The smart building solutions market is anticipated to flourish at a steady CAGR of 12.5% between 2023 and 2033. The market is expected to hold a market share of USD 15.6 billion by 2033 while the market is likely to reach a value of USD 1.35 billion in 2023.
The demand for smart building solutions is anticipated to rise due to the growing need for low operating costs, low CO2 emissions, and the scarcity of energy resources. Smart building solutions companies like Cisco aid in providing solutions that assist in monitoring and optimizing energy usage is energy monitoring.
Smart building solutions are part of the automation and control industry, which is significantly growing. As a result, this factor leads to the growth of the smart building solutions market. Further, the sales of smart building solutions are largely driven by the electronic security & safety segment due to increasing demand for CCTV and biometrics-based security systems in the buildings.
| Attributes | Details |
|---|---|
| Smart Building Solutions Market CAGR (2023 to 2033) | 12.5% |
| Smart Building Solutions Market Size (2023) | USD 1.35 billion |
| Smart Building Solutions Market Size (2033) | USD 15.6 billion |
The demand for thermostats, zone and climate controls, sensors, and keypads in the heating, ventilation, and air conditioning (HVAC) sector is rising. Furthermore, new carbon dioxide & combine sensors are expected to have a positive impact on the smart building solutions market outlook.
Energy efficiency remains a top priority despite the rise of IoT smart buildings. As space utilization becomes aware and energy-efficient systems become popular, the demand for smart building solutions is likely to grow during the forecast period. Moreover, it is also anticipated that increasing acceptance of IoT-enabled BMS is likely to increase the smart building solutions market share.
The emergence of 5G technology and the growth in the smart city movement have enabled the key players in the smart building solutions market to witness numerous growth opportunities. Meanwhile, the rise in the IoT market & its application in smart buildings and the emergence of artificial intelligence in smart buildings are anticipated to provide numerous opportunities for the expansion of the smart building solutions market.
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Globally, the smart building solutions market is largely driven by government initiatives for building automation. In addition to this, the concept enables an effective energy management system for a building, thereby reducing energy wastage. Therefore, this factor is anticipated to drive the demand for smart building solutions.
The growing number of smart energy systems is expected to boost the sales of smart building solutions. Also, a relentless pursuit of improving access, efficiency, sustainability, and comfort is anticipated to drive innovations in smart building solutions. Innovations in the smart buildings market are projected to be driven by technology players that are increasingly focused on extending IoT backbones.
Factors Restraining Growth in Smart Building Solutions Market
| Countries | Revenue Share % (2023) |
|---|---|
| The United States | 19.1% |
| Germany | 10.4% |
| Japan | 5.9% |
| Australia | 3.1% |
| North America | 26.9% |
| Europe | 23.9% |
| Countries | CAGR % (2023 to 2033) |
|---|---|
| China | 14.5% |
| India | 10.5% |
| The United Kingdom | 10.2% |
North America is estimated to capture a notable share and lead the global smart buildings solution market, accounting for 26.9% of the overall market share in 2022. The United States and Canada hold a significant portion, and they are prominent countries contributing to technology development in this region. The United States itself held a market share of 19.1% in 2022. For instance,
Europe held a considerable share of 23.9% of the global market for smart building solutions in 2022. The regional market is expected to grow at a moderate pace in Europe because of the growing awareness of smart building solutions and the government's initiatives in the region.
The availability of resources, innovations in IT, and increasing adoption of the smart building solutions concept furthermore encourage new players to step into the market. Germany market held a market share of 10.4% in 2022. The growth is attributed to the new development projects, and policy-based change in building procedures etc.
Principal Consultant
| Category | By Application Type |
|---|---|
| Leading Segment | Commercial Buildings |
| Market Share% (2022) | 17.5% |
| Category | By System Type |
|---|---|
| Leading Segment | Building Energy Management |
| Market Share% (2022) | 14.4% |
Based on application type, commercial buildings are flourishing in the market as they held a market share of 17.5% in 2022. The growth is attributed to high economic activities, expanding privately owned businesses along with their management infrastructures. Also, the new corporate structure penetrating emerging economies is likely to make a change in the way we look at it.
Based on system type, building energy management is leading the category. The segment held a market share of 14.4% in 2022. The projected growth is caused by the new high government investment in enhanced energy management due to power-saving and better risk management. Moreover, the growing demand for sustainable energy management in commercial buildings is increasing its adoption.
How is the Start-up Ecosystem in the Smart Building Solutions Market?
The smart building solutions market is currently fragmented, with the presence of established global and domestic players across the globe. By incorporating modern technologies and customizing products, the market is likely to be propelled forward. Currently, vendors are focusing mainly on offering innovative products and solutions that can optimize energy consumption and serve a high level of building automation.
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Smart Building Solutions Market: Key Contracts/ Agreements/ Acquisitions
The players in the smart buildings market have adopted various growth strategies, such as partnerships, business extensions, agreements, and collaborations. These players also focus on product launches and product enhancements to further increase their market presence and expand their customer base. For instance,
Recent Developments in the Smart Building Solutions Market
The primary consumer for Smart Building Solutions is the commercial sector.
The Asia Pacific region is poised to be worth at USD 15.6 billion by 2033.
The market is estimated to secure a valuation of USD 1.35 billion in 2023.
The market is estimated to reach USD 328.8 billion by 2033.
The commercial sector holds high revenue potential in the market.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Type 5.1. Software 5.2. Services 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Application 6.1. Manufacturing Facilities 6.2. Residential Buildings 6.3. Commercial Buildings 6.4. University 6.5. School 6.6. Hospital Buildings 6.7. Government & Public Infrastructure 6.8. Others 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 7.1. North America 7.2. Latin America 7.3. Western Europe 7.4. Eastern Europe 7.5. South Asia and Pacific 7.6. East Asia 7.7. Middle East and Africa 8. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 9. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 10. Western Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11. Eastern Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. South Asia and Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. East Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. Middle East and Africa Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 15. Key Countries Market Analysis 16. Market Structure Analysis 17. Competition Analysis 17.1. ABB 17.2. Siemens AG 17.3. Intel Corporation 17.4. Honeywell International Inc. 17.5. Schneider Electric 17.6. Legrand SA 17.7. Panasonic Corporation 17.8. Building IQ 17.9. Cisco Systems Inc. 17.10. DELTA CONTROLS 18. Assumptions & Acronyms Used 19. Research Methodology
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Smart Building Solutions Market
