ARCHIVE FOR THE ‘future-of-field-service-2’ CATEGORY

Ericsson and Swisscom, the largest telecommunications service provider in Switzerland, have switched on the first large-scale commercial 5G network in Europe to support commercially available smartphones. 

The long-term strategic partners went live with the network in the first minute of April 17, following Swisscom’s securing of a commercial 5G license. As all the other component parts were already in place, securing the license meant the partners simply had to switch the network on.

Swisscom had already flagged the impending launch of the network, and introduced smartphone and mobile router ecosystem partners, at an April 10 ceremony in Zurich.

The commercial 5G network, and related 5G services, are now available in 54 cities and communities in Switzerland, including the major population areas: Zürich, Bern, Geneva, Basel, Lausanne and Lucerne.

Swisscom subscribers with commercial 5G smartphones and routers in covered areas will immediately benefit from the high speed, low latency and enhanced mobile broadband features of 5G services across infotainment, gaming, virtual reality, and immersive media experiences.

The 5G network switch-on also opens the door to exploring new opportunities in the Internet of Things (IoT) and Industry 4.0.

Urs Schaeppi, CEO, Swisscom says: “With the launch of the first commercial 5G network in Switzerland, we are laying the foundation for diverse, new applications and business models. This will not only be great for Switzerland but also inspiring for the people who will now be part of the digital world whether they are living in the city, countryside, or in the mountains.”

Arun Bansal, President and Head of Europe and Latin America, Ericsson, says: “This is a momentous occasion for Swisscom and Europe – 5G is now commercially live. As we continue our close ties with Swisscom, we are also strengthening the 5G ecosystem by reducing the time-to-market for chipset and device makers. We ensure multivendor operability with 5G devices and networks, enabling more 5G devices to come to the market so consumers can enjoy the benefits of 5G services.”

The promise of IoT has been vast and they hyperbole around it’s impact on field service delivery are massive – but is it actually living up to the hype and what more should we expect? Kris Oldland discusses...


The early hype and industry trends

The story of IoT’s rapid rise and how it went from the top of the hype cycle straight to a standard part of industry is now well documented. Indeed, across the last two years, I don’t think I can recall a single service executive I’ve met whose organization isn’t at least seeking to implement some layer of IoT connectivity into their field service operation - many are already far down the path.

 

On the surface, it certainly seems that IoT is living up to its billing as “the most over-hyped technology in development today” a moniker which heavyweight analysts Gartner applied to it not too long ago.

 

Back in the misty past of 2014, the official line from Gartner was that IoT was ‘five to 10 years from actual productivity.’ Back then IoT was riding the crest of the “peak of inflated expectations” within the analyst’s much loved, if slightly overly poetic, hype cycle.

 

So as we hit the closest limits of that prediction perhaps now is a good time to establish if IoT is still on track to revolutionize the world, and in particular field service, as Gartner and others - including myself, so boldly predicted.

 

Back in 2014, it was a lack of standardization in the area, as well as the changing nature of the technology itself, which Gartner identified as part of the reason why widespread adoption was further away than its promoters at the time may have thought.

 

“Standardization (data standards, wireless protocols, technologies) is still a challenge to morerapid adoption of the IoT,” wrote Gartner’s Hung LeHong.

 

“A wide number of consortiums, standards bodies, associations and government/region policies around the globe are tackling the standards issues. Ironically, with so many entities each working on their own interests, we expect the lack of standards to remain a problem over the next three to five years.”

 

Indeed, within field service this has become something over a common theme as we have seen the technology move from an embryonic to fledgling state.

 

It was interesting to note for example IFS’s approach in the area was not to develop a specific propitiatory IoT solution as some of their peers in the field service management arena, such as PTC and ServiceMax had veered towards, but instead opted to bring to market an IoT connector, that was able to plug the gap between whichever IoT protocol an organization favored and their field service platform.

 

This type of approach, of providing some form of sorting house for various data formats has since been impressively taken up by the like of Microsoft and others also - and may well point to the where the future lies for field service companies leveraging IoT in the future.

