Smart Buildings Market Size, Share, Growth Analysis, By Component (Solution and Services), By Solution (Safety & Security Management, Energy Management), By Building Type (Residential, Commercial), By Region - Industry Forecast 2024-2031

Global Smart Buildings Market size was valued at USD 80.25 billion in 2022 and is poised to grow from USD 89.08 billion in 2023 to USD 205.3 billion by 2031, growing at a CAGR of 11% in the forecast period (2024-2031).

The escalating energy costs and growing environmental concerns have spurred a surge in demand for intelligent building solutions. Building owners and operators are under increasing pressure to reduce energy consumption and improve operational efficiency. Governments worldwide are recognizing the importance of energy conservation and are implementing policies to promote the adoption of sustainable building practices. The integration of intelligent technologies, such as advanced building management systems, energy-efficient lighting, and smart HVAC systems, is crucial for achieving these goals. By optimizing building operations and reducing energy consumption, intelligent building solutions contribute to both financial savings and environmental sustainability.

Top-down and bottom-up approaches were used to estimate and validate the size of the Global Smart Buildings Market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

Global Smart Buildings Market Segmental Analysis

Global Smart Buildings Market is segmented based on component, solution, building type and region. Based on component the market is segmented into solution and services (consulting, implementation and support & maintenance). Based on solution, the market is segmented into safety & security management (access control system, video surveillance system and fire and life safety system), energy management (HVAC control system and lighting management system), building infrastructure management (parking management system, smart water management system and elevators & escalators management system), network management (wired technology and wireless technology) and integrated workplace management (operations and services management, real estate management, environmental and energy management, facility management and capital project management ). Based on building type, the market is segmented into residential, commercial, and industrial. By region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.

Drivers of the Global Smart Buildings Market

The demand for intelligent building solutions is driven by the need for energy efficiency and occupant comfort across various building types. Office buildings prioritize energy optimization in areas such as lighting, ventilation, and air conditioning, while manufacturing facilities focus on energy-intensive processes like ovens, refrigeration, and steam generation. The increasing focus on energy conservation, driven by rising costs and environmental concerns, has made intelligent building solutions a critical component for both commercial and industrial sectors. By optimizing building operations, reducing energy consumption, and enhancing occupant well-being, intelligent building technologies offer a compelling value proposition for building owners and operators.

Restraints in the Global Smart Buildings Market

The increasing complexity of smart buildings necessitates ongoing commissioning and monitoring to ensure optimal performance and address potential operational issues. While the benefits of smart buildings are substantial, challenges such as the need for specialized expertise and the risk of system failures can hinder market growth. However, the integration of user-centric technologies, such as advanced analytics and artificial intelligence, is expected to overcome these obstacles and drive the adoption of smart building solutions. By providing real-time insights and predictive maintenance capabilities, these technologies will enhance building performance, reduce operational costs, and improve occupant comfort.

Market Trends of the Global Smart Buildings Market

The building energy management system (BEMS) segment is experiencing significant growth due to the increasing focus on energy efficiency and sustainability. The global trend towards urbanization and the expansion of commercial real estate have led to a surge in energy consumption, prompting building owners and operators to seek solutions to reduce costs and environmental impact. BEMS offer advanced capabilities to monitor, control, and optimize energy usage in buildings, resulting in improved operational efficiency and reduced carbon footprint. As energy prices continue to rise and sustainability goals become more stringent, the demand for BEMS is expected to increase further, driving market expansion.