Smart Building Market Size By Component (Solution [Energy Management, Infrastructure Management, Safety & Security Management, Network Management, Workplace Management], Services [Consulting, Deployment & Integration, Infrastructure Monitoring, and Manage

Smart Building Market Size By Component (Solution [Energy Management, Infrastructure Management, Safety & Security Management, Network Management, Workplace Management], Services [Consulting, Deployment & Integration, Infrastructure Monitoring, and Management]), By Application & Forecast, 2023-2032

Global Smart Building Market size will garner appreciable gains over 2023-2032. Surging integration of AI and IoT in buildings is working in favor of industry growth. These technologies help provide meaningful insights and real-time data about the building’s performance and help owners optimize building operations and enhance the safety and comfort of occupants. IoT devices, such as surveillance cameras and access control systems, are increasingly being integrated with AI-powered analytics to improve the security and safety aspects of buildings.
Moreover, many prominent market players operating in the field are constantly investing in product innovations to retain their industry standing. Citing an instance, in November 2022, Hitachi Elevator (Thailand) Co., Ltd unveiled the launch of a first-ever full-scale smart building solution business in Thailand and Southeast Asia, which aims to provide value to buildings with digital service and physical security systems.
The overall smart building industry is segmented based on component, application, and region.
Based on components, the smart building industry size from the services segment was worth more than USD 25 billion in 2022. High availability of professional building services is creating a strong scope for segment growth. Moreover, building service providers are focusing on utilizing advanced technology and equipment to enhance productivity, accuracy, and safety in their operations. They are also emphasizing conducting energy audits and assessments to evaluate the energy performance of buildings, which will bolster segmental gains in the long run.
In terms of application, the market size from the residential application segment recorded a decent valuation in 2022. Growing advancements in smart home automation are shaping the segment outlook. In fact, sensor technology in smart homes has gained immense traction. Motion sensors, occupancy sensors, light sensors, and environmental sensors are now more accurate and responsive. Especially, occupancy sensors can be used to control lighting, heating, ventilation, and air conditioning (HVAC) systems, ensuring energy efficiency by automatically adjusting settings based on occupancy.
From the regional perspective, Europe smart building market share will expand at a considerable CAGR from 2023 to 2032. Rising inclination towards energy-efficient systems owing to the ongoing energy crisis in the region has encouraged the adoption of the smart building concept. As part of its Economic and Social Resilience Plan, the government of France has announced to invest EUR 50 million (USD 53 million) to retrofit its public buildings to make them energy-efficient.
Moreover, the presence of key industry players such as ABB Limited and others prioritizing innovations is further streamlining regional market growth.