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

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.