Smart Building Market Research Report - Forecast till 2030

Smart Building Market Research Report: by Automation (Intelligent Security System (Video Surveillance System, Access Control System, Emergency Management System), Building Energy Management System(Energy Management System, HVAC Control System, Lighting Control System), Infrastructure Management System(Elevators and Escalators Management System, Smart Water Management System, Parking Management System) and Network Management System), By Application (Commercial, Industrial, Government & Public Infrastructure and Residential) by Region (North

ID: MRFR/SEM/1328-CR | February 2020 | Region: Global | 282 Pages         

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Smart Building Market

The Smart Building Market is estimated to acquire a 19.7 % CAGR by the forecast period in 2030. The reports of the market state that it will obtain a value of USD 371.67 Billion

By Automation Intelligent Security System (Video Surveillance System Access Control System Emergency Management System) Building Energy Management System(Energy Management System HVAC Control System Lighting Control System) Infrastructure Management System(Elevators And Escalators Management System Smart Water Management System Parking Management System) Network Management System
By Application Commercial Industrial Government & Public Infrastructure Residential
By Region Europe Asia Pacific (APAC) North America South America Middle East and Africa (MEA)
Key Players
Companies Profiled   Control4 Corporation (US)    United Technologies Corporation (US)    HCL Technologies Limited (India)    Panasonic Corporation (Japan)    Advantech Co. Ltd (Taiwan)    Johnson Controls International PLC (Ireland)    Hitachi Ltd (Japan)    Sony Corporation (Japan)    IBM Corporation (US)    Cisco Systems (US)    Honeywell International    Inc. (US)    Emerson Electric Co. (US)    GEZE GmbH (Germany)    Overkiz (France)    ABB Group (Switzerland)    Siemens AG (Germany)    Schneider Electric SE (France)    Legrand SA (France)    and Huawei Technologies Co. Ltd    (China)
Market Driving Forces   The rising adoption of IoT-enabled building management system. Raising awareness about space utilization    and increased industry standards and regulations.
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Smart Building Market Size and Overview

Globally, the size of the Smart Building Market is set to grow at a CAGR of 19.7%, estimated to reach USD 371.67 Billion by 2030 driven by the raising awareness about space utilization, and increased industry standards and regulations.

The growth rate of the real estate industry with advanced smart building technology and efficient features is driving the Smart Building Technology Market. This technology has improved the landlord and tenant relationships, which have propelled the market's growth opportunities. The initiative taken by the government and their support for smart city projects is accelerating the market's value. This technology has proven beneficial for the communication and relationships amongst the users and tenants. Their layers in building management have different operating systems requirements that are demanding for the installation of smart projects. Due to these growth factors, the Smart Building Market notices a huge growth rate.

  • On October 2022, Enlightened, a property technology (proptech) firm, recently announced the launch of a curated portfolio of smart Internet of Things (IoT) building solutions designed to create customer value and enable sustainable enterprises across industries and geographies. The new solutions and integration with the Siemens Xcelerator business platform will enable customers to use IoT and activity data from their buildings to vastly improve processes and decisions involving people and their spaces.

As soon as the arrival of this technology, the adoption rate increased in the real estate sector, which has propelled the market's demand globally. The rise in heavy investment by the key market players to develop advanced and new intelligence with the integration of IoT services is driving the market's revenue. The features such as efficient operational and analytic capabilities are other reasons helping the market to grow at a higher pace. The player's development is enhancing the market's demand among the high-end users.

Covid-19 Analysis

The arrival of the pandemic was nothing less than a huge health challenge for the global healthcare infrastructure and facilities. The frontline warriors are working day and night to keep up with the rising demand and also, maintaining a proper service flow and mechanism in the global market. However, due to the lockdown, most of the business, production, and management activities were on halt, and hence, the functional units were facing new kinds of challenges and cover their costs during the pandemic that lowered the demand below normalcy. Also, some of the global regions lack the required technology and related advancements for the smart building market and hence, have a long way to go with the efforts in the right direction.

  • During the COVID-19 pandemic, Transportation for Greater Manchester (TfGM) & Vivacity Labs launched a series of AI-controlled smart traffic junctions in November 2020 to improve city safety and reduce congestion. The company is hoping that this new smart junctions will help reduce traffic congestion while also protecting vulnerable road users like cyclists and pedestrians.

For instance, countries like Israel alongside Iran, have experienced major backlash due to the arrival of the pandemic. The governments have been open to the adoption and implementation of decisive measures that will reduce the effects of the pandemic and help in reviving the economy. With the industries reopening, the players are opting for technology that will help in reorganizing the workspace and also opt for smart workflows for a long-term advantage. The technological advancements are also helping for the management of facilities in a proactive manner beneficial for the global competition.

