Report Code: A00682 | Jun 2022 | Pages: 275 | ||
Tables: 144 | Charts: 59 |
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The global smart building market size was valued at $69.80 billion in 2021, and is projected to reach $201.16 billion by 2031, growing at a CAGR of 11.3% from 2022 to 2031.
With the advent of the COVID-19 pandemic and the implementation of different social distancing measures, smart building solutions were proving to be vital in slowing the spread of the coronavirus with their centralized solutions for temperature sensing and healthcare monitoring capabilities which propelled the growth of the smart building market during the period.
A smart building is a structure that uses IoT and automated technologies to control building functions such as heating, ventilation, air conditioning, lighting, security, and other systems. A smart building collects and manages data using sensors, actuators, and microchips in accordance with the functions and services of an organization (or household). Such smart infrastructure solutions assists building owners, operators, and facility managers in improving asset dependability and performance, decreasing energy consumption, improving space utilization, and reducing buildings' environmental effects.
The surge in the adoption of smart buildings in multiple regions is driven by the growing need for better utilization of the building (and building premises) and the need for better resource management in urban environments. In addition, the growth in the need for public safety and security is fueling the growth of the smart building market. However, security concerns associated with intelligent building and lack of funding & adequate infrastructure limit the growth of this market. Conversely, the emergence of artificial intelligence in smart buildings and the rise in the IoT market & its application in smart buildings are anticipated to provide numerous opportunities for the expansion of the smart and intelligent building market during the forecast period.
The smart building market is segmented into Component, Solution Type and Building Type.
Segment review
The global smart building industry is segmented into component, solutions type, building type, and region. Depending on the component, the market is divided into solutions and services. Based on solutions type the market is segmented into building infrastructure management (BIM), security & emergency management (SEM), energy management, network management, workforce management, and waste management. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The global smart building market is dominated by key players such as ABB, Cisco Systems, Inc., Hitachi, Ltd., Honeywell International Inc., Huawei Technologies Co., Ltd., IBM Corporation, Intel Corporation, Johnson Controls, PTC, and Siemens. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.
Depending on solution type, the security & emergency management (SEM) segment dominated the smart building market share in 2021, and is expected to continue this trend during the forecast period owing to the growth in digital disruption in people's everyday lifestyles contributing to the growth in demand for smart infrastructure solutions, which in turn strengthening the demand for the real time security & emergency management. However, the energy management segment is expected to witness the highest growth in the upcoming years, as the demand for green and sustainable building management solutions is aiding in the growth of the market. Furthermore, numerous government initiatives that support the implementation of smart energy solutions are expected to drive the smart energy market segment.
Region wise, the smart building market was dominated by North America in 2021 and is expected to retain its position during the forecast period, owing to the presence of a highly developed ICT sector and high spending that aid the growth of the smart building market. However, Asia-Pacific is expected to witness significant growth during the forecast period, owing to various government initiatives and digital transformation trends within the region, which is expected to fuel the smart building market analysis in this region.
The report focuses on growth prospects, restraints, and analysis of the global 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, threat of new entrants, threat of substitutes, and bargaining power of buyers on the global smart building market trends.
COVID-19 impact analysis
With the advent of a global pandemic and various social distancing measures and lockdowns being imposed globally during the period, the majority of individuals that were stuck in their homes, leading to an increased demand for advanced home automation and IoT tools for specialized services such as smart energy management, smart heating, ventilation, and air conditioning (HVAC) control, smart lighting control, among others. According to a study published by the Swedish multinational networking and telecommunications company, Telefonaktiebolaget LM Ericsson in March 2022, stated that consumer devices will account for 63% of all installed IoT equipment in 2020, and the number of mobile IoT connections is predicted to reach 3.5 billion by 2023. Such instances indicate a positive consumer trend towards the adoption of IoT and building automation solutions and thus aiding in the growth of the global smart building industry in the coming years.
