Smart Building

Smart Building Market by Component (Services, Solution), Building Type (Commercial, Industrial, Residential) - Global Forecast 2024-2030

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[191 Pages Report] The Smart Building Market size was estimated at USD 32.68 billion in 2023 and expected to reach USD 39.54 billion in 2024, at a CAGR 23.01% to reach USD 139.38 billion by 2030.

Smart Building Market
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The smart building market encompasses integrating advanced technology systems, automation solutions, and IoT devices to optimize the performance, efficiency, and functionality of modern infrastructure. The primary applications of smart building technologies include energy management, lighting control, HVAC control, safety and security management, predictive maintenance, waste management, and space optimization. The increasing government initiatives for smart infrastructure development and the growing need for energy-efficient and sustainable buildings globally are major factors enhancing the market growth. The surge in IoT-enabled building management systems (BMS) adoption is also improving the demand for smart building solutions worldwide. However, the capital-intensive implementation and privacy concerns associated with the smart building infrastructure may limit the product adoption in the forecast period. The limited technological expertise and alignment issues also pose challenges for market growth. Furthermore, the emerging advancements of smart cities worldwide are expected to enhance the demand for smart building solutions. The ongoing development and adoption of 5G technology in smart buildings are also unlocking new opportunities to enhance overall building performance.

Regional Insights

The Americas region has highly developed infrastructure for smart buildings due to increased focus on energy efficiency, building automation, and evolving IoT technologies. Countries, including the United States and Canada, are promoting stringent energy-efficiency regulations and government incentives to promote sustainable development, contributing to the market growth in the region. European Union (EU) countries have adopted policies that support the deployment of smart buildings as part of their commitment to promote energy-efficient housing and commercial facilities. The Middle East region is witnessing significant investments in smart city projects emphasizing sustainability and digitalization. In the APAC region, important countries such as China, Japan, and India invest massively in building infrastructure and rapid urbanization, driving the demand for smart building solutions. The growing focus on energy conservation and sustainability in new construction projects in the region also enhances the demand for smart building solutions in the APAC region.

Market Dynamics

The market dynamics represent an ever-changing landscape of the Smart Building Market by providing actionable insights into factors, including supply and demand levels. Accounting for these factors helps design strategies, make investments, and formulate developments to capitalize on future opportunities. In addition, these factors assist in avoiding potential pitfalls related to political, geographical, technical, social, and economic conditions, highlighting consumer behaviors and influencing manufacturing costs and purchasing decisions.

  • Market Drivers
    • Growing government initiative for the development of smart infrastructure
    • Increasing need for energy-efficient and sustainable buildings globally
    • Surge in adoption of IoT enabled building management system (BMS)
  • Market Restraints
    • Capital intensive implementation and privacy concerns
  • Market Opportunities
    • Ongoing development and adoption of 5G technology in smart buildings
    • Introduction of advanced & innovative smart building solutions
  • Market Challenges
    • Limited expertise and interoperability issues associated with smart building solutions
Market Segmentation Analysis
  • Component: Significant adoption of advanced smart building solutions

    Services in the smart building industry refer to the various offerings provided by companies to optimize building performance using real-time data and analytics. Consulting services help organizations plan, design, and implement customized solutions tailored to specific requirements. Support and maintenance services in the smart building market ensure implemented systems function smoothly throughout their lifecycle. Support and maintenance services include proactive monitoring of system performance to identify issues before they escalate into critical problems. System integration and deployment services are vital for seamless interconnectivity between various components, including HVAC controls, lighting systems, security mechanisms, occupancy sensors, and energy management platforms. Smart building solutions enable stakeholders to monitor, control, and manage various aspects of a building's infrastructure in real time through innovative technologies and intelligent systems. Building infrastructure management is a centralized platform for monitoring and controlling a building's mechanical, electrical, and plumbing (MEP) systems. Elevators and escalator management systems are used to improve the efficiency and safety of vertical transportation systems while reducing wait times and energy consumption. Parking management systems help optimize space utilization, enhance security, and provide real-time information on available parking spots for seamless navigation within the premises. Smart water management systems monitor water usage patterns across the building for efficient water consumption management. Energy management aims to collect real-time data on energy consumption patterns. HVAC systems are crucial to maintaining indoor air quality and regulating temperature. Automated lighting systems are designed to optimize illumination levels based on occupant presence, natural light availability, and energy efficiency goals. An efficient network management system ensures seamless communication between various smart building components. Security and emergency management prioritize the safety of occupants by employing multiple layers of security measures, including access control systems, video surveillance systems, intrusion detection devices, and fire safety equipment. Access control systems are advanced authentication methods such as biometrics, facial recognition technology, or RFID-based solutions that restrict unauthorized access to sensitive areas within the building. Comprehensive safety solutions encompass fire detection and suppression equipment and emergency communication systems that ensure timely alerts during critical situations. Video surveillance systems continuously monitor activities throughout the premises to deter unwanted behavior and detect potential threats in real-time. Workforce management supports workforce optimization using advanced analytics tools to assess occupancy patterns and space utilization across various zones.

