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Smart Building Market Size, Share & Industry Analysis, By Component (Solution (Building Infrastructure Management (Parking Management System, Smart Water Management System, Elevators and Escalators System), Security and Emergency Management (Access Control System, Video Surveillance System, and Safety System), and Energy Management and Services (System Integration and Deployment, Consulting)), By Application (Residential and Commercial (Hotel, Healthcare, Retail, Corporate Offices, Others), and Regional Forecast, 2024-2032

Last Updated: July 01, 2024 | Format: PDF | Report ID: FBI101198



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The global smart building market size was valued at USD 96.96 billion in 2023 and is projected to grow from USD 117.42 billion in 2024 to USD 568.02 billion by 2032, exhibiting a CAGR of 21.8% during the forecast (2024-2032). North America accounted for a market value of USD 39.08 billion in 2023. Smart buildings contain a sophisticated control system that controls building operations, such as ventilation, air conditioning, heating, lighting, and other systems, consisting of sensors, actuators, and microchips. The market gains traction as these buildings offer capabilities to lower operational costs, tenant management, security management, and building performance management. Furthermore, the emergence of 5G technology and the rise in smart city projects are expected to create lucrative opportunities for the growth of the industry. For instance,

  • In December 2021, the National University of Singapore (NUS) Department of the Built Environment introduced a new research center to promote the adoption of 5G technologies, accelerate 5G training in smart facilities management, and boost the digital capability of Singapore’s construction industry,

The reopening of commercial buildings post-pandemic for in-office work is expected to surge the demand for smart technologies for a safe environment. The commercial building facility managers and the corporate tenants must offer a safe office environment post-lockdown. Thus, they are expected to utilize smart technologies in managing regular cleaning & sanitization, proper office ventilation, smart entry control, temperature measuring devices, and space optimization for physical distancing. These factors are expected to fuel the demand for smart building solutions.

Smart Building Market Trends

Increasing Smart City Projects to Surge Market Opportunities

Rapid urbanization is expected to accelerate the global smart building market growth in the forthcoming years. For instance, a high-level Expert Forum 2019 report shows that 70% of the world population is expected to shift to urban areas by 2050. This factor would surge the demand for buildings and spaces for sustaining livelihood and work requirements. Considering the urbanization trend, governments worldwide invest in smart city projects with advanced infrastructure, cleaner transportation, intelligent buildings, and other smart technology.

The smart building technology is helping many buildings and homes consume energy efficiently. For instance, for constructing the Shanghai-headquartered New Development Bank (NDB), ABB offered support by fitting a smart building control system for handling interior lighting, electric curtains, and windows that include more than 8,000 control circuits. After the installation, the NDB was able to save energy by 15% more than the conventional systems, so developing connected buildings is the first step toward smart city projects. For instance,

  • In addition to the Smart Nation initiative, the Singapore government has also launched a Green Mark Scheme. In accordance with the scheme, buildings are given a traffic-light code that resembles their environmental friendliness. Under this scheme, the government has targeted converting 80% of buildings to be certified as green by 2030.

  • In February 2019, Aragon aimed to reduce 20% of total energy consumption by focusing on Zaragoza smart city buildings. Through intelligent building, the city is expected to boost energy efficiency. Today, through the collaboration of smart cities and buildings, the city witnessed a 30% reduction in operational costs and targeted ISO 50001 standard compliance.

Thus, with rising smart city projects and investments, the demand for smart and connected buildings is expected to grow rapidly.

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Smart Building Market Growth Factors

Growing Energy Consumption Concerns to Drive Market Growth

The growing concerns about increasing energy consumption worldwide are expected to fuel more advanced and energy-efficient technology.

  • For instance, as per the IoT and smart building 2019 report of IBM Corporation, commercial and real estate buildings utilize 50% water and energy. The report further states that buildings are expected to consume maximum energy by the end of 2025. Similarly, according to Schneider Electric Whitepaper, 36% of carbon emission comes from buildings. This high consumption and wastages exponentially increase the overall cost of operations and maintenance.

However, smart buildings contribute toward sustainability that starts at the construction phase. Emission levels are reduced by using environment-friendly materials. Also, various technologies are being developed for creating smart materials that play an essential role in understanding how energy efficient and sustainable buildings will perform in their lifetime. For instance, the Wood City project in Helsinki is using fire-resilient wood that is eco-friendly, cost-efficient, and has low carbon emission level. This factor is expected to propel the implementation of intelligent building solutions globally.