How IoT is being adopted and outlining connected field service
Before, we can assess if IoT is as yet hitting its potential as a fundamental bedrock for twenty first century field service, perhaps we should take a moment to look at some of the key areas in which it will be applied.

As with almost any technology that makes it at the corporate grade, the first thing that everyone gets excited is the financials.

For a long time the dual challenge for field service operations has been the seemingly incompatible tasks of improving CSAT levels and reducing costs. For those service directors trying to manage this impossible equilibrium, early talk of the magic bullet of IoT would have sounded like a divine panacea, with talk about how IoT could improve both profitability and customer relationships, being at first whispered in hushed tones, before being shouted loudly from the roof tops when the first few actual cases studies started to emerge.

Within these case studies there were invariably four key areas of success:

Automation
Rather than the customer having to report problems, IoT-enabled devices can automatically contact the technician directly with specific details of the issue. The technician can then arrive with knowledge and parts to immediately solve the problem.

Reduced Inspections
Devices capable of self-diagnosing issues and reporting on performance, not only reduce the need for customers to contact technicians, they also cut down on the amount of inspections required to solve an issue.

Inventory Management
IoT-enabled devices that require servicing or new parts, now automatically flag these issues to technicians for attention. Alongside this, technicians can also connect directly to the warehouse for instant, real-time inventory data to check whether the parts needed are in stock.

Redefine ‘Service’
Rather than simply fixing devices that already have maintenance issues, IoT is enabling serviceproviders to see and solve customer problems before they even occur. This is thanks to real-time performance data that can signal when parts are on the verge of needing replacement or interpret the signs of potential maintenance issues. A case could be made for how each of the first three of these developments could be considered something of a revolution within the field service sector. Machines that can self diagnose their faults, order the parts they need to remedy the problem and arrange for a human co-worker to come out and make the necessary repairs all sound like something from the future - and even better it is a nice happy Jetson-eque vision of the future, rather than the bleaker dystopian version that sells Hollywood movies. However, it is the fourth of these points, i.e. Redefining Service, where perhaps the true potential of IoT is uncovered.


The fundamental role IoT is playing in servitization.
In a world of exaggerated hyperbole, it is perhaps only natural to dismiss the talk of a fourth industrial paradigm that accompanies the discussion around Servitization as overegging the pudding somewhat.

At the risk of sounding like a bad pastiche of industry journalist though, I think that such talk is actually pretty much on the money. I do however, think there is there is a long way to go before we get there - and for me IoT is the fundamental technology that is required for a company to fully move into a servitized business strategy.

Wait! I here you cry, Rolls Royce, MAN UK, Caterpillar - they were all doing servitization before the IoT was even an apple in its developer’s eyes.

This is of course, very true, but at its essence all IoT has simply done is make the bespoke telematics of true innovative giants such as those listed above (and the other handful of pioneering poster boys of servitization) available on mass scale. Power by the Hour is all about the data, as is the IoT.

A simplification perhaps, but one that is founded in truth and whilst the move towards preventative maintenance, that is commonly mentioned in the same breath as IoT, isn’t servitization, it is a fundamental step towards the strategy - which is one that is becoming more and more prevalent in almost all vertical sectors. 
Great Expectations:
So to answer the question in the title of this article - yes, I believe that IoT is so far living up to its potential as a revolutionary game changer within our sector. That said, I don’t think it is greedy to expect even more. As ServiceMax CEO Scott Berg discussed in a recent interview with Field Service News, there is certainly more to come from IoT in terms of the way field service companies are leveraging it.  
“I think what needs to happen now, and where the real value will come from IoT, is when input from a machine can be fed into more predictive models using Artificial Intelligence (AI) and Machine Learning. Only then we will get truly predictive services, and only then will you get a learning model rather than an alert system.”
He commented. Essentially, I think Gartner got their 2014 timeframe pretty much spot on. Five years on from that prediction and we are now generally seeing fully functioning IoT systems in place quite commonly amongst field service organizations, but I think it will be at least a further five years before those systems mature to become close to their full potential.
The analogy of PCs in the workplace comes to mind. For those companies who embraced early DOS systems, they gained an important head-start on their peers who stubbornly ignored that particular wave of technological innovation. Yet, by the time Windows 95 had emerged the technology was not only pretty much universal but had become ingrained into the fabric of industry at all levels.
Expect the same of IoT in 2025.

