Dive Brief:

• The market for smart building components will grow 38% worldwide by 2020, according to a  report published by MarketsandMarkets.

• Demand for energy efficiency, ease of telecommunications and advanced automation systems is expected to increase as power costs rise and government regulations and incentives increase, the report said.

• For builders and owners of hotels, hospitals, homes, and institutional and industrial buildings, the promise of lower power bills and operating costs is driving demand for cutting-edge smart technologies and networks, the report said. But in the commercial sector — and at airports in particular — a focus on safety and security is the leading reason why smart building technology is taking off.

Dive Insight:

As smart building becomes more mainstream, a number of global vendors have entered the market, keeping it competitive. Among the major suppliers of smart building components are: ABB, Cisco, Schneider Electric, Siemens, Delta Controls, IBM and General Electric.