Report Overview

Global Smart Building Market- Industry Trends & Forecast Report 2028

The global smart building market was worth USD 88.6 billion in 2021 and is further projected to reach USD 185.4 billion by the year 2028, growing at a CAGR of more than 11% during the forecast period. Smart buildings are increasingly becoming popular as a result of advancing technologies, including IoT and AI, and a growing focus on maximizing resources. Additionally, the sustainable benefits of smart buildings in conserving resources are emerging as an important factor driving market growth.

Smart Buildings – A Brief Overview

A smart building has an automatic centralized control system that manages the various components including HVAC (heating, ventilation, and air conditioning), electrical, security, access control, lighting, etc. Smart buildings are equipped with sensors and devices as well as artificial intelligence and machine learning. Automation in smart buildings provides various benefits, including efficient operation of the building system, improved occupant performance, reduced operating and maintenance costs, increased security, etc.

Smart Building Market Forecast and Trends

Growth Drivers

Rising Focus Towards Energy Conservation

A smart building is emerging as a potentially energy-saving solution. This is because the energy consumption in the smart buildings is monitored by smart sensors and systems that adjust consumption such as water or air conditioning on the basis of occupancy, time of the day, and weather. A smart building's adjustable and controllable features enable it to adjust and control HVAC as needed and save energy when not needed. Consequently, smart buildings will become more popular during the forecast period due to an increasing focus on energy consumption.

Growth Potential in Emerging Economies

Smart buildings are gaining traction in emerging economies, such as China, Japan, India, etc. because of increased investments in energy efficiency and carbon footprint reduction. Furthermore, the rising awareness of climate change and the need for prompt action by policymakers will influence the demand for smart buildings in the coming years. Moreover, government initiatives, such as Net Zero, is also estimated to act as a major factor for the growth of the smart building market in developing countries.

Restraints

High Risk of Potential Cyberattacks

Smart buildings are fully integrated with advanced technologies. such as sensors, IoT, AI, interconnected to share data. The nature of this system, however, exposes it to potential cyberattacks, which may hinder the growth of the smart buildings market. Cyberattacks targeting building automation systems were recently reported at an office building in Germany. In addition, several other similar cases are popping up in different parts of the world, which is hindering the market growth.

Impact of COVID-19 on the Global Smart Building Market

The COVID-19 pandemic significantly hindered the growth of the global smart building market. During the lockdown imposed in most of the regions, offices and other commercial buildings were closed, halting the adoption of smart buildings systems. As the market for smart buildings rebounds from the post-lockdown period, there are still many challenges ahead, including a shortage of hardware components and IoT devices due to restrictions on manufacturing operations and the shortage of semiconductor chips. However, the global smart building market is projected to recover at a moderate rate in the upcoming years.

Global Smart Building Market - By Component

Based on components, the global smart building market is segmented into solutions and services. The services segment holds the largest share in the smart building market and is further classified into consulting, implementation, and support and maintenance. The solutions segment is also classified into building infrastructure management, safety and security management, energy management, network management, and integrated workplace management system. Among these, the services segment dominates the market. With smart buildings growing in popularity, more companies are seeking consultancy, implementation, support, and maintenance services to assist them in deploying the system according to their requirements and the infrastructure's suitability, thereby driving the segment’s growth.

Global Smart Building Market - By Building Type

Based on building types, the global smart building market is segmented into residential, commercial, and industrial segments. The commercial sector accounted for the largest market share as real estate and office owners are increasingly transforming their infrastructures into smart buildings for reducing energy consumption, lowering maintenance costs, and enhancing security. Therefore, commercial buildings, including hotels, hospitals, offices, government buildings, etc., are opting for smart building systems, which is driving the market growth. However, the industrial segment is also anticipated to register significant growth during the forecast period.

Global Smart Building Market - Regional Insights

Geographically, the smart building market is segmented into North America, Europe, Asia-Pacific, Latin America, Middle-East & Africa. North America dominates the global smart building market owing to increasing investments in automation of commercial buildings and energy-efficient infrastructures by large enterprises. Furthermore, the rising focus on energy conservation and stringent government regulations towards high energy-consuming commercial and residential spaces is anticipated to drive the market growth during the forecast period. Following North America, Europe also covers a substantial market share.

