PUBLISHER: SkyQuest | PRODUCT CODE: 1321805
PUBLISHER: SkyQuest | PRODUCT CODE: 1321805
Smart Building Market size was valued at USD 82.77 billion in 2021 and is poised to grow from USD 103.91 billion in 2022 to USD 538.45 billion by 2030, growing at a CAGR of 25.3% in the forecast period (2023-2030).
Smart buildings utilize complex control systems to manage various building activities such as ventilation, air conditioning, heating, and lighting. These systems, consisting of sensors, actuators, and microchips, simplify maintenance, improve efficiency, and enhance safety. The emergence of smart cities has created new opportunities for the smart building industry, driven by advancements in digital technology, sensors, and telecommunications. IoT sensors and computer networks play a crucial role in automating functions like lighting, heating, and security in smart buildings. Building Automation Systems (BAS) and IoT sensors provide valuable information on building safety and performance. However, the vulnerability of BAS and IoT sensors to cyber intrusions is a concern due to their limited cybersecurity capabilities.
Moreover, buildings are increasingly becoming involved in self-generation or grid-supplied energy, leading to a growing demand for non-carbon or low-carbon building energy management systems. Artificial Intelligence (AI) and Machine Learning (ML) can analyze building data to optimize various activities and income generation. In an uncertain world, these systems gather data, transform it into meaningful information, and apply new knowledge to business objectives.
Segments covered in this report:
Global Smart Building Market is segmented based on the component, system, technology, application, and region. Based on component, the market is segmented into solutions and services. Solution segmented is further segmented into safety and security management (access control system, video surveillance system, and fire and life safety system), energy management (HVAC control system and lighting management system), building infrastructure management (parking management system, smart water management system, and elevator and escalator management system), IWMS (operations and services management, real estate management, environment and energy management, facility management, and capital project management), services. Services is further segmented into (consulting, implementation, and support and maintenance). Based on system, the market is segmented into parking management system, physical security system, BEMS, and others. Based on technology, the market is segmented into wireless technology, bus technology, and others. Based on application, the market is segmented into commercial (retail, hotel, healthcare, and others), residential, industrial. Global Smart Building Market is divided into five major regions: North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa (MEA).
Driver
The market growth of smart buildings is being encouraged by the increasing consumer interest in cost-saving building technologies and the growing awareness of the importance of energy efficiency. Additionally, significant investments by prominent vendors in advanced smart home solutions are contributing to the market's expansion in the forecast period.
Restraint
The increasing number of cyberattacks and security breaches in connected buildings is expected to hinder the adoption of smart building technology. With every building system and device interconnected through intelligent technology, there is a risk of sensitive information being exposed in the event of a hack. Research by Kaspersky has revealed that a significant number of connected buildings are vulnerable to cyberattacks. This heightened risk poses a challenge to the future growth of the market. Therefore, it is essential to implement operational contingency plans to protect the security of connected structures from such attacks.
Market Trends
The increasing trend of urbanization is expected to drive the growth of the global smart building industry in the coming years. With 70% of the world's population projected to migrate to cities by 2050, there will be a greater demand for buildings and infrastructure to accommodate the needs of a growing urban population.
Governments worldwide are providing support to this trend by investing in smart city initiatives, which include the development of upgraded infrastructure, greener transportation, and intelligent buildings. Buildings play a significant role in energy consumption and sustainability, making them a key focus of smart city initiatives. For example, the Singapore government has implemented the Green Mark Scheme as part of its Smart Nation initiative. This program assigns a traffic-light code to buildings based on their environmental friendliness, with the goal of certifying 80% of buildings as green by 2030. These government efforts, coupled with the increasing urbanization trend, are expected to drive the adoption of smart building technologies and contribute to the growth of the industry.