 

 

According to a new research report from the M2M/IoT analyst firm Berg Insight, the number of devices featuring cellular or satellite connectivity deployed in oil and gas applications amounted to 1.3 million at the end of 2018.

 

Growing at a compound annual growth rate (CAGR) of 6.8 percent, this number is expected to reach 1.9 million units by 2023. Remote monitoring of tanks and industrial equipment in the midstream and downstream sectors comprise the most common applications for wireless solutions in the oil and gas industry. Berg Insight expects that shipments in the upstream sector will grow faster, although from a much smaller base, as cellular communications become an increasingly viable alternative to proprietary radio due to improved 4G LTE coverage in North America and broader support from the industry.

 
While the market has been affected by the decrease in oil prices in recent years, significant developments have taken place in regard to the industry landscape and technological advances. Major automation vendors such as Emerson, Siemens, Schneider Electric, Yokogawa, Honeywell and ABB are investing heavily in the development of software platforms to support use cases surrounding predictive analytics and digital twins. Recent developments further include Rockwell Automation’s joint venture agreement with the major oilfield service company Schlumberger to create Sensia, an integrated automation solution provider in the oil and gas industry. On the communications side, several initiatives have been launched to promote the adoption of cellular technologies in the utilities industry, primarily in the US. In early 2019, leading cellular device providers, including Sierra Wireless, Cisco, MultiTech Systems, GE and Encore Networks together with spectrum licensees and utilities formed the Utility Broadband Alliance (UBBA) to advance the development of private LTE networks for critical infrastructure industries.

Solutions for remote monitoring of assets such as wellheads, storage tanks and pipeline infrastructure are offered by major industrial automation vendors, as well as a large number of specialised providers. “Key consolidators in the market for remote monitoring solutions are the private equity held companies Quorum Software and DataOnline that have acquired six and three businesses respectively between 2015–2019”, said Fredrik Stalbrand, IoT Analyst, Berg Insight. He mentions recent deals such as Quorum’s acquisitions of the Coastal Flow Measurement family of companies and Flow-Cal in March 2019, as well as DataOnline’s purchase of Sierra Wireless’ iTank business in December 2018. Important vendors that specialise in remote SCADA and tank monitoring further include AIUT, Critical Control, eLynx Technologies, Silicon Controls, SkyBitz, WellAware, Zedi and ZTR Control Systems. “Several players continue to have inorganic growth as a key strategy, so further M&As can be expected among IIoT solution providers targeting the oil and gas industry in 2019–2020”, concluded Mr. Stalbrand.

You can read the full report here.

 

The world we live and work is changing fast, being pushed forward by rapid technological evolution. Becky Johnson reviews key industry data to see what trends we need to be focusing on...

Customer Service & Brand
There can be no doubt that the traditional interpretation of Field Service is changing: a fundamental shift is being made to focus on service and its incorporation and development into existing, more product-centric, business models.

Where once it was enough to rely on a stellar product, now competition is fierce and margins are being squeezed this is no longer the case. Where excellent service is being provided and taken for granted in everyday life, it makes sense that this is now being expected, if not demanded, within business transactions.

A new age is dawning and customers are continuing to ask how a product and company ‘adds value’. Engineers in the field have access to, and interactions with, potentially hundreds of contacts within a specific customer base. So it’s no surprise that those customers will come to associate a product’s ‘worth’ based on the dealings they have had with these field service representatives.