Global Smart Building Market - Competitive Landscape

The leading players in the global smart building market are ABB Ltd., Softdel, Honeywell International Inc., Hitachi Ltd., Siemens AG, Avnet Inc., Schneider Electric SE, Legrand SA, Huawei Technologies Co. Ltd, Johnson Controls Inc, IBM Corporation, Cisco Systems Inc., Verdigris Technologies, BuildingIQ, Mode: Green, Entouch, Wirepath Home Systems LLC, Pointgrab Inc., PTC Inc., and other prominent players.

The global smart buildings market is fragmented with the presence of several global as well as regional market players. Many startups are also emerging with smart building solutions to explore the growing market opportunities. The companies significantly focus on offering a wide range of products and solutions and often launch new products equipped with advanced technologies to gain a competitive edge. Furthermore, they also adopt strategies, such as partnerships, mergers, acquisitions, joint ventures, etc., to stay ahead in the market.

Recent Developments

• In January 2022, PassiveLogic, a US-based computer hardware company, announced it had raised USD 34 million in Series B funding to develop its physics-based digital twin software for automating smart buildings.
• In January 2022, LoRa Alliance, a US-based electronic manufacturing non-profit company, announced it has created low-cost, low-power, long-range wireless connections between smart buildings devices and platforms they work with.

Scope of the Report

By Component

• Solutions

1. Building Infrastructure Management
2. Safety and Security Management
3. Energy Management
4. Network Management
5. Integrated Workplace Management System

• Services

1. Consulting
2. Implementation
3. Support and Maintenance

By Building Type

• Residential
• Commercial
• Industrial

By Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East & Africa

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Key Market Segments
2. Research Methodology
   1. Qualitative Research
   2. Methodology
   3. Regional Split of Primary & Secondary Research
   4. Secondary Research
   5. Primary Research
      1. Breakdown of Primary Research Respondents, By Region
      2. Breakdown of Primary Research Respondents, By Industry Participants
   6. Market Size Estimation
   7. Assumptions for the Study
   8. Market Breakdown & Data Triangulation
3. Executive Summary
4. Industry Insight and Growth Strategy
   1. Value Chain Analysis
   2. DROC Analysis
      1. Market Drivers
         1. Rising Focus Towards Energy Conservation
         2. Growth Potential in Emerging Economies
      2. Market Restraints
         1. High Risk of Potential Cyberattacks
      3. Market Challenges
         1. Negative Impact of the COVID-19 Pandemic Outbreak
      4. Market Opportunity
         1. Rising adoption of automation and advanced technologies
         2. Growing Demand for Convenient and Comfortable Lifestyle
   3. Recent Developments
   4. Porter’s Five Forces Analysis
      1. Bargaining Power of Buyers
      2. Bargaining Power of Suppliers
      3. Intensity of Rivalry
      4. Threat of New Entrants
      5. Threat of Substitutes
5. Smart Building Market Overview
   1. Market Size & Forecast by Value, 2018-2028
   2. Market Size and Forecast, By Segment
      1. By Component
         1. Solutions
            1. Building Infrastructure Management
            2. Safety and Security Management
            3. Energy Management
            4. Network Management
            5. Integrated Workplace Management System
         2. Services
            1. Consulting
            2. Implementation
            3. Support and Maintenance
      2. By Building Type
         1. Residential
         2. Commercial
         3. Industrial
      3. By Region
         1. North America
         2. Europe
         3. Asia-Pacific
         4. Latin America
         5. Middle East & Africa
6. North America Smart Building Market Overview
   1. Market Size and Forecast
      1. By Value (USD Billion), 2018-2028
   2. Market Share and Forecast
      1. By Component
      2. By Building Type
      3. By Country
         1.  US
         2.  Canada
7. Europe Smart Building Market Overview
   1. Market Size and Forecast
      1. By Value (USD Billion), 2018-2028
   2. Market Share and Forecast
      1. By Component
      2. By Building Type
      3. By Country
         1. Germany
         2. U.K.
         3. Russia
         4. France
         5. Italy
         6. Spain
         7. Rest of Europe
8. APAC Smart Building Market Overview
   1. Market Size and Forecast
      1. By Value (USD Billion), 2018-2028
   2. Market Share and Forecast
      1. By Component
      2. By Building Type
      3. By Country
         1. China
         2. India
         3. Japan
         4. South Korea
         5. Rest of APAC
9. LATAM Smart Building Market Overview
   1. Market Size and Forecast
      1. By Value (USD Billion), 2018-2028
   2. Market Share and Forecast
      1. By Component
      2. By Building Type
      3. By Country
         1. Mexico
         2. Brazil
         3. Rest of LATAM
10. MEA Smart Building Market Overview
    1. Market Size and Forecast
       1. By Value (USD Billion), 2018-2028
    2. Market Share and Forecast
    3. By Component
    4. By Building Type
    5. By Country
       1. Saudi Arabia
       2. UAE
       3. South Africa
       4. Rest of MEA
11. Competitive Landscape
    1. List of Key Players and Their Offerings
    2. Market Share Analysis (2021)
    3. Competitive Benchmarking by Operating Parameters
12. Impact of COVID-19 on Smart Building Market
13. Company Profiles (Company Overview, Financial Matrix, Key Product landscape, Key Personnel, Key Competitors, Contact Address, and Strategic Outlook) *
    1. ABB Ltd.
    2. Softdel
    3. Honeywell International Inc.
    4. Hitachi Ltd.
    5. Siemens AG
    6. Avnet Inc.
    7. Schneider Electric SE
    8. Legrand SA
    9. Huawei Technologies Co. Ltd
    10. Johnson Controls Inc
    11. IBM Corporation
    12. Cisco Systems Inc.
    13. Verdigris Technologies
    14. BuildingIQ
    15. Mode:Green
    16. ENTOUCH
    17. Wirepath Home Systems LLC
    18. Pointgrab Inc.
    19. PTC Inc.
    20. Other Prominent Players
14. Key Strategic Recommendations

