PUBLISHER: Grand View Research | PRODUCT CODE: 1908781
PUBLISHER: Grand View Research | PRODUCT CODE: 1908781
The global smart building market size was estimated at USD 141.79 billion in 2025 and is projected to reach USD 554.02 billion by 2033, growing at a CAGR of 18.9% from 2026 to 2033. The market growth is driven by the increasing adoption of IoT-enabled building management systems, rising demand for energy efficiency, and heightened awareness of sustainability.
Technological advancements in automation, data analytics, and AI-driven energy management solutions enable predictive maintenance, real-time monitoring, and optimized climate control, further accelerating smart building industry growth. The increasing adoption of advanced automation, IoT, and AI technologies to enhance energy efficiency, occupant comfort, and operational performance is significantly driving the market growth. Smart buildings integrate interconnected systems such as lighting, HVAC, security, and facility management into a centralized platform, enabling real-time monitoring and data-driven decision-making. Urbanization, sustainability mandates, and the growing demand for energy conservation are encouraging both private and public sectors to invest in these solutions. Furthermore, government initiatives and green building certifications are boosting the adoption rate worldwide, thereby expanding the smart building industry expansion.
In addition, technological advancements are redefining the smart building industry, with AI-powered analytics, edge computing, and digital twins becoming core enablers of operational excellence. Building management systems (BMS) are evolving from traditional monitoring tools to predictive and adaptive platforms, reducing costs and improving efficiency. The integration of renewable energy systems and smart grids enhances sustainability goals, aligning with global carbon reduction commitments. The rise of hybrid work models is prompting organizations to optimize space utilization through occupancy sensors and intelligent workspace management tools, thereby driving the market growth.
Furthermore, growing environmental concerns and stronger net-zero commitments are driving governments to intensify measures to cut energy consumption. Policies are being reshaped to focus on clean energy use, large-scale retrofits, and low-carbon technologies. These approaches aim to fight climate change, lower operating costs, and generate green jobs. By promoting renewable energy adoption and efficient systems, governments are speeding up decarbonization across multiple sectors.
Moreover, the competitive landscape is marked by the entry of innovative startups alongside established technology and construction firms, intensifying market rivalry. Vendors are increasingly focusing on interoperability, cybersecurity, and scalable solutions to address diverse customer needs. Partnerships between technology providers, real estate developers, and energy management firms are enabling holistic smart building ecosystems. As investment in infrastructure modernization accelerates, the smart building market is poised to become a cornerstone of future-ready urban environments, offering both environmental and economic value. Global Smart Building Market Report Segmentation
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2021 to 2033. For this study, Grand View Research has segmented the global smart building market report based on component, solution, service, end use, and region: