April 14, 2024
Smart Building Market

Smart Building Market driven by Growing Need for Energy Management is estimated to be valued at US$ 101.23 Bn in 2024

Smart buildings incorporate various sensing systems and devices that collect data from different aspects of the building’s operations and environment. This data is then analyzed to optimize building performance, reduce energy and operating costs, and improve indoor environmental quality and comfort for occupants. Smart building technologies also allow for remote monitoring and control of systems like heating, ventilation, air conditioning, lighting, security, and other functions. The global smart building market comprises of various component and system manufacturers that provide integrated solutions for building automation and control, physical security and surveillance, energy and infrastructure management, and network management.

The global Smart Building Market is estimated to be valued at US$ 101.23 Bn in 2024 and is expected to exhibit a CAGR of 13% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

Growing adoption of IoT and wireless technology is one of the key trends driving growth of the smart building market. Integration of IoT enables various devices and systems in a building to connect and share data with each other through a central network. This allows for remote monitoring of building operations and automated control based on pre-defined parameters. Wireless connectivity solutions are also increasingly being used as they offer flexibility and reduce costs associated with wiring. Furthermore, rising emphasis on green building initiatives and sustainability is prompting organizations and commercial facilities to invest in energy efficient smart building technologies to lower operating expenses and reduce carbon footprint in the long run.

Porter’s Analysis

Threat of new entrants: Low startup costs for software and services has increased threat of new entrants. However, established players have stronger brand recognition and customer base.

Bargaining power of buyers: Large buyers have significant bargaining power due to ability to demand customized solutions and reduced pricing. However, buyers have limited influence over specialized smart building solutions.

Bargaining power of suppliers: A few large suppliers dominate the market for key components like sensors and control systems. However, easy availability of components from smaller suppliers has reduced supplier power.

Threat of new substitutes: Introduction of new technologies in lighting, HVAC, and security continues to offer substitutes. However, overall functionality of an integrated smart building system offers less threat of substitution.

Competitive rivalry: The market is moderately competitive with focus on integrating solutions rather than standalone products. Large players compete on the basis of product segments, capabilities, customization and pricing.

Key Takeaways

The Global Smart Building Market Size is expected to witness high growth on account of rapid urbanization and growing emphasis on energy efficiency.

Regional analysis: North America dominated the market and is expected to continue its dominance over the forecast period. Large presence of technology players and advanced infrastructure make the region highly lucrative for smart building solutions. Asia Pacific is expected to witness the fastest growth on account of increasing construction activities, smart city initiatives of governments and growing adoption of IoT technologies.

Key players operating in the Smart Building Market are Abbott, Hologic Inc., Becton, Dickinson and Company, Southwest Precision Instruments, LLC, F. Hoffmann-La Roche Ltd, Sysmex Corporation, Thermo Fisher Scientific Inc., Danaher, Life Technologies Corporation, Merck KGaA, Koninklijke Philips N.V., Perkin Elmer, and Trivitron Healthcare. Key players are focusing on partnerships to offer integrated solutions and expanding to emerging markets.

*Note:
1.      Source: Coherent Market Insights, Public sources, Desk research
2.      We have leveraged AI tools to mine information and compile it