The global Smart Building Market is estimated to be valued at US$ 87.87 Bn in 2023 and is expected to exhibit a CAGR of 24 % over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Smart buildings use integrated technologies and processes to create more efficient, comfortable, and productive indoor environments. Integration of advanced technologies such as IoT, analytics, cloud computing, wireless connectivity, etc. help smart buildings adapt to the needs of occupants and optimally support business-critical applications and processes. Key advantages of smart buildings include enhanced safety & security, reduced operational costs, increased asset utilization, sustainability, and better management of building resources. The growing demand for energy-efficient and sustainable buildings is driving the demand for smart building products and technologies.
Market key trends:
Digitalization and integration of technologies such as IoT has opened up new opportunities for optimization and automation in buildings. Rising adoption of IoT sensors, cloud connectivity, and analytics is enabling continuous monitoring of building systems and optimization of building operations. IoT integration helps in simplifying building control, increasing convenience, and delivering insights for improving building performance. Growing focus on sustainability is also driving demand as smart building solutions help reduce energy consumption and optimize resource utilization. Increasing internet and smartphone penetration is further boosting the demand for smart building technologies by enabling connectivity, remote operations, and mobility. Major players are focusing on developing innovative IoT-enabled solutions to tap growth opportunities in the smart buildings market.
Porter’s Analysis
Threat of new entrants: The high initial capital requirement to enter the smart building market poses a moderate threat of new entrants.
Bargaining power of buyers: The presence of many players in the smart building market increases the bargaining power of buyers as they can choose from various available options.
Bargaining power of suppliers: Key components suppliers hold some bargaining power over the smart building manufacturers due to their technical expertise.
Threat of new substitutes: There are limited substitutes for smart buildings given the advanced automation and energy efficiency solutions offered.
Competitive rivalry: The competitive rivalry in the smart building market is high owing to large number of players focusing on technological innovations.
Key Takeaways
The Global Smart Building Market Size is expected to witness high growth, exhibiting CAGR of 24% over the forecast period, due to increasing demand for energy-efficient infrastructure.
Regional analysis
North America dominates the global smart building market, accounting for more than 30% share, due to rising construction activities and implementation of stringent energy codes in commercial buildings. Asia Pacific exhibits the fastest growth attributed to growing smart city initiatives in countries like China and India.
Key players
Key players operating in the smart building market are Softdel (A UNIDEL Company), ABB Ltd., Hitachi Ltd., Honeywell International, Avnet Inc., Siemens AG, Legrand SA, Schneider Electric SE, Johnson Controls Inc., Huawei Technologies Co. Ltd., Cisco Systems, and IBM Corporation. These players are focusing on developing advanced IoT and communication based solutions to gain a competitive edge in the market.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
