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‘Smart building market in Asia to exceed USD 1,036 bn by 2020’

China: The smart building market will grow from the current size of USD 427 billion to touch USD 1,036 billion in 2020, creating vast opportunities for advance building technologies and services, according to a report released by BSRIA.

Recently, IBM CTO, Guruduth Banavar, explained how technology could be intertwined with the people to build a smart city. A lot of sensors and GPS devices were installed in New York city under IBM”s ”Real Time Crime Centre”initiative. This initiative intertwined technology with the people to build a smart city.

BRISA’s report stated that Asia would consume 45 per cent of world energy by 2030 and buildings were the big consumers. The unprecedented urbanisation rate in Asia relies on smart buildings to reduce climate change impact. Smart building includes concept of green building and intelligent building in Asia. There are key assessment criteria of green and intelligent buildings developed in the region.

Songdo IDB and Fujisawa are two smart cities under development in South Korea and Japan. China has 36 smart cities underway. Singapore will become a smart nation by 2015 and Iskandar is the flagship smart city in Malaysia. The Delhi Mumbai Industrial Corridor will be the smart city of the future India. China is building a RMB 250 billion low carbon model city in Tianjin.

Smart cities create vast business opportunities for ICT, software, electronic hardware and low carbon industries. ICT and software companies are growing in the smart cities market now. System and service providers form partnership with the government and become a private investor.

Smart grid in developing countries is more important for upgrading the basic power grid infrastructure while in developed countries it is about the grid communication system. It is more urgent for China and India to upgrade the power grid to accommodate the growing power demand. Different countries are at different development stages in smart grid. China government promised USD 150 billion to upgrade power grid in various aspects. Many other Asian countries governments also inject money in smart grid development. Electricity market in Asian countries is still monopolised and state owned, except the fully deregulated market in Australia. Manual demand side management (DSM) has been used to solve power shortage problems in developing countries. Automatic demand response (AutoDM) is just starting in Asia but the existing market on DSM creates the business opportunities for AutoDM.

Buildings need to be integrated to smart city and smart grid in ICT, energy and low carbon aspects. Government, end user and building owner have different drivers for smart and green buildings. Smart buildings are growing in smart cities; green buildings are also the major trend in Asia in new building developments.

Source: BSRIA