Global Smart Buildings Market By Component (Solution, and Services), By End-User (Residential, Commercial, and Industrial), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032
- Published date: April 2023
- Report ID: 21512
- Number of Pages: 355
In 2022, the global smart buildings market accounted for USD 72.8 billion and is expected to reach USD 304.3 billion in 2032, this market is estimated to register a CAGR of 15.8%. The global smart buildings market refers to buildings that are equipped with intelligent systems and technologies to optimize energy efficiency, enhance security, and improve the overall comfort and productivity of building occupants.
Smart buildings use a range of technologies such as Internet of Things (IoT) devices, sensors, artificial intelligence, machine learning, and cloud computing to collect and analyze data, automate operations, and make real-time adjustments to the building’s systems. This enables building managers to optimize energy consumption, reduce costs, and provide a more comfortable and secure environment for occupants.
The global smart buildings market includes various types of buildings such as commercial, residential, and industrial, and is driven by factors such as government initiatives to promote sustainable development, increasing demand for energy-efficient buildings, and the growing adoption of IoT and AI technologies. The market is expected to grow rapidly in the coming years as more and more buildings become connected and intelligent.
Increasing demand for energy efficiency & Urbanization in the smart building market
With the increasing price of energy and growing concerns about the environment, there is a high emphasis on energy efficiency in buildings. Smart buildings are able to optimize energy consumption by automatically adjusting lighting, heating as well as cooling based on occupancy, weather conditions, and other factors.
The rapid growth of cities is leading to a high demand for smart buildings that can accommodate large numbers of people while also providing a comfortable and efficient environment. Smart building technologies can help to optimize space utilization, decrease energy consumption, and improve safety & security. These factors can drive the market in the forecasted period.
Advancements in IoT & AI technologies and Growing awareness among building owners and operators
The Internet of Things & Artificial Intelligence has given new opportunities for smart building automation. Sensors, cameras, and other devices can be used to collect data on building performance and user behavior, which can be analyzed and used to optimize building operations and improve occupant comfort and safety.
Building owners and operators are upcoming more aware of the benefits of smart building technologies like cost savings, improved occupant comfort, and enhanced sustainability. As the result, they are increasingly investing in these technologies to improve their buildings’ performance and value.
The implementation of smart building technologies needs specified skills and knowledge, and there may be a shortage of certified professionals in this field. This could make it difficult for building owners to find the necessary expertise to install and maintain smart building systems. Smart building technologies rely on data collection & communication between devices, which could potentially make them vulnerable to cyberattacks.
This could make security concerns for building owners and occupants and may limit the adoption of smart building technologies. Some building owners and operators may be resistant to change, particularly if they are used to old building systems. This could make it difficult to convince them of the profitability of smart building technologies and may limit the adoption of these technologies in certain markets.
COVID-19 Impact Analysis
The COVID-19 pandemic has had a significant effect on the global smart buildings market, both in the short and long term. During the initial phase of the pandemic, construction and installation projects were delayed or postponed owing to supply chain disruptions, labor shortages, and safety concerns. This led to a slowdown in market growth.
The closure of non-essential businesses and offices resulted in minimized demand for smart building solutions like energy management systems and occupancy sensors. After all, some segments of the market like air quality monitoring and touchless access control systems, saw increased demand owing to health and safety concerns. The pandemic has highlighted the importance of healthy and safe indoor environments, which will likely lead to increased demand for smart building solutions that address these concerns.
An increase in remote work and flexible office arrangements may lead to a shift in building design and operations towards more flexible and adaptable spaces that prioritize occupant comfort and wellness. The adoption of smart building technologies may also accelerate as a result of the pandemic, as building owners and operators seek to improve building performance and reduce costs in response to economic uncertainty.
