Global Smart Building Markets, 2020-2025 - Government Initiatives on Smart Infrastructure Projects Spur Robust Growth (+23% CAGR)
DUBLIN, Jan. 22, 2020 /PRNewswire/ -- The "Smart Building Market - Growth, Trends, and Forecast (2020 - 2025)" report has been added to ResearchAndMarkets.com's offering.
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The smart building market is expected to register a CAGR of over 23% over the forecast period (2020-2025). Growing energy concerns, increasing government initiatives on smart infrastructure projects are driving the market's growth positively.
The smart building market is fragmented currently with the presence of established global and domestic players across the globe. The market will be mainly driven by the addition of modern technologies and customizations to attract end-users. Vendors are concentrating primarily on offering innovative products and solutions that can optimize energy consumption and serve a high degree of automation in buildings.
Key Highlights
-- Energy costs are rapidly increasing, and environmental issues are a
major concern today. There is increasing pressure to provide more
energy-saving solution to save money. As energy conservation has become
more important recently, demand for smart buildings has increased.
-- Smart buildings solutions not only transform the buildings into
energy-efficient and sustainable buildings but also automates the way
buildings can be managed and controlled.
-- Another reason for driving the market's growth is supportive industry
standards and regulations. As governments across the globe take steps
towards bolstering sustainability and energy efficiency regulations,
more opportunities are available to the smart building market.
-- For instance, the Canadian government is laying high emphasis on energy
conservation through smart buildings, majorly, including offices and
homes. Moreover, the United Kingdom also has kept considerable efforts
in smart building solutions, primarily to reduce the carbon footprint
from the building sector and reduce its energy consumption
-- Besides the growth in individual smart buildings, the need for smart
cities has also increased. Governments are realizing the benefits of
incorporating IoT into their cities. As more smart infrastructure is
added to cities, the smart building market is expected to grow.
According to the Consumer Technology Associations, spending on smart
cities is expected to grow to USD 34.35 billion by 2025 from USD 14.85
billion in 2015.
-- Eco-friendly and green buildings have become increasingly common, and
these buildings contain a variety of smart features. According to a
recent survey of construction stakeholders in the United Kingdom,
conducted by the International Trade Administration, United States, it
is estimated that the country has witnessed a 14% gain in the number of
companies willing to build 60% of their projects as green projects by
the end of 2018.
-- Moreover, increasing security concerns and the latest technological
enhancement and reliability that is offered by the intelligent security
systems is increasing its demand in the market.
Market Trends
Growing Adoption in Commercial Applications Boosting the Market's Growth
-- The commercial segment comprises of office spaces, hotels, malls,
hospitals, shopping complexes, and restaurants, among others. Today,
commercial buildings are getting smarter. They include a growing variety
of technologies that are part of the IoT phenomena. Across the globe,
new buildings are being constructed with both wireless and wired IoT
infrastructure that enables innovation.
-- According to the United States Energy Information Administration,
commercial buildings account for nearly 20% of United Stets energy
consumption and 12% of greenhouse gas emissions in the country. By
reducing waste and conserving energy, smart buildings create benefits
for the global community at large.
-- Additionally, According to the U.S. Department of Energy (DOE), HVAC,
and lighting alone consume about 50% of energy use in the average
commercial building. By incorporating smart building automation systems,
lighting, and HVAC solutions can decrease energy costs between 30% and
50%. These solutions use predictive analytics and real-time data
processing to make proactive decisions to enhance airflow, thermal
comfort, and lighting while reducing the energy bill.
-- Many commercial buildings have adopted smart building technologies. For
instance, The Mirage in Las Vegas uses smart building technology to
lower their energy costs through load-shedding. The Edge, a commercial
office building in the Netherlands, boasts a smart LED lighting system,
which has over 30,000 sensors connected to the building management
system through the IoT. The Edge uses about 70% less electricity than an
average commercial office building.
-- Furthermore, According to a Dell and Intel study, 44% of office workers
worldwide do not think their offices are smart enough. Smart workplace
technology, which can include networked platforms, software, sensors,
and IoT technology, can be used to enhance workplace security, comfort,
productivity, energy efficiency, and much more.
