Smart Buildings Market By Building Type (Residential, Industrial and Commercial), By Component (Solution and Services), and By Region - Trends, Analysis and Forecast till 2034

Smart Buildings Market was valued at USD 113.8 Billion in 2024 and is projected to grow at a CAGR of 7.60% to reach USD 221.8 Billion by 2034.

Smart building include the installation & use of advanced, integrated building technology systems. Integrated building technology system includes, building automation, telecommunications, life safety, user systems and facility management. Smart building features includes, HVAC systems which helps in optimizing usage of air conditioning, smart lighting which can detect occupancy & shut off the lighting when specific rooms are not in use which help in reducing energy cost. Smart building uses advanced technology for optimizing performance between systems. Smart intelligent building is multidisciplinary effort for integrating and optimizing building structures, services, systems, and management for creating productive, cost effective & environmentally approved for building occupants. Smart building provides benefits like it help in reducing energy consumption, increase productivity, improves efficiency of building, predictive maintenance and provides better use of resources. Basic elements of smart building are user interface, means of connectivity, and IoT services. Smart buildings use IoT (Internet of Things) devices like software, sensors, and online connectivity for monitoring various characteristics of buildings, to analyze the data, for generating insights around usage patterns & trends which can be used for optimizing operations and environment of building. Smart building are built by updating team’s IT skills, using robust wireless infrastructure, by accessing smart building device for retrofit, and by choosing future proof device & technology investments.

Smart building help in improving environment, because smart building technology has huge positive impact on whole environment as it help in reducing the overall usage of energy & enhancing efficiency. Smart building uses automated process to control automatically the operation of buildings like ventilation, heating, lighting, air conditioning, security and other systems. Smart building uses actuators, sensors, and microchips for collecting data & managing it according to business functions and services. Smart buildings make an occupant more productive with thermal comfort, lighting, physical security, air quality, sanitation, & other at lower costs. Smart buildings like smart hospitals, healthcare facilities, office buildings, residential buildings, stadiums, educational facilities, and other are types of smart building which exist around the world. However, increase in smart city projects has given positive impact on target market growth.

Increase in smart city projects, industrial revolution, and rate of urbanization

An increase in smart city projects, the industrial revolution, and the rate of urbanization is one of the leading factors for the Smart Buildings Market growth. Urbanization has given rise in residential and industrial areas. Urbanization has increased the standard of living among the people due to disposable income. Urbanization has given rise in education system and awareness among the people with usage of eco-friendly products, using energy efficient systems due to increase in energy consumption & costs. Industrial revolution has given rise in smart buildings. Advancement in technology and industrial revolution is transforming the world at greater rate.

AI (artificial intelligence, IoT (internet of things) and big data has driven the fourth industrial revolution-4.0. Industrial revolution is about connectivity which link together buildings, their machinery, systems, appliances, devices and makes process smoother, by reducing human input. Smart sensors and industrial technology benefit the facilities managers and business owners by making energy efficiencies to use energy without wastage which reduce carbon footprints, creates environment where people want to live or work- smart sensors help in enabling to do everything, reducing humidity of an area for adjusting lighting, reducing waiting times for lifts & meeting rooms, and thus help the flow of process to run more efficiently. Predictive maintenance- smart sensors help factories in reducing their costs by flagging up potential maintenance issues earlier. Smart sensors highlight issues like damp, overuse, humidity and excessive power surges. Wide variety of benefits has given positive impact on smart building market growth. According to data published by United Nations in 2018, about 55% of the world’s population resided in urban areas, and it is projected that this percentage will increase over the forecast period. However, the growth in smart city projects, industrial revolution and population in urban areas boosts the demand for Smart Buildings Market.

Restrains:

Smart building devices are connected to a single control network which may increase the risk of hacking. Safety of personal data, interoperability, legacy construction & retrofit process, cyber-security has become the challenges in smart buildings which may somewhat restrain the target market growth.

The Smart Buildings Market is segmented based on Building Type, Component and Region.

On the basis of Building Type, the Smart Buildings Market is segmented into Residential, Industrial and Commercial. On the basis of Component, the target market is segmented into Solution and Services.

Regional Insights:

On region the Smart Buildings Market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. The North America market is estimated to witness a significantly high revenue share over the forecast period, owing to growing population, especially in countries such as Europe and Asia Pacific, and technological advancements. Moreover, rising technological advancement, rapid digitalization, increase in adoption of smart connected devices, presence of highly developed ICT (Information & Communication Technology) sector, is anticipated to increase demand for Smart Buildings in the region.

Report Scope:

Segments Covered in the Report:

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2022 to 2032. For the purpose of this study, has segmented the Smart Buildings Market report based on building type, component and region:

Smart Buildings Market, By Building Type:

• Residential
• Industrial
• Commercial

Smart Buildings Market, By Component:

• Solution
• Services

Smart Buildings Market, By Region:

• North America
  • Middle East & Africa
    • GCC
    • Israel
    • South Africa
    • Rest of Middle East & Africa
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • Rest of Asia Pacific
  • Europe
    • Germany
    • UK
    • France
    • Russia
    • Italy
    • Rest of Europe
  • U.S.
  • Canada

The key players operating the Smart Buildings Market includes, Johnson Controls, Cisco Systems Inc., Siemens, ABB, Hitachi Ltd., Samsung, Qualcomm Technologies Inc., Sauter AG, Dahua Technology Co. Ltd., KMC Controls and others.

• In October 2022, Samsung, and NXP has announced the launch of Matter-related products for smart building interop & security. With newly launched Matter 1.0 spec wide range of smart home and building products will able to interoperate & work with improved security and privacy. These newly device includes, thermostats, lights, smart speakers in homes.
• In July 2022, SAUTER has launched the new ‘Smart Actuator’ product IoT for new buildings and refurbishment. The newly launched ‘Smart Actuator’ product help in enabling the autonomous, and semi-autonomous control in heating, ventilation, & air conditioning. Newly launched ‘Smart Actuator’ product includes simple installation and commissioning, cloud connection with application library, remote access and smartphone app.

• Samsung
• Johnson Controls
• Cisco Systems Inc.
• Siemens
• ABB
• Hitachi Ltd.
• Qualcomm Technologies Inc.
• Sauter AG*
• Dahua Technology Co. Ltd.
• KMC Controls