Connected Building Global Market Report 2026

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.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs are influencing the connected building market by raising costs for imported smart sensors, control systems, HVAC automation components, and communication modules, increasing overall project expenses and slowing adoption in cost-sensitive regions. The impact is strongest across Asia-Pacific and Europe, where imports of IoT hardware and electronics are substantial. However, tariffs are also stimulating domestic electronics manufacturing, regional IoT innovation, and localized supply chain development, reducing long-term dependency on foreign components.

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 $87.65 billion in 2025 to $96.72 billion in 2026 at a compound annual growth rate (CAGR) of 10.3%. The growth in the historic period can be attributed to early integration of building automation technologies, expansion of smart commercial infrastructure, rising demand for centralized facility monitoring, adoption of digital energy-saving systems, development of connected residential communities.

The connected building market size is expected to see rapid growth in the next few years. It will grow to $142.4 billion in 2030 at a compound annual growth rate (CAGR) of 10.2%. The growth in the forecast period can be attributed to growing deployment of AI-driven building management, expansion of cloud-based automation platforms, increased investment in IOT-enabled infrastructure, rising focus on sustainable smart buildings, accelerating adoption of predictive building analytics. Major trends in the forecast period include rising demand for smart building automation, growing use of integrated energy optimization, expansion of real-time sensor monitoring, increased adoption of smart access and safety systems, growth in connected residential infrastructure.

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, in October 2022, a report released by Energy UK, a trade association representing the country's energy industry, highlighted that the number of energy efficiency projects must rise significantly, reaching around 500,000 installations in 2025 and increasing further to one million per year 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 companies operating 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 2025. 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 Market Global Report 2026 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.

This report focuses 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.

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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, including technological disruption, regulatory shifts, and changing consumer preferences? 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, total addressable market (TAM), market attractiveness score (MAS), competitive landscape, market shares, company scoring matrix, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.

• The market characteristics section of the report defines and explains the market. This section also examines key products and services offered in the market, evaluates brand-level differentiation, compares product features, and highlights major innovation and product development trends.
• The supply chain analysis section provides an overview of the entire value chain, including key raw materials, resources, and supplier analysis. It also provides a list competitor at each level of the supply chain.
• The updated trends and strategies section analyses the shape of the market as it evolves and highlights emerging technology trends such as digital transformation, automation, sustainability initiatives, and AI-driven innovation. It suggests how companies can leverage these advancements to strengthen their market position and achieve competitive differentiation.
• The regulatory and investment landscape section provides an overview of the key regulatory frameworks, regularity bodies, associations, and government policies influencing the market. It also examines major investment flows, incentives, and funding trends shaping industry growth and innovation.
• The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
• The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.
• The total addressable market (TAM) analysis section defines and estimates the market potential compares it with the current market size, and provides strategic insights and growth opportunities based on this evaluation.
• The market attractiveness scoring section evaluates the market based on a quantitative scoring framework that considers growth potential, competitive dynamics, strategic fit, and risk profile. It also provides interpretive insights and strategic implications for decision-makers.
• Market segmentations break down the market into sub markets.
• The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth.
• Expanded geographical coverage includes Taiwan and Southeast Asia, reflecting recent supply chain realignments and manufacturing shifts in the region. This section analyzes how these markets are becoming increasingly important hubs in the global value chain.
• The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
• The company scoring matrix section evaluates and ranks leading companies based on a multi-parameter framework that includes market share or revenues, product innovation, and brand recognition.

Scope

• Markets Covered:1) By Component: Solutions; Services
• 2) By Technology Platform: Internet Of Things (IoT); Mobile Applications; Artificial Intelligence And Machine Learning; Big Data Analytics; Edge Computing Technologies
• 2) By Deployment Type: On-Premises Solutions; Cloud-Based Solutions; Hybrid Solutions
• 4) By End-User: Manufacturing; IT And Telecom; Banking, Financial Services, And Insurance (BFSI); Healthcare; Residential; Other End-Users
• Subsegments:
• 1) By Solutions: Energy Management Solutions; Lighting Control Systems; HVAC Management Solutions; Security And Access Control Systems; Building Automation Platforms; Data Analytics And IoT Solutions; Smart Metering Solutions; Fire And Life Safety Solutions; Network Management Solutions
• 2) By Services: Consulting Services; Deployment And Integration Services; Managed Services; Support And Maintenance Services; Training And Education Services; Professional Services; Cloud-Based Services
• Companies Mentioned: 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
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Taiwan; Russia; South Korea; UK; USA; Canada; Italy; Spain.
• Regions: Asia-Pacific; South East Asia; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
• Time Series: Five years historic and ten years forecast.
• Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
• Data Segmentations: country and regional historic and forecast data, market share of competitors, market segments.
• Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
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