Smart Building Market Size, Share, Growth, and Industry Analysis, By Type (Building Management System (BMS), Heating, Ventilating, and Air Conditioning (HVAC), Lighting Control, Security and Access Control, Emergency Alarm and Evacuation System, Audio and Visual Effects, Escalator, Elevator, and Others), By Application (Government Buildings, Residential Buildings, and Commercial Building), Regional Insights, and Forecast to 2031

Smart Building Market Report Overview

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The global smart building market size was USD 71970 million in 2020 and is projected to touch USD 235787.1 million by 2031, exhibiting a CAGR of 12.6% during the forecast period.

An intelligent building is a structure that utilizes IoT and automated technology to regulate various building systems, including security, ventilation, lighting,  air conditioning, and heating. Such buildings use sensors, actuators, and microchips to gather and handle data according to the services and operations of an organization (or household). These smart infrastructure solutions help to build operators, owners, and facility managers to increase the dependability and performance of their assets, reduce their energy consumption, make better use of their available space, and lessen the adverse environmental effects of their structures.

Smart buildings are the one that uses automation to manage a variety of systems, including lighting, heating, air conditioning, infrastructure, security, and ventilation. A "smart building" uses technology to increase a structure's cost-effectiveness, safety, efficiency, and sustainability. The ventilation, air conditioning, heating, lighting, and other building activities are all controlled by a complex control system found in smart buildings. This system is made up of sensors, actuators, and microchips. As these buildings provide capabilities to reduce operational expenses, tenant management, security management, and building performance management, the market gains traction. Additionally, it is anticipated that the development of 5G technology and the rise in smart city initiatives would open up the attractive potential for the expansion of the construction sector.

COVID-19 Impact: Shut Down Of Offices Affected Market Growth

The global COVID-19 pandemic has been unprecedented and staggering, with Rochelle salt experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden spike in CAGR is attributable to demand returning to pre-pandemic levels once the pandemic is over.

The demand for smart solutions for a safe workplace is anticipated to increase as business facilities are reopened for in-office work following the epidemic. After the lockdown, the facilities managers of commercial buildings were asked to work from home, which affected the growth rate of market. The pause on construction activities retarded the growth rate of the market. The construction activities were put on hold, which impeded the market growth during the lockdown. 

LATEST TRENDS

"Escalating Smart City Projects to Propel Growth Opportunities"

Steady urbanization is anticipated to promote the expansion of the worldwide smart building market. The population is rapidly moving to cities, which is expected to cause an increase in demand for homes, offices, and other structures. In light of the global trend toward urbanization, governments all over the world invest in smart city projects that include cutting-edge infrastructure, eco-friendly transportation, intelligent structures, and other cutting-edge technologies. Buildings are a key energy consumer and investor. Therefore creating connected buildings is the first step toward initiatives for smart cities. 

Smart Building Market Segmentation

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• By Type Analysis

By type, the market is segmented into building management systems (BMS), heating, security and access control, emergency alarm and evacuation systems, audio and visual effects, escalator, elevator, ventilating, and air conditioning (HVAC), lighting control, and others. 

• By Application Analysis

Based on application, the market is classified into government buildings, residential buildings, and commercial buildings. 

DRIVING FACTORS

"The Rapid Adoption of Green Building Initiatives to Surge Growth"

The stringent regulations on energy consumption and emphasis on green building initiatives are expected to aid smart building market growth. The implementation of a smart building solution is leading to the steady adoption of smart constructions. Additionally, the higher consumption of energy by traditional buildings is creating concerns for saving energy and the adoption of advanced energy-efficient technologies. These factors are estimated to elevate the market growth. 

"Various Control Features to Boost Product Demand"

Smart technologies may also help control the spread of illnesses by tracking staff movement in the foreseeable future. Real-time data can be provided as intelligent technology interacts with systems and humans. These factors are anticipated to increase demand for smart building technologies. Additionally, these buildings contain a sophisticated control system that is able to control building operations such as air conditioning, ventilation, lighting, heating, and others. These smart features in the smart building are anticipated to increase market growth.

RESTRAINING FACTORS

"Rising Incidences of Cyber Attacks to Retard Growth"

The rising number of cyber-attacks linked with the buildings is forecasted to affect the smart building market growth. The internet of things may provide confidential and personal information, which is likely to impede the growth of the market. 

Smart Building Market Regional Insights

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"North America to Lead the Market Due To Inclination toward Smart Building Workplace"

North America is estimated to hold a major part of the smart building market share owing to the companies shifting toward smart building solutions to enhance workplace operations. The U.S. is expected to lead the regional growth due to rising investment in green building technologies.

Europe is likely to show significant growth in the global market owing to the rising focus of the European Union on the implementation of efficient energy-saving technologies in commercial and residential buildings.

Asia Pacific is likely to show sizable growth attributable to the rising smart city projects in the region. Additionally, the rising population in developing countries is estimated to gain growth in the region. 

KEY INDUSTRY PLAYERS

"Key Players to Emphasize On Product Development to Grow In the Global Market"

New sustainable products and solutions that give clients greater efficiency and higher value are being developed by the companies. Additionally, businesses attempt to boost sales through investments, acquisitions, and innovation. To better serve their different markets, they are increasing their production capacity. Due to the presence of multiple large corporations, the market is competitive. It is also defined by a sizable global consumer base, with the companies executing their businesses through specialized distribution networks.

LIST OF TOP SMART BUILDING COMPANIES

• Johnson Controls (U.S.)
• Honeywell (U.S.)
• Schneider (France)
• UTC (U.S.)
• Siemens (Germany)
• Ingersoll Rand (Trane)
• Azbil (Japan)
• ABB (Switzerland)
• Emerson (U.S.)
• Eaton (Ireland)
• Control4 Corporation (U.S.)
• Bosch (Germany)
• Panasonic (Japan)
• Delta Controls (Canada)
• Legrand (France)
• Cisco (U.S.)
• IBM (U.S.)
• Advantech (China)
• Current (GE)

INDUSTRY DEVELOPMENT

• December 2021- the Department of the National University of Singapore (NUS) of the Built Environment launched a new research center to encourage 5G technology adoption, boost 5G training in smart facility management, and improve Singapore’s construction industry’s digital capability. 

REPORT COVERAGE

The report covers various market aspects, such as:

• The product description is added to a brief about the product.
• Impacts of the lockdown followed by the pandemic.
• A driving factor becoming the new trend in the market and surging market growth.
• The factors which are likely to drive growth in the market.
• Factors expected to decline in growth in the market.
• An in-depth regional analysis of the market is performed.