As the American poet Maya Angelou is attributed to have said ‘I’ve learned that people will forget what you said, people will forget what you did, but people will never forget how you made them feel’. By 2020 customer experience is slated to overtake price and product as a key brand differentiator. (Source: Capterra)

Women in Field Service, Diversity & Mindset
With this shift to customer centricity there must also be a shift in perception. Traditionally seen as male dominated, a career in Field Service has not attracted women. However, with service coming to the fore this situation is starting to change and the skills that women offer are becoming more vital than ever. The ‘soft skills’ required for customer service roles are often attributed to women, but it’s not a question of gender, the focus must be on what skills can be brought to the table as a whole and how these can be used to improve a company’s Field Service offering.

In order to ensure that quality talent is acquired and retained, Field Service must also diversify so that the next generation of bright minds can see themselves working in this sector. If a certain demographic is only ever highlighted and portrayed then it is no wonder that it is presumed that this is all there is.

As you would market a brand, the same must be done throughout Field Service. Why would you choose this career? What is there to offer? What is the long term career outlook? Although diversity may be a difficult and taboo subject for some, this does not make it any less important or integral to the way companies must continue to grow and exist.

The business world has long debated the effect of gender diversity on business outcomes, asking does diversity make a company more productive and in turn increase financial performance? In a Harvard Business Review a study of 1,069 leading firms across 35 countries and 24 industries found that gender diversity relates to more productive companies (as measured by market value and revenue) only in contexts where gender diversity is viewed as “normatively” accepted. In other words, beliefs about gender diversity create a self-fulfilling cycle. Countries and industries that view gender diversity as important capture benefits from it. Those that don’t, don’t. They also found that the most-diverse enterprises were also the most innovative, as measured by the freshness of
their revenue mix, proving that diversity is crucial in so many factors. 

"Service must also diversify so the next generation of bright minds can see themselves working in the sector..."

In order to keep up with rising expectations it will require a massive change in mindset, starting at board level and moving downwards, to truly transform a company ethos. For some this will mean a transformation in culture that has formed over decades but must now be changed rapidly if they are not to be left behind by the competition. This will be easier said than done; as change is happening so fast it’s fundamentally hard to move quickly enough! However, as the old adage goes, ‘just because something is difficult, it doesn’t mean it isn’t worth doing’.

Haier, the world’s number one home appliance manufacturer, is a Chinese colossus with 70,000 employees. Since the 1980’s, Haier has reinvented itself several times, most recently breaking the company into >4,000 micro-enterprises effectively creating self-organizing micro businesses acting as separate entities (and in some cases, actually are). At the core of this idea is that employees get ownership, decision-making rights and a customer paid salary. They truly became pioneers. Such a change in mindset comes within the RenDanHeYi model. With “Ren” referring to each employee, “Dan” referring to the needs of each user, and “HeYi” referring to the connection between each employee and the needs of each user. The CEO Zhang Ruimin says: ’With the RenDanHeYi model we truly enter the network age. But the network aspect is not even the most important. 

What is more important is that we no longer try to delegate to, or ‘empower’, employees. It’s now time for every employee to be his or her own boss. So, with the RenDanHeYi model we move away from being like an empire (with a traditional, closed pyramid) to be more like a rain forest (with an open networked platform). Every empire will eventually collapse. A rain forest, on the other hand, can be sustained. 

Digital Transformation
Alongside the cultural shift needed to meet customer expectations, Field Service is also being driven by digitalization, which Gartner defines as ‘the use of digital technologies to change a business model and provide new revenue and valueproducing opportunities; it is the process of moving to a digital business.’

‘Digitalisation’ and ‘digital transformation’ have become such buzz words in recent years that some have lost sight of not only what it means but what they are actually trying to do. Digitalisation is a tool by which to achieve an end goal, but is not the goal itself. Gartner predicts that by 2020 10% of emergency field service work will be both triaged and scheduled by artificial intelligence.

With AI assisting with everything from scheduling to predictive maintenance to using past data to make future plans. The human element within Field Service is still very much relied on and future technologies and solutions will be there to support these interactions - to make life easier and more efficient, not to replace humans altogether.

People still want to do business with people and until the customer becomes more Terminator than terrestrial this will probably always be the case.

