USD 82.77 billion
Smart Building Market Size, Share, Growth Analysis, By Component(Solution and Services (Consulting, Implementation and Support & Maintenance)), By Solution(Safety & Security Management (Access control system, Video surveillance system and Fire and life safety system), Energy Management (HVAC control system and Lighting management system), Building Infrastructure Management (Parking management system), By Building Type(Residential, Commercial and Industrial), By Region - Industry Forecast 2024-2031
Report ID:
SQMIG45H2056 |
Region:
Global |
Published Date: July, 2024
Pages:
157
|Tables:
142
|Figures:
77
Smart Building Market Insights
Global Smart Buildings Market size was valued at USD 80.25 billion in 2022 and is poised to grow from USD 89.08 billion in 2023 to USD 205.3 billion by 2031, growing at a CAGR of 11% in the forecast period (2024-2031).
A complex control system manages building activities such as ventilation, air conditioning, heating, lighting, and other systems made up of sensors, actuators, and microchips in smart buildings. A smart building employs technology to simplify complex things to make it easier to maintain, more efficient, and safer. The growing trend of smart cities plays an important role in creating new chances for the smart building business. Because of advancements in digital technology, sensors, and telecommunications, buildings can now be monitored and controlled significantly more effectively than in the past.
Smart buildings rely on a variety of IoT sensors and computer networks to automate solutions like lighting, heating, and elevator management, as well as fire detection, video surveillance, and badge access. Building Automation Systems (BAS) and these sensors collaborate to provide a wealth of informative and useful information on building safety and performance. BAS and IoT sensors, on the other hand, are vulnerable to intrusions because they usually lack essential cybersecurity skills.
Furthermore, buildings have increased chances to play a significant part in self-generation or grid-supplied energy, boosting the demand for non-carbon or low-carbon building energy management systems. Artificial Intelligence (AI) and Machine Learning (ML) may be used to analyse building data in order to improve the performance of various building activities as well as the building's income production capabilities. In today's fast-changing world driven by uncertainty, these systems can acquire the required data to translate it into meaningful information, and apply the new knowledge to the aims of companies.
According to the United States-China Economic and Security Review Commission, Chinese government investment in smart city programmes would top $38.92 billion by 2031. These developments also reflect a country's tendency to employ energy-saving technology.
US Smart Building Market is poised to grow at a sustainable CAGR for the next forecast year.
Market Snapshot - 2024-2031
Global Market Size
Largest Segment
security management
Fastest Growth
security management
Growth Rate
25.3% CAGR
Smart Building Market ($ Bn)
Country Share for North America Region (%)
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Smart Building Market Segmental Analysis
Global Smart Buildings Market is segmented based on component, solution, building type and region. Based on component the market is segmented into solution and services (consulting, implementation and support & maintenance). Based on solution, the market is segmented into safety & security management (access control system, video surveillance system and fire and life safety system), energy management (HVAC control system and lighting management system), building infrastructure management (parking management system, smart water management system and elevators & escalators management system), network management (wired technology and wireless technology) and integrated workplace management (operations and services management, real estate management, environmental and energy management, facility management and capital project management ). Based on building type, the market is segmented into residential, commercial, and industrial. By region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
Analysis By Solution
The safety and security management domain held the dominant share in revenue, comprising 35.34% of the total. This category encompasses a spectrum of activities such as data collection, analysis, seamless integration with internal systems, and streamlined administration. Furthermore, many smart buildings incorporate advanced fire systems within their safety and security protocols. These systems empower managers to remotely monitor their buildings' health and fire systems' performance, leveraging devices like laptops, desktops, and smartphones. These advantages inherent to cutting-edge safety and security management systems are anticipated to be key drivers propelling segment growth throughout the projected period.
Concurrently, the energy management segment is projected to register a noteworthy Compound Annual Growth Rate (CAGR) of 28.0% over the forecast span. This momentum owes itself to the mounting awareness surrounding the manifold benefits of deploying Energy Management Systems (EMS) across industrial, commercial, and residential properties. The impetus is further bolstered by a surge in governmental initiatives aimed at curbing energy consumption.
