Published Date : 24, 2022
The global smart building market was estimated at US$ 53.54 billion in 2021 and is anticipated to be worth around US$ 115.19 billion by 2030 with a CAGR of 8.9% from 2022 to 2030.
Increase in the adoption of IoT enabled Building Management System (BMS) is one of the major factors driving the growth of the market. IoT has a remarkable impact on commercial real estate industry owing to the growth in effectiveness of building operations, new capital generation opportunities, etc. IoT enabled BMS is deployed and utilized to boost performance efficacy, and exert sensor-based data to amplify user experience. Along with this, increasing levels of urbanization, and spreading popularity of building automation systems concerning entertainment, facility management, and security are the factors augmenting the market during the forecast timeframe. However, increasing issues related to security and privacy due to IoT enabled devices, and increasing prevalence of Cyber Attacks in connected buildings are hindering the revenue growth trajectory of smart building market. Furthermore, burgeoning acceptance rate of smart building technology in commercial sectors such as airports, and hospitality verticals are expected to create lucrative opportunities for this market.
Scope of the Report
|Market Size in 2021||USD 53.54 Billion|
|CAGR||8.9% from 2022 to 2030|
|Revenue Forecast Forecast by 2028||USD 96.67 Billion|
|Largest Market||North America|
|Fastest Growing Market||Asia Pacific|
|Largest Revenue Holder by Application||Commercial|
Prominent players operating in smart building market are thoughtfully entering into alliances and acquisitions to widen their market share. These players are capturing local players to across countries to increase their global presence. In addition, these players are continuously investing in developing and launching new solutions and services to handle commercial and residential building operations. For instance, in May, 2021, Siemens AG joined forces with Telefonica Tech to provide intelligent building solutions and Spanish market services. Also, In March 2020, ABB Ltd. announced to acquire an Irish company Cylon Controls to lengthen its market in the segment of intelligent building.
Governments across the globe are funding in smart city projects with developed infrastructure, intelligent buildings, cleaner transportation, and few other technologies taking the urbanization trend into account. Building adds to the large energy consumption and investment, thus developing connected building is an important step as for smart city projects. For instance, the government of Singapore has launched a Green Mark Scheme in support to the Smart Nation initiative. In compliance with the scheme, buildings are granted a traffic light code that mirrors their environment friendliness. The government has declared the target of turning around 80% of buildings to be verified as green under this scheme till 2030.
Markets in the North America are is predicted to hold the largest share during the forecast period. The US holds the utmost portion of the market in this region. Canada and the US are key countries contributing to the development of technology in this region. For example, the US associations are largely capitalizing in smart building measures and delivering more sustainable and smarter buildings. On the other hands, the government of Canada is taking zeal to help Canada’s commitment of saving the environment and its resources by lowering greenhouse gas emissions, augmenting the growth of smart building market. Moreover, the U.S. government is promoting its energy grids and elevating to Advanced Metering Infrastructure (AMI) to decrease energy consumption.
The smart building market is marked by presence of prominent players such Cisco Systems Ltd., IBM Corp., Honeywell International Inc., Siemens AG, Schneider Electric, ABB Ltd., Johnson Controls, Hitachi Ltd., Legrand SA, Building IQ, among others. Other players operating in the market are United Technologies, Delta Controls, Thales Group, Accenture, Emerson Electric Company, among others.
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