Smart Building Market Size To Reach $450.53 Billion By 2030

Smart Building Market Growth & Trends

The global smart building market size is expected to reach USD 450.53 billion by 2030 and grow at a CAGR of 26.5% from 2023 to 2030, according to the recent reports of Grand View Research, Inc. Governments of various countries are taking supportive initiatives for digitalization, and significantly launching projects of smart cities is propelling the market growth. The rising public and private investment in digital infrastructure is also contributing to the growth of the market. Furthermore, the growing need among the commercial sector to optimize energy consumption, enhance operational efficiency, and automate processes has escalated the market growth.

The market for smart buildings is growing primarily as a result of the quickening pace of technological advancement. In the future years, it is anticipated that advances in artificial intelligence research will lay the groundwork for the creation of game-changing technologies that will greatly improve human lifestyles. In addition to helping people adapt to changing lifestyles and vocations, big data, cloud computing, and Internet of Things (IoT) technologies also help to improve workplaces and individualized working environments. For instance, in March 2023, ABB launched a new smart building management tool that allows emission reduction and significant energy savings. The ABB AbilityTM Building Analyzer provides crucial information on building utilization and utility consumption for facility managers aiming for energy savings.

Furthermore, various Asia Pacific countries are taking supportive initiatives to improve digital technology adoption without compromising consumer data privacy, is supporting the market growth. For instance, in May 2022, AVEVA Group plc announced a merger with Namchi (Sikkim) Smart City, a smart India city mission. The main aim of the merger was to develop a digital platform and integrated cross-city command center to streamline and improve municipal services. To save energy, the city upgraded the existing city infrastructure. The city has reduced energy use by 20% while improving the standard of living for its growing population by utilizing smart technology. It intends to promote tourism and spur economic development.

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Smart Building Market Report

Smart Building Market Report Highlights

• The energy management segment is expected to observe a CAGR of 27.7% during the forecast period. The growing demand for Heating, Ventilation, and air Conditioning (HVAC) management and smart lighting is creating robust opportunities for segment growth. Smart HVAC technology in buildings can reduce energy costs, reduce staff workload, and provide better employee comfort. Smart HVAC and lighting solutions are integrated with sensors and IoT devices to provide real-time monitoring and control of the building
• The support & maintenance services segment is expected to observe a CAGR of 29.8% during the forecast period. Support and maintenance services play a vital role in keeping the smart building solutions maintained & updated, reducing operating costs, and assisting smart building owners & operators to improve the overall operational efficiency of the building
• The industrial segment is expected to witness significant growth of a CAGR of 25.3% during the forecast period. Shifting various end-use industries focus on smart manufacturing and supportive government initiatives for digitalization is propelling the segment growth
• The Asia Pacific digital twin market is expected to observe a CAGR of 28.5% during the forecast period. The significant regional growth can be attributed to the rising concerns related to energy consumption among buildings, supportive government initiatives for smart cities, and the emergence of Artificial Intelligence (AI), cloud computing, and Internet-of-Things (IoT) technologies
• Key market players in the market are adopting various business strategies to improve their position and customer base in the market. For instance, in March 2022, Emerson Electric Co. partnered with Itron, Inc. to develop smart thermostats for Distributed Energy Resource (DER), Bring Your Own Device (BYOD), and Demand Response (DR). Both companies integrated their solutions into energy management systems for efficient temperature control. This partnership helped the former company improve smart thermostat sales in the market.