  • Building Type: Extensive use of smart building solutions for commercial building management

    Commercial smart buildings integrate cutting-edge technology to improve energy efficiency, lower operating costs, and enhance the comfort and productivity of occupants. Commercial smart buildings rely on advanced HVAC systems, automated lighting controls, security systems, and building management software. The industrial segment encompasses manufacturing facilities, warehouses, logistics centers, research labs, and other specialized facilities requiring advanced automation systems to optimize production processes and ensure worker safety. Residential smart buildings prioritize enhancing the comfort, security, and convenience of occupants through automated systems such as smart thermostats, lighting controls, and security cameras. Key need-based preferences for residential smart buildings include energy-efficient technologies that reduce utility bills, user-friendly interfaces for easy management of connected devices, and customizable automation features to cater to individual preferences.

Market Disruption Analysis

The market disruption analysis delves into the core elements associated with market-influencing changes, including breakthrough technological advancements that introduce novel features, integration capabilities, regulatory shifts that could drive or restrain market growth, and the emergence of innovative market players challenging traditional paradigms. This analysis facilitates a competitive advantage by preparing players in the Smart Building Market to pre-emptively adapt to these market-influencing changes, enhances risk management by early identification of threats, informs calculated investment decisions, and drives innovation toward areas with the highest demand in the Smart Building Market.

Porter’s Five Forces Analysis

The porter's five forces analysis offers a simple and powerful tool for understanding, identifying, and analyzing the position, situation, and power of the businesses in the Smart Building Market. This model is helpful for companies to understand the strength of their current competitive position and the position they are considering repositioning into. With a clear understanding of where power lies, businesses can take advantage of a situation of strength, improve weaknesses, and avoid taking wrong steps. The tool identifies whether new products, services, or companies have the potential to be profitable. In addition, it can be very informative when used to understand the balance of power in exceptional use cases.

Value Chain & Critical Path Analysis

The value chain of the Smart Building Market encompasses all intermediate value addition activities, including raw materials used, product inception, and final delivery, aiding in identifying competitive advantages and improvement areas. Critical path analysis of the <> market identifies task sequences crucial for timely project completion, aiding resource allocation and bottleneck identification. Value chain and critical path analysis methods optimize efficiency, improve quality, enhance competitiveness, and increase profitability. Value chain analysis targets production inefficiencies, and critical path analysis ensures project timeliness. These analyses facilitate businesses in making informed decisions, responding to market demands swiftly, and achieving sustainable growth by optimizing operations and maximizing resource utilization.

Pricing Analysis

The pricing analysis comprehensively evaluates how a product or service is priced within the Smart Building Market. This evaluation encompasses various factors that impact the price of a product, including production costs, competition, demand, customer value perception, and changing margins. An essential aspect of this analysis is understanding price elasticity, which measures how sensitive the market for a product is to its price change. It provides insight into competitive pricing strategies, enabling businesses to position their products advantageously in the Smart Building Market.

Technology Analysis

The technology analysis involves evaluating the current and emerging technologies relevant to a specific industry or market. This analysis includes breakthrough trends across the value chain that directly define the future course of long-term profitability and overall advancement in the Smart Building Market.