Becky Johnson is Content Director at WBR, overseeing the Field Service Connect conference, which takes place on 14 and 15 May at Celtic Manor, South Wales.

 

Claims that 3D printing will disrupt and revolutionise the manufacturing industry of the future, have been made since the early 1990s. For field service, that future is now writes Dr Ahmad Beltagui.

Picture this scenario: a field service engineer is called out to repair a grounded aeroplane at a remote airport. He finds the problem, but realises that repairing it will mean waiting a week for spare parts to arrive, when the client needs the plane airborne, so the contract, and perhaps his job, is on the line. Could 3D printing provide a faster solution to the problem? Today, it very likely could.

What is 3D printing?
3D printing – also known as additive manufacturing, additive layer manufacturing, rapid prototyping and rapid manufacturing – is a range of production processes that build parts in layers directly from digital designs, without the need for tooling.




































These processes typically use a heat or light source to solidify plastic or metal powder, liquid polymer or plastic filament. They can produce complex geometries in small batches or even one-offs in a variety of materials, from biodegradable plastic to aerospace grade titanium. A digital, flexible future for manufacturing and service 3D printing allows production to be carried out on-demand, which is useful when spare parts are unexpectedly needed. Production in remote locations becomes possible, as NASA demonstrated by printing a wrench on the International Space Station in four hours, from a design sent digitally from Earth. 3D printing allows production of highly customised parts, from hip replacements, to dental implants to ear-phones

It enables consolidation of multiple components into one part, which delivers huge benefits in weight reduction, but also helps to streamline supply chains. For example, an aerospace part that used to be assembled from components delivered by around 20 suppliers is now designed as a single, much lighter, component. The only feasible way of producing this design is additively, rather than cutting and joining in traditional methods. Since it requires no tooling, economies of scale are less relevant, so that producing one-off parts is feasible, as Formula One teams have demonstrated with track-side 3D printers. For all of these reasons, 3D printing gives us a vision of a digital, flexible future for manufacturing and service.
The first patents for 3D printing processes were granted as early as 1986, but in recent years there has been a shift in focus from prototyping to enduse parts. Companies across the world, including IBM and Sony, had experimented, but the pioneering, and still market leading, companies were started by engineers in their spare time – Chuck Hull who invented stereolithography and founded 3D Systems, and Scott Crump, whose fused deposition modelling is the basis of industrial and desktop 3D printers made by Stratasys. 
Where did it come from? 














For many years 3D printing has been widely used in prototyping and new product development. Indeed, Hull’s invention was based on frustration that prototyping designs took far too long. Research suggests that, while prototyping is still the most common use, more companies are printing components and products for end-use by customers. 
Where did it come from?
The first patents for 3D printing processes were granted as early as 1986, but in recent years there has been a shift in focus from prototyping to enduse parts. Companies across the world, including IBM and Sony, had experimented, but the pioneering, and still market leading, companies were started by engineers in their spare time – Chuck Hull, who invented stereolithography and founded 3D Systems, and Scott Crump, whose fused deposition modelling is the basis of industrial and desktop 3D printers made by Stratasys.

For many years 3D printing has been widely used in prototyping and new product development. Indeed, Hull’s invention was based on frustration that prototyping designs took far too long. Research suggests that, while prototyping is still the most common use, more companies are printing components and products for end-use by customers. Substantial improvements can be seen in cost, quality, speed, reliability and materials.

