The smart building market is estimated to be valued at US$ 87.87 Bn in 2023 and is expected to exhibit a CAGR of 24% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Smart buildings incorporate various technologies like automation solutions, building management systems, energy management systems, physical security systems, and life safety systems within one integrated system. Smart building systems help in improving energy efficiency, reducing operational costs, and enhancing building experience through centralized monitoring and control. Adoption of smart building technologies allows organizations to remotely monitor and control various building parameters like temperature, lighting, security, and access systems through a centralized interface.

Market key trends:

One of the major trends fueling the growth of smart building market is the increasing demand for energy-efficient solutions from commercial as well as residential sectors. Several government regulations aim to reduce energy consumption from buildings and promote sustainability. For example, the European Union has set an ambitious target to reduce energy consumption from buildings by at least 32.5% (compared to 2005 levels) by 2030. This is increasing the adoption of smart building solutions across Europe. Smart building technologies help in automatic control and monitoring of heating, ventilation, and air conditioning (HVAC) systems based on occupancy patterns. This significantly improves energy efficiency of buildings. Advanced lighting control systems can also adjust intensity and direct light according to occupancy in a room. Such features are gaining popularity due to their ability to optimize energy usage and reduce operational costs.

Porter’s Analysis

Threat of new entrants: The threat of new entrants is low due to the presence of well-established players in the smart building market and requirement of high initial investment. Bargaining power of buyers: The bargaining power of buyers is high due to availability of alternatives and price sensitivity among buyers. Bargaining power of suppliers: The bargaining power of suppliers is moderate due to availability of substitutes. Threat of new substitutes: The threat of new substitutes is moderate as new energy efficient technologies can replace existing smart building technologies. Competitive rivalry: Intense due to presence of numerous global and regional players.

SWOT Analysis

Strength: Smart building solutions help in enhancing energy efficiency, security, infrastructure management, and productivity. Weakness: High initial costs and technical complexities associated with smart building solutions. Opportunity: Growing construction industry and adoption of IoT and wireless technologies. Threats: Data privacy and security concerns. Lack of standardization and interoperability.

Key Takeaways

The Global Smart Building Market Size is expected to witness high growth, exhibiting CAGR of 24% over the forecast period, due to increasing adoption of IoT-enabled building management systems and cloud-based platforms. Regionally, North America dominated the global market in 2023 with a share of over 35%, owing to presence of major players and rising construction activities in the region. Key players like Softdel (A UNIDEL Company), ABB Ltd., Hitachi Ltd., Honeywell International, Avnet Inc., Siemens AG, Legrand SA, Schneider Electric SE, Johnson Controls Inc., Huawei Technologies Co. Ltd., Cisco Systems, and IBM Corporation are operating in the smart building market.

Regional analys: The Asia Pacific smart building market is projected to grow at the fastest rate during the forecast period due to rapid urbanization and government initiatives to develop smart infrastructure in emerging economies of China and India. Countries like India, China, Japan, Singapore, and South Korea are expected to offer substantial growth opportunities for smart building solution providers.

Key players: Key players operating in the smart building market are Softdel (A UNIDEL Company), ABB Ltd., Hitachi Ltd., Honeywell International, Avnet Inc., Siemens AG, Legrand SA, Schneider Electric SE, Johnson Controls Inc., Huawei Technologies Co. Ltd., Cisco Systems, and IBM Corporation.

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https://www.ukwebwire.com/smart-building-market-size-share-growth-outlook-2023/