May 22, 2024
Smart Building Market

Smart Building Market Poised for Robust Growth by 2030

The smart building market is in trends by growing adoption of IoT and automation technologies.

Smart buildings incorporate various automation, IoT and artificial intelligence enabled technologies to optimize building performance and infrastructure management. Integrated building management systems allow advanced building functions such as automation of heating, ventilation, air conditioning, lighting, security and fire protection systems to operate interdependently and autonomously. Smart sensing and IoT devices facilitate real-time monitoring of building operations parameters and enable predictive maintenance through data-driven insights. This improves energy efficiency, operational productivity and occupants comfort levels in smart buildings.

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.

Growing demand for energy-efficient and sustainable infrastructure is fueling investments towards development of technologically advanced smart buildings globally. Smart building technologies help optimize energy consumption, reduce operational costs and enhance building life. Rapid urbanization and smart city initiatives are also driving the adoption of smart building solutions across commercial, industrial and residential real estate.

North America currently dominates the global smart building market owing to widespread integration of IoT, AI and cloud platforms. However, Asia Pacific is emerging as a high growth region with China, India and other developing countries significantly ramping up investments in smart infrastructure development. Leading players are expanding their regional presence across Asia and Latin America to tap into high growth opportunities in developing markets.

Market key trends

One of the key trends gaining momentum in the smart building market is the integration of 5G networking technologies. High-speed 5G connectivity allows transmission of large volumes of data from IoT devices in real-time with very low latency. This facilitates deployment of more advanced applications around AR/VR, AI and computer vision in smart buildings. 5G also helps strengthen connectivity between dispersed smart devices, systems and building management platforms.

Porter’s Analysis

Threat of new entrants: It is moderate as initial investments for infrastructure, technologies and integration with existing systems is high. However, demand for smart and efficient infrastructure is growing which can attract new players.

Bargaining power of buyers: It is high as buyers have choice of various technologies and solutions providers in the market. They can negotiate on price and demand additional features.

Bargaining power of suppliers: It is moderate as major components and technologies required are available with multiple suppliers globally. Switching costs are also low.

Threat of new substitutes: Threat of new substitutes is low as smart building solutions aim to optimize existing infrastructure with technologies.

Competitive rivalry: The competition is intense with established global players and new local players adding capabilities and integrated offerings.

Geographically, North America region accounted for the largest share in the global market in terms value in 2024 owing to rapid adoption of smart building technologies among commercial sector in US. Asia Pacific region is expected to witness fastest growth during the forecast period 2024-2030 with countries like China and India emerging as high growth markets. Governments in the region are promoting construction of smart cities that will drive the demand.

Europe was the second largest regional market led by developed countries like Germany, UK and France. Large number of new construction projects adhere to strict energy efficiency guidelines augmenting installations of smart building systems. Latin America and Middle East & Africa offer lucrative growth opportunities with increasing investments in building automation.

1.      Source: Coherent Market Insights, Public sources, Desk research
2.      We have leveraged AI tools to mine information and compile it