Patent Analysis

The patent analysis involves evaluating patent filing trends, assessing patent ownership, analyzing the legal status and compliance, and collecting competitive intelligence from patents within the Smart Building Market and its parent industry. Analyzing the ownership of patents, assessing their legal status, and interpreting the patents to gather insights into competitors' technology strategies assist businesses in strategizing and optimizing product positioning and investment decisions.

Trade Analysis

The trade analysis of the Smart Building Market explores the complex interplay of import and export activities, emphasizing the critical role played by key trading nations. This analysis identifies geographical discrepancies in trade flows, offering a deep insight into regional disparities to identify geographic areas suitable for market expansion. A detailed analysis of the regulatory landscape focuses on tariffs, taxes, and customs procedures that significantly determine international trade flows. This analysis is crucial for understanding the overarching legal framework that businesses must navigate.

Regulatory Framework Analysis

The regulatory framework analysis for the Smart Building Market is essential for ensuring legal compliance, managing risks, shaping business strategies, fostering innovation, protecting consumers, accessing markets, maintaining reputation, and managing stakeholder relations. Regulatory frameworks shape business strategies and expansion initiatives, guiding informed decision-making processes. Furthermore, this analysis uncovers avenues for innovation within existing regulations or by advocating for regulatory changes to foster innovation.

FPNV Positioning Matrix

The FPNV positioning matrix is essential in evaluating the market positioning of the vendors in the Smart Building Market. This matrix offers a comprehensive assessment of vendors, examining critical metrics related to business strategy and product satisfaction. This in-depth assessment empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success, namely Forefront (F), Pathfinder (P), Niche (N), or Vital (V).

Market Share Analysis

The market share analysis is a comprehensive tool that provides an insightful and in-depth assessment of the current state of vendors in the Smart Building Market. By meticulously comparing and analyzing vendor contributions, companies are offered a greater understanding of their performance and the challenges they face when competing for market share. These contributions include overall revenue, customer base, and other vital metrics. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With these illustrative details, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.

Recent Developments
  • Siemens Smart Buildings Portfolio Accredited by WiredScore

    Siemens obtained accreditation from WiredScore for its Smart Building portfolio. This accreditation is a testament to the company's commitment to digital preparedness and infrastructure. Siemens is dedicated to delivering cutting-edge and industry-leading digital solutions for buildings. This recognition underscores the excellence and quality of Siemens' smart building offerings. [Published On: 2023-09-12]

  • Smart Building Platform Andorix Raises USD 40 Million in Debt and Equity

    Andorix, a Toronto-based neutral host network provider and smart building systems integrator for real estate properties, recently secured USD 40 million in debt and equity financing. With the funding obtained, Andorix plans to expedite the deployment of its fiber-based converged network across more than 250 buildings in North America. Additionally, the equity funding aims to support the expansion of the company's operations and the growth of its workforce. [Published On: 2023-08-29]

  • SmartCon Solutions Acquires Sentient Buildings, Expanding Its Leadership in Smart Building Technology

    SmartCon Solutions, a smart building solutions provider, has recently acquired Sentient Buildings, an intelligent building management system company. This strategic acquisition combines SmartCon Solutions' extensive expertise with Sentient Buildings' state-of-the-art technology and loyal customer base. With this acquisition, SmartCon Solutions aims to solidify its position as a trusted industry player, offering unparalleled smart building solutions to meet the evolving needs of its clients. [Published On: 2023-08-21]

Strategy Analysis & Recommendation

The strategic analysis is essential for organizations seeking a solid foothold in the global marketplace. Companies are better positioned to make informed decisions that align with their long-term aspirations by thoroughly evaluating their current standing in the Smart Building Market. This critical assessment involves a thorough analysis of the organization’s resources, capabilities, and overall performance to identify its core strengths and areas for improvement.

