Global Smart Building Market Overview, 2024-29

Global Smart Building Market Overview, 2024-29

The global smart building market is experiencing exponential growth driven by technological advancements, increasing urbanization, and a growing focus on sustainability and energy efficiency. Smart buildings, equipped with advanced technologies such as the Internet of Things (IoT), artificial intelligence (AI), data analytics, and building automation systems, are revolutionising the way buildings are designed, constructed, and managed. These buildings enable real-time monitoring, predictive maintenance, and personalised control of building systems, optimising energy usage, enhancing occupant comfort, and improving overall building performance. The need for smart building solutions is growing as urban populations continue to climb and as cities deal with issues including resource shortages, environmental sustainability, and inefficient infrastructure. Smart building technology is gaining recognition among governments, building owners, and enterprises for its ability to tackle various difficulties, save operating costs, and establish more sustainable and livable urban settings. There are many different applications in the residential, commercial, industrial, and institutional sectors of the global smart building industry. There are also chances for innovation and growth in both developed and emerging nations. In the upcoming years, the global smart building market is expected to grow significantly due to continued technology innovation, favourable legislative frameworks, and rising investments in smart infrastructure. This will change how buildings are created, managed, and experienced globally.

According to the research report, “Global Smart Building Market Overview, 2029,” published by Bonafide Research, the market is anticipated to cross USD 165 Billion by 2029, increasing from USD 91.19 Billion in 2023. The market is expected to grow at a 10.80% CAGR by 2024–29. Innovation in smart building solutions is being driven by rapid improvements in technology, including cloud computing, data analytics, artificial intelligence (AI), and the Internet of Things (IoT). By enabling intelligent automation, predictive maintenance, and real-time monitoring of building systems, these technologies improve security, comfort, and efficiency. Global population expansion and increasing urbanisation are driving up demand for smart buildings. Infrastructure that is sustainable, effective, and linked is required as more people migrate into cities in order to support economic growth and urban lifestyles. With growing concerns about climate change and resource depletion, there is a heightened focus on energy efficiency and sustainability in building design and operations. Smart building technologies help optimise energy usage, reduce carbon emissions, and minimise environmental impact, aligning with global sustainability goals and driving demand for smart buildings. Governments around the world are implementing regulations and incentives to promote energy-efficient and sustainable building practices. Policies such as energy performance standards, green building certifications, and financial incentives for renewable energy adoption incentivize building owners and developers to invest in smart building technologies. Smart building solutions offer opportunities for cost savings and operational efficiency through improved resource management, reduced energy consumption, and predictive maintenance. Building owners and operators recognise the long-term financial benefits of investing in smart building technologies, driving demand for solutions that optimise building performance and reduce operating expenses.

Market Drivers

• Enhanced Occupant Experience: Improving tenant experience is one of the main factors propelling the global smart building industry. A multitude of features and facilities provided by smart building technology help to make the living and working environments of building inhabitants more convenient, pleasant, and productive. The requirements and preferences of building residents are given priority in smart buildings, which have personalised lighting and temperature controls, smart security systems, and integrated facilities like fitness centres and common areas. Smart buildings raise overall pleasure and well-being by giving residents more control over their surroundings and access to cutting-edge services. This improves tenant retention rates, productivity, and quality of life.

• Integration of Cloud-Based Technologies and Automation: Automation and cloud-based technology integration are key factors propelling the global smart building industry. Real-time analytics, centralised data storage, and remote access to building systems and data from any location at any time are all made possible by cloud computing. Smart building systems may gather, process, and distribute data more effectively by utilising cloud-based platforms. This allows for proactive decision-making, predictive maintenance, and ongoing building performance optimisation. By optimising energy consumption, increasing operational efficiency, and automating repetitive processes, automation significantly expands the potential of smart buildings. Building operations may be streamlined and manual intervention reduced through automation, which can result in cost savings, increased sustainability, and higher dependability. Examples of automation include automated lighting and HVAC systems, predictive maintenance alerts, and smart security solutions.

Market Challenges

• Cooperation Lacking Between Government Bodies and Cybersecurity Threat Risks: The absence of collaboration among governmental entities and the cybersecurity hazards linked to smart building technology provide a noteworthy obstacle to the worldwide smart building industry. Smart buildings are more vulnerable to cybersecurity risks, including malware assaults, hacking, and data breaches, as they become more digitally integrated and dependent. However, there is frequently a lack of cooperation and coordination between the government organisations in charge of enforcing cybersecurity laws and those in charge of managing construction codes and standards. This lack of collaboration leads to disjointed cybersecurity strategies and an inability to adequately handle new threats.

