Global Smart Building Market is predicted to reach USD 509007.5 million at a CAGR of 18.66% during the forecast period

Market Research Future (MRFR) has published on the “Global Smart Building Market”.

The global Smart Building market is consistently growing due to the Increasing advancements in Smart Building and government support driving market growth across globe and technological advancement within the building industry. Smart buildings provide a great amount of useful building data regarding how they are used. Analyzing this data can provide insight into usage patterns and trends, allowing you to make educated decisions about how to improve your building, resulting in the following benefits.

Market Research Future (MRFR) has published a cooked research report on the “Global Smart Building market” that contains information from 2024 to 2032. The Smart Building market is estimated to register a CAGR of 18.66% during the forecast period of 2024 to 2032.

MRFR recognizes the following companies as the key players in the global Smart Building market - Control4 Corporation (Snap One, LLC), HCL Technologies Limited, Panasonic Corporation, Advantech Co. Ltd, Johnson Controls International PLC, Hitachi Ltd, Sony Corporation, IBM Corporation, Cisco Systems, Honeywell International, Inc., Emerson Electric Co, Overkiz, ABB Group, Huawei Technologies Co. Ltd, and Siemens AG.

Smart Building Market Highlights

The global Smart Building market is accounted to register a CAGR of 18.66% during the forecast period and is estimated to reach USD  509007.5 million by 2032.

Governments in various countries are taking initiatives for the development of smart cities, smart infrastructure, and smart living. For instance, in July 2019, Empire State Development Authority (ESD) announced the Smart Cities Innovation Partnership program with the collaboration of the Israel Innovation Authority. The partnership would design five smart cities to connect with emerging technologies and improve government services, and residents’ quality of life. Moreover, according to the U.S.-China Economic and Security Review Commission, Chinese government spending on smart cities initiatives reached USD 38.92 billion in 2023. Such developments further indicate a nation's propensity towards adopting energy efficiency solutions. Also, the Canadian government is laying high emphasis on energy conservation through smart buildings majorly, including offices and homes. The United Kingdom also has kept considerable efforts in smart building solutions, primarily to reduce the carbon footprint from the building sector and reduce its energy consumption. The Government of India developed 'The Energy Conservation Building Code' (ECBC), which sets minimum energy performance standards for buildings and includes the building envelope, heating, ventilation, and air conditioning. Hence, the growing adoption of smart lighting systems could help the country in saving energy.

Major focus of the government is to ensure that buildings, infrastructure, operations, and citizens are safe, secure, and energy efficient. Various policies and laws are designed to support the adoption and implementation of digital infrastructure to drive operational effectiveness, accelerate economic activities and innovation and manage the energy, resources, and services in a better way. Governments are funding research and development of energy-efficient buildings and are creating the need for policy compliance with respect to fire and electrical safety. Governments are reimaging their building structures and adopting smart building infrastructure to improve the monitoring and control of mechanical, heating, cooling, and lighting systems in federal buildings across various countries to increase the efficiency of these systems. State and local governments in the emerging economies are also following a number of approaches to adopt smart infrastructure, address issues regarding safety and security by accurately detecting incidents and protecting against crimes with the help of digital monitoring.

Segment Analysis

The global Smart Building market has been segmented based on Automation and Application.

Based on the Automation, the global Smart Building market is segmented into Intelligent Security System, Building Energy Management System, Infrastructure Management System, and Network Management System. The Building Energy Management System segment held the majority share in 2022, contributing around ~ 38.2% to the market revenue. A building energy management system (BEMS) is a sophisticated method for monitoring and controlling the energy needs of a structure. Buildings use energy to perform various operations such as heating, ventilation, and air-conditioning. This energy accounts for a high operating expense. Therefore, smart buildings are equipped with energy management systems which monitor, measure, and manage energy consumption and increase operational efficiency, reducing energy wastage and operation cost, and providing various environmental and sustainability benefits. A building energy management system has been sub-segmented into energy management platform, HVAC control system, and lighting control system.

Based on the Application, the global Smart Building market is segmented into Commercial, Industrial, Government & Public Infrastructure, and Residential. The Commercial segment held the majority share in 2022, contributing around ~ 46.24% to the market revenue. Commercial offices, shopping complexes, and hotels that are smart are outfitted with building automation systems such as intelligent security systems, infrastructure management systems, and energy management systems. The adoption of smart buildings in the commercial segment is more as compared to residential and industrial segments. Commercial spaces have been the early adopters of smart buildings and contribute to the significant market share. Building operating cost is the second highest expenditure of commercial businesses after employee salaries.

Browse In-depth Details [Table of Content, List of Figures, List of Tables] of Smart Building Market Research Report

Regional Analysis

Based on region, the global Smart Building market is segmented into North America, Europe, Asia-Pacific, and Rest of the World (ROW). North America accounted for highest market share of 36.87%. North America consists of US, Canada and Mexico. Smart building solutions are being used and accepted more frequently in the area. The large number of early adopters in the United States and Canada account for a sizeable portion of the market share in North America. Due to its developed infrastructure that can support smart automation solutions in the residential and commercial segments, the region is anticipated to dominate the global market over the time of the forecast. Innovative door-related products such as access control systems, smart door locks, safety systems, and other door hardware accessories are considered in the smart building market. The necessity for innovative/intelligent security system components to deter theft has been prompted by increased crimes, including robbery and burglary at residential and commercial properties. For instance, the European Union records at least one burglary every 1.5 minutes, with some Member States recording 1,000 burglaries virtually every day, according to the European Union Agency for Law Enforcement Cooperation. The Asia Pacific market participants also aim to improve the smart building services by creating IoT-enabled building management systems throughout the region. China, India and Japan are essential players in the development of regional technology. For instance, their businesses are heavily investing in smart building activities like the incorporation of building systems and building controls to influence energy efficiency and energy storage and to distribute safer, smarter, and more sustainably constructed buildings. In addition, the government is advancing the development of smart buildings by making federal buildings more energy-efficient and reducing greenhouse gas emissions. These actions are being taken to support the government's commitment to protecting the environment and resources.

Key Findings of the Study

• The global Smart Building market is expected to reach USD 509007.5 million by 2032, at a CAGR of 18.66% during the forecast period.


• The North America region accounted for the fastest-growing global market, imperative factors, such as the significant number of investments in North America, making it the primary contributor to the market share.


• Based on Automation, the Building Energy Management System segment was attributed to holding the largest market in 2022, with an approximate market share of 38.2%.


• Control4 Corporation (Snap One, LLC), HCL Technologies Limited, Panasonic Corporation, Advantech Co. Ltd, Johnson Controls International PLC, Hitachi Ltd, Sony Corporation, IBM Corporation, Cisco Systems, Honeywell International, Inc., Emerson Electric Co, Overkiz, ABB Group, Huawei Technologies Co. Ltd, Siemens AG, and Others are the key market players.