Top impacting factors
Need for efficient resource utilization
Smart building management solutions can provide businesses (or residents) with effective resource management tools. For instance, the automated scheduling and monitoring tools enabled by networked sensors allow for greater resource utilization, such as enhanced power management and water use. Moreover, IoT-enabled devices can provide automated control over numerous operational areas, such as inventory management, delivery tracking, fuel management, and replacement parts management. For instance, RFID tags and a network of sensors can be used to track the position of equipment and shipments within the building. Such applications of smart building solutions are promising great growth opportunities for the intelligent building market.
Minimize energy costs and promote sustainability
Maintaining sustainability and minimizing carbon footprint can be challenging for commercial buildings. According to a report published by World Economic Forum in February 2021, non-residential buildings are on average 40% more energy-intensive than residential buildings. Moreover, as per a study conducted by Energy Star, EPA in March 2020, more than 30% of the energy consumed by commercial buildings is wasted. Such instances are highlighting the need for smarter building management solutions, which in turn produces some great opportunities for the growth of smart building solutions. Furthermore, many governments have stringent rules for construction companies to ensure that buildings use suitable energy-saving measures and have effective resource management systems in place. Such regulations further promote smart building market growth.
KEY BENEFITS FOR STAKEHOLDERS
Smart Building Market Report Highlights
Aspects | Details |
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By Component |
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By Solution Type |
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By Building Type |
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By Region |
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Key Market Players | ABB, Intel Corporation, Cisco Systems, Inc., Honeywell International Inc., Siemens AG, Johnson Controls, Huawei Technologies Co., Ltd., Hitachi, Ltd., Ptc Inc, IBM Corporation |
The demand for smart buildings has grown over the past few decades as smart buildings can help provide actionable information about a building (or a specific area inside the building), allowing owners or occupants to better manage the facilities of the building. The main purpose of developing a smart building is to save operating costs, increase occupant comfort, automate energy consumption management, track the state of critical building assets, and satisfy industry worldwide standards and sustainability requirements. Such feature sets of the smart building are promoting the growth of the global smart building market.
Key providers in the smart building market are PTC, Huawei Technologies Co., Ltd., and Hitachi, Ltd. With the growth in demand for smart building, various companies have established partnerships to increase their smart city solutions offerings. For instance, in April 2022, ABB announced a joint partnership with South Korean electronics manufacturer, Samsung Electronics Co., Ltd. to develop energy savings, energy management solutions, and smart Internet of Things (IoT) solutions for both residential and commercial buildings.
In addition, with the surge in demand for smart buildings, various companies have expanded their current services to continue with the rise in demand for smart city solutions. For instance, in May 2022, American multinational technology conglomerate, Cisco Systems, Inc., announced the launch of its Cisco Cloud Controls Framework (CCF) to make sure Cisco’s cloud and IoT products & services meet security and privacy requirements with a simplified, rationalized, compliance, and risk management strategy, enabling efficient utilization of resources.
Moreover, many market players have expanded their business operations and customer base by increasing their acquisitions. For instance, in January 2021, American computer software and services company, PTC Inc., announced the acquisition of software as a service (SaaS) and product life cycle management (PLM) solutions vendor, Arena solutions. With this acquisition, PTC aims to strengthen its IoT and smart solution offerings.
A. The surge in the adoption of smart buildings in multiple regions is driven by the growing need for better utilization of the building (and building premises) and the need for better resource management in urban environments. In addition, the growth in the need for public safety and security is fueling the growth of the smart building market.
A. Region wise, the smart building market was dominated by North America in 2021 and is expected to retain its position during the forecast period, owing to the presence of a highly developed ICT sector and high spending that aid the growth of the smart building market.
A. The global smart building market size was valued at $69.80 billion in 2021, and is projected to reach $201.16 billion by 2030, growing at a CAGR of 11.3% from 2022 to 2031.
A. The global smart building market is dominated by key players such as ABB, Cisco Systems, Inc., Hitachi, Ltd., Honeywell International Inc., Huawei Technologies Co., Ltd., IBM Corporation, Intel Corporation, Johnson Controls, PTC, and Siemens. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.
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