The internet of things in buildings (BIOT) provides a very different set of challenges compared to those faced in the consumer IOT world, which inevitably attracts most of the media’s column inches.
Overall, connectivity penetration rates across all building systems are currently only around 16 percent. This connectivity penetration rate will rise steadily over the coming years, and with it the market potential for BIOT. It will inevitably have to coexist with extant equipment and data networks for a significant length of time.
According to a new report from Meemori, the global market for the BIOT will increase from approximately $23 billion in 2014 to more than $85 billion in 2020.
Jim Norton, Chair of the U.K. Spectrum Policy Forum, recently commented that “the acceleration toward total mobility is eliminating the distinction between fixed and mobile communications to become just connectivity."
Wi-Fi, ZigBee, Bluetooth, Z-Wave, Thread, 6LoWPAN and others can all provide wireless data communications in buildings and 3G/4G (at some point, 5G and Weightless) outside. The line between wired and wireless communications continues to blur, adding even more ingredients to the soup.
“The question now is really, how long is the radio link into the fixed network backhaul and what implications does that have for the fixed networks?” said Norton.
***Jim McHale founded Memoori in 2008. It is a consultancy based in London that provides market research, business intelligence and financial deal tracking services to clients across several industries.