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Smart Building Market Size, Share & Industry Analysis, By Component (Solution, Services), By Application (Residential, Commercial) and Regional Forecast, 2019-2026

Region : Global | Format: PDF | Report ID: FBI101198

 

KEY MARKET INSIGHTS

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Smart buildings contain a sophisticated control system that controls building operations such as ventilation, air-condition, heating, lighting, and other systems by utilizing sensors, actuators, and microchips. It leverages advanced and integrated building technology, including building automation, advanced telecommunications systems, fire safety equipment, and facility management system to improve safety, comfort, and productivity of occupants. It can proactively manage systems according to both pre-set and variable schedules, environmental conditions, and emergency events.


The building management systems used in the smart building architecture helps in automating the temperature of the premises to meet the comfort standards of the occupants. These energy efficiency measures assist the building in achieving its sustainability goals, such as tracking and reducing greenhouse gas emissions. Thus, building occupants are adopting building automation technologies to hedge against volatile energy prices and meet energy efficiency requirements.


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Additionally, smart building architecture helps in lowering operational cost, tenant management, security management as well as building performance management. Organizations have adopted smart building technologies to increase the productivity of the facility staff, support sustainability efforts, improve building operations, and enhance decision-making across the organization. Thus, the growing awareness regarding the advantages of the smart building has led to the adoption of smart building concepts across commercial and residential areas.


Furthermore, the emergence of 5G technology and growing smart city projects is expected to create lucrative opportunities for the growth of the global smart building market during the forecast period.


MARKET DRIVERS


Growing Adoption of IoT-Enabled Building Management System to Aid the Growth of the Market”


Increasing energy costs and environmental issues such as carbon emission and pollution are encouraging the builders to shift from traditional buildings towards smart buildings. IoT Smart buildings leverage sensors, cloud technology, and IoT connectivity to remotely manage, monitor, and control a range of building systems from heating and air conditioning to lighting and security systems. Smart building technology help in transforming the buildings into more energy-efficient and sustainable buildings. For instance, some of the major players such as Gemalto NV are offering IoT monetization and embedded solutions to remotely manage and protect IoT software and solutions that are used in smart building infrastructure. Thus, the adoption of IoT enabled building management system, and solutions are increasing as it helps to cope up with the environmental aspects and manage the residential energy as well as provide a healthy and secure surrounding.


“Increasing Industry Regulations and Government Initiatives for Smart City to Boost Market Growth”


The government of various countries is imposing different laws and regulations to encourage current and future operation, construction, and usage of buildings more intelligently, without comprising the aspect of sustainability. The European Union (EU) has established several directives to enhance the energy performance of buildings and to meet their goal of constructing new zero-energy buildings (NZEB) by the end of 2020. Also, the UK government has shifted its focus towards constructing smart buildings to reduce the carbon footprint and reduce energy consumption from the building sector. Additionally, the government is recognizing the repayments of incorporating IoT into smart cities. Thus, increasing government initiatives towards smart city development has generated the need for smart infrastructures, which is boosting the smart building market share. Additionally, eco-friendly and green buildings that have a variety of intelligent features are gaining attraction in the market.


SEGMENTATION


By Component Analysis


“Solutions segment is expected to augment the smart building market during the forecast period”


Based on the component, the market is classified into solutions and services. According to the smart building market report, the solution segment held the largest market share in 2018 and is expected to continue during the forecast period. This increasing growth of the smart building market is mainly owing to the rising demand for smart infrastructures across the real estate sector. Moreover, the rise in the use of IoT-based smart building solutions and the growing awareness among industries to implement energy-efficient solutions will open up new opportunities for key players in the global smart building market.


The solutions segment is further broken into building infrastructure management, security and emergency management, and energy management. Among these, the building infrastructure management held the largest market share in 2018 owing to the growing need for a single platform to control and optimize the infrastructure of large buildings.


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The building infrastructure management is further sub-segmented into the parking management system, smart water management system, elevators and escalators system, and others. Among these, the elevators and escalators system held the largest market share in 2018 due to the increasing use of elevators and escalators in malls, shopping centers, residential societies, and big showrooms. Similarly, security and emergency management is further sub-segmented into an access control system, video surveillance system, safety system, and others.


The service segment of the global smart building market is expected to be the fastest-growing segment during the forecast period. Along with the solutions, the key players are also engaged in providing professional services, which include system integration and deployment, support and maintenance and consulting. Among these, consulting services hold the largest market share in the forecast period. The need to understand the impact of smart infrastructure on both the occupant and builder to minimize the overall life cycle cost is boosting the demand for consultant services.


