GHG) emissions.

Despite all these, lack of public awareness and knowledge remains a critical restraint for the growth of the North American intelligent buildings market. Analysts said most customers believe that integrating subsystems in a building involves huge investments. This detractor, in many cases, makes builders reluctant to secure the heavy initial investment.

"Often the stakeholders of a building will not become aware of the benefits that an intelligent building offers," said Bose. "Hence, information about the advantages of having an intelligent building should ultimately reach the decision-makers and building automation practitioners to convince them to make the necessary investments."

Going forward, analysts said industry participants should be responsible for touting the benefits offered by intelligent buildings.

While manufacturers should ensure that adequate knowledge transfer happens among all the stakeholders, analysts said design engineers must also make themselves aware so as to convince decision-makers about the benefits of integration. Building owners and builders should realize the increased value that the intelligent building provides in terms of both resale and leasing.

Source: Frost & Sullivan.