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Add to CartGlobal Smart Buildings (Nonresidential Buildings) Market Growth, Share, Size, Trends and Forecast (2024 - 2030)
By Component;
Solution (Building Infrastructure Management (Parking Management System, Smart Water Management System, Elevators and Escalators System)), Security and Emergency Management (Access Control System, Video Surveillance System, and Safety System), and Energy Management and Services).By Application;
Government, Airports, Hospitals, Institutes Manufacturing & Industrial facilities and Others.By Geography;
North America, Europe, Asia Pacific, Middle East and Africa and Latin America - Report Timeline (2020 - 2030).Introduction
Global Smart Buildings (Nonresidential Buildings) Market (USD Million), 2020 - 2030
In the year 2023, the Global Smart Buildings (Nonresidential Buildings) Market was valued at USD 62,707.01 million. The size of this market is expected to increase to USD 122,587.57 million by the year 2030, while growing at a Compounded Annual Growth Rate (CAGR) of 10.1%.
The global smart buildings market for nonresidential buildings is experiencing significant growth as the construction industry continues to embrace innovative technologies aimed at enhancing efficiency, sustainability, and occupant comfort. Smart buildings integrate various systems and technologies, such as building automation, energy management, security, and communication systems, to create intelligent, interconnected environments that respond dynamically to the needs of occupants and building operators. This integration enables buildings to optimize resource utilization, reduce operational costs, and provide a safer and more comfortable environment for occupants.
One of the key drivers of the global smart buildings market is the increasing emphasis on energy efficiency and sustainability. With rising energy costs and growing concerns about environmental impact, building owners and operators are increasingly turning to smart building solutions to reduce energy consumption, lower carbon emissions, and achieve green building certifications. Smart building technologies, such as advanced building automation systems, smart lighting, and efficient HVAC (heating, ventilation, and air conditioning) systems, enable buildings to optimize energy usage based on occupancy patterns, external weather conditions, and other factors, thereby reducing energy waste and operating costs.
Moreover, advancements in IoT (Internet of Things), cloud computing, and data analytics are driving innovation in the smart buildings market, enabling greater connectivity, automation, and intelligence within building systems. IoT sensors and devices embedded throughout the building collect real-time data on various parameters, such as occupancy levels, indoor air quality, and equipment performance. This data is then analyzed and used to optimize building operations, improve predictive maintenance, and enhance the overall user experience. The ability to remotely monitor and control building systems through cloud-based platforms further enhances operational efficiency and flexibility for building operators.
Furthermore, the increasing focus on occupant health, comfort, and productivity is driving demand for smart building solutions that prioritize user experience and well-being. Smart buildings incorporate features such as advanced air filtration systems, personalized lighting controls, and indoor environmental quality monitoring to create healthier and more comfortable indoor environments. Additionally, smart building technologies enhance security and safety through features such as access control systems, video surveillance, and emergency response automation, providing peace of mind for building occupants and operators alike. Overall, the global smart buildings market for nonresidential buildings is poised for continued growth as organizations recognize the value proposition of smart building solutions in improving efficiency, sustainability, and occupant satisfaction in the built environment.
Global Smart Buildings (Nonresidential Buildings) Market Report Snapshot
| Parameters | Description |
|---|---|
| Market | Global Smart Buildings (Nonresidential Buildings) Market |
| Study Period | 2020 - 2030 |
| Base Year (for Smart Buildings (Nonresidential Buildings) Market Size Estimates) | 2023 |
| Drivers |
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| Restraints |
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| opportunities |
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Segment Analysis
This report extensively covers different segments of Global Smart Buildings (Nonresidential Buildings) Market and provides an in depth analysis (including revenue analysis for both historic and forecast periods) for all the market segments. In this report, the analysis for every market segment is substantiated with relevant data points and, insights that are generated from analysis of these data points (data trends and patterns).
The segmentation of the global smart buildings market for nonresidential buildings encompasses three key dimensions: component, application, and geography. Component segmentation categorizes the various elements that constitute smart building systems, including hardware, software, and services. Hardware components may include sensors, actuators, controllers, and building management systems (BMS), which form the backbone of smart building infrastructure. Software solutions encompass building automation software, energy management platforms, and data analytics tools that enable centralized control, monitoring, and analysis of building systems. Services, such as consulting, integration, maintenance, and support, play a crucial role in deploying, managing, and optimizing smart building solutions, ensuring seamless operation and maximizing return on investment (ROI).
Application segmentation divides the market based on the specific sectors or industries where smart building solutions are deployed. This includes government buildings, airports, hospitals, institutes, manufacturing and industrial facilities, commercial complexes, and others. Each application sector has unique requirements and priorities, driving demand for tailored smart building solutions. For example, government buildings may prioritize security, energy efficiency, and regulatory compliance, while hospitals focus on patient safety, care quality, and operational efficiency. Manufacturing facilities seek to optimize production processes, minimize downtime, and enhance worker safety through smart building technologies. By segmenting the market by application, stakeholders can develop targeted strategies and solutions to address the distinct needs of different industries and sectors.
Geographical segmentation divides the global smart buildings market based on geographic regions, such as North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. Each region has its unique market dynamics, regulatory environment, technological adoption rates, and cultural factors that influence the adoption of smart building solutions. For instance, North America and Europe lead in terms of market maturity and adoption of advanced smart building technologies, driven by stringent energy efficiency regulations, government incentives, and a high level of awareness regarding sustainability and environmental impact. In contrast, the Asia Pacific region is witnessing rapid growth, fueled by urbanization, economic development, and increasing investments in infrastructure projects across emerging economies. Geographical segmentation enables stakeholders to identify regional growth opportunities, tailor their offerings to local market needs, and effectively penetrate new markets.
