Asia-Pacific Smart Building Market

Asia-Pacific Smart Building Market Statistics: 2031

The Asia-Pacific smart building market size was valued at $20,985.34 million in 2021, and is projected to reach $91,748.12 million by 2031, growing at a CAGR of 16.1% from 2022 to 2031. Smart building involves the installing and utilising cutting-edge, integrated building technology systems. Further, these systems include facility management, telecommunications, user systems, and building automation. Additionally, a smart building uses technology to improve the efficiency, effectiveness, and safety of the structure. For instance, the Energy Services Company (ESCO) model, which offers creative financial plans together with a comprehensive range of energy saving measures, is one of the important trends of the smart building industry in the financing area. Additionally, the growing trend toward smart cities is crucial in expanding the market for smart buildings.

The COVID-19 outbreak had a less negative impact on the Asia-Pacific smart building market, owing to the growing adoption of smart building solutions in the healthcare infrastructure and research institutes to find the solution for the growing virus, along with the new introduction and advancements of building management solutions during the wake of pandemic.

Increasing demand for wireless technology in smart buildings is expected to drive the growth of the market. In addition, rising demand for energy-efficient solutions in building construction & growing investments in smart building infrastructure coupled with favorable government regulation is fueling the growth of the Asia-Pacific smart building market. However, data privacy concerns among users along with higher installation costs and infrastructure requirements constraints the growth of this market. Conversely, integration of advance technologies in smart buildings & increase in smart cities initiatives across the Asia-Pacific is anticipated to provide numerous opportunities for the expansion of the market during the forecast period.

Depending on the building type, the commercial segment dominated the Asia-Pacific smart building market share in 2022 and is expected to continue this trend during the forecast period, owing to the rapid adoption of the automation services in commertial sector, to automatic centralized control system, which controls air conditioning, heating and ventilation, lighting and other systems. However, the residential segment is expected to witness the highest growth in the upcoming years, owing to the rise in the adoption of smart solutions by the people in order to sustain itself in the market and remain productive.

Based on country, the smart building market was dominated by China in 2021 and is expected to retain its position during the forecast period, owing to the growing awareness among individuals towards the need for energy consumption, which aiding the growth of the Asia-Pacific smart building market. However, India is expected to witness significant growth during the forecast period, owing to many major suppliers investing in innovative smart home solution means a higher growth rate over the country, which is expected to fuel the market growth in this country.

The report focuses on growth prospects, restraints, and analysis of the Asia-Pacific smart building market trend. The study provides Porter’s five forces analysis to understand the impact of various factors, such as bargaining power of suppliers, competitive intensity of competitors, the threat of new entrants, threat of substitutes, and bargaining power of buyers on the Asia-Pacific smart building market share.

Segment review

The Asia-Pacific smart building market is segmented into component, solution type, building type, and country. Depending on the solution, the market is divided into solution and services (consulting, system integration and deployment and support and Maintenance). Based on solution type, it is categorized into building infrastructure management, security and emergency management, energy management, network management, workforce management, waste management and others. Based on building type, it is bifurcated into residential, commercial and industrial. Country-wise, it is analyzed across China, Japan, India, Australia, South Korea, Singapore and Rest of Asia-Pacific.

The Asia-Pacific smart building market is dominated by key players such as ABB Ltd, Bosch Gmbh, Cisco Systems, Inc., Hitachi Ltd., Honeywell International Ltd., Huawei Technologies Co. Ltd, IBM Corporation, Intel Corporation, Schneider Electric, and Siemens. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.

COVID-19 impact analysis

The COVID-19 outbreak has high impact on the growth of the Asia-Pacific smart building market as various commercial and residential smart buildings projects are halted due to rising number of COVID-19 patient in the Asia-Pacific. Additionally, various key players of the market are introducing different solutions to reduce the impact of the pandemic situation and to increase their market share. The market for smart buildings in Asia-Pacific has grown significantly in recent years, but it is anticipated to decline in 2020 as a result of the COVID-19 epidemic. This is attributable to the governments of the vast majority of the nation’s putting the world on lockdown and closing down businesses, public and private organizations, and institutions of higher learning. Additionally, a number of IT companies are moving their operations from conventional buildings to smart buildings, which is promoting the market's expansion during a pandemic. By the third quarter of 2022, the Asia-Pacific market for smart buildings is anticipated to have recovered its losses and turned a profit, which resulting in high CAGR of the market.

Top impacting factors

Increasing demand for wireless technology in smart buildings

Asia-Pacific smart building market is growing as a result of the increasing demand of wireless technology in commercial sector that aim to enhance work efficiency. Traditional buildings genrally relied on a number of systems each running separately from the others for lighting, heating, and other essentials. This has come at the expense of energy use, building use, and economic effectiveness. As a response, smart building are gaining significant adoption to increase the use of wireless technology and control systems. These factors are probably contribute to driving demand of smart building market.

Moreover, multiple organizations in Asia-Pacific region are adopting and developing energy saving and cost efficient solutions for smart building through wireless technology. For instance, in Oct 2020, ABB introduced the launch of its first series of virtual innovation shows for smart buildings, since experts are predicting that 30% of the global workforce will work from home at least once a week by 2021. These trends and advancements in smart building will gradually contribute to the growth of Asia-Pacific smart building market.

Rising demand for energy-efficient solutions in building construction

Increasingly advanced and energy-efficient technology is anticipated to be driven by the growing concerns about energy usage all around world. For instance, according to the IoT and smart building 2019 report by IBM corporation, commercial and real estate buildings utilizes 50% of water and energy. This excessive usage and waste substantially raise overall operating and maintenance costs which further drive the demand of energy efficient solutions. Furthermore, commercial buildings can find it difficult to maintain sustainability and reduce carbon footprint. Such circumstances are emphasizing the need for smarter building management systems, which creates some excellent opportunities for the development of smart building solutions. Additionally, several governments have strict regulations for building contractors to guarantee that structures employ appropriate energy-saving practices and have efficient resource management systems in place. This parameter further expected to drive the implementation of intelligent building solutions in Asia-Pacific region.

Key Benefits For Stakeholders      

• The study provides an in-depth analysis of the Asia-Pacific smart building market forecast along with current & future trends to explain the imminent investment pockets.
• Information about key drivers, restraints, & opportunities and their impact analysis on Asia-Pacific smart building market trends is provided in the report.
• Porter’s five forces analysis illustrates the potency of the buyers and suppliers operating in the industry.
• The quantitative analysis of the market from 2022 to 2031 is provided to determine the market potential.

 Asia-Pacific Smart Building Market Report Highlights