By Application Analysis


“Commercial segment accounts for the largest market share during the forecast period.”


The report focusses on several smart building market trends, covering applications which include residential and commercial segments. The commercial segment holds the largest share in the global smart building market owing to the growing necessity of appropriate and tailor-made solutions to reduce energy consumption without compromising comfort or security. Commercial segment is further sub-segmented into hotels, healthcare, retail and others.


The residential segment exhibited the highest CAGR during the forecast period owing to the growing demand for smart homes with intelligent features like lighting control, HVAC monitoring, and predictive maintenance alerts. Additionally, the builders are adopting the concept of smart buildings to provide real-time monitoring through bi-directional data flow, real-time reports and communications, data and analytics, fault detection, optimal control through remote adjustment, capability and proactive equipment testing.


REGIONAL ANALYSIS


The smart building market has been analyzed across five major regions, which are North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America these regions are further categorized into countries.


North America is projected to augment the market during the forecast period. In 2018, North America generated a revenue of USD 15.29 Billion and is expected to reach up to USD 34.22 Billion by 2026. This lucrative growth in North America is mainly due to the adoption of smart building solutions that leverage advanced technologies including IoT, cloud computing, big data, data analytics, deep learning, and artificial intelligence (AI). Organizations in this region are implementing smart infrastructure solutions for saving energy, reducing operational expenditures and increasing occupancy comfort. In North America, the US holds the largest market share owing to the presence of large number of prominent players.


North America Smart Building Market Size, 2018 (USD Billion)

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Europe holds the second-largest market share and is expected to grow at a remarkable CAGR during the forecast period. The demand for smart building solutions is increasing in Europe owing to increasing government investments in smart city development projects.


Asia Pacific is positioned to be the fastest-growing region in the global smart building market in terms of CAGR. Growing initiatives towards developing commercial offices, localities, and shopping malls with advance and smart technology and equipment is expected to offer lucrative growth opportunities for the smart building market. In the Asia Pacific, providers of smart building solutions are working to develop IoT-enabled building management systems to enhance smart building services across the region.  


The Middle East and Africa are anticipated to witness a steady growth rate in the smart building market. Increasing demand for more energy-efficient smart building solutions and inclination towards reducing greenhouse gas emissions will cultivate the growth of the smart building market across the region.


INDUSTRY KEY PLAYERS


“Smart Building Companies including IBM Corporation, Schneider Electric and Cisco Systems, Inc. to strengthen their market positions by heavy investments and developments”


IBM Corporation has been actively providing smart building analytics and solutions for various types of buildings, including commercial buildings, industrial infrastructure, and hotels. IBM TRIRIGA helps to increase the financial, operational and environmental performance of a facility. IBM Maximo provides asset management for real-time visibility of things within buildings. IBM provides Watson IoT solutions for buildings, which is a centralized platform used for corporate real estate transactions and capital projects. It helps in connecting all building facilities with IoT-enabled infrastructure, enhancing the experience of building occupants and streamlining operations with predictive maintenance. Watson IoT solutions for buildings prevent equipment downtime, reduces operational costs, improves safety and security.


Schneider Electric offers various types of building automation and control systems to deliver optimal energy and operational efficiency to occupants. The company provides an open innovation platform for buildings which is the collaborative IoT solution to create future-ready smart buildings. The company also provides services such as EcoStruxure Building Advisor to increase the performance, efficiency, and reliability of the building and its systems.


Cisco Systems, Inc. is actively participating in the smart building market through various types of networking and building automation solutions. The company provides a digital building solution to lay a foundation for next-generation smart buildings. The building solutions including building automation, optimized lighting and IoT technology offered by the company assist in making the building smarter. These solutions are easy to use and install with simple Power over Ethernet (PoE) deployments and provide comprehensive threat intelligence and defense.


LIST OF KEY COMPANIES COVERED:



  • Siemens

  • ABB

  • Schneider Electric

  • Cisco Systems, Inc.

  • United Technologies

  • IBM Cooperation

  • Delta Controls

  • Building IQ

  • Honeywell International Inc

  • Johnson Controls

  • Legrand

  • Thales Group

  • Hitachi, Ltd.

  • Accenture

  • Emerson Electric Co.