Analysis By End Use
In the year 2022, the commercial sector commanded a substantial portion, accounting for 53.36% of the total revenue, and this dominance is projected to persist throughout the forecast period. Within commercial edifices, the integration of advanced IoT sensors plays a pivotal role in collecting data from diverse building systems and subsystems. This data serves as a foundation for streamlining and automating building operations and maintenance. Advanced IoT sensors play a central role, enabling data collection from multifarious building systems and subsystems.
Conversely, the residential sector is poised to exhibit a noteworthy Compound Annual Growth Rate (CAGR) of 26.6% across the forecast horizon. The advent of the COVID-19 pandemic spurred heightened adoption of smart home technology, which played a pivotal role in curbing the virus's spread. Consumers harnessed advanced security cameras to bolster safety, deployed robotic vacuum cleaners to maintain cleanliness, and embraced video doorbells for hands-free operation. Furthermore, the segment stands to benefit from the expanding consumer electronics domain, the refinement of power line communication, escalating personal income in emerging economies, and amplified consciousness about smart grids. These dynamics collectively contribute to the burgeoning demand for smart building solutions within the residential sphere during the stipulated forecast window.
Smart Buildings Market By Application (%)
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Smart Building Market Regional Insights
The North American region held sway over the market, capturing a significant revenue share of 32.9%. This regional supremacy can be attributed to the upsurge in both public and private investments, accompanied by the rapid trajectory of digitalization. Additionally, the burgeoning government initiatives to bolster digital infrastructure, aimed at propelling the United States toward a robust digital economy, are casting a favorable outlook on smart buildings within the U.S. context. A focal point of the U.S. administration involves digitizing commercial buildings to heighten citizen experiences and instill transparency in services. These pivotal drivers collectively fuel the demand for smart building solutions across the region.
According to Schneider Electric's Smart Working study, commercial real estate in the United States consumes around USD 179 billion in energy each year. This aspect is projected to increase demand in the region for energy-efficient smart infrastructure.
Following North America, Europe is expected to account for a considerable market share. The increasing focus of European Union on deploying efficient energy-saving technology in residential and commercial buildings is predicted to propel the global market. By obtaining the WELL Building Standard certification, businesses in Europe are focusing on employee well-being and safety. As a result, the growing number of smart office buildings is expected to expand market prospects.
Due to the increased internet penetration, high urbanisation, and a shift in consumer focus toward remote management services via Internet of things (iot) Asia Pacific is predicted to be the fastest growing regional market at a notable CAGR. Moreover, shifting consumers’ attention toward converting existing buildings into smart buildings is boosting the regional market growth. Furthermore, the expanding population in China and India is likely to boost urban space management technologies. Additionally, expanding government initiatives to construct smart commercial spaces, retail malls, and neighbourhoods to cut energy usage is likely to support the market expansion.
The Middle East and Africa is witnessing a rapid expansion as a result of rising demand for energy-efficient smart building solutions. Furthermore, the government is working to cut carbon emissions by implementing smart technology to accomplish it.
Smart Buildings Market By Region
- Largest
- Fastest
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Smart Building Market Dynamics
Smart Building Market Drivers
Consumer interests and vendor investments for technology to encourage the market growth
- Consumers' increased interest in building technology that saves running costs, as well as individuals' growing knowledge of the need for energy consumption are the major drivers driving the industry's revenue development.
- Furthermore, various prominent vendors' investments in progressive smart home solutions are boosting the market growth during the projection period.
Smart Building Market Restraints
Increase in number of cyberattacks and security leaks to impede the adoption
- The escalating number of cyberattacks in connected buildings will stymie market growth. Growing cyber-attacks are a serious impediment to market expansion. Every building system and gadget is linked via intelligent technology. It may occasionally disclose private and personal information when hacked.
- According to the Kaspersky research, four out of every ten connect buildings are vulnerable to cyber-attacks. This elevated danger of cyber-attack is projected to stifle future market growth. As a result, operational contingency plans must be implemented to safeguard the safety of connected structures from such assaults.
