The global smart buildings market is set to expand by $64.8bn between 2023 and 2028 due to escalating demand for automation and government initiatives to create smart cities, according to a new report
Research & Markets said the worldwide smart buildings industry will post a compound annual growth rate of 10.61% over the forecast period.
This momentum is being driven by increasing demand for building automation and integration of the Internet of Things (IoT) with building management software.
The expanding concept of the Building Internet of Things (BIoT) is expected to significantly boost market growth in coming years, it added.
In particular, there is growing demand for state-of-the-art security and safety systems, as well as an increasing emphasis on energy conservation.
Furthermore, the proliferation of government initiatives to develop smart cities will spur substantial demand for smarter buildings.
Smart buildings market overview
Research & Markets said the forecast growth in smart buildings will be driven by various segments.
The market is categorized by products, including Building Management Systems, Heating, Ventilation & Air Conditioning (HVAC) systems, lighting control, security and access control, among others.
Furthermore, the market is bifurcated into software, hardware and services based on components.
Geographically, the market spans key regions such as North America, Europe, Asia-Pacific, South America and the Middle East and Africa.
Focus on technological innovation
The report said the competitive landscape of the smart buildings market is robust. Leading vendors include Cisco Systems, Honeywell, Johnson Controls, Panasonic and Siemens.
Against this backdrop, companies in the sector are increasingly focused on technological innovation to meet the evolving needs of customers and tap into emerging growth opportunities.
Strategic foresight, along with an understanding of market dynamics, will be essential for stakeholders intending to capitalize on the opportunities on the horizon, it added.
Earlier this year, the Global Construction Market Report 2024 from Research & Markets showed the sector is expected to grow from $15.97tn in 2024 to $19.85tn by 2028.
This will be driven by a combination of rapid urbanization, a surge in infrastructure development and the continuing emergence of smart cities.
