April 20, 2024

The Smart Building Market is Estimated to Witness High Growth Owing to Advancements in IoT Integration

The smart building market fundamentally deals in network-enabled devices and technologies for monitoring and controlling essential building infrastructure. Smart buildings facilitate remote monitoring and management of HVAC, lighting, security & access control, fire protection systems, and other critical building facilities via Internet of Things (IoT) integration. IoT devices deployed in a smart building network can autonomously sense the indoor environment and respond to changes such as occupancy, temperature, and lighting levels. This enables enhanced energy efficiency, improves safety and security, and enhances user experience through automated control.

The Global smart building market is estimated to be valued at US$ 101.23 Bn in 2024 and is expected to exhibit a CAGR of 13% over the forecast period 2024 to 2030.

Key Takeaways

Key players operating in the smart building market are Abbott, Hologic Inc., Becton, Dickinson and Company, Southwest Precision Instruments, LLC, F. Hoffmann-La Roche Ltd, Sysmex Corporation, Thermo Fisher Scientific Inc., Danaher, Life Technologies Corporation, Merck KGaA, Koninklijke Philips N.V., Perkin Elmer, and Trivitron Healthcare.

The key opportunities in Global Smart Building Market Share include rising adoption of integrated smart solutions and services, surge in construction of energy-efficient green buildings, and increasing investments by governments for development of smart infrastructure. Advancements in IoT, cloud computing, AI and wireless technologies will further accelerate smart building deployments.

Market Drivers

The primary driver for the growth of smart building market is the need for efficient energy management in commercial, industrial and residential buildings. Installation of smart building automation systems allows real-time monitoring of energy consumption and facilitates demand response by dynamically adjusting usage based on pricing signals. This delivers significant cost savings for building owners and operators through reduced electricity bills over the long term.

Current challenges in the Smart Building Market:

The major challenge for the smart building market is integrating numerous building systems from various vendors on a common platform for centralized management. Incorporating new intelligent technologies also require high initial investment which is difficult for many building owners and facility managers to bear. Moreover, ensuring seamless connectivity and real-time data exchange between diverse systems from lighting to security also poses integration and standardization challenges. Lack of awareness about potential benefits of smart buildings particularly in developing countries further hinders the growth of this industry. More efforts are needed to showcase successes stories and cost saving advantages to gain wider acceptance.

SWOT Analysis

Strength: Integrated hardware and software systems provide centralized control over multiple building functions. Real-time data insights help optimize operations and reduce energy costs.

Weakness: High upfront installation and technological upgrade expenses. Integration issues between systems of different vendors.

Opportunity: Rapid urbanization and growing construction industry create demand for automation and intelligent infrastructure. Increase in repair and renovation projects provide opportunities to retrofit existing buildings.

Threats: Security vulnerabilities of networked building systems. Disruption from new entrants with advanced IoT and connectivity solutions.

Geographical regions with major market share

North America dominates the global smart building market currently with largest share in terms of value. The presence of advanced infrastructure and initiatives to reduce carbon footprint drives the US market. Wide acceptance of new technologies and stringent government regulations regarding energy-efficiency are fueling growth. Asia Pacific is also emerging as fast growing regional market led by China due to ongoing smart city projects and rising construction activities.

Fastest growing geographical region

Asia Pacific region is poised to witness fastest growth during the forecast period in the global smart building market. This is attributed to rapidly growing economies, huge investment in infrastructure development and urbanization. Rapid industrialization accompanied with government push for sustainability also favors market prospects in Asia Pacific. Countries like China, India are at forefront in deploying smart solutions across commercial, industrial and residential sectors to improve living standards.

*Note:
1.      Source: Coherent Market Insights, Public sources, Desk research
2.      We have leveraged AI tools to mine information and compile it