Smart Building MarketSize and Trends

The global smart building market size was valued at US$ 79.12 billion in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 24.89% from 2023 to 2030. The global smart building market is rapidly expanding market due to the growing demand for cost-effective energy-saving solutions. The growth of the Smart Building market is mainly driven by a number of factors such as government initiatives, rising awareness about environmental issues, and cost-effective technology solutions. This market is also expected to benefit from increased consumer spending for advanced smart technologies and a growing need for efficient infrastructure.

Figure 1. Global Smart Building Market Share (%), By Region, 2023

Global Smart Building Market Trends:

Building energy management system segment is gaining traction in the market

As the number of commercial buildings is growing across the globe, the demand for reduction in consumption of energy is also increasing along with continuously rising use of energy. Due to These factor, the need for innovative technologies is growing for reducing and optimizing use of energy in these buildings. Thus, the building energy management systems are gaining popularity, as they can monitor and control the energy needs of a building. This trend is likely to drive growth of the global smart building market in the coming future.

Rise in smart city projects is growing trend in the market

The urbanization across the globe is growing rapidly, which is further driving the number of smart city projects around the world. For instance, according to a high-level Expert Forum 2019 report, by 2050, 70% of the population around the world is likely to move into urban regions. Due to this, the demand for spaces and buildings to sustain livelihood and for work requirements is expected to grow rapidly. Several governments around the world are thus, investing in smart city projects with cleaner transportation, advanced infrastructure, and other smart technologies. Therefore, this trend is likely to continue in the global smart building market in coming years.