List of Figures

Figure 1: Smart Building Market Segmentation

Figure 2: Smart Building Market Value Chain Analysis,

Figure 3: Company Market Share Analysis, 2021

Figure 4: Smart Building Market Size, By Value (USD Billion), 2018-2028

Figure 5: Smart Building Market Share (%), By Component, By Value, 2018-2028

Figure 6: Smart Building Market Share (%), By Building Type, By Value, 2018-2028

Figure 7: Smart Building Market Share (%), By Region, By Value, 2018-2028

Figure 8: North America Smart Building Market Size, By Value (USD Billion), 2018-2028

Figure 9: North America Smart Building Market Share (%), By Component, By Value, 2018-2028

Figure 10: North America Smart Building Market Share (%), By Building Type, By Value, 2018-2028

Figure 11: North America Smart Building Market Share (%), By Country, By Value, 2018-2028

Figure 12: Europe Smart Building Market Size, By Value (USD Billion), 2018-2028

Figure 13: Europe Smart Building Market Share (%), By Component, By Value, 2018-2028

Figure 14: Europe Smart Building Market Share (%), By Building Type, By Value, 2018-2028

Figure 15: Europe Smart Building Market Share (%), By Country, By Value, 2018-2028

Figure 16: Asia-Pacific Smart Building Market Size, By Value (USD Billion), 2018-2028

Figure 17: Asia-Pacific Smart Building Market Share (%), By Component, By Value, 2018-2028

Figure 18: Asia-Pacific Smart Building Market Share (%), By Building Type, By Value, 2018-2028

Figure 19: Asia-Pacific Smart Building Market Share (%), By Country, By Value, 2018-2028

Figure 20: Latin America Smart Building Market Size, By Value (USD Billion), 2018-2028

Figure 21: Latin America Smart Building Market Share (%), By Component, By Value, 2018-2028

Figure 22: Latin America Smart Building Market Share (%), By Building Type, By Value, 2018-2028

Figure 23: Latin America Smart Building Market Share (%), By Country, By Value, 2018-2028

Figure 24: Middle East & Africa Smart Building Market Size, By Value (USD Billion), 2018-2028

Figure 25: Middle East & Africa Smart Building Market Share (%), By Component, By Value, 2018-2028