Asia-Pacific is Expected to Witness the Highest Growth Rate
-- Asia-Pacific is expected to witness the highest growth rate over the
forecast period owing to supportive government initiatives, growing
commercialization, and industrial development activities in countries
such as India, China, South Korea, Singapore, and Australia.
-- Smart buildings and digital construction are being witnessed as an
economic engine for China. The Chinese government has set an
environmental goal of 30% green buildings for new construction by 2020.
-- In 2017, The government of India developed The Energy Conservation
Building Code' (ECBC), which sets minimum energy performance standards
for buildings and includes the building envelope, heating, ventilation,
and air conditioning. Hence, the growing adoption of smart building
solutions could help the country in saving energy.
-- Additionally, the growing number of government initiatives for smart
city projects is expected to boost the market's growth over the forecast
period. For instance, According to a report released by the Minister of
Urban and Housing Affairs, 148 projects have been completed until
January 2018, under India's Smart Cities Mission.
-- Moreover, According to Juniper research, eight Asian cities were listed
among the top 20 spots in the recently released global smart city index
2017. Singapore, Seoul, Tokyo, Melbourne, Wuxi, Yinchuan, Bhubaneswar,
and Hangzhou were listed among the best overall performers across four
key areas of healthcare, mobility, safety, and productivity. The result
has been a massive surge in spending on smart city technology.
-- A survey by Honeywell India of 2,000 buildings across 10 Indian metros
which evaluated building smartness' across the parameters of being
green, safe and productive found that although the country's hotels and
airports led the way with smart building technologies, the overall
smartness of buildings in India is low.
-- The study found that most buildings scored highest on green elements
(45) while safety was lowest (21). India could save billions each year
by adopting modern technologies in buildings that drive green, safe, and
productive outcomes. This is anticipated to provide growth opportunities
for smart building solutions and services.
-- Government's strong commitment to tech-friendly legislation and a
massive investment in its smart city infrastructure is driving smart
building development in Singapore. The Capital Tower in Singapore is one
of the first smart buildings in the city.
Noteable Industry Developments
-- August 2019 - Honeywell International, Inc. a global vendor in smart
building technology and services, introduced the next generation of
Enterprise Building Integration (EBI), Command and Control Suite (CCS),
and Digital Video Manager (DVM), a suite of solutions enabled by the
Honeywell Forge for Buildings platform. This solutions drive facility
efficiency, streamline complex functions, and deliver savings across an
enterprise.
-- July 2018 - Schneider Electric SE announced the next generation of
EcoStruxure Building, the open innovation platform for buildings.
EcoStruxure Building's open, end-to-end IP architecture enables quick
connectivity of IoT devices for faster commissioning and changes and
delivers for edge control and collaboration between building systems and
third-party systems and devices.
Key Topics Covered
1 INTRODUCTION
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1 Market Overview
4.2 Introduction to Market Drivers and Restraints
4.3 Market Drivers
4.3.1 Growing Concerns about Energy Consumption Leading to Adopting Smart Solutions
4.3.2 Government Initiatives on Smart Infrastructure Projects
4.4 Market Restraints
4.5 Industry Value Chain Analysis
4.6 Industry Attractiveness - Porter's Five Force Analysis
5 MARKET SEGMENTATION
5.1 By Component
5.1.1 Solution
5.1.1.1 Building Energy Management System
5.1.1.2 Infrastructure Management System
5.1.1.3 Intelligent Security System
5.1.1.4 Other Solutions
5.1.2 Services
5.2 By Application
5.2.1 Residential
5.2.2 Commercial
5.2.3 Industrial
5.3 Geography
5.3.1 North America
5.3.2 Europe
5.3.3 Asia-Pacific
5.3.4 Latin America
5.3.5 Middle East & Africa
6 COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 ABB Ltd.
6.1.2 Honeywell International Inc.
6.1.3 Siemens AG
6.1.4 Schneider Electric SE
6.1.5 United Technologies Corporation
6.1.6 IBM Corporation
6.1.7 Cisco Systems Inc.
6.1.8 Johnson Controls Inc.
6.1.9 Legrand S.A.
6.1.10 BuildingIQ Inc.
6.1.11 Hitachi Ltd.
7 INVESTMENT ANALYSIS
8 MARKET OPPORTUNITIES AND FUTURE TRENDS
For more information about this report visit https://www.researchandmarkets.com/r/2ce39w
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