Smart Buildings Market to grow by USD 64.84 Billion (2024-2028), driven by the need for building automation, with AI powering market evolution - Technavio

NEW YORK, Dec. 4, 2024 /PRNewswire/ -- Report on how AI is driving market transformation - The global smart buildings market size is estimated to grow by USD 64.84 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of almost 10.61% during the forecast period. Growing need for building automation to enhance business outcomes is driving market growth, with a trend towards increasing integration of iot with building automation software. However, challenges in integrating building automation software coupled with interoperability issues poses a challenge. Key market players include ABB Ltd., Advantech Co. Ltd., BuildingLogiX, Cisco Systems Inc., Delta Electronics Inc., Emerson Electric Co., Honeywell International Inc., International Business Machines Corp., Johnson Controls, L and T Technology Services Ltd., Legrand SA, Panasonic Holdings Corp., Robert Bosch GmbH, RTX Corp., Schneider Electric SE, Siemens AG, Smarteh d.o.o., Snap One LLC, Softdel System Pte. Ltd., Switch Automation, and Verdigris Technologies Inc..

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      Forecast period        
     2024-2028



     Base Year                                                                                                                                                          2023



     Historic Data          
     2018 - 2022


      Segment Covered          Product (BMS, HVAC, Lighting control, Security and access control, and Others), Component (Software, Hardware, and Services), and Geography
                                (North America, Europe, APAC, South America, and Middle East and Africa)



     Region Covered         
     North America, Europe, APAC, South America, and Middle East and Africa


      Key companies profiled   ABB Ltd., Advantech Co. Ltd., BuildingLogiX, Cisco Systems Inc., Delta Electronics Inc., Emerson Electric Co., Honeywell International Inc.,
                                International Business Machines Corp., Johnson Controls, L and T Technology Services Ltd., Legrand SA, Panasonic Holdings Corp., Robert Bosch
                                GmbH, RTX Corp., Schneider Electric SE, Siemens AG, Smarteh d.o.o., Snap One LLC, Softdel System Pte. Ltd., Switch Automation, and Verdigris
                                Technologies Inc.

Key Market Trends Fueling Growth

The Smart Buildings Market is experiencing significant growth due to the integration of advanced technologies such as 5G, IoT, AI, and VR. These technologies enable resource management, energy efficiency, and improved environmental effects in both residential and commercial buildings. In urban areas, smart buildings are becoming essential components of smart cities, offering automated technologies like sensors, actuators, and microchips for space utilization and network management. Commercial segment buildings, including offices and industrial structures, are adopting AI-enabled innovations like intelligent glass, smart thermostats, and energy-efficient structures. Homeowners are also embracing smart home solutions, including smart lighting systems and home automation. Moreover, the integration of cloud computing, data analytics, and waste management solutions is crucial for effective resource management and reducing greenhouse gas emissions. Building owners prioritize security concerns, with smart security systems like access controls, video surveillance, and intrusion detection, ensuring a secure environment. Energy management, waste management, and workforce management are other significant areas of focus for smart buildings. Blockchain technology is also gaining traction for information security. The market for smart buildings is vast and includes various applications, from energy conservation in residential buildings to fire safety in industrial buildings.

Non-smart buildings rely on manual control, leading to lengthy lead times and increased operational costs. Traditional building automation faces limitations due to complex wired or slow wireless connectivity between devices. The integration of IoT into building automation enhances connectivity significantly, enabling end-users to monitor multiple systems via a central hub. This innovation creates demand for advanced building automation software, driven by the expanding IoT adoption and rising Internet penetration among specific user groups. The global smart buildings market experiences growth opportunities as a result.

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Market Challenges

    --  The Smart Buildings Market is experiencing significant growth due to the
        integration of advanced technologies like 5G, IoT-enabled devices, AI,
        VR, and cloud computing. Commercial and residential building owners seek
        energy efficiency, resource management, and automated technologies to
        reduce greenhouse gas emissions and improve space utilization.
        Challenges include security concerns, environmental effects, and network
        management. 5G technology and IP enable seamless connectivity, while AI
        innovations optimize energy management, home automation, and waste
        management solutions. Smart lighting systems, intelligent security
        systems, fire safety, and access controls enhance the security of
        building premises. Energy-efficient structures, smart thermostats,
        intelligent glass, and smart elevators are essential components of smart
        buildings. Urban environments and industrial areas benefit from smart
        cities, smart homes, and smart lighting systems for energy conservation.
        Blockchain ensures information security, and smart waste management
        systems minimize waste. Working from home necessitates advanced network
        systems, heating, ventilation, and air conditioning. Sensors, actuators,
        microchips, and automated technologies are crucial for effective
        resource management and space utilization. Smart buildings cater to the
        commercial and residential segments, addressing the needs of urban areas
        and providing a secure environment for workforce management. Energy
        management, waste management, and network management are key areas of
        focus. Smart solutions for heating, ventilation, air conditioning, and
        lighting systems contribute to a comfortable and productive work
        environment.
    --  Building automation systems in smart buildings involve intricate
        software integration to manage multiple subsystems effectively. The
        complexity increases with larger structures, necessitating technical
        expertise. Compatibility between various hardware devices is crucial for
        efficient operation. Integrating legacy systems with new software can
        pose challenges, potentially leading to faulty installations and
        security vulnerabilities. Professionally managing these complexities is
        essential for optimizing energy usage, enhancing occupant comfort, and
        ensuring safety in smart buildings.

