There are two target markets to which products related to improving energy efficiency in buildings would go: the automation of buildings and offices and the smart home market. In particular, the segment of control and energy saving devices. Both of them are markets in strong growth in the developed world. The main players are positioned in the market of automation and artificial intelligence (Apple, Amazon and Google) and they are trying to centralize all the applications and devices that address it. We also have the leading producers of home electronics (such as Phillips) taking out products every day. The estimated size of this market in 2016 was $ 13,000M with an estimated annual growth of 12% to $ 72,000M in 2022 [1]. However, the part related to energy management and savings is smaller, estimated to be about 3,000M $ in 2022 [2]. Specifically, in the case of building and office automation, something similar happens: the estimated size of this market in 2018 is 44,000M $ [3]. With an annual growth of 11% in the coming years. The main driver of this growth is energy saving, a sector that precisely affects this product. If we estimate that the proportion of energy savings is similar to smart homes, we would have another $ 4,000M in this sector. With an approximate total market of $ 7,000M. If we take into account that only European markets are going to be addressed at the beginning of this project, we can estimate a potential market of $ 900M and with an annual growth of more than 10%. This size is very reasonable to give guarantees that with a small market share it could reach very high-income levels reasonable to justify a Venture Capital investment for expansion.

[1] Market Research Report. Global Home Automation Market – By Product, Technology, Region – Market Size, Demand Forecasts, Industry Trends and Updates (2016-2022). 

[2] Market Research Report. Home Energy Management System Market by Hardware (Control Device, Display/ Communication Device), by Communication Technology (Z-Wave, ZigBee, Wi-Fi) and by Software & Service (Behavioral, Proactive) – Global Forecast to 2022. 

[3] Orbis Research. Global Building Automation System Market-Segmented by Type (Building Management Software and Environmental Control and Lighting Management), End User (Commercial, Residential, and Government), and Region-Growth, Trends and Forecast (2018-2023)