Smart Building Market Growth, Analysis and Size - 2031

The smart building market is anticipated to grow from US$ 75.43 billion in 2022 to US$ 210.98 billion by 2030, estimated at a CAGR of 13.7 % from 2022 to 2030.

Smart Building Market Analyst Perspective:

In the smart building market, the use of various technology-enabled goods and services for enabling innovative building solutions has emerged from technological improvement. Furthermore, the increased usage of smart home and building automation systems has aided in improving operational efficiencies. Produce assets, vital components, equipment, and machinery for the building's smooth operation. For example, available smart building-related solutions currently include intelligent security solutions, energy management, building automation, and network management, among other solutions that enhance building efficiency.

Furthermore, the increasing penetration of smart building solutions among various end-users, such as commercial complexes, manufacturing plants, malls, recreational buildings, universities, residential complexes, and offices, is expected to be a major market-driving force in the coming years. As a result, the industry is predicted to present multiple high economic prospects for smart building market participants in the approaching years.

Smart Building Market Overview:

A smart building is a formation that controls building services such as ventilation, heating, air conditioning, security, lighting, and other systems using IoT and automated technology. A smart building collects and handles data using sensors, actuators, and microchips in line with an organization's (or household's) tasks and services. Such smart infrastructure solutions help facility managers improve asset reliability and performance, owners and operators, reduce energy consumption, improve space utilization, and reduce the environmental impact of buildings.

The increased requirement for improved building utilization (and building premises) and better resource management in urban areas is driving the surge in smart building adoption across several countries. Furthermore, increasing public safety and security demand propels the smart building industry forward. Such applications will be critical in expanding smart building solutions during the COVID-19 pandemic, predicted to spread in the following years. Smart building technologies, for example, can monitor indoor air quality (IAQ) and notify residents and building operators about it. Higher indoor air quality is closely related to the health and well-being of the inhabitants of the building. According to World Economic Forum research issued in February 2021, non-residential buildings consume 40% more energy than residential structures. Energy-saving initiatives, such as using smart building technologies, can reduce this growth by at least 20%.

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Smart Building Market: Strategic Insights

Market Size Value in	US$ 75.43 billion in 2022
Market Size Value by	US$ 210.98 billion by 2030
Growth rate	CAGR of 13.7 % from 2022 to 2030
Forecast Period	2022-2030
Base Year	2022

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Smart Building Market Driver:

The growing adoption of intelligent technology and demand for energy-efficient systems are driving the smart building market growth.

The expanding use of intelligent technology and demand for energy-efficient systems drive the market CAGR for smart buildings. The growing urbanization is expected to propel the global smart building market growth. With the urbanization trend in mind, governments globally are investing in smart city initiatives for enhanced infrastructure, cleaner transportation, intelligent buildings, and other smart technology. The growing worry over rising global energy usage is expected to enhance innovative and energy-efficient technology.

The growing need for enhanced building utilization and better resource management in metropolitan settings pushes the use of intelligent buildings in diverse countries. The smart building uses IoT, and building operations such as heating, air conditioning, ventilation, lighting, security, and other systems are handled using automated technologies. Modern technology is increasingly used in smart buildings to collect and manage data through sensors, actuators, and microchips to deliver an organization's activities and services. Smart infrastructure solutions reduce energy consumption, enhance space utilization, and reduce the environmental impact of buildings. The rising demand for public safety and security is also propelling the rise of smart buildings. The introduction of 5G technology and the expansion of smart city projects are likely to provide profitable prospects for the growth of the smart building industry.

Post-pandemic, the projected reopening of business buildings for in-office work will increase demand for smart solutions to conserve the environment. Smart technologies can assist in preventing the spread of illnesses in the coming year. There are various advantages, such as easy monitoring. Managing and operating large and small facilities without additional and costly labor and workforce, energy, and cost savings are benefits that will drive the smart building market.

Buildings are the greatest energy consumers, accounting for over 40% of worldwide energy use. As a result, energy-efficient buildings have become desirable and required to reduce greenhouse gas emissions. As a result, the smart building market revenue is increasing.

