Smart Building Market to Witness Double Digit Growth through 2028
The global smart building market is growing at a high CAGR because of the increasing demand for energy-efficient technologies. Moreover, the increasing penetration of advanced technologies, such as artificial intelligence (AI), Internet of Things (IoT), machine learning, etc., is also driving the market forward?
A recent study conducted by the strategic consulting and market research firm BlueWeave Consulting revealed that the global smart building market was worth USD 88.6 billion in the year 2021. The market is projected to grow at a CAGR of 11.20%, with revenues reaching USD 185.4 billion by 2028. The global smart building market is flourishing at a high rate owing to the increasing demand for energy-efficient technologies, along with expanding penetration of advanced technologies, such as artificial intelligence (AI), Internet of Things (IoT), machine learning, etc. Furthermore, rapid urbanization and rising public and private investments in the establishment of smart buildings are anticipated to boost the overall market growth during the forecast period. However, the high risk of cyberattacks may act as a huge restraining factor for the global smart building market.
Rising Adoption of Automation and Advanced Technologies Driving the Global Smart Building Market
The increasing penetration of advanced technologies, such as Artificial Intelligence (AI), Internet of Things (IoT), machine learning, etc., is significantly driving the growth of the global smart building market. The IoT sensors and devices used in smart buildings are increasingly being used to monitor building characteristics. Such technologies are capable of analyzing data as well as generating insights that can be leveraged for optimizing the building’s environment and operations. These technologies also help to completely automate the functions of a smart building, thereby driving the overall market growth.
Increasing Development in Device Connectivity Offering Lucrative Growth Opportunities to the Market
The IoT device and component manufacturers are significantly investing in improving device connectivity to boost the implementation in smart buildings. Furthermore, increasing penetration of 5G technology is also projected to present lucrative growth opportunities to the smart building market in the forecast period. The increased internet connectivity improves the data transfer, interpretation, and controllability in smart buildings, further driving the growth of the smart building market.
Smart Building Market - By Component
Based on components, the smart building market is segmented into solutions and services. The services segment holds the largest share in the smart building market. This segment is further classified into consulting, implementation, and support and maintenance. The solutions segment is also classified into building infrastructure management, safety and security management, energy management, network management, and integrated workplace management system. Due to the growing demand for smart buildings, consulting and implementation services have been in high demand, as has assistance with deployment based on the requirements.
Smart Building Market - Regional Insights
Geographically, the smart building market is segmented into North America, Europe, Asia-Pacific, Latin America, Middle-East & Africa. North America dominates the smart building market, followed by Europe. However, the Asia-Pacific region is projected to register the highest growth rate during the forecast period. Strong and flourishing economies, such as Singapore, China, Japan, etc., are emerging as the prime markets for smart buildings. The Capital Tower in Singapore is among the oldest smart buildings in the world that was built in 2000. The developing countries are also deploying energy efficiency and connectivity tools into their infrastructure, which is driving the market growth.
Impact of COVID-19 on the Global Smart Building Market
The growth of the smart building market was tremendously affected by the unprecedented COVID-19 pandemic outbreak. As a result of a lack of investment in infrastructure, construction of commercial and residential spaces was hindered, lowering the demand for smart buildings. However, the market is projected to gain significant growth opportunities in the upcoming years owing to the increasing consciousness regarding energy conservation and the adoption of advanced technologies to achieve sustainability.
Global Smart Building Market - Competitive Landscape
The leading players in the global smart building market are ABB Ltd., Softdel, Honeywell International Inc., Hitachi Ltd., Siemens AG, Avnet Inc., Schneider Electric SE, Legrand SA, Huawei Technologies Co. Ltd, Johnson Controls Inc, IBM Corporation, Cisco Systems Inc., Verdigris Technologies, BuildingIQ, Mode: Green, ENTOUCH, Wirepath Home Systems LLC, Pointgrab Inc., PTC Inc., and other prominent players.
The smart buildings market is fragmented due to the presence of several global as well as regional market players. Many startups are also emerging with smart building solutions to exploit the growing market opportunities. The companies significantly focus on offering a wide range of products and solutions and often launch new products equipped with advanced technologies to gain a competitive edge. Furthermore, they also adopt strategies such as partnerships, mergers, acquisitions, joint ventures, etc., to stay ahead in the market.
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The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of the global smart building market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends of the global smart building market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyses the growth drivers, challenges, and competitive dynamics of the market.