Key Company Profiles

The report delves into recent significant developments in the Smart Building Market, highlighting leading vendors and their innovative profiles. These include ABB Ltd., Aquicore, Inc. by Information Grid Ltd., Arup Group Limited, Buildings IOT Inc., Cisco Systems, Inc., CohesionIB, Inc., CopperTree Analytics Inc. by Dar Al-Handasah Consultants Shair and Partners Holdings Limited, EcoEnergy Insights by Carrier Global Corporation, Google LLC by Alphabet Inc., Hewlett Packard Enterprise Development LP, Hitachi, Ltd., Honeywell International Inc., Huawei Technologies Co., Ltd., Infineon Technologies AG, Intel Corporation, International Business Machines Corporation, Johnson Controls International PLC, KMC Controls, Inc., L&T Technology Services Limited, Legrand S.A., Metrikus Limited, Microsoft Corporation, Mitsubishi Corporation, Mode Green Integrated Building Technology, mySmart Pty Ltd., Nippon Telegraph and Telephone Corporation, PointGrab Inc., PTC Inc., Robert Bosch GmbH, Schneider Electric SE, Siemens AG, SMART Building Specialists Pty Ltd, Verdigris Technologies, Inc., Verizon Communications Inc., and Wipro Limited.

Smart Building Market - Global Forecast 2024-2030
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Market Segmentation & Coverage

This research report categorizes the Smart Building Market to forecast the revenues and analyze trends in each of the following sub-markets:

  • Component
    • Services
      • Consulting
      • Support & Maintenance
      • System Integration & Deployment
    • Solution
      • Building Infrastructure Management
        • Elevators & Escalators Management System
        • Parking Management System
        • Smart Water Management System
      • Energy Management
        • HVAC Control System
        • Lighting System
      • Network Management
      • Security & Emergency Management
        • Access Control System
        • Safety System
        • Video Surveillance System
      • Workforce Management
  • Building Type
    • Commercial
    • Industrial
    • Residential

  • Region
    • Americas
      • Argentina
      • Brazil
      • Canada
      • Mexico
      • United States
        • California
        • Florida
        • Illinois
        • New York
        • Ohio
        • Pennsylvania
        • Texas
    • Asia-Pacific
      • Australia
      • China
      • India
      • Indonesia
      • Japan
      • Malaysia
      • Philippines
      • Singapore
      • South Korea
      • Taiwan
      • Thailand
      • Vietnam
    • Europe, Middle East & Africa
      • Denmark
      • Egypt
      • Finland
      • France
      • Germany
      • Israel
      • Italy
      • Netherlands
      • Nigeria
      • Norway
      • Poland
      • Qatar
      • Russia
      • Saudi Arabia
      • South Africa
      • Spain
      • Sweden
      • Switzerland
      • Turkey
      • United Arab Emirates
      • United Kingdom

This research report offers invaluable insights into various crucial aspects of the Smart Building Market:

  1. Market Penetration: This section thoroughly overviews the current market landscape, incorporating detailed data from key industry players.
  2. Market Development: The report examines potential growth prospects in emerging markets and assesses expansion opportunities in mature segments.
  3. Market Diversification: This includes detailed information on recent product launches, untapped geographic regions, recent industry developments, and strategic investments.
  4. Competitive Assessment & Intelligence: An in-depth analysis of the competitive landscape is conducted, covering market share, strategic approaches, product range, certifications, regulatory approvals, patent analysis, technology developments, and advancements in the manufacturing capabilities of leading market players.
  5. Product Development & Innovation: This section offers insights into upcoming technologies, research and development efforts, and notable advancements in product innovation.

Additionally, the report addresses key questions to assist stakeholders in making informed decisions:

  1. What is the current market size and projected growth?
  2. Which products, segments, applications, and regions offer promising investment opportunities?
  3. What are the prevailing technology trends and regulatory frameworks?
  4. What is the market share and positioning of the leading vendors?
  5. What revenue sources and strategic opportunities do vendors in the market consider when deciding to enter or exit?

