Some operators have sought to deploy more integrated smart building packages within their own premises, reaching for broader operational savings and benefits while also serving as proving grounds for their technology before commercial launch.
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Telefónica then followed up in October 2019 by launching its Smart Energy Solution promising deeper understanding of energy usage in any building or location, as well as advice on how to reduce consumption.
We witnessed for example Telefónica teaming up with maker of elevators and lifts Schindler in May 2019 for connectivity and smart management of those systems in public facing commercial premises such as retail department stores, train stations and airports.
Until now, most mobile operators have been in the slipstream of the dedicated smart building system providers such as Honeywell, or those that have entered the field on the back of Internet connectivity more recently, such as Google with its Nest subsidiary targeting the home environment. As we have reported before, Honeywell as one of the largest and longest established players in smart building systems in November 2020 introduced a new line of electronic air cleaners including UV systems and incorporating indoor air quality sensors. This is one area that seems to have galvanized by the Covid-19 pandemic, which drew attention to the issue of indoor pollution in the home as people were spending more time there, and on from there to smart buildings. Sensors that monitor indoor air pollutants of various forms have increasingly been installed in workplace or public buildings and integrated in some cases with filtration systems as part of HVAC (Heating Ventilation Air Conditioning). The drive for energy savings and compliance with emerging environmental measures is one such factor, increasing security demands another, while a third is growing awareness of air quality issues within working environments amid concerns over the impact of airborne indoor pollutants. Such predictions are virtually useless in themselves but highlight how the field is now being propelled both from within by individual sectors and from without by desire to obtain overall cost savings and operational benefits. As a result, we have seen predicted CAGRs over the next five years range from 10% to 35% and estimates of current market size as of early 2021 diverging even more wildly by about sixfold between $15bn and $90bn globally. Such interest has been stimulated by bullish predictions whose variance reflects contrasting definitions and the challenge of defining the boundary between smart building and other components relating to enterprise activities, such as facilities management. It then wants to radiate out across the world through those 18 outlets to meet an anticipated fast-growing market for smart building products and services. The new smart building subsidiary, called Bldng.ai, then takes off from within that IoT group with the starting ambition of becoming Norway’s largest provider of smart building products and services.
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It has 200 full time IoT staff, with the biggest team naturally in the Nordics to start with, but flexibility to move people between countries in line with customer take-up. This came with a revised operating model around synchronized product development and improved technical support, with a portfolio delivered by IoT specialists focused initially in 18 countries spanning all the continents, that is Africa, the Americas, Asia-Pacific, and Europe.
Telenor had prepared the ground for this escalation in smart buildings by aligning its regional and international IoT portfolios under the single brand, Telenor IoT, unveiled in March 2021. This is indicative of a gathering push by telcos into the smart building sector as a promising use case for 5G, in some cases drawing together existing threads in specific niches such as energy management and security. Norway’s Telenor has joined the latter camp by setting up a dedicated smart building subsidiary initially to serve its domestic market, before expanding across the Nordics. Most operators have been pussy footing around niches of the smart building sector but a few have taken a deeper plunge with a more coherent strategy around 5G indoor coverage and IoT infrastructure.
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