Smart Buildings Market Size, Trends, Share, Growth, And Opportunity Forecast, 2023 - 2030 Global Industry Analysis By Component (Solution, Service), By Solution Type (Building Infrastructure Management, Security And Emergency Management, Energy Management, Network Management, Workforce Management, Waste Management), By Building Type (Residential, Commercial, Industrial), and By Geography (North America, Europe, Asia Pacific, South America, and Middle East & Africa)

The global smart buildings market was valued at USD 76,743.6 Million in 2022 and is anticipated to reach a value of USD 209,813.8 Million by 2030 expanding at a CAGR of 13.5% between 2023 and 2030.

A smart building is a structure that uses automated technology and the Internet of Things (IoT) to control different building functions, including air conditioning, heating, ventilation, and lighting, as well as security. There are going to be significant business prospects as IoT is used more often for the effective management of connected devices. For example, the smart infrastructure provider Siemens announced in March 2023 the introduction of a smart IoT solution called Connect Box to manage smart buildings. In smart city initiatives, Connect Box provides an easy-to-use method for tracking building performance, aids in energy optimization, and significantly enhances the air quality within small to medium-sized buildings including shops, housing, schools, and small workplaces.

Smart Buildings Market Major Driving Forces

Growing Demand for Energy-Efficient Buildings: Smart building solutions can help by reducing energy consumption and running costs by using modern HVAC, lighting, and energy management systems.

Diverse Applications of Smart Building Solutions:  More and more building owners, developers, and facility managers are realizing the advantages of smart building solutions, which include increased security, better tenant comfort, and increased operating efficiency.

Government policies and initiatives: To reach energy savings goals and reduce carbon emissions, governments everywhere are encouraging the usage of smart building solutions. The adoption of smart building solutions is also being fueled by laws and policies, such as energy efficiency standards and building rules.

Technological innovations and advancements: The smart building sector is seeing rapid technical developments and breakthroughs, which are resulting in the creation of new and better smart building solutions that are more profitable, economical, and user-friendly.

Smart Buildings Market Key Opportunities

Eco-Friendly and Sustainable Options: The market for smart buildings has an opportunity to develop and promote sustainable options due to the growing demand for eco-friendly buildings. Manufacturers can benefit from this trend by providing smart buildings with ethical sourcing and production, or by utilizing organic and recycled materials.

Artificial Intelligence (AI) and Machine Learning (ML): By enabling data analysis to enhance building functions and income production, Artificial Intelligence (AI) and Machine Learning (ML) are transforming the sector. These technologies enhance the effectiveness and efficiency of smart buildings in the unpredictable and quickly changing global landscape.

Internet of Things (IoT)-Based Remote Monitoring: The growing popularity of IoT-based remote monitoring devices is driving up demand for smart building solutions. These gadgets further spur market expansion by enabling real-time building function monitoring and management.

Smart Buildings Market Key Trends

·         Urbanization that is happening quickly and more government efforts to build intelligent infrastructure.

·         The industry is undergoing a revolution thanks to artificial intelligence (AI) and machine learning (ML), which make it possible to analyze data and optimize building functions.

·         the global spread of smart cities and the growing need for buildings with low energy consumption.

·         A variety of uses for smart buildings, such as facility management, entertainment, telecommunications, and security.

·         The increasing use of remote monitoring devices based on the Internet of Things (IoT)

Region-wise Market Insights

North America accounted for the largest market share at 39.2% in 2022 whereas, Asia Pacific is expected to register the fastest growth, expanding at a CAGR of 14.6% between 2023 and 2030.

Strict federal and state policies pertaining to energy efficiency and sustainability are the factors that are driving demand in North America. The rising price of energy in North America is driving building owners and businesses to make investments in smart building solutions that can help track and manage energy use and save money. The creation of creative smart building solutions is fueled by ongoing technological breakthroughs in areas like data analytics, artificial intelligence (AI), and the Internet of Things (IoT). Europe places a strong emphasis on sustainable and environmentally friendly building materials. The market in Asia-Pacific is being driven by rising disposable incomes and a growing middle class, which is driving up demand for smart buildings. The adoption of smart building technologies in this region is driven by a growing consciousness of environmental sustainability and the significance of lowering carbon footprints. In addition, the adoption of energy-efficient technologies and smart building solutions is prompted by worries about energy security in certain Asia-Pacific nations, which aims to guarantee a consistent and sustainable energy supply. The demand for luxury real estate has been rising in the Middle East and Africa, while economic factors dominate the South American market and have an impact on consumers' decisions to buy due to price sensitivity.

Market Competition Landscape

It is observed that market participants allocate resources towards research and development endeavors in order to bolster their internal business operations and facilitate expansion. Businesses are observed entering into partnerships and mergers and acquisitions to enhance their products and obtain a competitive edge in the marketplace. To increase their customer base and market share, they are efficiently developing new products and improving their current offerings.

The most well-known organizations in the worldwide smart building industry employ diverse organic and inorganic tactics to fortify and enhance their market standing. Prominent players in the market include:

·         Siemens AG

·         Honeywell International Inc.

·         Johnson Controls International plc

·         Schneider Electric SE

·         IBM Corporation

·         Cisco Systems, Inc.

·         ABB Ltd

·         Intel Corporation

·         Trane Technologies plc

·         Legrand SA

·         Google LLC

·         Amazon.com, Inc. (Amazon Web Services - AWS)

·         Huawei Technologies Co., Ltd.

·         Schindler Group

·         Delta Electronics, Inc.