PUBLISHER: The Business Research Company | PRODUCT CODE: 1429643
PUBLISHER: The Business Research Company | PRODUCT CODE: 1429643
The construction of smart buildings, specifically non-residential structures, involves the process of creating, modifying, repairing, enhancing, or demolishing any non-residential smart home based on a detailed design and plan. Smart homes, characterized as forward-looking buildings equipped with advanced electronics and wireless devices, operate through a smart home system that necessitates a web portal or smartphone application to serve as the user interface for interacting with the automated system.
The primary product categories within smart buildings, focusing on non-residential structures, include institutional buildings and commercial buildings. Commercial buildings encompass various structures such as office buildings, retail spaces, and warehouses, where commercial activities are conducted. These smart buildings incorporate automation technologies featuring intelligent security systems, building energy management systems, infrastructure management systems, network management systems, and others. They find applications in diverse sectors such as government, airports, hospitals, educational institutions, manufacturing and industrial facilities, among others. Smart building projects include both new construction and remodeling initiatives.
The smart buildings (non-residential buildings) market research report is one of a series of new reports from The Business Research Company that provides smart buildings (non-residential buildings) market statistics, including smart buildings (non-residential buildings) industry global market size, regional shares, competitors with a smart buildings (non-residential buildings) market share, detailed smart buildings (non-residential buildings) market segments, market trends and opportunities, and any further data you may need to thrive in the smart buildings (non-residential buildings) industry. This smart buildings (non-residential buildings) market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The smart buildings (nonresidential buildings) market size has grown rapidly in recent years. It will grow from $62.95 billion in 2023 to $70.52 billion in 2024 at a compound annual growth rate (CAGR) of 12.0%.The historical period's growth can be ascribed to robust economic expansion in emerging markets, a low-interest-rate environment, an upsurge in internet penetration, favorable government initiatives, and advancements in technology.
The smart buildings (nonresidential buildings) market size is expected to see rapid growth in the next few years. It will grow to $112.47 billion in 2028 at a compound annual growth rate (CAGR) of 12.4%. The anticipated growth in the forecast period can be linked to the rise in urbanization, the increasing adoption of the Internet of Things (IoT), the development of smart cities, and a growing demand for energy efficiency. Factors that may impede the future growth of the smart buildings (non-residential buildings) market include a shortage of workforce, decreasing affordability, declining consumer demand, and the impact of the COVID-19 pandemic. Key trends expected in the forecast period involve the integration of artificial intelligence and robotics in construction activities, the application of predictive analytics techniques to enhance risk assessment and reduce production costs, the adoption of IoT technologies for improved operational efficiencies, investments in security solutions for consumer protection, the deployment of smart switches and displays for a seamless user experience, the embrace of green construction and energy-efficient techniques for the development of environmentally-friendly non-residential smart buildings, the utilization of living or green roofs to enhance the efficiency of green buildings, and the implementation of low-emittance windows or smart glasses to optimize the functioning of green commercial spaces.
The smart building (non-residential) market is being propelled by the growing demand for task automation through IoT (Internet of Things) devices. IoT involves the transmission and reception of data through a network of sensors, appliances, meters, and other devices within a smart building. The integration of IoT-enabled sensors and devices enhances the efficiency of appliances, rendering the smart building more efficient, sustainable, and secure. For example, certain IoT-enabled sensors can autonomously control lighting by detecting presence in a room, thereby contributing a distinctive feature to the smart building. Consequently, the increased adoption of IoT technology serves as a catalyst for the growth of the smart building market. Illustratively, the installed base of connected devices in the commercial smart building vertical is projected to increase from 1.7 billion in 2020 to around 3 billion by 2025, indicating a Compound Annual Growth Rate (CAGR) of 10.8%. Thus, the heightened utilization of IoT devices in smart buildings propels the expansion of the smart building (non-residential) market.
The upward trajectory of cloud adoption is anticipated to drive the future growth of the smart buildings (non-residential buildings) market. Cloud technology, involving a network of remote servers on the Internet that store, manage, and deliver data, applications, and services, facilitates centralized control and monitoring of various systems within smart non-residential buildings. This enhances energy efficiency and optimizes facility management. Cloud-based technologies offer real-time data access, remote diagnostics, and predictive analytics, empowering improved operational decision-making. For instance, as of December 2021, Eurostat reported that 41% of EU enterprises utilized cloud computing, showcasing a 5% increase from 2020. Notably, large enterprises exhibited a high adoption rate, with 72% utilizing cloud computing in 2021, reflecting a 7% increase from 2020. Similarly, medium-sized enterprises saw an uptick in cloud computing usage, with 53% adopting it in 2021 compared to 46% in 2020. Consequently, the growing embrace of cloud technology is steering the growth of the smart buildings (non-residential buildings) market.
