A smart building is a structure which uses automated processes to control various building operations such as air conditioning, heating, security, energy management, and ventilation. Smart buildings are equipped with various types of smart devices and electronic components such as sensors, microchips, microcontrollers, and microprocessors to collect and process relevant data and manage it to control automatic operations of the building. This helps the facility managers and owners of the building to reduce energy use, increase comfort level, improve performance, enable optimal use of building space, and minimize environmental degradation. The increasing requirement for energy efficient buildings and favorable government initiatives towards smart infrastructure is driving the market growth. As smart buildings can monitor everything remotely from lighting and elevators to security and temperature of the building, they save a lot of power. Automatic and remote monitoring of such elements of the building reduces manual procedures, operating cost, and error in building systems.
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In 2017, the global smart building market accounted for USD 7,458.5 million and is expected to grow with a CAGR of 29.96% during the forecast period 2018–2023. In 2017, North America dominated the accounting for USD 2,615.31 million and is expected to grow with a CAGR 27.17% during the forecast period 2018–2023. However, Asia-Pacific region is projected to be the fastest growing market with a CAGR of 33.03% during the forecast period, and 22% of the total market in 2017. The presence of developed and developing countries in Asia-Pacific drives the growth of the smart building market; furthermore, various initiatives taken by the government for green buildings also contribute to the market growth. For instance, the Chinese government has initiated a project for the development of smart building and Green Building policies for school, airports, railway stations and others. Similarly, in India, the government is taking an initiative for adopting smart cities for the reduction of building maintenance cost and also to enhance the quality of living.
The global smart building market has been segmented based on automation and application. Based on automation, building energy management system accounted for the largest market share of 36.8% in 2017, with a market value of USD 2,743.90 million and is projected to grow at the CAGR of 26.6% during the forecast period 2018–2023. Based on application, the commercial segment held the largest market share in 2017, with a market value of 2,826.09 million, and is expected to grow with a CAGR of 28.33% during the forecast period.
The key players of the smart building market areCisco Systems, Inc. (US), ABB Group(Switzerland), IBM Corporation(US), Honeywell International, Inc. (US), Siemens AG (Germany), Control4 Corporation (US), Emerson Electric Co (US), Schneider Electric (France), United Technologies Corporation (US), Johnson Controls International PLC (US), and Legrand SA (France) among others.
Global Smart Building Market Analysis & Forecast, from 2017 to 2023
- To provide a detailed analysis of the market structure along with a forecast of the various segments and sub-segments of the smart building market
- To provide insights about factors affecting the market growth
- To analyze the smart building market based on Porter’s five force analysis
- To provide historical and forecast revenue of the market segments and sub-segments with respect to four main geographies and their countries? North America, Europe, Asia, and the rest of the world
- To provide country-level analysis of the market with respect to the current market size and future perspective
- To provide country-level analysis of the market for its segments on the basis of automation, application, and region
- To provide strategic profiling of key players in the market, comprehensively analyzing their core competencies, and drawing a competitive landscape for the market
- To track and analyze competitive developments such as joint ventures, strategic alliances, mergers and acquisitions, new product developments, and research and developments in the smart building market
- System Design & Development Vendors
- System Integrators/Migration Service Providers
- Consultants/Consultancies/Advisory Firms
- Support & Maintenance Service Providers
- Network Service Providers
- Smart Building Product & Solution Provider Companies
- Academic and Research Institutes
- Government Associations
- The global smart building market is expected to reach USD 33,707.3 million by 2023.
- Based on the automation, the building energy management system segment dominated the market by generating the highest revenue of USD 2,743.90 million in 2017 and is expected to grow with 26.61% CAGR in the forecast period.
- Based on the application, the commercial segment dominated the market by generating the highest revenue of USD 2,826.09 million in 2017 and is expected to grow with 26.12% CAGR during the forecast period.
- Geographically, North America has been projected to hold the largest market share in the global smart building market, followed by Europe.
Regional and Country Analysis of Smart Building Market Estimation and Forecast
Global smart building market, by region, is led by North America with a CAGR of 27.17% during the forecast period. Europe has successfully counted on the second position in smart building with a CAGR of 31.58%. Asia-Pacific is the fastest growing market with a 33.03% CAGR. However, the market in the rest of the world is expected to grow with a moderate growth rate at a CAGR of 25.93% during the forecast period.
The report on the global smart building market also covers the following country-level analysis:
- North America
o Rest of Europe
o South Korea
o Rest of Asia-Pacific
- Rest of the World