The industrial and commercial viability of 3D printing for volume production is being tested by companies such as General Electric, whose dedicated factories have produced over 30,000 aero-engine fuel nozzles and over 100,000 hip implants. And in some sectors, such as hearing aid production, reports suggest that every company that has not adopted 3D printing has not survived. This is only the start of a growing industry, whose annual revenues are projected to grow to over $20bn.
A growth industry – in services
Following two decades of steady development, there has been rapid growth in 3D printing revenues since around 2010. This is partly helped by the expiry of the first patents, leading to an open-source “maker” movement at the low end, which sees start-ups receiving multi-million dollar kickstarter investments and 3D printers offered for under £500 by supermarket chains, such as Aldi. Estimated global revenues for 3D printing products and services grew from $1bn in 2009 to $2bn in 2012 to over $5bn in 2015, with compound annual growth over 30% over most of this period. 3D Systems and Stratasys, who account for over a fifth of the total, saw their product revenues soar until 2014. However, the last few years have been more challenging for these companies, because the potential of 3D printing has now been recognised by companies from a variety of sectors. Driven by fear of disruption, manufacturing companies including HP, Ricoh, GE and Polaroid, as well as software companies such as Adobe, have entered the market with their own 3D printers. Meanwhile lower price competition from Asian manufacturers has increased competition in 3D Printing. The answer to the competitive challenges, as is so often the case, lies in service and servitization. 

Servitization and 3D printing
With a large and growing installed base of 3D printers, there is potential for service providers to offer maintenance and operation related services. As UK based manufacturer Renishaw has reported, customers often buy a 3D printer, only to then ask for someone who knows how to use it. This is because setting up, maintaining and post-processing are highly technical tasks that require skilled personnel. Market leading companies increasingly derive their profits from digital manufacturing services, offering a full range of solutions, including design and production. They offer to take customers’ ideas through a whole digital product development and production process, effectively transforming manufacturing into a service.
So, back to our hero, the field service engineer at the remote airport, trying to fix his grounded aeroplane. In the time it took you to read this article, he could have received or downloaded the digital file for the part he needs and perhaps set up the printer to start making the part. A few hours later, he could come back to collect it and perform any post-processing required, before fitting it and letting the customer get back to business.
How far-fetched is this scenario? How far away are we from this vision of reality? Perhaps not too far. Two main barriers remain. The first is that post-processing and other technical tasks take time, effort and skill. There is, therefore, a need for managers to ensure staff are trained and have the required skills for digital production technologies. The second is intellectual property. While digital file standards make it possible to share designs, the fear that anyone can produce (or modify) a design makes companies reluctant to share.
The last few years have seen hype, unrealistic expectations and subsequent disappointment (news just in: not every home has, or is likely to have a 3D printer). However, technologies are maturing as focus shifts to refining and improving, rather than reinventing.
Global revenues for 3D printing passed $9bn last year, a large and growing proportion of which are service revenues. In short, the time to realise the benefits and take advantage of the demand for 3D printing services is now.
Dr Ahmad Beltagui is from the Advanced Services Group at Aston Business School

Machine learning and threat intelligence capabilities in SIEM solutions will augment the productivity of security analysts, finds Frost & Sullivan.

Security Information and Event Management (SIEM) vendors have begun to inject greater versatility into their platforms as well as incorporate new security functionalities and analyst-friendly dashboards. Also, managed SIEM providers are offering cloud-hosted SIEM solutions to lower the per customer cost-to-serve to penetrate the SMB market.

These advances will drive the $1.98 billion global SIEM market toward $3.23 billion by 2023. "SIEM 3.0, with its high degree of automated response and remediation, can detect malicious threats attempting to penetrate the environment and automatically perform actions to thwart attackers’ advances,” said Mauricio Chede, Senior Industry Analyst, Digital Transformation. "The integration of several functionalities, such as user & entity behavior analytics (UEBA), security operation and automation response (SOAR), and forensic analysis, is essential to effectively compete in the SIEM market."

Frost & Sullivan’s recent analysis, Security Information and Event Management (SIEM)—Global Market Analysis, Forecast to 2023, examines the market drivers, restraints, and market distribution channels of the SIEM market. It presents revenue forecasts and key findings to help participants make the most of the market potential. The study covers the four product types of physical appliance, virtual appliance, software, and Software-as-a-Service (SaaS).

You can read the full report here.

In the latest Field Service Podcast, Bill Pollock discusses why management buy-in can ultimately lead to service excellence.

 

In this special episode, Deputy Editor Mark Glover, speaks to long-term Field Service News' contributor Bill Pollock about the importance of top-down buy-in when integrating new technologies.