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Segment Overview

This smart buildings market report extensively covers market segmentation by

    1. Product
        --  1.1 BMS
        --  1.2 HVAC
        --  1.3 Lighting control
        --  1.4 Security and access control
        --  1.5 Others
    2. Component
        --  2.1 Software
        --  2.2 Hardware
        --  2.3 Services
    3. Geography
        --  3.1 North America
        --  3.2 Europe
        --  3.3 APAC
        --  3.4 South America
        --  3.5 Middle East and Africa

1.1 BMS- The Building Management Systems (BMS) segment, also known as Building Automation Systems, is the largest and leading segment in the global smart buildings market. BMS integrate various standalone control and monitoring systems, including HVAC, lighting, and emergency control systems, at a single point for efficient building management. The BMS market consists of software, servers, sensors, and major components. The cost of implementing BMS ranges from USD2.50 to USD7.0 per square foot, making ROI a significant challenge. Europe and APAC are major contributors to the BMS market's growth due to increasing industrial development, commercialization, and energy efficiency awareness. In the forecast period, the BMS segment will witness high adoption in the commercial sector, high-end residential buildings, and the services sector. Rapid technological innovations, such as IoT, analytics, and cloud computing, will further fuel the adoption of BMS for effective monitoring, controlling, and operating building facilities.

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Research Analysis

The Smart Buildings Market is experiencing significant growth due to the integration of advanced technologies such as 5G, IoT enabled devices, AI, and VR. These technologies enable energy efficiency, reduced greenhouse gas emissions, and improved occupant comfort in both commercial and residential buildings. Cloud computing and data analytics facilitate remote monitoring and management of smart homes and offices, enabling working from home and waste management solutions. Energy-efficient structures, intelligent glass, smart thermostats, and smart elevators are some of the innovations that contribute to energy conservation. Smart cities are also integrating smart lighting systems, fire safety, and security systems, including intelligent access controls, video surveillance, and intrusion detection, to enhance safety and productivity. Overall, the Smart Buildings Market offers numerous benefits, from automating mundane tasks to improving energy efficiency and enhancing safety and security.

Market Research Overview

The Smart Buildings Market is experiencing significant growth due to the integration of advanced technologies such as 5G technology, IoT enabled devices, AI, and VR. These technologies are transforming commercial and residential buildings into energy-efficient structures with improved resource management and space utilization. In urban areas, smart buildings are contributing to reducing greenhouse gas emissions by optimizing energy consumption and waste management. Cloud computing and data analytics enable real-time monitoring and automation of home automation and working from home systems. Intelligent glass, smart thermostats, and smart elevators are becoming standard features in modern buildings. AI-driven innovations are revolutionizing network management, energy management, and workforce management. Smart cities are integrating smart buildings into their infrastructure for secure environment and efficient resource management. Building owners are investing in automated technologies such as sensors, actuators, microchips, and blockchain for information security. Smart lighting systems, energy conservation, and intelligent security systems are essential components of smart buildings. Fire safety, video surveillance, access controls, theft detection, and intrusion detection are critical aspects of intelligent security systems. HVAC systems, including heating, ventilation, and air conditioning, are being optimized for energy efficiency and occupant comfort. The residential and commercial segments are driving the growth of the smart buildings market, with industrial buildings following closely. The environmental effects and security concerns of smart buildings are being addressed through advanced technologies and regulations.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

    --  Product
        --  BMS
        --  HVAC
        --  Lighting Control
        --  Security And Access Control
        --  Others
    --  Component
        --  Software
        --  Hardware
        --  Services
    --  Geography
        --  North America
        --  Europe
        --  APAC
        --  South America
        --  Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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Email: media@technavio.com
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