Table of Contents
  1. Preface
  2. Research Methodology
  3. Executive Summary
  4. Market Overview
  5. Market Insights
  6. Smart Building Market, by Component
  7. Smart Building Market, by Building Type
  8. Americas Smart Building Market
  9. Asia-Pacific Smart Building Market
  10. Europe, Middle East & Africa Smart Building Market
  11. Competitive Landscape
  12. Competitive Portfolio
  13. List of Figures [Total: 20]
  14. List of Tables [Total: 646]
  15. List of Companies Mentioned [Total: 35]
Building Intelligence: Exploring the Intersection of Smart Buildings and Smart Cities
March 24, 2024
Building Intelligence: Exploring the Intersection of Smart Buildings and Smart Cities
The concept of smart buildings has emerged as a beacon of innovation and sustainability that allows for intelligent decision-making and adaptive responses to changing conditions.

In the era of rapid urbanization and technological innovation, the concept of smart buildings has emerged as a cornerstone of the broader vision for smart cities. As urban populations continue to grow, cities face unprecedented challenges related to sustainability, efficiency, and quality of life. The governments in Brazil, India, Africa, China and other countries are introducing the smart cities mission initiative to provide sustainable infrastructure and smart solutions to citizens for a better quality of life. In December 2023, the Brazilian government announced that it would hold G20 Working Group meetings in 15 smart cities: Brasília, Belém, Belo Horizonte, Fortaleza, Maceió, Manaus, Porto Alegre, Rio de Janeiro, São Paulo, Salvador, São Luís, Teresina, Foz do Iguaçu, Cuiabá, and Recife. Smart cities are urban environments that leverage technology and data to improve the quality of life for residents, enhance sustainability, and foster economic growth. Smart buildings play a pivotal role in this vision by serving as the building blocks of a connected, efficient, and sustainable urban infrastructure.

Smart buildings are enhancing the overall resilience and sustainability of smart cities by reducing resource consumption, minimizing waste, and mitigating the impact of climate change. Overall, smart buildings are not just individual structures; they are integral components of the larger ecosystem of smart cities. By leveraging technology, data, and connectivity, smart buildings contribute to a more efficient, sustainable, and resilient urban environment, improving the quality of life for residents and laying the foundation for a brighter future. As cities continue to evolve and embrace the principles of smart urbanism, smart buildings play an increasingly important role in shaping the cities of tomorrow.

The Growing Government Initiative for the Development of Smart Infrastructure
October 8, 2023
The Growing Government Initiative for the Development of Smart Infrastructure
The number of people living in cities is increasing, which puts tremendous pressure on the infrastructure of these cities. To accommodate this growth, the government is turning to smart infrastructure to help make cities more efficient, cost-effective, and sustainable.

Smart buildings combine a range of technologies to make buildings more efficient, comfortable, and secure. The systems in these buildings can monitor everything from lighting and air conditioning to security systems. They use sensors to automate many functions and to adjust the building’s environment in real-time. Moreover, smart buildings can also collect and analyze data, making them more adaptable.

To make this possible, governments are now investing heavily in smart-building infrastructure. Many have created dedicated programs to fund this development. This type of support is critical to the growth of these technologies, and we expect to see more of these initiatives in the near future.

Smart buildings offer significant gains in efficiency and sustainability. They use less energy to run, reduce waste and can lower operational costs. They also offer a safer environment since they can monitor a building 24/7. All these factors make smart buildings more attractive to building owners and tenants. The trend leads to more use of these technologies in new construction projects and renovated buildings.

Smart buildings can also offer a range of benefits outside of the building. By having a more efficient building, it becomes less dependent on external energy sources, leading to reduced energy costs and lower carbon footprints.

The growing government initiative to develop smart infrastructure is one of the significant trends influencing the development of smart buildings. These technologies are critical to the growth of future smart cities since they help create better living environments, reach climate goals, and improve efficiency. Governments' investment in these technologies creates opportunities for advanced businesses to develop the next generation of smart-building technologies. As a result, we are expecting to see smart building technology grow and evolve dramatically over the next decade.

Frequently Asked Questions
  1. How big is the Smart Building Market?
    Ans. The Global Smart Building Market size was estimated at USD 32.68 billion in 2023 and expected to reach USD 39.54 billion in 2024.
  2. What is the Smart Building Market growth?
    Ans. The Global Smart Building Market to grow USD 139.38 billion by 2030, at a CAGR of 23.01%
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