Dive Brief:

• Israeli smart lighting startup PointGrab announced last week that it scored a $7 million investment for its sensor technology.

• The company's investment partners include Philips Lighting, Mitsubishi UFJ Capital Co., ABB Technology Ventures and a venture capital arm of Japan's MUFG.

• PointGrab's flagship product, CogniPoint, works as a sensor that connects to lighting fixtures and thermostats to track occupant behavior in an effort to improve a building's operational and energy efficiency, according to Geektime.

Dive Insight:

Smart building technology is picking up steam in the commercial and residential sectors as owners seek to improve the efficiency of their properties. 

A September report from MarketsandMarkets predicted that the value of the global smart building market will increase from $5.73 billion in 2016 to $24.73 billion by 2021, growing at a compound annual growth rate of 34% over the period. The report said the surge in demand will be driven by growing interest in energy-efficient buildings, a rise in Internet of Things adoption and government initiatives that encourage smart buildings.

One high-profile example of the growing interest in smart cities is the Gramercy District project in Ashburn, VA. Several construction and technology giants are developing the 2.5 million-square-foot, $500 million complex, which will be the first smart city in Virginia and one of only a handful in the U.S. 

Although the commercial sector has dominated the smart building market so far, the residential side isn't far behind. Last year, research firm Gartner reported that the adoption rate of Internet of Things technology in the commercial sector would outpace that of residential through 2016. However, it noted that smart home technology was expected to generate more traction among consumers starting in 2017.

One startup seeking to capitalize on that growing popularity in the residential sector is Deako, a Seattle smart home lighting startup that raised $3.5 million in its July funding round, bringing total investment to nearly $7 million. Deako's smart phone-controlled lighting controls work with a home's existing wiring and allow users to program a lighting scheme for the entire home.