Citing trends from Strategies for Growth's 2018 Field Service Management Tracking Survey, Bill dissects the current state of the sector, providing some surprising insights.An essential listen from one of the most influential and experienced voices in the industry. 

 

Ericsson and ABB have partnered to accelerate the industrial ecosystem for flexible wireless automation. The partnership will enable enhanced connected services, Industrial IoT and artificial intelligence technologies in the future.

The partners established their joint vision for future flexible production with automation and wireless communication by signing a Memorandum of Understanding (MoU) at Hannover Messe 2019. This comes in the era of Industry 4.0 and 5G, as businesses realize the benefits of increased productivity through automation and digitalization.

The MoU confirms the partners’ agreement to: continue their strong research collaboration, explore improvements in manufacturing processes and automation, and discover new business opportunities for the industrial ecosystem.

Ulrich Spiesshofer, CEO, ABB, said: “We are very excited to extend our partnership with Ericsson as the world moves closer to the era of 5G technology. ABB’s leadership in digital industries combined with Ericsson’s pioneering work in connectivity will open up new opportunities for customers to enhance productivity and competitiveness by digitalizing their businesses.”

Börje Ekholm, President and CEO, Ericsson, added: “Ericsson and ABB already have a strong collaboration in research for 5G and Industrial IoT technologies. With this MoU, we strengthen our partnership to accelerate the industrial ecosystem and realize the full potential of flexible automation, unlocking new business opportunities enabled by combining 5G and Industry 4.0.”

According to a new research report from IoT analyst firm Berg Insight, the installed base of sensors, actuators, modules, gateways and other connected devices deployed as part of IoT-based building automation in smart and connected commercial buildings was an estimated 151 million units worldwide at the end of 2018.

Growing at a compound annual growth rate (CAGR) of 33 percent, the installed base will reach 483 million units in 2022. About 4.5 million of these devices were connected via cellular networks in 2018. The number of cellular connections in the building automation market will grow at a CAGR of 44 percent to reach 19.4 million in 2022. In terms of revenues, Berg Insight estimates that connected devices into the global BIoT market generated revenues of more than US$ 1.2 billion in 2018. This figure will grow at a CAGR of 21 percent to almost US$ 2.7 billion in 2022.
 
This study from Berg Insight analyses the market for building automation in smart buildings along multiple verticals ranging from well-known ones such as heating, ventilation and air conditioning (HVAC), indoor lighting, fire & safety, access & security, to lesser known ones such as electric vehicle charging, irrigation systems and pool monitoring. The most successful building automation solutions to date, in terms of sold units, include access and security, fire and safety, HVAC systems and elevators and escalators management. These solutions are marketed by product OEMs such as Assa Abloy, Avigilon, AMAG Technology, HID Global, Comark, Tyco, Albireo Energy, Cimetrics, Delta Controls, ENGIE Insight, Silvair, KONE, Otis, Schindler and ThyssenKrupp. The automatic control may be done through a centralized system such as a Building Management System (BMS). Examples of BMS solution providers include ABB, Honeywell, Johnson Controls, Schneider Electric, Siemens and United Technologies.
 
Building automation has been around for many decades but there is a new urgency due to factors such as energy conservation as well as mandates for green construction. The latest smart building solutions leverage new technologies such as IoT, big data, cloud computing, data analytics, deep learning and artificial intelligence for the benefits of saving energy, reducing operational expenditures, increasing occupancy comfort, and meeting increasingly stringent global regulations and sustainability standards. “A major change is starting to happen now especially in new construction, where the primary driver is changing from cost reduction to features that enhance the user experience and change how users and buildings interact. Instead of there being a single killer-app, we are starting to see a combination of use-cases”, said Alan Varghese, Senior IoT Analyst, Berg Insight.

These use-cases leverage the Internet of Things, sensors and connectivity to enable customization of spaces in offices and conference rooms based on occupancy levels and occupant preferences, efficient mobility throughout the building, and they help occupants with location and wayfinding – all controllable by mobile platforms. Most important, they are capable of predictive awareness of individual needs.

You can download the report here.