Smart Building Market Dynamics

  • Drivers

Reliance Enterprises, an Indian Company, is working on the introduction of 5G technology in India by 2021. With the arrival and adoption of this technology, the competitive market players are investing in the development of strong and new intelligent building capabilities that play a pivotal role in the expansion of services that are IoT-enabled. Also, these devices are expected to provide efficient operational and analytic capabilities.

  • In India, Tata Power and 75F will soon collaborate on smart building solutions. Building automation and energy-efficiency solutions are being promoted collaboratively in the commercial building space across industry verticals such as IT/ITeS, BFSI hospitality, healthcare, education, government, and retail. The association will greatly assist businesses in optimizing their energy consumption and utilization. TPTCL & 75F will offer joint solutions in the areas of HVAC optimization and smart building automation, leveraging cutting-edge technologies such as cloud, IoT, and AI/ML.

  • Restraints

There is a huge requirement of cooperation amongst the standard bodies, governments on both the state and central level, corporations, and company stakeholders amongst others. smart building market involves growing support and that the workforce should be well-versed with the existing technologies.

  • Technological Analysis

The internet of things is a technology that helps the owners by providing them with an opportunity to have conversations with the building users and establish strong relationships. For example, the sensors installed at various places in the shopping malls aim for direct owner connectivity with the customers and the required services. This has a major role to play when it comes to strengthening tenant management. Hence, the smart building market uses technology to enhance services and establish strong and professional relations.

  • Samsung & NXP have announced new Matter-related products for smart building interoperability and security. Lights, thermostats, and smart speakers in homes are examples of these devices, but some developers see a future for widespread interoperability across larger product segments used by the building industry.

Smart Building Market Segmentation

Smart building market share is anticipated to witness significant growth owing to the performance of different market segments. Among these, the commercial segment will be the fastest growing and also contribute towards smart building market growth more than any other segment. As the government of different countries is formulating many policies and implementing them properly for the establishment of commercial buildings equipped with smart technologies. For an amplifying use the market has been segmented into the following on different bases:

  • Johnson Controls, a worldwide leader in healthy, innovative, and sustainable buildings, has made OpenBlue Net Zero Buildings as a Service available. Johnson Controls will act as a one-stop shop for companies seeking to meet net zero carbon and renewable energy targets.

  • The US Department of Energy has launched a $61 million program to boost smart building implementation, with the expectation that grid-interactive efficient buildings will save up to $18 billion in the annual power system costs & reduce carbon emissions by 80 million tons.

Based on applicationIt has commercial, industrial, government & public infrastructure, and residential.Based on automationIt has intelligent security systems, building energy management systems, infrastructure management systems, and network management systems. The intelligent security system segment is further divided into video surveillance systems, access control systems, and emergency management systems. The building energy management is further sub-segmented into energy management systems, HVAC control systems, alongside the liquid control systems. Lastly, the infrastructure management system is again segregated into elevators and escalators management system, smart water management system, parking management system.

Smart Building Market Regional Analysis

The smart building market movement is remarkably working in 6 major regions of the world that is North America, South America, Asia Pacific, Europe, and the Middle East & Africa. Among all these regions, the North American region will dominate this market, and the reason attributed to it is raising awareness of security, safety, energy, and water management. Also with increasing technological advancements and adoption of such technologies such as cloud computing, big data analytics, deep learning, artificial intelligence, and IoT; there is the reduction of maintenance costs which is one of the major factors which will boost the growth of the smart building market in this region.

  • The Department of Energy (DOE) of the United States announced USD 61 million in funding for ten pilot projects that will use new technology for transforming thousands of homes and workplaces into cutting-edge, energy-efficient structures. These Connected Communities can communicate with the electrical grid to optimize their energy consumption, lowering carbon emissions and energy costs significantly.

Europe will also witness significant growth in smart building market due to more number of service providers present in this region. Also the increasing investments by the government in projects like the development of the smart city. Also, the power saving and increasing occupancy comfort feature associated with these smart infrastructures is another element that will enhance the expansion of this market in this region. Asia Pacific region is anticipated to experience noteworthy growth during the assessment period due to increasing government initiatives in developing commercial offices, residential localities, and shopping malls with the use of advanced and smart technology equipment. In the Middle East and African region, the smart building market will also grow at a constant rate due to the rising demand for more energy-efficient buildings which in turn will also decrease greenhouse emissions.

