Utility IoT smart building services to see big revenues
Creating new value-added services for commercial customers around IoT will help utilities
A new report from Navigant Research examines how value-added services relying on the Internet of Things (IoT) could compete in the overall intelligent buildings market, analyzing the dynamics that are shaping the opportunity for commercial customers.
The IoT is setting the stage for a dramatic rise in energy management capabilities on the customer side of the meter in commercial buildings.
Most investments are happening independent of utility programs and represent a new set of opportunities and threats to the traditional regulated utility model, but forward-thinking utilities can still take advantage of the demand for IoT intelligent building technologies and services.
According to a new report from Navigant, by 2026, the North American market for utility-offered IoT intelligent building value-added services is expected to grow to an estimated $135 million in revenue under a conservative scenario, or up to $1.2 billion under an aggressive scenario.
“It is not too late for regulated utilities in North America to compete for a share of the IoT intelligent buildings market,” says Casey Talon, principal research analyst at Navigant Research. “Creating new value-added services for commercial customers around IoT will help utilities bridge the gap as the industry undergoes transformation toward the Energy Cloud with innovative offerings that amplify customer engagement and satisfaction.”
For utilities to be successful in this space, they will need to develop non-energy benefits that align with the in-demand applications in the broader intelligent buildings market, according to the report. Examples could include operational efficiency, space use, physical security, or healthy buildings.