As per the report published by Fior Markets, the global smart buildings market is expected to grow from USD 80.5 billion in 2020 to reach USD 246.25 billion by 2028, at a CAGR of 15% during the forecast period 2021-2028.
The adoption of IoT-enabled building management systems, increasing awareness of space use, higher industry standards, and regulations, and the growing need for energy-efficient systems are all the main factors driving the smart building market growth. During the projected period, however, the smart building market’s growth is likely to be hampered by the expensive initial investment.
Any structure that employs automated procedures to regulate the building’s functions, such as heating, ventilation, air conditioning, lighting, security, and other systems, is referred to as a smart building. Sensors, actuators, and microchips are used in smart buildings to gather data and manage it according to the tasks and services of a company. This infrastructure assists owners, operators, and facility managers in improving asset dependability and performance, which saves energy, improves space use, and reduces building environmental impact. Buildings that aren’t linked are the same ones that existed decades ago. For years, they have consistently given the essentials: shelter, temperature control, and safety. However, fresh structures, as well as existing structures that have been transformed into smart structures, are always evolving. They are living creatures that are connected to a network and run software that is smart and adaptive. Smart buildings, at their most basic level, improve user productivity by providing lighting, thermal comfort, air quality, physical security, sanitation, and other services at lower costs and with less environmental impact than buildings that are not linked.
The global smart building market is projected to develop rapidly as the need for safety and security, as well as energy efficiency and comfort in buildings, grows. Smart buildings can save operating and maintenance costs while simultaneously lowering CO2 emissions and ensuring the safety and security of occupants. Market growth is likely to be driven by such factors. Over the projected period, government efforts and regulations, technological advances, and the requirement for safety and security are likely to drive market growth. The emergence of smart grids and smart cities is projected to open up a slew of new business opportunities. The Green Building Initiative is a non-profit organization in the United States that provides grades and prescribes guidelines for decreasing environmental impact. Companies that adopt such ideas may help to boost the market even more. The expensive cost of implementation and assembly, on the other hand, may hamper the market growth.
Key players operating in the global Smart Buildings Market include Advantech Co. Ltd (Taiwan), ABB Group (Switzerland), Control4 Corporation (US), Cisco Systems (US), Emerson Electric Co. (US), GEZE GmbH (Germany), Honeywell International, Inc. (US), Hitachi Ltd (Japan), HCL Technologies Limited (India), Huawei Technologies Co. Ltd, (China), IBM Corporation (US), Johnson Controls International PLC (Ireland), Legrand SA (France), Panasonic Corporation (Japan), Overkiz (France), Siemens AG (Germany), Schneider Electric SE (France), Sony Corporation (Japan), and United Technologies Corporation (US).
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The energy management segment dominated the market and held the largest market share of 19.5% in the year 2020
Based on components, the global smart buildings market is segmented into solutions and services. The solutions segment is further divided into energy management, building infrastructure management, security and emergency management, network management, and IWMS. The service segment is further divided into consulting, implementation, support, and maintenance. The energy management sub-segment from the solution segment held the largest market share of 19.5% in the year 2020. Energy management systems for smart buildings assist in reducing and monitoring the building’s energy use. Furthermore, keeping operating costs low is a constant problem for owners and managers of multistorey buildings, schools, or building complexes, which may be accomplished with the help of a smart building energy management solution.
The commercial segment dominated the market and held the largest market share of 45.15% in the year 2020
Based on type, the global smart buildings market is segmented into commercial, residential, and industrial. The commercial segment held the largest market share of 45.15% in the year 2020. The growth of this segment is attributed to the demand for appropriate and tailored solutions for optimized energy productivity to reduce building energy usage without compromising convenience or security, as well as enhancing the energy performance of commercial buildings, as these buildings utilize more energy and create more waste in the form of carbon and other solid waste.