The smart building market involves products and solutions that enable remote monitoring and automation of various building operations such as energy management, parking management, water distribution, security, and emergency management among others. Smart building solutions comprise hardware, software, and services that enable building managers to efficiently operate and monitor building systems. The increasing demand for more energy-efficient and sustainable buildings is a major factor boosting adoption across residential and commercial establishments. The Global smart building market is estimated to be valued at US$ 101.23 Bn in 2024 and is expected to exhibit a CAGR of 13% over the forecast period 2024 to 2030.

Key Takeaways

Key players operating in the Global Smart Building Market Share are Abbott, Hologic Inc., Becton, Dickinson and Company, Southwest Precision Instruments, LLC, F. Hoffmann-La Roche Ltd, Sysmex Corporation, Thermo Fisher Scientific Inc., Danaher, Life Technologies Corporation, Merck KGaA, Koninklijke Philips N.V., Perkin Elmer, and Trivitron Healthcare. The key players are focusing on new product launches and partnerships with technology providers to gain a competitive edge in the market.

The growing need for energy savings and operational efficiency is fueling opportunities for upgraded HVAC systems, lighting solutions, security, and access control upgrades. Rapid urbanization and the increasing construction of green commercial buildings offer lucrative growth prospects for smart building vendors. Major players are expanding their footprint in developing nations in Asia Pacific and Latin America, which are expected to emerge as high growth regions.

Market Drivers

The increasing adoption of IoT-enabled smart solutions for enabling remote monitoring and control of various building operations is a key driver for the market. Smart building technologies help improve energy efficiency, lower utility costs, enhance operational efficiency, enable data-driven decision making, and deliver enhanced occupant experience which is boosting their adoption globally. Rapid digitization and need for automation across various sectors is propelling the demand for integrated smart infrastructure including smart buildings.

Market Restraints

High initial installation and infrastructure upgrade costs pose a major challenge to the widespread adoption of smart building technologies. The lack of standardization and interoperability between different systems provided by various vendors also limits the ability of building managers to realize the full benefits of smart solutions. Cybersecurity threats and privacy concerns related to centralized IoT networks for building management also act as restraining factors for the market.

Segment Analysis

The building automation systems sub segment dominates the smart building market currently constituting over 30% market share. Building automation systems refers to automated and integrated electronic solutions for controlling, monitoring and optimizing the operation of a building's various electrical and mechanical systems such as HVAC, lighting, security, fire alarm and communication systems. The growing demand for energy efficient and sustainable buildings along with increasing push for integrated IoT-based solutions is driving the adoption of building automation systems across commercial as well as residential buildings.

The building energy management systems segment is expected to witness the fastest growth during the forecast period. Building energy management systems help in optimizing energy usage through real-time energy consumption monitoring and analysis. Growing focus on reducing carbon footprint and operational costs is a key factor driving the demand for building energy management systems. Regulations mandating use of energy efficient systems will further propel the growth of this segment.

Global Analysis

The North American region currently accounts for the largest share in the global smart building market owing to strong presence of technology companies and stringent government regulations regarding energy conservation. The region is expected to maintain its dominance during the forecast period as well. The Asia Pacific region is projected to witness the fastest growth during the forecast period owing to rapid urbanization, rising construction spending and improving connectivity infrastructure in developing countries such as China and India. countries in Europe such as Germany and UK are also early adopters of smart building technologies due to increasing focus on sustainability.

Get More Insights on Smart Buildings Market