REPORT COVERAGE


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The report offers an elaborative analysis of numerous factors affecting the global smart building market. These include opportunities, growth drivers, threats, key developments, and restraints. In addition to this, it further helps in analyzing, segmenting, and defining the market based on different segments such as component and applications. It strategically analyzes several strategies such as product innovations, mergers, alliances, joint ventures, and acquisitions adopted by players in the industry.


Report Scope & Segmentation








































 ATTRIBUTE



 DETAILS



Study Period



  2015-2026



Base Year



  2018



Forecast Period



  2019-2026



Historical Period



  2015-2017



Unit



  Value (USD Billion)



Segmentation



By Component



  • Solution

    • Building Infrastructure Management

      • Parking Management System

      • Smart Water Management System

      • Elevators and Escalators System

      • Others



    • Security and Emergency Management

      • Access Control System

      • Video Surveillance System

      • Safety System

      • Others



    • Energy Management

      • HVAC Control System

      • Lighting Control System





  • Services

    • System Integration and Deployment

    • Support and Maintenance

    • Consulting





By Application



  • Residential

  • Commercial


    • Hotel

    • Healthcare

    • Retail

    • Others




By Region



  • North America (US and Canada)

  • Europe (UK, Germany, France, Italy, Denmark, and Rest of Europe)

  • Asia Pacific (China, Japan, India, Singapore, Australia and Rest of Asia Pacific)

  • Middle East & Africa (GCC, South Africa and Rest of the Middle East & Africa)

  • Latin America (Mexico, Brazil and Rest of Latin America)



INDUSTRY DEVELOPMENT:



  • April 2019 –  Wipro Lighting, one of the divisions of Wipro Limited collaborated with Cisco Systems Inc. to brings together former’s smart & connected lighting systems and latter’s digital building solutions to link different building services through a single, converged IP network. This collaboration is expected to enable Wipro to simplify the conjunction of its lighting solutions with building automation systems over IP without compromising maintenance, lighting efficiency, product life, and security.

  • June 2018 – Sodexo partnered with IBM Corporation to leverage IBM’s Maximo IoT-based asset management software to grip and transform its asset management function. This partnership is expected to meet the diverse needs of a wide array of client facilities and demographics, spanning offices, research centers, hospitals, schools, and factories.


Frequently Asked Questions

As per our (Fortune Business Insights) study, the smart building market is predicted to reach USD 109.48 Billion by 2026 with a CAGR of 12.6% (2019 -2026).

As per our study, business owners are more inclined towards smart buildings Currently (in 2019), the smart building market value at USD 47.68 Billion, and it is anticipated to reach USD 109.48 Billion by 2026 at a CAGR of 12.6% during the forecast period (2019 -2026).

Globally, spending on smart building technology is increasing each year. For instance, North America generated a revenue of USD 15.29 Billion in 2018 and is expected to create a remarkable revenue share by 2026. Advances in smart technologies and analytics have led to remarkable investments of organizations in deploying smart building solutions.

In the smart building market, building infrastructure management solutions and consulting services are the leading segments. The emergence of IoT and advent digitization has given an unprecedented opportunity for the key players to create enormous investments in smart building solutions.

Some of the driving factors for the smart building market are supportive industry standards and regulations, government initiatives for smart city development, advent in IoT, and a rise in demand for intelligent building solutions across organizations.

In the smart building market, some of the key players are Siemens, ABB, Schneider Electric, Cisco Systems, Inc., United Technologies, IBM Cooperation, Delta Controls, Building IQ, Honeywell International Inc., Johnson Controls, Legrand, Thales Group, Hitachi, Ltd., Accenture, and Emerson Electric Co. These market players are focusing on acquisitions, agreements, and developments in the smart building market.

North America is expected to hold the highest market share in the smart building market. The region is expected to witness remarkable growth owing to the presence of major key players in US. Increasing adoption of IoT enabled smart building solutions among organizations in the region would fuel the market growth across the region.

Building infrastructure management solution will generate the highest revenue during the forecast period. The growing adoption of building automation technology and supportive industry regulations to encourage smart city development would ensure to boost the adoption of building infrastructure management solution.

The commercial sector is expected to lead the smart building market. Growing adoption of IoT enabled smart building solutions and increasing infrastructure development, such as commercial offices, localities, and shopping malls with advance and smart features that would contribute to market growth.

Smart Building  Market  Size, Share and Global Industry Trend Forecast till 2026
  • Jan, 2020
  • 2018
  • 2015-2017
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