By Component Analysis
The Solution Type Segment is The Most Lucrative Segment in The Component of Smart Buildings Market
Based on components, the market for smart buildings market is segmented into solutions and services. Among these types, the solution segment is the most profitable in the global smart buildings market, with a projected CAGR of 15%. The total revenue share of solution-type smart buildings is 56% in 2022. The demand for smart building solutions and services is driven by a growing awareness of the benefits of smart building technologies like improved energy efficiency, raised occupant comfort and safety, and decrease operating costs. As a result, the market for smart building solutions and services is expected to continue to grow in the upcoming years.
By End-user Analysis
The Commercial Segment Accounted for the Largest Revenue Share in the Type of Smart Buildings Market in 2022
Based on end-user, the market is separated into commercial, residential, and industrial. Among these, the commercial segment is estimated to be the most lucrative segment in the global smart buildings market, with the largest revenue share of 56.1% and a projected CAGR of 15% during the forecast period.
Commercial includes office buildings, retail spaces, hotels, hospitals, and other public buildings that are used for business or commercial purposes. Residential includes homes, apartments, and other residential buildings that are used for living purposes. Industrial includes factories, warehouses, and other industrial facilities that are used for manufacturing or production purposes.
Key Market Segments
Based on Component
- Building Infrastructure Management
- Security and Emergency Management
- Energy Management
- Network Management
- Workforce Management
- Waste Management
- Support and Maintenance
Based on End-User
Smart buildings can play a key role in the improvement of smart cities, which are designed to be sustainable, efficient as well as livable. As cities continue to spend on smart city infrastructure, there will be opportunities for smart building technologies to integrate with these systems and make more connections, well planned urban environments. As artificial intelligence and the Internet of Things continue to evolve, there will be opportunities to improve new and innovative smart building technologies that can optimize building operations and enhance occupant comfort & safety.
There is an increasing demand for sustainable buildings that decrease energy consumption and reduce environmental impact. Smart building technologies can also play a key role in achieving these goals, and there will be opportunities for companies that can offer effective & innovative solutions. As the global population continues to grow, there will be growing demand for new buildings and infrastructure in emerging markets. Smart building technologies can help to make more efficient and sustainable buildings in these markets, which could create significant growth opportunities.
As the need for more efficient buildings develops, there is increasing demand for automation and building management systems that can help operate and control energy usage, lighting, HVAC, and security. Smart buildings rely heavily on IoT technologies, including sensors, controllers, and cloud computing, to enable real-time monitoring and data analytics.
The increasing adoption of these technologies is driving the growth of the smart buildings market. Sustainable building practices are upcoming increasingly important, and smart buildings are a key part of this trend. Building owners and managers are looking for solutions that can help them decrease energy consumption, reduce waste, and minimize their carbon footprint.
The commercial sector is the bigger end-use segment for smart building systems, with demand starting driven by the need for energy-efficient and price-effective building management solutions. Smart building technologies are influencing the design and construction of new buildings, with a focus on sustainable materials and energy-efficient designs.
North America Accounted for the Largest Revenue Share in Global Smart Buildings Market in 2022.
North America is estimated to be the most lucrative market in the global smart buildings market, with the largest market share of 43%, and is expected to register a CAGR of 30% in the time of the forecast period. Owing to the presence of major technology players, the high adoption rate of smart building solutions, and government initiatives for energy conservation. The United States is expected to dominate the market in this region due to its large population, high urbanization rate, and robust economic growth.
Asia Pacific is expected as Fastest Growing Region in Projected Period in the Global Smart Buildings market.
Asia Pacific is expected as the fastest-growing region in the global smart buildings market with a CAGR of 15.8%. Owing to factors like rapid urbanization, increasing awareness about energy conservation, and government initiatives to promote sustainable infrastructure development. China is expected to be the largest market in this region owing to its large population and high rate of urbanization.
