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Smart Building Market to Exhibit 21.6% CAGR in 2021-2028; Rapid-Paced Urbanization to Augment Market Growth

July 21, 2021 | Information & Technology

The global smart building market size is expected to gain momentum by reaching USD 265.37 billion by 2028, owing to the low operational cost, effective security, and building performance management. This information is provided by Fortune Business Insights in its report titled “Smart Building Market Size, Share & COVID-19 Impact Analysis, By Component (Solution, and Services), By Application (Residential, and Commercial), and Regional Forecast, 2021-2028”, mentions that the market stood at USD 57.30 billion in 2020 and is projected to exhibit a CAGR of 21.6% during the forecast period. The high adoption of 5G technology in various nations and smart city projects is expected to accelerate the global market.

Honeywell and IDEMIA to Make Alliance to Come with Intelligent Building Ecosystem

Honeywell, a global leader in connected buildings, announced its strategic partnership with IDEMIA, a global leader in augmented identity, to develop an intelligent building ecosystem that will provide a better and enhanced living experience for the occupants.  This alliance will make use of Honeywell’s security and building management systems and IDEMIA’s biometric-control systems to make frictionless, safer, and smart buildings. Additionally, they will offer amazing features such as vehicle recognition at car parks, contactless engagement with buildings, and personalized conference room settings. These next-generation features will offer enjoyable experiences that will help building owners attract tenants.

To get a detailed report summary and research scope of this market, click here:


Increasing Smart City Projects to Surge Market Opportunities

The rapid urbanization which is happening worldwide is expected to drive smart building market growth during the forecast period. For instance, as per the High-level Expert Forum 2019, around 70% of the world population is expected to shift in urban areas by 2050. This high number of people shifting to urban places will create a huge demand for living space. Therefore, governments worldwide are investing in smart city projects with facilities such as cleaner transportation and energy-efficient buildings. For instance, in February 2019, the capital of Spain, i.e. Aragon, Zaragoza aims to deduce 20% of total energy consumption by focusing on Zaragoza smart city buildings. This is expected to boost the project of energy-efficient smart cities in the region. Thus, with the rising smart city projects and investments, the market is expected to grow rapidly.

Key Players Focus on Product Launch to Brighten Their Market Prospects

The market is experiencing healthy competition among key players focusing on developing and launching smart type of buildings for both commercial and business purposes to widen their smart building projects globally to foster sales revenues. Additionally, the other players are trying to maintain their position in the market by adopting strategies such as merger and acquisition, partnership, and collaboration that will contribute to the growth of the market in upcoming years.

Industry Development

  • June 2021 – Endeavor Business Media announced the launch of smart building technology that will provide solutions for commercial and new buildings. It will help in developing energy efficiency with a well-connected communication system, health, and safety of people living in these buildings. 

List of Key Players Profiled in Report:

  • Cisco Systems, Inc. (California, United States)

  • Siemens AG (Munich, Germany)

  • ABB Ltd. (Zürich, Switzerland)

  • Schneider Electric SE (Rueil-Malmaison, France)

  • Endeavor Business Media (Tennessee, United States)

  • IBM Corporation (New York, United States)

  • Huawei Technologies Co. Ltd (Shenzhen, China)

  • Legrand SA (Limoges, France)

  • Honeywell International Inc. (North Carolina, United States)

  • Johnson Controls Inc. (Cork, Ireland)

  • Hitachi, Ltd. (Tokyo, Japan)

  • Accenture, Ltd. (Dublin, Ireland)

  • Emerson Electric Co. (Missouri, United States)

  • Robert Bosch GmbH (Gerlingen, Germany)

Further Report Findings

  • North America is expected to hold the largest smart building market share during the forecast period. This is attributable to the presence of prominent key players who are investing in smart city and intelligent building projects in the region. For instance, a 51-floor skyscraper in the U.S. i.e. US-based Duke Energy Center, received a highest green certificate from LEED Platinum after implementing intelligent building infrastructure. The region stood at USD 22.59 billion in 2020.

  • In Europe, the market is expected to showcase a significant rise owing to the adoption of the WELL Building Standard certificate by companies to ensure the well-being of their employees. Therefore, the rising smart workplace buildings is likely to surge market opportunity in the region.

  • Based on the solution, the building infrastructure management segment held a market share of 32.9% in 2020.  This is attributable to optimizing rising challenges in large commercial buildings at an operational cost.

Table of Segmentation



Study Period


Base Year


Forecast Period


Historical Period



  Value (USD Billion)


  Component; Application; and Geography

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

    • System Integration and Deployment

    • Support and Maintenance

    • Consulting

By Application

  • Residential

  • Commercial

    • Hotel

    • Healthcare

    • Retail

    • Others

By Region

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

    • United States

    • Canada

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

    • UK

    • Germany

    • France

    • Italy

    • Denmark

    • Rest of Europe

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

    • China

    • Japan

    • India

    • Singapore

    • Australia

    • Rest of Asia Pacific

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

    • GCC

    • South Africa

    • Rest of the Middle East and Africa

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

    • Mexico

    • Brazil

    • Rest of Latin America

Smart Building Market
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  • 2017-2019
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