The incorporation of 5G technology stands out as the latest trend in the smart building (non-residential) market. 5G, the emerging cellular technology, significantly reduces the communication time among devices over a wireless network. The implementation of 5G in smart buildings is poised to substantially enhance the utilization of wireless edge devices, delivering enriched multimedia experiences. Additionally, 5G is expected to enhance security check applications in commercial buildings. In the context of smart hospital buildings, the adoption of 5G is projected to enhance wayfinding, enabling smart wheelchairs and beds to assist immobile patients. Mobile operators are projected to invest over $600 billion in their 5G networks from 2022 to 2025. Factories are actively involved in manufacturing advanced antenna system radios to facilitate rapid 5G deployments. The utilization of 5G technology is anticipated to improve connectivity in smart buildings, representing a trend marked by substantial capital investments from major players in the smart building (non-residential) market.
Prominent companies in the smart buildings (non-residential) market are intensifying their focus on introducing self-installed devices, exemplified by Zurich Insite, to gain a competitive advantage. Zurich Insite is a smart building proposition designed to optimize building performance by converting building management system (BMS) data into tailored, actionable insights. For instance, in June 2022, Zurich UK, a technology company based in the UK, launched Zurich Insite, featuring self-installed devices and real-time monitoring technology to assess the real-time health of buildings. Businesses utilizing these devices can enhance overall property management, mitigate risks, improve operational efficiencies, and reduce property losses. Moreover, these smart building devices are tailored to assist businesses in enhancing sustainability.
In March 2022, Nordomatic AB, a Sweden-based home automation company, completed the acquisition of Spica Technologies Limited for an undisclosed amount. This strategic move enables Nordomatic to expand its smart building offerings into the digital workplace market. Spica Technologies Limited, based in the UK, is a software company providing smart building solutions for the built environment, encompassing energy management and building automation.
Major companies operating in the smart buildings (nonresidential buildings) market report are China State Construction Engineering Co., Ltd., VINCI, Bechtel Corporation, Skanska AB, Turner Construction Company, Jacobs Engineering Group Inc., The Whiting-Turner Contracting Company, PCL Construction, AECOM, BESIX Group, Shanghai Construction Group (SCG), SGS Group, Larsen & Toubro, GMR Group, Hindustan Construction Company, GVK Group, Kajima Corporation, Shimizu Corporation, Shanghai Intelligent Building Technology (SIBT), Obayashi Corporation, Taisei Corporation, Balfour Beatty, Bouygues, Royal BAM Group, Laing O`Rourke, ACS Group, EllisDon Corporation, Aecon Group Incorporated, Ledcor Group of Companies, Gilbane Building Company, Empresas ICA SAB de CV, Carso Infraestructura y Construccion S.A.B., Clark Group, Swinerton, Hensel Phelps, Lendlease, Arabian Construction Company, WBHO Construction (Pty) Ltd., Stefanutti Stocks (Pty) Ltd, WK construction, Redcon Construction Company, Estim Construction Co. Ltd, Eco-Beam, Ecomo, TSAI design studio
Asia-Pacific was the largest region in the smart buildings (non-residential buildings) market in 2023. South America is expected to be the fastest-growing region in the global smart buildings (nonresidential buildings) market during the forecast period. The regions covered in the smart buildings (nonresidential buildings) market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
The countries covered in the smart buildings (nonresidential buildings) market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Canada, Spain
The smart buildings (non-residential) construction market includes revenues earned by entities by constructing non-residential smart buildings such as offices, sports, college buildings, and other commercial buildings. The establishments in this market include non-residential general contractors, non-residential for-sale builders, non-residential design-build firms, and non-residential project construction management firms. The non-residential green building construction work performed includes new work, additions, alterations, maintenance, and repairs. Smart buildings use automatic processes to control the buildings' operations such as air conditioning, lighting, security, and other systems. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Smart Buildings (Nonresidential Buildings) Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on smart buildings (nonresidential buildings) market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for smart buildings (nonresidential buildings)? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The smart buildings (nonresidential buildings) market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.
The impact of higher inflation in many countries and the resulting spike in interest rates.
The continued but declining impact of covid 19 on supply chains and consumption patterns.