Key Regions and Countries
- North America
- The US
- Western Europe
- The UK
- Rest of Western Europe
- Eastern Europe
- The Czech Republic
- Rest of Eastern Europe
- South Korea
- Australia & New Zealand
- Rest of APAC
- Latin America
- Costa Rica
- Rest of Latin America
- Middle East & Africa
- Saudi Arabia
- South Africa
- United Arab Emirates
- Rest of MEA
Key Players Analysis
The smart buildings market is dominated by some key players with strong market presence and innovative solutions. These players are expected to continue to dominate the market in the upcoming years, driven by increasing demand for energy-efficient buildings and advancements in IoT technology.
- ABB Ltd.
- Cisco Systems Inc.
- Emerson Electric Co.
- Hitachi Ltd.
- Honeywell International Inc.
- Johnson Controls
- Legrand SA
- Schneider Electric SE
- Siemens AG
- IBM Corporation
- Other Key Player
- In January 2021, Siemens Smart Infrastructure announced the introduction of its new smart building solution, Desigo Control Point, which allows building operators to monitor and control multiple building systems from a single interface.
- In February 2021, Honeywell announced that it has launched a lasted range of connected building solutions, including the Honeywell Forge Energy Optimization, which uses machine learning to optimize energy consumption in buildings.
Report Features Description Market Value (2022) USD 78.8 Bn Forecast Revenue (2032) USD 304.3 Bn CAGR (2023-2032) 15.8% Base Year for Estimation 2022 Historic Period 2016-2022 Forecast Period 2023-2032 Report Coverage Revenue Forecast, Market Dynamics, COVID-19 Impact, Competitive Landscape, Recent Developments Segments Covered By Component-Solution, and services; By End-User-Residential, Commercial, and Industrial; Regional Analysis North America – The US, Canada, & Mexico; Western Europe – Germany, France, The UK, Spain, Italy, Portugal, Ireland, Austria, Switzerland, Benelux, Nordic, & Rest of Western Europe; Eastern Europe – Russia, Poland, The Czech Republic, Greece, & Rest of Eastern Europe; APAC – China, Japan, South Korea, India, Australia & New Zealand, Indonesia, Malaysia, Philippines, Singapore, Thailand, Vietnam, & Rest of APAC; Latin America – Brazil, Colombia, Chile, Argentina, Costa Rica, & Rest of Latin America; Middle East & Africa – Algeria, Egypt, Israel, Kuwait, Nigeria, Saudi Arabia, South Africa, Turkey, United Arab Emirates, & Rest of MEA Competitive Landscape ABB Ltd., Cisco Systems Inc., Emerson Electric Co., Hitachi Ltd., Honeywell International Inc., Johnson Controls, Legrand SA, Schneider Electric SE, Siemens AG, Telit, IBM Corporation, Other Key Player Customization Scope Customization for segments, region/country-level will be provided. Moreover, additional customization can be done based on the requirements. Purchase Options We have three licenses to opt for: Single User License, Multi-User License (Up to 5 Users), Corporate Use License (Unlimited User and Printable PDF)
Frequently Asked Questions (FAQ)What will be the market size for Smart Buildings Market in 2032?
In 2032, the Smart Buildings Market will reach USD 304.3 billion.What CAGR is projected for the Smart Buildings Market?
The Smart Buildings Market is expected to grow at 15.8% CAGR (2023-2032).Name the major industry players in the Smart Buildings Market.
ABB Ltd., Cisco Systems Inc., Emerson Electric Co., Hitachi Ltd., Honeywell International Inc., Johnson Controls, Legrand SA and Other Key Players are the main vendors in this market.List the segments encompassed in this report on the Smart Buildings Market?
Market.US has segmented the Smart Buildings Market Market by geographic (North America, Europe, APAC, South America, and MEA). By Component, market has been segmented into Solution, Building Infrastructure Management, Security and Emergency Management, Energy Management, Network Management and Others. By End-User, the market has been further divided into, Residential, Commercial and Industrial.Name the key business areas for the Smart Buildings Market.
The US, Canada, China, India, Brazil, South Africa, Malaysia, Australia & New Zealand, Argentina etc., are leading key areas of operation for the Smart Buildings Market.
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