The Impact of the Top 3 Strategic Imperatives on the Building Technologies and Services Industry

Disruptive Technologies

Why:

• The process of designing, operating, and maintaining the built environment is increasingly becoming digital.
• Companies are adopting the Internet of Things (IoT) and AI in building technologies and services.
• Industry participants that do not adapt digitally will be unable to compete at the highest levels.

Frost Perspective:

• The development of drones and robotics will revolutionize building technologies and services. Adjacent technologies include building information modeling (BIM) and digital twins, which the advancement of AI and machine learning (ML) support.
• Important areas that will adopt disruptive technologies include building energy management systems (BEMSs), digitized maintenance, and renewable energy integration.

Transformative Megatrends

Why:

• Major megatrends, such as urbanization and climate change, have revolutionized building technologies and services in the past decade.
• Decarbonization has emerged as the leading megatrend because stakeholders in the building sector aim to lower the built environment’s carbon footprint.
• In addition, climate change has compelled governments, organizations, and businesses to support decarbonization and sustainability efforts.

Frost Perspective:

• Significant development areas that support decarbonizing the built environment include heating, ventilation, and air conditioning systems; smart and green buildings; and advanced building automation.
• The above developments are important to reduce carbon emissions in buildings. Using more sustainable construction techniques will also support the decarbonization of buildings.

Innovative Business Models

Why:

• The emergence of digital solutions and heightened efforts to decarbonize and ensure sustainability in the building industry means industry participants must change their business models.
• Innovative business models will remain essential to successfully deploy disruptive technologies and increase the chances of reducing the effects of climate change.

Frost Perspective:

• The change in business models will raise competitiveness among industry participants. Business will need to be creative and adopt new operational-expenditure-driven ownership models for customers.
• New business models must cater to dynamic customer demands and demographics. In addition to being cost-sensitive, customers are increasingly tech-savvy and aware of climate change issues.

Scope of Analysis

Frost & Sullivan broadly defines the building technologies and services industry (sometimes appearing as the buildings industry in this report) as products and services that include lighting, crucial building equipment, smart building management, facility management (FM), and construction management. The following slide provides details on these segments.

Because the study focuses on insights related to the healthcare vertical, it provides limited quantitative analysis (e.g., revenue forecast and companies’ market share of the building industry and its segments).

Segmentation

• Lighting

  • Light-emitting Diode (LED)

  • Lighting Controls
  • Smart Street Lighting and Lamp Poles
  • Emergency Lighting
  • Horticulture and Aquaculture Lighting
• Critical Building Equipment
  • Low-voltage Switchgear (LVSG)
  • Heating, Ventilation, and Air Conditioning (HVAC)
  • Indoor Air Quality
  • Fire Safety (Detection and Suppression)
  • Electronic Security
  • Elevators and Escalators
• Smart Building Management
  • Building Automation System (BAS)
  • BEMS
  • Workplace Analytics
• FM
  • Single Services
  • Bundled Services
  • Integrated Facility Management (IFM)
• Construction Management
  • BIM and Digital Twins
  • Construction Management Software

Growth Drivers

• The advancing and fast-changing technology landscape, especially digital-based solutions, is fostering innovative services and business models in the building industry.
• Major corporations and customers are becoming more aware of sustainability, pushing the providers of building technologies and services to offer energy-saving equipment and green building solutions.
• The renewed post-lockdown work culture is driving the adoption of creative workplace solutions, technologies, and advanced building automation that enhance occupants’ well-being.
• The demographic evolution of the general population and workforce is reshaping occupancy and people-flow trends, creating demand for innovative building technologies and crowd solutions.

Growth Restraints

Revenue Forecast by Segment