  • According to the IBM Corporation report, implementing advanced technology, including AI, Internet of Things (IoT), and others helped reduce energy usage by 40% and 10%-30% maintenance costs. Similarly, as per Deloitte’s report, the implementation of smart technology and IoT devices witnessed 70% energy saving in three years. This factor is expected to fuel the market growth.


Growing Incidence of Cyber Attacks in Connected Buildings to Hamper Market Growth

The significant barrier to market growth is growing cyber-attacks. Intelligent technology is connected to every building system and device. It may sometimes provide confidential and personal information on being hacked. For instance, as per the Kaspersky report, four out of 10 connected buildings are at risk of cyber-attacks. This high risk of cyber-attack is expected to hamper market growth in the future. Thus, it is essential to implement contingent operational plans to ensure the safety of connected buildings from such attacks.

Smart Building Market Segmentation Analysis

By Component Analysis

Increasing Focus on Energy Saving to Propel the Solution Segment

Based on component, the market is bifurcated into solution and services.

The solution segment includes building infrastructure management, security & emergency management, and energy management. The solution segment is dominating the market.

Energy management is expected to grow rapidly due to increasing green building initiatives and stringent government regulations on energy consumption. For instance, Shanghai’s New Development Bank (NDB) implemented intelligent building solutions to monitor indoor lighting, electric curtains, and windows and witnessed more than 15% energy savings.

The security & emergency management solution is expected to gain maximum share. There is increasing demand for security systems, surveillance systems, advanced building operation services, and smart workplace solutions in commercial buildings. This factor is likely to drive the security & emergency management solutions segment. It is further categorized into the access control system, video surveillance system, and safety system.

Building infrastructure management is expected to grow steadily, owing to the rising challenges in optimizing high commercial building operational costs. It is further categorized into a parking management system, smart water management system, and elevators & escalators system.

The services segment is expected to showcase rapid growth during the forecast period. This factor is attributable to the rising implementation of intelligent building solutions. The demand for professional services, such as consulting services, system integration, deployment, support, and maintenance, is increasing.

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By Application Analysis

Growing Investment in Smart Technologies to Enhance Commercial Building Operational Efficiency

By application, the market is classified into residential and commercial.

The commercial segment is expected to dominate the market, owing to increasing focus by stakeholders such as developers and owners of Commercial Real Estate (CRE) on the intelligent building to reduce operational costs. Governments across countries are scrutinizing the CRE to invest and improve energy-saving building procedures significantly.

The commercial segment is further categorized into hotel, healthcare, retail, corporate offices, and others.

Due to increasing demand for advanced systems to manage hospital operations, healthcare is expected to lead.


Geographically, the market is fragmented into five major regions such as North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America. They are further categorized into countries.

North America Smart Building Market Size, 2023 (USD Billion)

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North America is expected to dominate the regional revenue share during the forecast period. Prominent companies across regional industries are shifting toward intelligent building solutions to boost workplace operations. The U.S. led the region’s share, owing to increasing investments in green building technology. For instance, after implementing intelligent building infrastructure, the U.S.-based Duke Energy Center, a 51-floor tower skyscraper, received the highest green certificate from LEED Platinum.

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Europe to exhibit significant smart building market share after North America. The growing European Union's focus on implementing efficient energy-saving technologies in residential and commercial buildings is expected to fuel the market share. European companies focus on employee well-being by adopting the WELL Building Standard certificate. Thus, the rising number of smart workplace buildings is likely to increase market opportunities.

Asia Pacific is expected to gain remarkable growth during the forecast period. Growing smart city projects are predicted to surge the intelligent building demand in the region. Further, the growing population in China and India is expected to drive the technology to manage urban space demand. Also, increasing government initiatives in developing smart commercial places, shopping malls, and localities to reduce energy consumption is expected to drive the global market growth.

The Middle East & Africa has grown significantly due to increasing demand for energy-efficient smart building solutions. Additionally, the region is inclined toward reducing carbon emissions and adopts smart technologies to reduce such harmful gaseous emissions.

Similarly, Latin America showcases steady growth as the government aims for efficient and sustainable building. For instance, the National Energy Conservation Program (PAR PROCEL) launch of the Resources Application Plan in Brazil is expected to fuel the demand for smart technologies to manage buildings.

List of Key Companies in Smart Building Market

Growing Strategic Acquisition and Collaborations to Boost Key Players’ Market Position

The key players in the market are strategically entering into partnerships and collaborations to expand their market share. These players also partner with different rating and assessment certification providers to ensure the safety and quality of smart solutions. The players are acquiring local players across countries to expand their global presence. Also, the market players are continuously investing in developing and launching new intelligent solutions and services for managing commercial and residential building operations.

