Smart Buildings Market Share, Size, Trends, Industry Analysis Report, By Component (Solutions, Services); By Building Type (Residential, Commercial, Industrial), By Region; Segment Forecast, 2022 - 2030
- Published Date:Jun-2022
- Pages: 114
- Format: PDF
- Report ID: PM2428
- Base Year: 2021
- Historical Data: 2018 - 2020
Report Outlook
The global smart buildings market was valued at USD 72.78 billion in 2021 and is expected to grow at a CAGR of 10.8% during the forecast period. Key factors such as rising urbanization and energy demand, launches of cloud-based platforms, and technological advancements boost the industry growth during the forecast period. Energy demand has risen due to the rising population and rapid urbanization.
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As per the World meter data, the world population has reached 7.7 billion. As per the Our World data, in 2020, around 4.3 Bn people will live in urban areas. Thus, the rising population and shifting toward urbanization increase the demand for smart buildings market in the city. The major players are focusing on various initiatives for intelligent buildings. However, the enhanced use of nonrenewable energy sources has resulted in the exhaustion of many resources and an environmental crisis. As a result, major industry players such as Honeywell International Inc. will develop sustainable and green building projects.
In February 2020, Honeywell Forge Energy Optimization, a cloud-based, closed-loop deep learning alternative that constantly analyses a building's usage patterns and automatically resizes to achieve optimum energy-saving configurations without compromising building users' comfort levels, was announced by the company. Such eco-friendly initiatives by notable industry players are expected to drive business growth in the coming years.
Additionally, the continuing COVID-19 pandemic has harmed the market. The resumption of commercial buildings for in-office work, on the other hand, is expected to increase the demand for intelligent technologies for a secure environment. Intelligent technologies are used in these buildings to manage regular cleaning and sanitizing, proper office ventilation, smart entry control, thermal measuring devices, and complex social distancing skills.
It would certainly increase the demand for advanced building solutions in post-pandemic situations. Moreover, the long-term requirement for these intelligent buildings market is expected to be fueled by continuous technological innovation and rapid development. However, market growth is expected to be hampered by a scarcity of competent experts capable of evaluating smart solution systems. Professionals in the field must be aware of design changes and installation in the context of future requirements. Failure to do so may result in complications.
Industry Dynamics
Growth Drivers
The market has witnessed several instances of key development areas which enabled the market to grow forward. For instance, in March 2022, Nexans Telecom introduced a new service for inter-connecting future intelligent buildings services. SMARTCONVERGE would enable the installation of a true software-enabled cabling connection system. The push for smarter office buildings presents numerous challenges for IT and facility managers, including the need to handle significant growth in the number of connected devices due to the Building Internet of Things (BIoT).
Moreover, in September 2021, Living Now, a revolutionary range of electric controls, was launched by Legrand India, a global leader in electronics and electrical buildings infrastructure. Living Now design is distinguished by its extreme purity of design and the accuracy of its geometric shapes to fit any home. Also, in May 2021, Siemens Smart Infrastructure and Telefónica Tech for the technology companies with significant investments in IoT, blockchain, information security, and cloud. Thus, these initiatives are boosting the market growth during the forecast period.
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Report Segmentation
The market is primarily segmented based on component, building type, and region.
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By Component |
By Building Type |
By Region |
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Insight by Component
Based on the component, the service segment is expected to be the most significant revenue contributor in the global market. As the smart buildings market evolves and requires proper pre-and post-consulting, implementation, and overall management of solutions, the services sector is anticipated to have a bright future.
Intelligent building service providers assist in implementing intelligent automation and technologies for the effective maintenance and operation of houses at a low cost. Using smart building services includes optimal necessity solutions, resulting in improved building performance, lower energy consumption, and lower OPEX. Also, support and maintenance services are typically subscription-based services that provide customers with access to the latest update and technical support for the company and its products that they have licensed.
Support and maintenance providers are responsible for the regular checks of various smart construction elements to function properly, and support services assist in the easy implementation of intelligent building solutions. Vendors offer ongoing support and maintenance services to improve management practices and the performance of intelligent building solutions.
Geographic Overview
North America had the largest revenue share. This is due to increased investments in green building technology by the US government and private construction firms. One of the primary drivers for adopting smart building solutions in the region has been the growing government initiatives to improve energy efficiency.
According to the US-China Economic and Security Review Commission, government expenditure on smart city initiatives in China will reach USD 38.9 Bn in 2023. Such developments demonstrate a country's propensity to implement energy-efficiency solutions. Furthermore, the Canadian government emphasizes energy conservation, primarily through smart buildings, including offices and homes.
Moreover, Asia Pacific is expected to witness a high CAGR in the global market in 2020. Because of the increasing population in India and China, Asia Pacific is expected to have a significant smart building market share. Furthermore, rapid urbanization, combined with expanding infrastructure in the region, is expected to boost the market. The government of India created the 'The Energy Conservation Building Code' (ECBC), which establishes minimum energy efficiency standards for buildings and covers the built environment, heating, ventilation, and air conditioning. As a result, the increasing adoption of smart lighting systems may assist the country in conserving energy.
Competitive Insight
Major players operating in the global market include ABB Ltd., Cisco Systems, Inc., Emerson Electric Co., Endeavor Business Media, Hitachi Ltd., Honeywell International Inc., IBM Corporation, Johnson Controls, Legrand SA, Schneider Electric SE, and Siemens AG among others.
Smart Buildings Market Report Scope
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Report Attributes |
Details |
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Market size value in 2021 |
USD 72.78 Billion |
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Revenue forecast in 2030 |
USD 173.70 Billion |
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CAGR |
10.8% from 2022 - 2030 |
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Base year |
2021 |
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Historical data |
2018 - 2020 |
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Forecast period |
2022 - 2030 |
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Quantitative units |
Revenue in USD Billion and CAGR from 2022 to 2030 |
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Segments covered |
By Component, By Building Type, By Region |
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Regional scope |
North America, Europe, Asia Pacific, Latin America, Middle East & Africa |
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Key companies |
ABB Ltd., Cisco Systems, Inc., Emerson Electric Co., Endeavor Business Media, Hitachi Ltd., Honeywell International Inc., IBM Corporation, Johnson Controls, Legrand SA, Schneider Electric SE, and Siemens AG |
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