Smart Building Market Segmental Analysis:

The smart building market is segmented into solutions and services based on components. Building infrastructure, security, emergency, and energy management are all part of the solution category. The solution sector dominates the market. Energy management is projected to rise fast as green construction programs and government regulations on energy consumption become more stringent. For example, Shanghai's New Development Bank (NDB) adopted intelligent building systems to control electric curtains and windows control indoor lighting, resulting in a 15% reduction in energy consumption. The security and emergency management solution will likely achieve a significant market share.

Security systems, advanced building operation services, surveillance systems, and smart workspace solutions are in huge demand in commercial buildings. This element will most likely drive the security and emergency management solutions industry. It is divided into access control, safety, and video surveillance systems. Because of the increasing hurdles in optimizing high commercial building operational expenses, building infrastructure management will likely rise gradually. It is divided into three types: parking management systems, smart water management systems, and lifts and escalators systems. During the projection period, the services segment is expected to increase rapidly. This element is due to the increasing use of intelligent building technologies. Professional services, including consulting, system integration, implementation, support, and maintenance, are in high demand.

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Smart Building Market Regional Analysis:

North America is a large market for smart buildings and IoT-enabled smart devices, and the region is seeing a surge in applications and acceptance.

Intelligent security systems are predicted to increase exponentially in North America. As environmental awareness grows, more Americans search for connected, smart, and automated building solutions with add-on capabilities such as fire protection, safety and alarm systems, surveillance, and security. As a result, IoT-enabled solutions are becoming increasingly popular in the United States. The United States is one of the largest 10T-enabled markets in North America, as it is the largest user of IOT-compatible products. Furthermore, it boasts the most ongoing IOT initiatives relating to smart and connected buildings, smart energy, and smart cities, which are likely to provide abundant prospects for market expansion. North American countries are an ideal hotspot for IOT, Al, and Smart Buildings initiatives due to their high internet speeds and increasing internet usage. Consumer purchasing capacity for newer technologies is also enhancing adoption and motivating suppliers to create new solutions that address different needs. With lower semiconductor and sensor costs, more firms and start-ups collaborate to create better technology. The United States, particularly as a hub for start-ups with a strong economic and financial presence, has emerged as a key location for emerging technology markets, including Smart Building solutions. View Inc., a technology developer, released the View Partner Marketplace in November 2022, making an app store available to clients of the company's newly announced Smart Building Cloud, the industry's first complete cloud-native platform for smart buildings. Customers may implement popular real estate applications, software platforms, and sensors with a single click through the View Partner Marketplace, making it considerably easier for owners and operators to digitize their portfolios swiftly and securely. Overall, the market is predicted to expand significantly as smart building innovations such as collaborations, product launches, and investments increase.

Smart Building Market Key Player Analysis:

The smart building market analysis includes Cisco, IBM, Honeywell HBT, Siemens, Johnson Controls, Huawei Technologies Co., Ltd., Intel Corporation, PTC, ABB, Hitachi, Ltd., and Schneider Electric, the top two players owing to their diversified product portfolio.

Smart Building Market Recent Developments:

Mobile application smart building companies highly adopt inorganic and organic strategies such as mergers and acquisitions. A few recent key market developments are listed below: 

• In July 2023, Siemens, a global leader in infrastructure, mobility, and industry technology, partnered with PRODEA Investments, Greece's leading real estate investment firm and one of the largest in Southeast Europe, to implement Building X, a Siemens digital building platform. The collaboration aims to expedite PRODEA Investments' digital transformation, reduce the carbon footprint of existing and under-construction building assets across its Greek real estate portfolio, and provide additional value services to renters.
• In April 2023, based on the Joint Venture Agreement signed on January 23, 2023, Obayashi Corporation and Hitachi Solutions, Ltd. created Oprizon, Ltd. ("Oprizon"), a joint venture delivering smart building-related services. Horizon began operations on April 1, 2023, intending to be the top smart building services provider.