STAMFORD, CT – Gartner estimates 1.6 billion connected things will be used by smart cities in 2016, an increase of 39% from 2015.

"Smart commercial buildings will be the highest user of Internet of Things until 2017, after which smart homes will take the lead with just over 1 billion connected things in 2018," said Bettina Tratz-Ryan, research vice president at Gartner.

Commercial real estate benefits greatly from IoT implementation, the firm says. IoT creates a unified view of facilities management, as well as advanced service operations through the collection of data and insights from a multitude of sensors.

"Especially in large sites, such as industrial zones, office parks, shopping malls, airports or seaports, IoT can help reduce the cost of energy, spatial management and building maintenance by up to 30%," said Tratz-Ryan.

The business applications fueling the growth of IoT in commercial buildings are handled through building information management systems that drive operations management, especially around energy efficiency and user-centric service environments. In 2016, commercial security cameras and webcams, as well as indoor LEDs, will drive total growth, representing 24% of the IoT market for smart cities, says Gartner.

IoT deployment in commercial buildings will continue to grow at a rapid pace over the next few years, and is on pace to reach just over 1 billion in 2018.

"Incentives into the deployment of IoT in commercial real estate will fuel its development," said Tratz-Ryan. "The UK's building information modeling mandate, for example, requires all public sector construction commencing in 2016 complies with BIM (level 2)."

BIM uses data models coming from various information sources, including IoT, which will be used by commercial real estate in the future.

In smart homes, the consumer IoT applications fueling growth are smart TVs, smart set-top boxes, smart bulbs and various home automation tools, such as smart thermostats, home security systems and kitchen appliances.

"The growing maturity of smart home platforms through an ecosystem of home appliances, infotainment and home sensors will mean smart home investments overtake those of commercial buildings in 2018."

Smart homes will represent 21% of total IoT use in smart cities in 2016, and will record the highest increase over the next five years, according to Gartner.

"Device and wireless standards will be embedded in more devices. Homes will move from being interconnected to information- and smart-enabled — an integrated services environment that will provide value to the home and the individual ambience."

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