Smart Building Market Insights and Growth by 2031
The Smart Building market size is projected to reach US$ 239.55 billion by 2031 from US$ 85.76 billion in 2023. The market is expected to register a CAGR of 13.7% during 2023–2031. Rising focus on energy efficiency and data analytics are likely to remain key trends in the market.
Smart Building Market Analysis
In the smart building market, the use of various technology-enabled goods and services for enabling innovative building solutions has emerged from technological improvement. Furthermore, the increased usage of smart home and building automation systems has aided in improving operational efficiencies. Produce assets, vital components, equipment, and machinery for the building's smooth operation. For example, available smart building-related solutions currently include intelligent security solutions, energy management, building automation, and network management, among other solutions that enhance building efficiency.
Smart Building Market Overview
A smart building is a formation that controls building services such as ventilation, heating, air conditioning, security, lighting, and other systems using IoT and automated technology. A smart building collects and handles data using sensors, actuators, and microchips in line with an organization's (or household's) tasks and services. Such smart infrastructure solutions help facility managers improve asset reliability and performance, owners and operators, reduce energy consumption, improve space utilization, and reduce the environmental impact of buildings.
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Smart Building Market: Strategic Insights
Market Size Value in US$ 75.43 billion in 2022 Market Size Value by US$ 210.98 billion by 2030 Growth rate CAGR of 13.7 % from 2022 to 2030 Forecast Period 2022-2030 Base Year 2022
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Smart Building Market: Strategic Insights
| Market Size Value in | US$ 75.43 billion in 2022 |
| Market Size Value by | US$ 210.98 billion by 2030 |
| Growth rate | CAGR of 13.7 % from 2022 to 2030 |
| Forecast Period | 2022-2030 |
| Base Year | 2022 |
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Smart Building Market Drivers and Opportunities
The Growing Adoption of Intelligent Technology and Demand for Energy-Efficient Systems to Favor the Market
The expanding use of intelligent technology and demand for energy-efficient systems drive the market CAGR for smart buildings. The growing urbanization is expected to propel the global smart building market growth. With the urbanization trend in mind, governments globally are investing in smart city initiatives for enhanced infrastructure, cleaner transportation, intelligent buildings, and other smart technology. The growing worry over rising global energy usage is expected to enhance innovative and energy-efficient technology.
The growing need for enhanced building utilization and better resource management in metropolitan settings pushes the use of intelligent buildings in diverse countries. The smart building uses IoT, and building operations such as heating, air conditioning, ventilation, lighting, security, and other systems are handled using automated technologies. Modern technology is increasingly used in smart buildings to collect and manage data through sensors, actuators, and microchips to deliver an organization's activities and services. Smart infrastructure solutions reduce energy consumption, enhance space utilization, and reduce the environmental impact of buildings. The rising demand for public safety and security is also propelling the rise of smart buildings. The introduction of 5G technology and the expansion of smart city projects are likely to provide profitable prospects for the growth of the smart building industry.
Sustainability and Green Technology
Sustainability in smart buildings is increasingly being driven by novel IoT and AI technologies that are tightly tied to ESG considerations. IoT sensors play an important role in monitoring and managing energy. AI algorithms are used to evaluate massive volumes of data from building operations, detecting trends and inefficiencies. Smart buildings incorporate ESG elements into their operations and administration. Advanced systems now track water usage, garbage generation, and other resource consumption. This improved approach to sustainability in smart buildings extends beyond traditional construction techniques to include the building's whole lifecycle and operation.
Smart Building Market Report Segmentation Analysis
Key segments that contributed to the derivation of the smart building market analysis are component and end-user.
- Based on component, the smart building market is divided into solution and services. Building infrastructure management, security and emergency management, and energy management are prominent subsegments under the solutions segment. Support and maintenance, system integration, and deployment are prominent subsegments under the service segment. The solution segment held a larger market share in 2023.
- By end-user, the market is segmented into residential and commercial.
Smart Building Market Share Analysis by Geography
The geographic scope of the smart building market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South & Central America.
North America holds a prominent share in the market. Intelligent security systems are predicted to increase exponentially in North America. As environmental awareness grows, more Americans search for connected, smart, and automated building solutions with add-on capabilities such as fire protection, safety and alarm systems, surveillance, and security. As a result, IoT-enabled solutions are becoming increasingly popular in the United States. The United States is one of the largest 10T-enabled markets in North America, as it is the largest user of IOT-compatible products.
Smart Building Market Report Scope
Smart Building Market News and Recent Developments
The smart building market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the Smart Building market are listed below:
- Siemens, a global leader in infrastructure, mobility, and industry technology, partnered with PRODEA Investments, Greece's leading real estate investment firm and one of the largest in Southeast Europe, to implement Building X, a Siemens digital building platform. The collaboration aims to expedite PRODEA Investments' digital transformation, reduce the carbon footprint of existing and under-construction building assets across its Greek real estate portfolio, and provide additional value services to renters. (Source: Siemens, Newsletter, 2023)
- Based on the Joint Venture Agreement signed on January 23, 2023, Obayashi Corporation and Hitachi Solutions, Ltd. created Oprizon, Ltd. ("Oprizon"), a joint venture delivering smart building-related services. Horizon began operations on April 1, 2023, intending to be the top smart building services provider. (Source: Hitachi Solutions, Ltd., Newsletter, 2023)
Smart Building Market Report Coverage and Deliverables
The “Smart Building Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:
- Smart building market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
- Smart building market trends as well as market dynamics such as drivers, restraints, and key opportunities
- Detailed PEST/Porter’s Five Forces and SWOT analysis
- Smart building market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
- Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the smart building market
- Detailed company profiles
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Component, End-users, and Geography
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
This text is related
to country scope.
Frequently Asked Questions
The market is expected to register a CAGR of 13.7% during 2023–2031
The smart building market size is projected to reach US$ 239.55 billion by 2031
Rising focus on energy efficiency and data analytics are likely to remain key trends in the market.
Cisco, IBM, Honeywell HBT, Siemens, Johnson Controls, Huawei Technologies Co. Ltd., Intel Corporation, PTC, ABB, Hitachi Ltd, Schneider Electric, Legrand, Verdigris Technologies, Switch Automation, Huawei Technologies, Cohesion, Igor, United Technologies, Iota Communications, Budderfly, and Ortronics among the leading payers operating in the smart building market.
The growing adoption of intelligent technology and demand for energy-efficient systems are expected to drive the smart building market.
The global smart building market was dominated by North America in 2023.
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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