Smart Building Market by Component (Solution, Service), by Solution Type (Building Infrastructure Management, Security and Emergency Management, Energy Management, Network Management, Workforce Management, Waste Management), by Building Type (Residential, Commercial, Industrial) and region (North America, Europe, Asia-Pacific, Middle East and Africa and South America).
The global smart building market size was estimated at USD 88.0 billion in 2023 and is projected to reach USD 178.2 billion in 2030 at a CAGR of 10.5% during the forecast period 2023-2030.
A smart building is a technologically advanced structure that leverages the power of the Internet of Things (IoT) and automated systems to efficiently manage various building functions. These functions include heating, ventilation, air conditioning, lighting, security, and more. By incorporating sensors, actuators, and microchips, a smart building can collect and analyze data, enabling organizations or households to optimize their operations and services. This intelligent infrastructure empowers building owners, operators, and facility managers to enhance asset reliability, boost performance, reduce energy consumption, optimize space utilization, and minimize the environmental impact of buildings.
The widespread adoption of smart buildings across different regions is primarily driven by the growing demand for improved building efficiency and resource management in urban settings. Additionally, the increasing focus on public safety and security also contributes to the expansion of the smart building market. However, challenges such as security concerns related to intelligent buildings and the lack of adequate funding and infrastructure hinder the market's growth. On the other hand, the emergence of artificial intelligence within smart buildings and the continued growth of the IoT market, along with its applications in smart buildings, present numerous opportunities for the further development and expansion of the intelligent building market throughout the forecast period. The increasing focus of governments on reducing energy consumption has played a significant role in driving the adoption of smart building solutions. For example, according to the U.S.-China Economic and Security Review Commission, China is projected to spend USD 38.92 billion on smart city initiatives by 2023, highlighting the nation's commitment to energy efficiency measures.
Similarly, the Canadian government has placed significant emphasis on energy conservation, particularly in the context of smart buildings for both residential and commercial spaces. Additionally, the United Kingdom has made substantial efforts in implementing smart building solutions to address the carbon footprint associated with the building sector and achieve energy efficiency targets.
The market is experiencing significant growth, driven by the expansion of smart cities and the growing demand for energy-efficient buildings. The increasing adoption of IoT-based remote monitoring devices has also contributed to the rising demand for smart buildings. Additionally, the market is expanding due to the increasing popularity of building automation systems, which are used for various purposes such as security, entertainment, telecommunications, and facility management. Rapid urbanization and government initiatives to develop smart infrastructure in both developed and developing countries are further propelling the industry. Advancements in digital technology, sensors, and telecommunications have enabled more effective monitoring and control of buildings compared to previous methods.
North America to Dominate the Market