According to the latest report published by Variant Market Research,the global smart building market size is projected to reach $81.6 billion by 2025. In this report, smart buildingmarket forecast says that the global market is growing at a CAGR of 34.7% from 2017 to 2025. By geography, Asia-Pacific is expected to grow at the fastest CAGR during the forecast period. Smart building incorporates main building systems on a communal network and shares information & functionality among systems to advance energy effectiveness and operational efficiency. Automated systems, digital infrastructure, wireless technologies, intelligent building management systems, and remote monitoring are some of the smart technologies which are used for smart buildings.
Smart Building Market (By Type: Building Automation Software and Services; By Building Type: Residential Buildings, Manufacturing Facilities, Commercial Buildings, Government & Public Infrastructure Facilities, University, School, & Hospital Buildings, and Other Building Types; By Geography: North America, Europe, Asia-Pacific and RoW) Global Scenario, Market Size, Outlook, Trend and Forecast, 2016 – 2025
Rising requirement for integrated security & safety systems drives the global smart building market
The global smart building market trend includes execution of IoT platform within the building automation technology, rising requirement for integrated security & safety systems, and reducing operational cost. Though, high initial investment might act as a roadblock for the global smart building market growth. Moreover, increasing cloud based IoT platforms would offer worthwhile opportunities for the market in the coming years.
Type, building type, and geography are the classification of the global smart building market. The type segment is categorized into building automation software and services. Residential buildings, manufacturing facilities, commercial buildings, government & public infrastructure facilities, university, school, & hospital buildings, and other building types are the segregation of building type segment.
By geography, global smart building market is segmented into North America, Europe, Asia-Pacific, and Rest of the World (RoW). North America is further bifurcated into U.S., Canada, and Mexico, whereas Europe segment consists of UK, Germany, Russia, France, Italy, and Rest of Europe. Asia-Pacific is segmented into China, India, South Korea, Japan, and Rest of Asia-Pacific while RoW is bifurcated into South America, Middle East, and Africa.
Residential building, by building type projected to grow at the highest CAGR over the forecast period
On the basis of building type, residential building segment is expected togrow at the highest CAGR over the forecast period. The capability of communication standards & protocols to combine many control devices & minimalize the usage of wires owing to the arrival of wireless technologies is driving the growth of the residential building segment of the global smart building market.
Services, by type is anticipated to gain the fastest CAGR between 2017 and 2025
Services, by typeis predicted to achieve the fastest CAGR during the forecast period. The growth is driven by fact that service providers assistance in executing intelligent automation and technologies for the effective operation as well as maintenance of buildings in a cost-effective way. The services comprised are training & consulting, support, and integration provided by many vendors in this market.
Europe expected to be the dominant market during the forecast period
Europe is anticipated to account for the maximum market share over the forecast period. The growth of the market in the region is attributed to the governments growing initiatives about building smart and intelligent structures in the region.
Key players are offering innovative products and services to increase their smart building market share. Main players competing in the market include Cisco Systems, Inc., Honeywell International Inc., Hitachi, Ltd., Schneider Electric, Johnson Controls, Emerson Electric Co, General Electric, Ingersoll-Rand plc, Hewlett Packard Enterprise, and Delta Controls, among others.