Figure 26: Middle East & Africa Smart Building Market Share (%), By Building Type, By Value, 2018-2028

Figure 27: Middle East & Africa Smart Building Market Share (%), By Region, By Value, 2018-2028

List of Tables

Table 1: Smart Building Market Size, By Component, By Value, 2018-2028

Table 2: Smart Building Market Size, By Building Type, By Value (USD Billion), 2018-2028

Table 3: Smart Building Market Size, By Region, By Value (USD Billion), 2018-2028

Table 4: North America Smart Building Market Size, By Component, By Value (USD Billion), 2018-2028

Table 5: North America Smart Building Market Size, By Building Type, By Value (USD Billion), 2018-2028

Table 6: North America Smart Building Market Size, By Country, By Value (USD Billion), 2018-2028

Table 7: Europe Smart Building Market Size, By Component, By Value (USD Billion), 2018-2028

Table 8: Europe Smart Building Market Size, By Building Type, By Value (USD Billion), 2018-2028

Table 9: Europe Smart Building Market Size, By Country, By Value (USD Billion), 2018-2028

Table 10: Asia-Pacific Smart Building Market Size, By Component, By Value (USD Billion), 2018-2028

Table 11: Asia-Pacific Smart Building Market Size, By Building Type, By Value (USD Billion), 2018-2028

Table 12: Asia-Pacific Smart Building Market Size, By Country, By Value (USD Billion), 2018-2028

Table 13: Latin America Smart Building Market Size, By Component, By Value (USD Billion), 2018-2028

Table 14: Latin America Smart Building Market Size, By Building Type, By Value (USD Billion), 2018-2028

Table 15: Latin America Smart Building Market Size, By Country, By Value (USD Billion), 2018-2028

Table 16: The Middle-East & Africa Smart Building Market Size, By Component, By Value (USD Billion), 2018-2028

Table 17: The Middle-East & Africa Smart Building Market Size, By Building Type, By Value (USD Billion), 2018-2028

Table 18: The Middle-East & Africa Smart Building Market Size, By Country, By Value (USD Billion), 2018-2028

Table 19: ABB Ltd. Financial Analysis

Table 20: ABB Ltd. Business Overview

Table 21: Softdel Financial Analysis

Table 22: Softdel Business Overview

Table 23: Honeywell International Inc. Corporation Financial Analysis

Table 24: Honeywell International Inc. Corporation Business Overview

Table 25: Hitachi Ltd. Financial Analysis

Table 26: Hitachi Ltd. Business Overview

Table 27: Siemens AG Financial Analysis

Table 28: Siemens AG Business Overview

Table 29: Avnet Inc. Financial Analysis

Table 30: Avnet Inc. Business Overview

Table 31: Schneider Electric SE Financial Analysis

Table 32: Schneider Electric SE Business Overview

Table 33: Legrand SA Financial Analysis

Table 34: Legrand SA Business Overview

Table 35: Huawei Technologies Co. Ltd Financial Analysis

Table 36: Huawei Technologies Co. Ltd Business Overview

Table 37: Johnson Controls Inc Financial Analysis

Table 38: Johnson Controls Inc Business Overview

Table 39: IBM Corporation Financial Analysis

Table 40: IBM Corporation Financial Analysis

Table 41: Cisco Systems Inc. Financial Analysis

Table 42: Cisco Systems Inc. Financial Analysis

Table 43: Verdigris Technologies Financial Analysis

Table 44: Verdigris Technologies Financial Analysis

Table 45: BuildingIQ Financial Analysis

Table 46: BuildingIQ Financial Analysis

Table 47: Mode:Green Financial Analysis

Table 48: Mode:Green Financial Analysis

Table 49: ENTOUCH Financial Analysis

Table 50: ENTOUCH Financial Analysis

Table 51: Wirepath Home Systems LLC Financial Analysis

Table 52: Wirepath Home Systems LLC Financial Analysis

Table 53: Pointgrab Inc. Financial Analysis

Table 54: Pointgrab Inc. Financial Analysis

Table 55: PTC Inc. Financial Analysis

Table 56: PTC Inc.Financial Analysis