PUBLISHER: The Business Research Company | PRODUCT CODE: 1730816
PUBLISHER: The Business Research Company | PRODUCT CODE: 1730816
A connected building is a smart infrastructure that integrates advanced technologies to improve efficiency, security, and sustainability. It allows for real-time monitoring, remote control, and predictive maintenance, thereby enhancing operational performance and sustainability. These buildings are commonly found in commercial, residential, and industrial environments, aiming to create smarter and more responsive spaces.
The key components of a connected building include solutions and services. Solutions refer to integrated technological systems designed to optimize building operations. Various technology platforms involved in connected buildings include the Internet of Things (IoT), mobile applications, artificial intelligence and machine learning, big data analytics, and edge computing technology. These platforms are deployed through on-premises solutions, cloud-based solutions, and hybrid models, serving sectors such as manufacturing, IT and telecom, banking, financial services and insurance (BFSI), healthcare, residential, and other end-users.
The connected building market research report is one of a series of new reports from The Business Research Company that provides connected building market statistics, including connected building industry global market size, regional shares, competitors with a connected building market share, detailed connected building market segments, market trends and opportunities, and any further data you may need to thrive in the connected building industry. This connected building market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The connected building market size has grown rapidly in recent years. It will grow from $79.63 billion in 2024 to $88.27 billion in 2025 at a compound annual growth rate (CAGR) of 10.9%. The growth during the historical period can be attributed to factors such as stricter energy efficiency regulations, a rising demand for smart cities, enhanced cybersecurity measures for smart infrastructure, the growing need for improved occupant comfort, and the increasing availability of remote monitoring and management solutions.
The connected building market size is expected to see rapid growth in the next few years. It will grow to $131.67 billion in 2029 at a compound annual growth rate (CAGR) of 10.5%. Looking ahead to the forecast period, growth can be driven by a greater focus on energy efficiency, tightening government regulations and sustainability efforts, rising urbanization, ongoing smart city projects, the expansion of 5G and edge computing, and a growing need for enhanced security and access control. Key trends for the forecast period include the integration of IoT and AI, the development of smart HVAC and lighting systems, the adoption of blockchain for secure data management, the integration of digital twins for real-time monitoring, and the continued use of blockchain for data security.
The growing demand for energy-efficient systems is expected to drive the expansion of the connected building market. Energy efficiency refers to the ability of a system, device, or process to use less energy while achieving optimal performance and minimizing waste. The increasing need for energy-efficient systems is driven by the desire to reduce energy consumption and lessen environmental impact. With rising energy prices, both businesses and homeowners are looking for ways to lower costs by adopting energy-efficient solutions, such as smart HVAC systems and automated building controls. Connected buildings leverage IoT-enabled devices, sensors, and automation systems to monitor and control energy-consuming operations such as lighting in real time. These technologies help reduce energy waste, lower utility costs, and improve sustainability, making them appealing to both businesses and homeowners. For example, a report published by Energy UK in October 2022 indicated that the number of energy efficiency projects in the UK needs to increase from 150,000 installations per year in 2021 to 500,000 by 2025, and one million annually by 2030. As a result, the growing demand for energy-efficient systems is fueling the growth of the connected building market.
Companies in the connected building market are increasingly focusing on sustainable building innovations to enhance efficiency, reduce environmental impact, and support sustainable urban development practices. Sustainable building involves using eco-friendly technologies, materials, and practices to improve a building's energy efficiency, environmental performance, and resilience. For example, in June 2024, Schneider Electric, a France-based automation company, launched a SMART buildings division to drive sustainable building innovation. This division aims to accelerate the adoption of intelligent, energy-efficient, and digitally connected building solutions, supporting Canada's sustainability goals and the growing demand for smart, net-zero buildings. This initiative reinforces Schneider Electric's commitment to advancing energy-efficient and digitally connected infrastructure.
In July 2023, Johnson Controls International plc, an Ireland-based conglomerate, acquired FM Systems for an undisclosed amount. This acquisition allows Johnson Controls to expand its OpenBlue digital building capabilities by integrating advanced workplace management software into its smart building solutions. FM Systems, a U.S.-based software company, offers solutions that improve workplace experiences, enhance portfolio performance, and drive building efficiencies.
Major players in the connected building market are Microsoft Corporation, Amazon Web Services (AWS), Huawei Technologies Co Ltd, Hitachi Ltd, Siemens AG, Intel Corporation, IBM Corporation, Cisco Systems Inc, Schneider Electric, Honeywell International Inc, Mitsubishi Electric, ABB Ltd, Johnson Controls, Eaton Corporation, Delta Electronics Inc, Legrand, Rockwell Automation, Advantech Co Ltd, Bosch Building Technologies, Lutron Electronics.
North America was the largest region in the connected building market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in connected building report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
The countries covered in the connected building market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The connected building market consists of revenues earned by entities providing services such as fire and life safety systems, occupancy management systems, and parking management systems. The market value includes the value of related goods sold by the service provider or included within the service offering. The connected building market also includes sales of smart sensors, smart thermostats, and smart lighting systems. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Connected Building Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on connected building market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for connected building ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The connected building market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.