Competitive Landscape

Detailed and profound idea about the smart building market insights, it is very important to create a competitive environment amongst the different key players at different market locations all around the country. All the market players are competing with each other globally in the international markets by implementing various types of strategies such as product launches and upgrades, mergers and acquisitions, partnerships, etc. The top smart building solution companies include:-

  • Honeywell International, Inc. (Us)

  • Control4 Corporation (Us)

  • Hcl Technologies Limited (India)

  • Advantech Co. Ltd (Taiwan)

  • Hitachi Ltd (Japan)

  • Schneider Electric Se (France)

  • Ibm Corporation (Us)

  • Cisco Systems (Us)

  • Panasonic Corporation (Japan)

  • Emerson Electric Co. (Us)

  • Geze Gmbh (Germany)

  • Overkiz (France)

  • Abb Group (Switzerland)

  • United Technologies Corporation (Us)

  • Huawei Technologies Co. Ltd, (China).

  • Johnson Controls International Plc (Ireland)

Recent Developments

April 2022

In April 2022, Facilio, a leading property operations software platform; Airmaster, an Australia-based award-winning building solutions and services company; and NEJAVI, a sales advisory focusing on digital transformation and business process. It has announced a strategic partnership to help the real estate sectors and portfolio owners and operators implement advanced energy efficiency, operational savings, and improved building performance.

Airmaster is a building services company providing smart building solutions, HVAC&R management, and fire services in Australia, New Zealand and South-East Asia. It is founded in Melbourne with 14 branches across Australia and New Zealand. Its major is the approach to building management and offering a comprehensive range of service offerings.

Intended Audience

  • Automation & control vendors

  • Automation & control networking technology vendors

  • Real estate builders

  • System integrators

  • Building owners

  • Project consultants

  • Designers/consultants (HVAC, security, and fire & safety)

  • Component manufacturers (sensors & controls)

  • Software and solution providers

  • Home management systems (product & service providers)

  • Associations & standards

  • Government bodies involved in green buildings

Report Overview

The smart building market report considers the viewpoints related to the market trends as laid down by the industry leaders and market experts. The smart building market report presents a shift analysis that includes market drivers, opportunities, and restraints that are available in the global market. The smart building market report helps the investors by discussing the trend of the market and the expected rate at which the market will grow during the period and also, the final market valuation when the period ends in 2028. The report discusses the impact of covid-19 on the key players of this market. The report also tells about the smart building market segmentation on a different basis and how a competitive environment is developed among the key players around the globe. At last, the report presents some recent developments in this industry.

Report Scope:

Report Attribute/Metric Details
  Market Size   USD 371.67 Billion
  CAGR   19.7%
  Base Year   2019
  Forecast Period   2020-2030
  Historical Data   2018
  Forecast Units   Value (USD Million)
  Report Coverage   Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
  Segments Covered   Automation, Application
  Geographies Covered   North America, Europe, Asia-Pacific, and Rest of the World (RoW)
  Key Vendors   Control4 Corporation (US), United Technologies Corporation (US), HCL Technologies Limited (India), Panasonic Corporation (Japan), Advantech Co. Ltd (Taiwan), Johnson Controls International PLC (Ireland), Hitachi Ltd (Japan), Sony Corporation (Japan), IBM Corporation (US), Cisco Systems (US), Honeywell International, Inc. (US), Emerson Electric Co. (US), GEZE GmbH (Germany), Overkiz (France), ABB Group (Switzerland), Siemens AG (Germany), Schneider Electric SE (France), Legrand SA (France), and Huawei Technologies Co. Ltd, (China)
  Key Market Opportunities   Growing need for energy-efficient buildings and increasing government initiatives to encourage smart infrastructure.
  Key Market Drivers

  • The rising adoption of IoT-enabled building management system.
  • Raising awareness about space utilization, and increased industry standards and regulations.

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    Frequently Asked Questions (FAQ) :

    The Global Smart Buildings Market was valued at USD 8,540.3 Million in 2018 and is projected to surpass USD 371.67 Billion by 2030 with a CAGR of 19.7%.

    The segment is expected to maintain its dominance over the forecast period while the network management system segment is projected to grow at the fastest CAGR of 19.7%.

    The smart building market leading players is ABB Group, Cisco Systems, Inc., Siemens AG, Control4 Corporation, Schneider Electric, Johnson Controls International PLC, IBM Corporation, Emerson Electric Co., United Technologies Corporation and Legrand SA

    North America, Europe, Asia Pacific, and the Rest of the World are the key markets for smart building. North America is the largest market for smart buildings and was valued at USD 8,540.3 Million in 2018.