Smart Building Market - By Solution, By Services, By End Use & Forecast, 2024 – 2032
Report ID: GMI5555
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Published Date: October 2024
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Report Format: PDF
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Premium Report Details
Base Year: 2023
Companies covered: 21
Tables & Figures: 354
Countries covered: 23
Pages: 126
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Smart Building Market Size
The global smart building market was valued at USD 94 billion in 2023 and is estimated to register a CAGR of over 20% between 2024 and 2032. There is a growing emphasis on reducing energy consumption and operational costs in buildings.
Smart buildings use advanced technologies such as IoT sensors, energy management systems, and automated controls to optimize energy use, leading to significant cost savings and environmental benefits. This driver is pushing both new construction projects and retrofits of existing buildings to incorporate smart technologies. Governments and regulatory bodies are also implementing stricter energy efficiency standards, further fueling the demand for smart building solutions.
Also, rapid advancements in technology, including the Internet of Things (IoT), artificial intelligence (AI), and machine learning, are enabling more sophisticated smart building solutions. These technologies allow for better automation, real-time monitoring, and predictive maintenance. As technology becomes more advanced and cost-effective, more building owners and developers are adopting smart solutions to enhance building management, security, and occupant comfort.
The upfront costs associated with installing smart building technologies, including sensors, automation systems, and integration platforms, can be substantial. This includes not only the hardware but also installation, maintenance, and training costs. Thus, high initial costs can be a barrier to adoption for smaller businesses and property owners who may find it difficult to justify the investment without clear and immediate returns on investment.
Smart building systems often involve a variety of technologies and vendors, leading to challenges in ensuring compatibility and seamless integration. Different systems may use proprietary protocols or standards, complicating the integration process. Thus, integration difficulties can result in increased implementation time, higher costs, and potential operational inefficiencies, deterring some organizations from adopting smart building solutions.
Smart Building Market Trends
AI and machine learning are increasingly being integrated into smart building systems to enhance automation and predictive analytics. These technologies enable buildings to learn from data patterns, optimize energy usage, predict maintenance needs, and improve occupant comfort. AI-driven solutions can provide more efficient building management by automating complex tasks, leading to cost savings and improved operational efficiency.
The expansion of the Internet of Things (IoT) is driving the proliferation of connected devices in smart buildings. IoT sensors and devices are used for various applications, including energy management, security, lighting control, and environmental monitoring. Increased connectivity allows for real-time monitoring and control, providing greater visibility into building operations and enabling more responsive and adaptive management.
There is a growing focus on sustainability and environmental responsibility in building design and management. Smart buildings are increasingly being developed to meet green building standards and certifications, such as LEED (Leadership in Energy and Environmental Design) and BREEAM (Building Research Establishment Environmental Assessment Method). Adoption of sustainable practices and technologies helps reduce the carbon footprint of buildings and aligns with global efforts to combat climate change.
Smart Building Market Analysis
Based on solution, the smart building industry is segmented into safety & security management, energy management, building infrastructure management, integrated workplace management system (IWMS), and network management. The safety & security management segment is expected to register a CAGR of over 22% during the forecast period.
Based on end use, the smart building market is segmented into industrial, commercial and residential. The residential segment is expected to reach over USD 80 billion by 2032.
North America dominated the global smart building market in 2023 with over 36% of the total revenue share. Crime rates in certain urban areas drive the need for enhanced residential security. Homeowners are increasingly investing in security systems to protect against burglary and vandalism. Also, the US has a high adoption rate of smart home technologies. The integration of IoT devices, AI, and cloud computing into home security systems offers more advanced and user-friendly options. Thus, demand for comprehensive home security solutions, including video surveillance, alarm systems, and smart locks, has surged.
Rapid urbanization and a growing middle class are driving demand for residential security. With increased wealth, homeowners are more willing to invest in security technologies. Also, The Chinese government is promoting smart city initiatives, which include enhancing residential security through advanced technologies. Thus, government support for smart infrastructure, including security systems, is leading to widespread adoption of smart home technologies in residential areas.
Japan market is known for its technological sophistication and high adoption rate of smart home devices. This includes advanced security systems integrated with home automation. Innovations in robotics, AI, and IoT are being utilized to enhance residential security and provide comprehensive home monitoring solutions.
South Korea market is a leader in technology and innovation, with a strong emphasis on developing smart home ecosystems that include advanced security features. Also, the South Korean government supports the development and implementation of smart home technologies, including security systems, through favorable policies and regulations. Thus, government initiatives promote the adoption of cutting-edge residential security technologies, ensuring high standards of safety and security for residents.
Smart Building Market Share
Amazon.com, Inc. offers a diverse range of products and services across various channels. The company's product offerings include merchandise and content purchased for resale, as well as products from third-party sellers. Amazon operates through three main segments: North America, International, and Amazon Web Services (AWS). The company serves consumers through both its online and physical stores, emphasizing selection, price, and convenience.
Customers can access Amazon’s products and services through its websites, mobile apps, Alexa-enabled devices, streaming services, and physical retail locations. Amazon manufactures and markets a range of electronic devices, including the Kindle, Fire tablet, Fire TV, Echo, Ring, Blink, and eero. Additionally, it develops and produces media content. AWS caters to developers and enterprises of all sizes including start-ups, government agencies, and academic institutions providing a comprehensive suite of on-demand technology services such as computer, storage, database, analytics, and machine learning.
ADT Inc. provides comprehensive security, interactive, and smart home solutions for residential and small business customers in the United States. The company operates through two primary segments: Consumer and Small Business (CSB) and Solar. The CSB segment focuses on the sale, installation, servicing, and monitoring of integrated security and automation systems for residential properties, small businesses, and individual consumers.
This segment also includes offerings such as burglar alarms, life safety systems, smart security cameras, and video surveillance systems. The Solar segment is dedicated to the sale and installation of solar systems, along with related solutions and services tailored for residential homeowners. This segment encompasses the design, installation, and sale of custom solar systems, energy storage solutions, energy efficiency upgrades, and roofing services. ADT Inc. employs a specialized in-house sales force to deliver these solar and energy solutions.
Smart Building Market Companies
Major players operating in the smart building industry are:
Smart Building Industry News
The smart building market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD Million) from 2021 to 2032, for the following segments:
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Market, By Solution
Market, By Service
Market, By End Use
The above information is provided for the following regions and countries: