The global smart building market size is projected to reach USD 42.70 billion by 2025. The major factor driving smart building market growth is the growing global energy usage concerns. Energy utilization is increasing at a faster rate, so finding efficient ways to use it wisely is necessary. Since the number of commercial complexes that consume major amounts of power and other types of energy has doubled, the requirement for automation systems has boosted and is expected to grow in the coming years.
The support and investments by government and organizations are also the factors due to which the demand for smart building solutions in increasing. For instance, in January 2019, Smartworld a UAE based system integrator had entered into a partnership with Honeywell Building Solutions to offer its smart building technology. This partnership will enable UAE to enhance its smart building integrated and IoT-enabled solutions offering. Moreover, in the coming years, the technology spending for smart cities and smart buildings in the Middle East & Africa is going to double i.e. from USD 1.30 billion to USD 2.70 billion within a year.
The global smart building market research report assesses market demand and scenario over the period from 2015 to 2025. The report highlights the historic trends between 2015 and 2017 and the 2019 to 2025 market forecast. The report studies both at global and country-level the current status and future market prospects. The global smart building market is segmented by type, end-user, and geography.
The report also throws light on various aspects of the global smart building industry by assessing the market using value chain analysis. The report covers several qualitative aspects of the smart building industry in market drivers, market restraints and key industry trends. Furthermore, the report provides an in-depth assessment of the market competition with company profiles of global as well as local vendors.
The global smart building market has strong competition among the well-established and new emerging players. These market players targets to gain competitive advantage over the other players by participating in partnerships, mergers and acquisitions and expanding their businesses.
On the basis of types of smart building solutions, the market is categorized into an intelligent security system, network management system, building energy management system and infrastructure management system. Building energy management system dominated the overall smart building market which occupied a 36.5% share in 2018 and is expected to maintain its position over the forecast period 2019 -2025. Owing to rising concerns about wastage of electricity in residential and commercial spaces, owners and building contractors are installing smart solutions to reduce the wastage and optimize the use of resources in an efficient way.
On the geographical front, Europe dominated the global smart building market size which was valued at USD 2,699.2 million in 2018 and is expected to do so over the forecast period 2019 – 2025. Owing to the regions stringent regulations to reduce carbon footprint and conserve energy resources most of the countries including Germany, France, Italy, Span, and others had installed smart solutions in their residential and commercial building. Moreover, there is a lot of potentials for smart building solutions market to grow in Nordic countries and Eastern Europe countries.
As of 2018, the market for smart building solution providers is fragmented with the presence of established global and domestic players across the globe. Moreover, the established companies are coming up with new versions of smart applications to manage smart solutions by using smart devices. For instance, Honeywell expanded its smart building application in April 2018 to include mapping to help people find an easy way around large buildings. The Honeywell Vector Occupant App was designed to allow individuals to communicate with smart building features. The additional features use GPS-like technology to help people find their way around complex, non-directionally navigable buildings.
The major players covered in this smart building market report are Honeywell, Johnson Controls, Siemens, United Technologies Corporation, Schneider Electric, Ingersoll Rand Inc., Azbil, ABB Ltd., Emerson Electric Company and Crestron Electronics, Inc.
Segment Overview of Global Smart Building Market
Type Overview, 2015-2025 (USD Billion)
- Intelligent security system
- Network management system
- Building energy management system
- Infrastructure management system
End-User Overview, 2015-2025 (USD Billion)
Regional Overview, 2015-2025 (USD Billion)
- North America
- Rest of Europe
- Asia Pacific
- South Korea
- Southeast Asia
- Rest of APAC
- South America
- Rest of South America
- Middle East and Africa
- South Africa
- Rest of Middle East & Africa