2Q 2018

Emerging Business Models for Intelligent Buildings

Product-Oriented, Subscription-Based, Solutions Provider, and Network Business Models

The commercial building technologies market has traditionally been slow to evolve, but digitization and analytics have changed the trajectory of this evolution significantly. Commercial building technologies such as HVAC and building control systems provide the foundational equipment for the intelligent buildings market, which also offers advanced digital technologies and other smart systems. Vendors are developing their business models to grow the market—and their market share—with new value-added services, end-to-end solution offerings, and strategic partnerships. They are also offering diverse solution sets that go beyond energy-related benefits to include occupant comfort solutions, enterprise-level business metrics, and other services.

To accomplish this expansion of market offerings, partnering strategies will be key. No one vendor has all the resources, technology, or capabilities to develop an end-to-end solution. Smaller vendors with unique capabilities will discover that partnering is crucial to entering the commercial building technologies and intelligent buildings markets. Vendors and service providers are aiming to gain deeper engagement with their customers via new technologies as a way of amplifying their core competency or adding new capabilities through these partnerships. However, a winning design for commercial terms around partnerships does not yet exist, as the market is nascent and flexibility is crucial.

This Navigant Research report examines the opportunities afforded by four business models in the commercial building technologies and intelligent buildings markets, as well as how these fit into scenarios for the emerging Energy Cloud. The study explores the market issues, including the evolution of product-oriented, subscription-based, solutions provider, and network business models. Global market forecasts, segmented by business model type, building type, and region, extend through 2027. The report also examines the key enabling technologies, future business model opportunities, and ecosystem of value chain stakeholders in the commercial building technologies and intelligent buildings markets.

Pages 53
Tables | Charts | Figures 27

  • Which commercial building technology and intelligent building business models provide the most opportunity for market participants?
  • Which business models are showing the fastest growth and highest margins?
  • How can vendors increase their market share and opportunities in the commercial building technologies and intelligent buildings markets?
  • How can market participants prepare for the coming Energy Cloud network-centric business models?
  • What characteristics make for the best buildings industry partnerships?

  • HVAC system and controls manufacturers
  • Lighting equipment and controls manufacturers
  • Building energy management software vendors
  • Facility management companies
  • Energy service companies (ESCOs)
  • Utilities
  • Government agencies
  • Investor community

1. Executive Summary

1.1   Introduction

1.2   Market Forecasts

2. Market Issues

2.1   Market Evolution

2.1.1   Product-Oriented Business Models: Pre-2005

2.1.2   Subscription-Based Business Models: 2005-2012

2.1.3   Solutions Provider Business Models: 2012-2018

2.1.3.1   Emerging Solutions Provider Strategies

2.1.3.1.1   Software Plus IoT

2.1.3.1.2   Software Plus Bundled Services

2.1.4   Business Model Combinations

2.2   Ecosystem of Market Participants

2.2.1   Utilities

2.2.2   Building System Incumbents

2.2.3   Lighting OEMs

2.2.4   Startups and SaaS Vendors

2.2.5   Building Services

2.3   The Importance of Partnering

2.3.1   Acquisitions

2.4   Enabling Technologies

2.5   Future Business Model Opportunities

2.6   The Emerging Energy Cloud Transformation

2.6.1   Opportunities in the Networked Building Value Chain

2.6.2   Opportunities in Emerging Platforms

2.6.3   Value Propositions

3. Market Forecasts

3.1   Introduction

3.2   Forecast Methodology

3.3   Product-Oriented Business Model Market Forecasts

3.3.1   Revenue by Hardware and Service Type

3.3.2   Market Share by Building Type

3.3.3   Revenue by Region

3.4   Subscription-Based Business Model Market Forecasts

3.4.1   Revenue by Software Application Type

3.4.2   Market Share by Building Type and Region

3.4.3   Revenue by Region

3.5   Solutions Provider Business Model Market Forecasts

3.5.1   Market Share by Product and Service Type

3.5.2   Market Share by Building Type

3.5.3   Revenue by Region

3.6   Network Platform Market Size Projections

3.7   Conclusions and Recommendations

4. Building Types

4.1   Office

4.2   Retail

4.3   Education

4.4   Healthcare

4.5   Hotels & Restaurants

4.6   Institutional/Assembly

4.7   Warehouse

4.8   Transport

5. Acronym and Abbreviation List

6. Table of Contents

7. Table of Charts and Figures

8. Scope of Study, Sources and Methodology, Notes

  • Timeline and Details of Legacy and Emerging Business Models
  • Business Impacts of the Intelligent Buildings Market Evolution
  • Example Company Segmentation for Emerging Business Models
  • Market Transformation from Linear to Sustained Engagements
  • Key Value Propositions and Opportunities in Intelligent Buildings
  • Emergence of the Energy Cloud from the Legacy, One-Way Power System
  • Relationship of Traditional Building Value Chain to the Energy Cloud
  • Energy Cloud Platform Market Size Estimates
  • Emerging Business Model Market Revenue by Business Model Type, World Markets: 2018-2027
  • Product-Oriented Business Model Revenue by Hardware and Service Type, World Markets 2018-2027
  • Product-Oriented Business Model Market Share by Building Type, World Markets: 2018
  • Product-Oriented Business Model Revenue by Region, World Markets: 2018-2027
  • Subscription-Based Business Model Revenue by Software Application Type, World Markets: 2018-2027
  • Subscription-Based Business Model Market Share by Building Type, World Markets: 2018
  • Subscription-Based Business Model Revenue by Region, World Markets: 2018-2027
  • Solutions Provider Business Model Revenue by Product and Service Type, World Markets: 2018-2027
  • Solutions Provider Business Model Market Share by Building Type, World Markets: 2018
  • Solutions Provider Business Model Revenue by Region, World Markets: 2018-2027

  • Emerging Business Model Market Revenue by Business Model Type, World Markets: 2018-2027
  • Emerging Business Model Market Revenue by Building Type, World Markets: 2018-2027
  • Emerging Business Model Market Revenue by Region, World Markets: 2018-2027
  • Emerging Business Model Market Share by Business Model Type, World Markets: 2018 and 2027
  • Categories and Subcategories of Intelligent Building Business Models
  • Estimated Value of Business Model Categories
  • Energy Cloud Platform Definitions
  • Emerging Business Model Hardware Types
  • Illustrative List of Common Business Models Used Across Many Industries

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