by The Smart Building Market is estimated to be valued at US$ 87.87 Bn in 2023 and is expected to exhibit a CAGR of 24% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The Smart Building Market involves integrating various systems including security systems, heating, ventilation and air conditioning (HVAC), lighting, energy management systems, and building management systems into one centralized network to enable remote monitoring and automation. Advancements in information and communication technologies (ICT) have enabled integration of Internet of Things (IoT) devices, sensors and cloud-based platforms to centrally manage and automate building operations. Integration of wireless connectivity, analytics and security capabilities helps improve overall efficiency, sustainability and safety of commercial and residential buildings.
Market Dynamics:
Growing need to reduce operational costs and increase energy efficiency of buildings is a key driver for the smart building market. According to studies, integrated smart building solutions can help save 20-30% of total energy costs. Automated control of lighting, HVAC, and other systems based on occupancy and scheduling helps optimize resource usage. In addition, remote monitoring capabilities offer enhanced security and help address issues quickly in turn reducing maintenance costs. Furthermore, increasing adoption of smart home appliances and integration with smart building platforms is expected to further propel the market growth over the forecast period.
Segment Analysis
The global smart building market is dominated by the hardware sub segment. This sub segment accounts for over 45% share of the total market owing to high demand for connected hardware devices in buildings such as security and surveillance cameras, HVAC and lighting control systems, smart thermostats and others. These devices are helping in efficient management of energy consumption and also improving overall security of the buildings.
PEST Analysis
Political: Favorable government policies and regulations promoting adoption of smart and sustainable buildings are driving the market growth. Various nations have introduced policies to reduce carbon emission from commercial buildings.
Economic: Growing construction industry globally coupled with rising disposable income is fueling the demand for advanced smart building solutions. Developing economies are witnessing higher infrastructure investments.
Social: Changing lifestyle and work patterns are prompting builders to integrate latest technologies in buildings. Consumer demand for connected, automated and eco-friendly buildings is increasing.
Technological: Rapid advancement in IoT, cloud, artificial intelligence and 5G network technology is bringing more innovations in smart building domain. These technologies are enabling efficient management of various building operations.
Key Takeaways
The Global Smart Building Market Size is expected to witness high growth, exhibiting CAGR of 24% over the forecast period, due to increasing infrastructure development activities and rapid urbanization worldwide.
The Asia Pacific region is expected to dominate the global market during the forecast period, driven by massive investments in smart city projects across China, India and other Asian countries. China alone accounts for over 30% share of the regional market owing to ongoing smart infrastructure modernization initiatives.
Key players operating in the smart building market are Softdel (A UNIDEL Company), ABB Ltd., Hitachi Ltd., Honeywell International, Avnet Inc., Siemens AG, Legrand SA, Schneider Electric SE, Johnson Controls Inc., Huawei Technologies Co. Ltd., Cisco Systems, and IBM Corporation. These players are focusing on new product launches and partnerships with technology providers to strengthen their market position. For instance, in 2022, Siemens collaborated with Anthropic to integrate AI capabilities in its building management software.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
