Pacific Controls, Inc
At the 2013 Building Energy Summit in Washington, DC prominent leaders in the public and private sectors made a strong case for investment in smart technology to drive operational and energy efficiency. Discussion at the summit touched on how M2M technology will play pivotal role in the future of the building community:
- Despite uncertainty in the real estate market over the past few years, investment in smart and sustainable technology to bring about operational efficiencies increases the value of portfolios.
- The emergence of real time managed services coupled with a positive attitude towards sustainability is driving success in energy efficiency projects across the nation.
- New synergy between public and private sectors is providing opportunities for even more growth for the industry.
A recent Machina Research white paper on the global M2M market in 2013 predicts that by 2022 there will be 18 billion M2M connections globally, up from approximately 2 billion today, with intelligent buildings accounting for 37% of all connections. As you can imagine, this staggering increase is accompanied by similar growth revenue and value. Rob Lloyd, President of Sales and Marketing at Cisco, projects that the M2M market will be worth $14 trillion in 2020.
This increase in connected devices and smart systems will inspire new value propositions in otherwise unreachable areas. This phenomenon is discussed in a white paper by Harbor Research as “emergence.” It goes on to say:
“The many ‘nodes’ of a network may not be very ‘smart’ in themselves, but if they are networked in a way that allows them to connect effortlessly and interoperate seamlessly, they begin to give rise to complex, system-wide behavior “
To put it simply, managed services for the facility management industry can drive 10% to 15% cost savings in one building but managed services to a city’s ecosystem can drive up to 50%.