Smart building technology incorporates sensors, controllers, actuators, and intelligent equipment to automate and control various building functions like security systems, heating, ventilation, and air conditioning, lighting control systems, and infrastructure management for improved operational efficiency and reduced costs. Smart buildings offer integrated solutions for automated control over security, temperature, HVAC, fire protection, lighting, parking, and other systems for increased energy savings, tenant comfort, and improved property management.
The global smart building Market is estimated to be valued at US$ 101.23 billion in 2023 and is expected to exhibit a CAGR of 13% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
The global smart building Market is driven by the increasing focus of major economies and organizations on reducing energy consumption through deployment of smart and efficient technologies. According to the International Energy Agency, buildings account for over 30% of total direct and indirect global energy consumption. Moreover, smart technologies empower building owners and facility managers to create greener, more sustainable, and productive spaces. This will drive the demand for smart building solutions over the forecast period.
Over the years, governments of various countries have introduced stringent regulations to reduce carbon emissions and energy consumption from buildings. This has prompted property developers and facility managers to adopt smart building automation systems for improved operational efficiency and compliance. Furthermore, increasing investments by private and government organizations in smart city development and infrastructure modernization programs will contribute to the growth of the smart building Market during the forecast period.
Segment Analysis
The global smart building market is dominated by the integrated building management systems segment. Integrated building management systems provide unified control and monitoring of various systems like HVAC, lighting, security, access control, and other building automation under a single platform. This helps in cost-effective and efficient management of the building. Integrated building management systems account for around 45% of the total smart building market owing to their advantages of managing complex building systems from one interface.
PEST Analysis
Political: Governments across regions are supporting initiatives to adopt smart and sustainable building solutions through various policies and regulations. This is promoting the growth of the smart building market.
Economic: With growth in the real estate and construction industry, investments in smart building technologies are rising globally. Rapid urbanization is also fueling the demand for smart infrastructure and buildings.
Social: Rising awareness about benefits of smart buildings such as enhanced occupant experience, energy savings, and operational efficiency is propelling the market growth. The young working demographic is preferring smart buildings.
Technological: Advancements in IoT, AI, cloud computing are facilitating the development of innovative smart building solutions. 5G connectivity will further accelerate smart infrastructure capabilities.
Key Takeaways
The Global Smart Building Market Size is expected to witness high growth over the forecast period of 2024 to 2031 supported by rapid digital transformation of the construction sector.
Regional analysis: North America dominates the global smart building market currently owing to strong presence ofsolution providers and rapid technology adoption. The Asia Pacific region is expected to grow at the fastest pace during the forecast period with China and India emerging as lucrative markets for smart building solutions due to heavy investments in smart infrastructure and real estate development.
Key players operating in the smart building market are Abbott, Hologic Inc., Becton, Dickinson and Company, Southwest Precision Instruments, LLC, F. Hoffmann-La Roche Ltd, Sysmex Corporation, Thermo Fisher Scientific Inc., Danaher, Life Technologies Corporation, Merck KGaA, Koninklijke Philips N.V., Perkin Elmer, and Trivitron Healthcare. Abbott, Philips, and Siemens dominate the integrated building management segment.