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Smart Building Market Competitive Landscape
Increased strategic acquisitions and collaborations to strengthen key players' market position, as to increase their market share, the leading companies in the smart building industry are proactively entering into partnerships and alliances. To assure the safety and quality of smart solutions, the players also collaborate with various rating and evaluation certification providers. The players are acquiring local players across nations to boost their worldwide reach. Furthermore, industry participants are constantly investing in the development and introduction of new intelligent systems and services for controlling commercial and residential building operations.
Smart Building Market Top Player's Company Profiles
- Cisco (US)
- IBM (US)
- Honeywell (US)
- Siemens (Germany)
- Johnson Controls (Ireland)
- Huawei (China)
- Intel (US)
- PTC (US)
- ABB (Switzerland)
- Hitachi (Japan)
- Schneider Electric (France)
- Telit (UK)
- Legrand (France)
- Bosch (Germany)
- KMC Controls (US)
- Verdigris Technologies (US)
- Aquicore (US)
- 75F (US)
- BuildingIQ (US)
- ENTOUCH (US)
- Gaia (India)
- Softdel System (US)
- Mode: Green (New Jersey)
- CopperTree Analytics (Canada)
- Spaceti (Netherlands)
- Igor (US)
- eFACiLiTY (India)
- Spacewell (Belgium)
Smart Building Market Recent Developments
- In April 2024, Saudi real estate developer ROSHN Group has joined forces with technology giant Cisco to explore the potential of IoT in creating sustainable and intelligent buildings. This collaboration aims to leverage Cisco's advanced technologies to enhance ROSHN's future projects, focusing on energy efficiency, building management, and overall resident experience.
- In January 2024, Honeywell introduced its latest building management system, Advance Control for Buildings. This innovative platform leverages automation and machine learning to optimize building energy efficiency, enhance operational effectiveness, and improve occupant comfort.
- In January 2024, DZS, a leader in access, optical, and AI-driven cloud software solutions, expanded its partnership with Andorix, a neutral host network provider, to transform iconic buildings into cutting-edge smart spaces. This collaboration will enable building owners to deliver exceptional experiences for tenants while optimizing building operations and reducing environmental impact.
- In January 2024, Siemens introduced Building X Sustainability Manager, a new application designed to help organizations achieve their sustainability and net-zero goals. This cloud-based software collects, analyzes, and visualizes utility bill data to identify energy consumption patterns, cost-saving opportunities, and carbon emissions. By providing actionable insights, Building X Sustainability Manager enables organizations to optimize energy usage, reduce costs, and contribute to a more sustainable future.
Smart Building Key Market Trends
- Increasing urbanisation to fuel the adoption of smart building industry: Rapid urbanisation is predicted to fuel the growth of the global smart building industry in the coming years. According to a high-level ExpForum 2019 assessment, 70% of the world's population is predicted to migrate to cities by 2050. This aspect will increase the need for structures and places to support livelihood and employment needs.
- Government support: Given the global trend of urbanisation, governments throughout the world are investing in smart city initiatives that include upgraded infrastructure, greener transportation, intelligent buildings, and other smart technologies. Because buildings contribute significantly to energy consumption and investment, establishing linked buildings is an important first step toward smart city initiatives. The Singapore government has launched a Green Mark Scheme in addition to the Smart Nation initiative. In accordance with the plan, buildings are allocated a traffic-light code that correlates to their environmental friendliness. Under this program, the government expects to convert 80% of buildings to be certified as green by 2030.
Smart Building Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates, and Analyses the Data collected utilizing Primary Exploratory Research backed by the robust Secondary Desk research.
According to Global Smart Building Market report analysis the global market is expected to boom in the coming years as automation technologies are deployed in the construction industry. Use of sensor technology and emphasis on user experience in the building, and internet of things-enabled devices have created robust market opportunities.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 80.25 billion |
| Market size value in 2031 | USD 205.3 billion |
| Growth Rate | 11% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
|
| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Smart Building Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Smart Building Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Smart Building Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Smart Building Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Smart Building Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Smart Building Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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