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Smart Building Market Poised to Grow at a Robust Pace owing to Increasing Adoption of Energy-efficient Systems

Smart Building Market Poised to Grow at a Robust Pace owing to Increasing Adoption of Energy-efficient Systems

The smart building market involves integration of various systems including heating, ventilation, air conditioning (HVAC), lighting, security and fire, and building energy management. Adoption of building automation solutions aids in remote monitoring and controlling of building infrastructure through integration of sensing and networking technology. Smart building systems provide improved occupant experience through enhanced security, comfort, and productivity. Advances in IoT, wireless connectivity, and cloud computing have enabled development of innovative smart solutions for commercial and residential infrastructure management. The Global Smart Building Market is estimated to be valued at US$ 101.23 Bn in 2024 and is expected to exhibit a CAGR of 13% over the forecast period 2024 to 2030.

Key Takeaways

Key players operating in the Global Smart Building Market Share 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. Rising environmental concerns and focus on energy conservation are major factors driving demand for smart building solutions. Manufacturers are developing advanced networked systems and smart sensor technology for building automation.

Growing awareness about energy savings benefits and payback of smart building systems is a key factor boosting adoption across commercial facilities. Rapid urbanization and expanding construction industry are also positively impacting market revenue. Leading players are focusing on product innovation and development to integrate newer connectivity technologies and AI for enhanced building management capabilities.

Market Trends

The growing adoption of cloud-based systems allows remote access and management of building infrastructure from any location. This is enabling real-time data analysis for efficient control of operations and utilities. Emerging concepts like digital twin and decentralized computing are also gaining attention from building developers and operators. These technologies provide virtual simulation of physical infrastructure for predictive maintenance.

Market Opportunities

Rising redevelopment projects of existing buildings provide major opportunities for retrofitting smart automation solutions. Growing smart cities mission worldwide will also drive the need for integrated smart infrastructure development. Rapid 5G deployment is expected to enhance building connectivity and support applications requiring low latency. This will create scope for innovative IoT-based safety and security solutions leveraging edge computing.

Impact of COVID-19 on Smart Building Market

The COVID-19 pandemic has impacted the smart building market in several ways. During the initial lockdown phase, all non-essential commercial and office spaces were shut down which brought the demand for smart building technologies and services to a halt. Property owners and facility managers were focused on reducing operational costs and preserving cash amid the uncertainty caused by the pandemic. However, as businesses started adapting to the new normal of remote working and social distancing, the need for touchless technologies, improved indoor air quality, remote building monitoring and management gained prominence. Property owners recognized that upgrading to smart building solutions can help create a safer, healthier and more productive work environment in the post-pandemic world. This led to a renewed interest in automation, IoT, energy management and safety & security systems towards the later part of 2020 and 2021. Manufacturers also pivoted their strategies to launch new solutions addressing the priorities of the pandemic era like contactless access, occupancy monitoring, thermal screening etc. While the overall revenue declined in 2020, the smart building market is expected to bounce back and flourish in the coming years as organizations prioritize building optimization, energy efficiency and workforce well-being.

Geographical Regions with Major Concentration of Smart Building Market

In terms of value, North America dominates the global smart building market with the largest share. This is primarily attributed to higher spending on smart infrastructure by both private and public sector in countries like the United States. The region has witnessed large scale adoption of intelligent security systems, energy management solutions, lighting control and HVAC systems by large corporates and property developers. Europe follows North America in terms of market size owing to robust funding for smart city projects and presence of major automation vendors. Asia Pacific is projected to be the fastest growing regional market from 2024 to 2030 driven by the rapidly expanding smart homes and commercial real estate sector in China, India, Japan and other developing APAC economies.

Fastest Growing Regional Market for Smart Building

Asia Pacific region is poised to be the fastest growing market for smart buildings over the forecast period. This is due to several factors - surging construction of new commercial properties in major APAC cities, rising disposable income of middle class driving demand for smart home technologies, supportive government policies and initiatives promoting smart infrastructure development and focus of global smart building solution providers to tap into the opportunities in emerging Asian economies. Countries like China and India are witnessing a boom in their real estate sector which is driving the implementation of smart solutions across large projects. Growing urbanization is also accelerating the need for smarter, greener and more livable buildings. With its huge population base and rapid digitization, Asia Pacific is estimated to witness the highest CAGR in smart building investments from 2024 to 2030.

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