Smart Buildings Market by Applications (Hospitals, Industrial, Educational, Commercial, Airports, and Residential), Products (Emergency Systems, Safety & Security, HVAC, Lighting, Monitoring, Energy Management, and Car Parking Management), and Regions (Asia Pacific, North America, Latin America, Europe, and Middle East & Africa) - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast 2021 – 2028

The global smart buildings market size is anticipated to register a considerable CAGR during the forecast period, 2021-2028. The growth of the market is attributed to increasing need for security & safety, coupled with comfort and energy efficiency in buildings.

The application of smart technology has made human lives much easier than before. A smart building a structure that makes use of automated processes and integrated building technology systems to control various operations of the building such as – lighting, ventilation, heating, air conditioning, security, and other systems. A smart building uses sensors, actuators, and microchips to improve the structure's overall performance. Smart building technology aids in the improvement of building operations as well as the reduction of energy expenses.

The outbreak of COVID-19 pandemic had a negative influence on the market. Manufacturing and supply chain units have had to suspend output as a result of the global lockdown enforced by governments, which is likely to impede the demand for smart buildings. The market is expected to quickly recover, since various industries have restarted operations as COVID-19 instances have gradually reduced around the world.

Market Trends, Drivers, Restraints, and Opportunities

• Rising adoption of Internet of Things-enabled building management system is one of the key factors driving the market growth.
• Increasing importance related to home-security by owners is expected to boost the market growth in the coming years.
• Growing privacy and security concerns related to IoT-enabled devices is projected to hinder the market expansion during the forecast period.
• Lack of co-operation among standard bodies across the sector presents a major challenge. This is anticipated to hamper the market growth in the projected period.
• Development of smart grids and smart cities in emerging economies is projected to create significant growth opportunities for the market in the near future.

Scope of the Report

The report on the global smart buildings market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Market Segment Insights

Commercial segment to grow at a rapid pace

Based on applications, the global smart buildings market is divided into hospitals, industrial, educational, commercial, airports, and residential. The commercial segment is expected to grow at a rapid pace during the forecast period owing to the need for appropriate and tailor-made solutions for optimized energy performance. However, the residential segment is anticipated to hold a key share of the market in the coming years due to the ability to reduce building energy consumption without compromising comfort or security.

Energy efficiency to drive safety & security segment

On the basis of products, the market is segregated into emergency systems, safety & security, HVAC, lighting, monitoring, energy management, and car parking management. The safety & security segment is projected to expand at a considerable CAGR during the forecast period attributed to the growing requirement for energy-efficient solutions across the sector. On the other hand, the energy management segment is anticipated to account for a major market share during the forecast period due to the ability to keep operational expenses low through smart building energy management solution.

Europe to constitute a key market share

In terms of regions, the global smart buildings market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Europe is expected to constitute a key share of the market during the projected period owing to the presence of a large number of service providers in the region. However, the market of Middle East is anticipated to expand at a rapid pace during the forecast period attributed to the vast number of ongoing projects across the region.

Segments

Segments Covered in the Report

The global smart buildings market has been segmented on the basis of

Applications

• Hospitals
• Industrial
• Educational
• Commercial
• Airports
• Residential

Products

• Emergency Systems
• Safety & Security
• HVAC
• Lighting
• Monitoring
• Energy Management
• Car Parking Management

Regions

• Asia Pacific
• North America
• Latin America
• Europe
• Middle East & Africa

Key Players

• Siemens Building Technologies
• Smarthome Inc.
• LG Electronics Inc.
• Cisco Systems, Inc.
• Control4 Corp.
• Schneider Electric SE
• Emerson Electric Co.
• Honeywell Scanning & Mobility
• United Technologies Corp.
• Leviton MFG. Company, Inc.

Competitive Landscape

Key players competing in the global smart buildings market are Siemens Building Technologies; Smarthome Inc.; LG Electronics Inc.; Cisco Systems, Inc.; Control4 Corp.; Schneider Electric SE; Emerson Electric Co.; Honeywell Scanning & Mobility; United Technologies Corp.; and Leviton MFG. Company, Inc. As part of their efforts to expand their client base and acquire a competitive advantage over competitors, manufacturers operating in the market have adopted various strategic initiatives, such as partnerships, collaborations, and mergers & acquisitions. Moreover, companies are focusing on investment in R&D for development and launching of new products to maintain their competitive positions in the market.