Global Statistics Representing Smart Building Market Scenario
Smart building is an integration of technology, energy systems, and building. Smart buildings rely on automated processes to control building operation; they integrate building systems on a common network and share information to improve energy efficiency and operational effectiveness. Smart building systems include building automation, user systems, telecommunications, facility management systems, and life safety.
The need for energy-efficient interventions in the infrastructure industry, increasing demand for integrated security & safety solutions, and government initiatives for smart building developments are driving market growth, globally. Smart buildings are equipped with sensor networks to monitor electricity and water usage in real time, track sustainability performance and interact with other parts of smart cities. Smart buildings are the foundation of smart cities and thus governments around the globe are focusing on developing smart cities to cater to the anticipated future demand. For instance, according to National League of Cities (NLC), 66% of U.S. cities have reported investments in smart city technology.
Enhancing energy efficiency in buildings is a key step in reducing carbon footprint. Thus, various countries are investing in the smart building market. For instance, in 2018, to invest in energy efficient projects in residential buildings, the Board of the European Investment Bank (EIB) approved the creation of a brand-new financial instrument called Smart Finance for the Smart Buildings initiative. The increasing wave of smart cities and rising cloud-based IoT platforms are generating various opportunities for the global smart building market; however, high initial installation cost may hinder market growth to an extent.
The global smart building market accounted for over USD 7.5 billion in 2017 and is expected to grow at a CAGR of 18.9% during the forecast period, 2019–2026.
The global smart building market has been segmented based on type, building type, and automation. On the basis of type, the market has been segmented into hardware, software, and services. Based on building type, the market has been segmented into commercial, industrial, and residential buildings. Based on automation, the market has been segmented into energy management, intelligent security systems, infrastructure management, network & communication management and others.
Based on region, the global smart building market has been segmented into North America, Europe, Asia Pacific, and Latin America and Middle East & Africa.
Europe holds the largest share of the smart building market, followed by North America. Increasing adoption of energy management and security solutions drives the demand for smart buildings in Europe. In 2018, European countries revised the Energy Performance of Buildings Directive, which includes measures that will accelerate the rate of building renovation towards more energy efficient systems and strengthen the energy performance of new buildings, making them smarter. Europe’s initiatives to further push smart and zero energy buildings with mandatory changes to country-level building codes has been propelling the growth of the smart building market.
North America has been experiencing healthy growth in the global smart building market, owing to the presence of industry leaders in the region. Companies such as GE, IBM and SAP are collaborating with facility service providers such as CBRE, ISS World, and ENGIE to gradually create inroads for smart building by integrating multiple building automation systems to deliver a unified facilities management solution.
Asia Pacific is pegged to be the fastest growing market for smart buildings, due to rapid infrastructural growth in the region and government initiatives in the region’s developing countries. Various smart city projects in Japan, South Korea, Singapore, India and China are driving the adoption of smart buildings as a critical component of sustainable urban development. Among all regions, Latin America and the Middle East & Africa account for the least share in the global smart building market.
Some of the key players in the market are ABB (Switzerland), Siemens AG (Germany), Honeywell International, Inc. (U.S.), Schneider Electric (France), Cisco Systems, Inc. (U.S.), United Technologies (U.S.), International Business Machines Corporation (U.S.), BuildingIQ (U.S.), Echelon Corporation (U.S.), Hitachi, Ltd. (Japan), and Panasonic Corporation (Japan), Delta Controls (Canada), Johnson Controls (U.S.), and Legrand (France).
Smart Building Market Segmentation
By Building Type
By Automation Type
In August 2018, Igor launched ‘Nexos’, the industry’s first smart building platform, to enable agile IoT buildings using an open standard for global connectivity. Nexos combines real-time data collection, user-friendly software, and cost-efficiency with an open API system to connect disparate tech and systems within smart buildings. Morover, this platform can be installed in existing buildings.
In September 2018, AT&T and Synchronoss launched a smart building service. AT&T is using the Synchronoss Digital Smart Building platform to power its new Energy and Building Management service.
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This report offers key insights pertaining to the smart building market with emphasis on recent developments across geographies and development strategies adopted by prominent market participants. The following sections have specifically been covered in the report.