Smart Building Market Growth & Trends
The global smart building market size is expected to reach USD 570.02 billion by 2030 and expand at a CAGR of 25.3% from 2022 to 2030. The growing demand for energy-efficient systems, the rise in adoption of Internet of Things (IoT)-enabled Building Management systems (BMS), and growing industry standards and regulations are anticipated to drive the adoption of smart building solutions and services.
Big data, cloud computing, and Internet of Things (IoT) technologies optimize workplaces, enhance individual working environments, increase productivity, and help employees adapt to changing lifestyles and careers. For instance, in December 2020, Hitachi, Ltd. launched an IoT platform for enhanced building operation quality and added value. The platform offered enhanced user experience and high management efficiency. These developments are expected to set the framework for inventing revolutionary technologies that will significantly improve human lifestyles in the coming years.
To enhance the management and performance of smart buildings, companies are providing maintenance and support for upgrading solutions. Moreover, the companies are pursuing routine solution evaluations to make specialized technological modifications and procedure improvements for performance optimization. Companies such as Johnson Controls, Siemens AG, and IBM Corporation invest a huge amount in R&D to introduce new technologies to the market and maintain their market dominance. For instance, in December 2020, Johnson Controls incorporated Microsoft’s Digital Twin in its OpenBlue IoT platform, enabling it to construct in-depth digital replicas of actual structures, assets, and systems.
Several government bodies worldwide are pursuing smart building initiatives, emphasizing sustainability, drafting energy efficiency legislations, and encouraging public-private partnerships toward this end. Further, the rapid adoption of smart solutions by city administrations is prompting governments worldwide to support and fund the development of smart cities. For instance, an Australian consortium obtained government funding worth up to AUD 28 million (USD 16.3 million) to pursue an initiative aimed at transforming the way buildings is planned and constructed in Australia. All these efforts are expected to play a vital role in driving the growth of the market during the forecast period.
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Smart Building Market Report
Smart Building Market Report Highlights
- The building infrastructure management segment is expected to observe a CAGR of 23.7% during the forecast period. The substantial growth of smart building infrastructure services facilitates advanced infrastructures, such as energy networks, data centers, and advanced telecommunication networks
- The consulting segment is expected to observe a CAGR of 27.1% during the forecast period. It allows market players to better understand the needs and demands of their customers. During the design and construction phase of the project, the smart building consultant performs the roles of an engineer and specifier. They publish plans and specifications that cause a master systems integrator on the building team to carry out the integration processes and offer the platform for smart buildings. These factors will supplement the growth of the segment during the forecast period
- The industrial segment is expected to witness significant growth of a CAGR of 24.1% during the forecast period. In industrial buildings, smart industrial building technologies are used to automate the building’s climate control, security, and maintenance for more effective property management. Further, the industrial segment is anticipated to embrace smart building solutions to increase productivity, reduce costs and energy use, improve identification, and access control, and improve surveillance
- The Asia Pacific regional market is expected to reach USD 166.45 billion by 2030 and emerge as the fastest-growing regional market due to the remarkable adoption of smart buildings, increasing internet penetration, high urbanization, increasing residential construction, and shifting consumer focus toward remote management services through IoT technology