List of Key Companies Profiled:

  • Cisco Systems, Inc. (U.S.)

  • Siemens AG (Germany)

  • ABB Ltd. (Switzerland)

  • Schneider Electric SE (France)

  • Endeavor Business Media (U.S.)

  • IBM Corporation (U.S.)

  • Legrand SA (U.S.)

  • Honeywell International Inc. (U.S.)

  • Johnson Controls Inc. (U.S.)

  • Hitachi, Ltd. (U.S.)


  • June 2023: Cisco Canada, in partnership with Sentiom, launched a new smart building solution to mitigate water and fire damage in multi-residential buildings.

  • January 2023: Telefonica, in collaboration with Siemens, presented a technology proposal to transform rooms into smart buildings at Mobile World Congress (MWC). The company promotes digitization and connectivity as key means for customers to develop their enterprises more efficiently and sustainably. 

  • January 2023: ABB unveiled the ABB Cyclon smart building management system (BMS) at Light Middle East 2023. Its latest offerings provide customers with real-time data, operational analytics, and comprehensive solutions for smarter, more efficient buildings. 

  • January 2023: Wipro Limited announced the launch of its latest solution, Smart-i-building, which runs on the Microsoft Azure platform. This solution reduces the impact of office buildings on their sustainability footprint through efficient use of corporate space, reduced energy consumption, and increased operational efficiency.

  • November 2022: Qualcomm Technologies, Inc. and Siemens Smart Infrastructure partnered on 5G networks for smart type of buildings. This joint effort aims to advance the digitization of building automation by developing new and smarter smart devices in the future.

  • June 2022: View announced the launch of its cloud-native smart building platform. The platform provides a real estate technology of software components to manage, connect and improve a portfolio of smart type of buildings with tough cybersecurity defense and maximum flexibility.


An Infographic Representation of Smart Building Market

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The report highlights leading regions worldwide to offer a better understanding of the user. Furthermore, the research report provides insights into the competitive landscapes, latest industry, and smart building market trends and analyzes technologies deployed rapidly globally. It further highlights some growth-stimulating factors and restraints, helping the reader gain in-depth knowledge about the market.




Study Period


Base Year


Estimated Year


Forecast Period


Historical Period


Growth Rate

CAGR of 21.8% from 2024 to 2032


Value (USD billion)


By Component

  • Solution

    • Building Infrastructure Management

      • Parking Management System

      • Smart Water Management System

      • Elevators and Escalators System

    • Security and Emergency Management

      • Access Control System

      • Video Surveillance System

      • Safety System

    • Energy Management

      • HVAC Control System

      • Lighting Control System

  • Services

By Application

  • Residential

  • Commercial

    • Hotel

    • Healthcare

    • Retail

    • Corporate Offices

    • Others (Apartments, Condos)

By Region

  • North America (By Component, By Application, and By Country)

    • U.S. (By Solution)

    • Canada (By Solution)

    • Mexico (By Solution)

  • Europe (By Component, By Application, and By Country)

    • U.K. (By Solution)

    • Germany (By Solution)

    • France (By Solution)

    • Italy (By Solution)

    • Spain (By Solution)

    • Russia (By Solution)

    • Benelux (By Solution)

    • Nordics (By Solution)

    • Rest of Europe (By Solution)

  • Middle East & Africa (By Component, By Application, and By Country)

    • Turkey (By Solution)

    • Israel (By Solution)

    • GCC (By Solution)

    • North Africa (By Solution)

    • South Africa (By Solution)

    • Rest of the Middle East & Africa (By Solution)

  • Asia Pacific (By Component, By Application, and By Country)

    • China (By Solution)

    • India (By Solution)

    • Japan (By Solution)

    • South Korea (By Solution)

    • ASEAN (By Solution)

    • Oceania (By Solution)

    • Rest of Asia Pacific (By Solution)

  • South America (By Component, By Application, and By Country)

    • Brazil (By Solution)

    • Argentina (By Solution)

    • Rest of South America (By Solution)

Frequently Asked Questions

The market value is projected to reach USD 568.02 billion by 2032.

In 2023, the market was valued at USD 96.96 billion.

The market is projected to register a CAGR of 21.8% during the forecast period.

The solution segment is expected to lead the market.

Growing energy consumption concerns will drive the market growth.

Cisco Systems, Inc., Siemens AG, ABB Ltd., Schneider Electric SE, Endeavor Business Media, IBM Corporation, and Huawei Technologies Co. Ltd. are the top players in the market.

North America is expected to hold the highest market share.

By application, the commercial segment is expected to grow with a remarkable CAGR during the forecast period.

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