• High Cost of Implementation: The high implementation costs of implementing smart building technologies provide a major obstacle for the global smart building industry. When adding smart technologies to an existing structure, there may be a significant upfront cost associated with the hardware, software, installation, and integration of the system. Financial obstacles and budgetary restrictions may prevent building owners and developers from investing in smart building solutions, particularly in areas where finance is scarce or the return on investment is uncertain. Further driving up costs and delaying rollout timeframes is the intricacy of integrating smart building technology, which includes interoperability problems, customisation needs, and technical difficulties.

Based on the report, the components are segmented into solutions and services.

A service is a growing market; further, the services are further categorised by implementation, consulting, support, and maintenance. There are several different jobs involved in implementing smart building technology, such as design, installation, integration, customisation, and continuing maintenance. Due to the intricacy of their implementation, these technologies frequently require specific knowledge and skills from a variety of fields, including cybersecurity, IT, engineering, and architecture. To assist building owners in navigating the challenges of implementing smart building solutions, service providers provide an extensive variety of professional services, such as consultation, design, project management, integration, and support. By providing these services, smart building projects are effectively implemented, optimised, and maintained to satisfy the particular needs and goals of any building or institution. Every building has unique characteristics, requirements, and challenges that necessitate customised solutions to maximise the benefits of smart building technologies. Service providers work closely with building owners, developers, and stakeholders to understand their specific needs, goals, and constraints and develop tailored solutions that address their unique requirements. By offering customised solutions and personalised services, service providers help building owners optimise the performance, efficiency, and functionality of their buildings, driving greater adoption and satisfaction among customers.

In terms of the report application, it is bifurcated into commercial, residential, and industrial.

Residential is significantly contributing to the market. Global consumer demand for smart homes is rising due to a number of variables, including changing lifestyles, rising disposable income, and a growing need for security, comfort, and convenience. With the use of voice assistants, tablets, or smartphones, homeowners may use smart building technology to automate and manage a variety of features of their homes, such as lighting, heating, and cooling, security, entertainment, and appliances. Smart home technologies are becoming more and more popular among homeowners due to their comfort, convenience, and energy savings. This is especially true in metropolitan regions where space is scarce and technology is widely accepted. The need for smart building solutions that help older people live independently, safely, and pleasantly in their own homes for as long as possible is being driven by the ageing population and ageing-in-place trends. Medical alert systems, fall detection sensors, remote health monitoring devices, and home automation solutions are examples of smart home technology that meet the requirements of senior citizens while also offering carers comfort and assistance. Smart building technologies answer the rising need for ageing-in-place solutions and help to increase the residential smart building industry internationally by enabling older people to preserve their autonomy and age in place.

Based on the report, the five regions covered in the report include North America, Europe, Asia Pacific, South America, the Middle East, and Africa.

Asia Pacific is a growing market; some of the cities and metropolitan regions with the greatest rates of growth on the globe are found in the Asia Pacific region, where the need for smart building solutions is being driven by population expansion and rapid urbanisation. Cities encounter issues with resource management, infrastructural development, environmental sustainability, and quality of life as their populations grow. By maximising resource utilisation, boosting energy efficiency, strengthening infrastructure resilience, and developing more habitable and sustainable urban settings, smart building technologies provide answers to these problems. Smart city development is becoming a top priority for governments in the Asia-Pacific area as part of larger initiatives to support economic expansion, improve living standards, and handle urbanisation-related issues. By facilitating the integration of digital technology, data-driven decision-making, and smart infrastructure solutions, smart building technologies are essential to smart city ambitions. The public sector's adoption of smart building technology is fueled by government-led initiatives, investments, and incentives, which also serve to boost market growth in the Asia-Pacific region. The need for smart building solutions is being driven by the rapid urbanisation and infrastructure investments in rising nations like China, India, and Southeast Asia. To promote economic growth, enhance quality of life, and draw investment to urban areas, governments and corporate developers are funding smart building, smart city, and smart infrastructure projects. These development initiatives depend heavily on smart building technologies, which make it possible to create built environments that are sustainable, intelligent, and able to adapt to the requirements of the Asia Pacific region's expanding urban population.


Recent Developments

Considered in this report
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Smart Building market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Component
• Solutions
• Services

By Solution
• Safety and security management
• Energy management
• Building infrastructure management
• Network management
• Integrated Workplace Management System (IWMS)

By Services
• Implementation
• Consulting
• Support and maintenance

By Application
• Commercial
• Residential
• Industrial

The approach of the report:
This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Smart Building industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.
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