Overall, the segmentation of the global smart buildings market by component, application, and geography provides a comprehensive framework for understanding the diverse factors influencing market dynamics, identifying growth opportunities, and developing targeted strategies to capitalize on emerging trends in the rapidly evolving smart building landscape. By leveraging insights from each segmentation dimension, stakeholders can optimize their product offerings, expand their market presence, and drive innovation in smart building technologies to meet the evolving needs of nonresidential building owners, operators, and occupants worldwide.
Global Smart Buildings (Nonresidential Buildings) Segment Analysis
In this report, the Global Smart Buildings (Nonresidential Buildings) Market has been segmented by Component, Application and Geography.
Global Smart Buildings (Nonresidential Buildings) Market, Segmentation by Component
The Global Smart Buildings (Nonresidential Buildings) Market has been segmented by Component into Solution (Building Infrastructure Management (Parking Management System, Smart Water Management System, Elevators and Escalators System)), Security and Emergency Management (Access Control System, Video Surveillance System, and Safety System), and Energy Management and Services).
The global smart buildings market for nonresidential buildings is segmented by component, with a focus on three main categories: Solution, Security and Emergency Management, and Energy Management and Services. Under the Solution component, various systems are integrated to manage building infrastructure efficiently. This includes Parking Management Systems, which optimize parking space utilization and enhance user experience through features like automated parking guidance and reservation systems. Smart Water Management Systems help conserve water resources by monitoring consumption, detecting leaks, and optimizing irrigation systems. Elevators and Escalators Systems incorporate smart technologies to improve operational efficiency, enhance user safety, and reduce energy consumption through features like predictive maintenance and destination dispatch.
Security and Emergency Management is another key component of smart buildings, encompassing systems and solutions to ensure the safety and security of occupants and assets. Access Control Systems regulate entry and exit to buildings and restricted areas, enhancing security and preventing unauthorized access. Video Surveillance Systems provide real-time monitoring and recording of building premises to deter crime, enhance situational awareness, and facilitate investigations. Safety Systems include fire detection, alarm, and suppression systems designed to prevent, detect, and mitigate emergencies, ensuring the timely evacuation and protection of occupants in the event of a fire or other emergencies.
Energy Management and Services constitute a critical component of smart buildings, focusing on optimizing energy usage, reducing costs, and enhancing sustainability. Energy Management Systems monitor, control, and optimize energy consumption across building systems, including HVAC, lighting, and appliances, to minimize waste and improve efficiency. Demand response and load management strategies help balance energy supply and demand, reduce peak demand charges, and support grid stability. Additionally, energy services such as energy audits, retrofits, and renewable energy integration help building owners and operators identify energy-saving opportunities, implement efficiency measures, and achieve sustainability goals, contributing to reduced carbon emissions and environmental impact.
Overall, segmentation by component in the global smart buildings market enables stakeholders to understand the diverse systems and solutions that constitute smart building infrastructure. By focusing on Solution, Security and Emergency Management, and Energy Management and Services, building owners, operators, and technology providers can identify opportunities to enhance building performance, occupant comfort, and operational efficiency through the integration of advanced technologies and smart solutions tailored to the unique needs of nonresidential buildings.
Global Smart Buildings (Nonresidential Buildings) Market, Segmentation by Application
The Global Smart Buildings (Nonresidential Buildings) Market has been segmented by Application into Government, Airports, Hospitals, Institutes Manufacturing & Industrial facilities and Others.
The segmentation of the global smart buildings market for nonresidential buildings by application offers insights into the diverse sectors benefiting from smart building technologies. Government buildings are a prominent segment, emphasizing sustainability, security, and operational efficiency. These buildings leverage smart technologies to optimize energy usage, monitor facility operations, and enhance security measures. Airports represent another significant application segment, where smart building solutions are deployed to streamline passenger flows, enhance security screenings, and optimize airport operations, thereby improving the overall traveler experience and operational efficiency.
Hospitals and healthcare facilities constitute a critical sector in the smart buildings market, focusing on patient safety, care quality, and operational efficiency. Smart building technologies in healthcare settings include patient tracking systems, automated medication dispensing, and environmental monitoring to improve workflow efficiency and enhance patient outcomes. Additionally, smart building solutions help hospitals optimize energy consumption, maintain indoor air quality, and comply with healthcare regulations, creating a safe and comfortable environment for patients, staff, and visitors.
Manufacturing and industrial facilities are another important application segment, prioritizing operational excellence, safety compliance, and production efficiency. Smart building solutions in manufacturing settings include predictive maintenance systems, real-time production monitoring, and energy-efficient HVAC and lighting systems to optimize equipment performance, minimize downtime, and improve overall operational efficiency. Furthermore, smart building technologies enable manufacturers to enhance worker safety, track asset utilization, and streamline supply chain operations, contributing to increased productivity and competitiveness in the global market.
Institutes, including educational institutions, research facilities, and universities, also benefit from smart building technologies that create conducive learning environments, optimize resource utilization, and enhance operational efficiency. Smart classrooms, campus-wide connectivity, and energy management systems are deployed to improve educational outcomes, reduce operating costs, and promote sustainability. Additionally, other sectors categorized as "Others" may include commercial complexes, retail centers, and entertainment venues, where smart building solutions are adopted to optimize space utilization, enhance user experience, and improve overall building performance. Overall, segmentation by application provides a comprehensive understanding of the diverse sectors leveraging smart building technologies to enhance efficiency, sustainability, and occupant satisfaction in nonresidential buildings worldwide.
Global Smart Buildings (Nonresidential Buildings) Market, Segmentation by Geography
In this report, the Global Smart Buildings (Nonresidential Buildings) Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa and Latin America.
Global Smart Buildings (Nonresidential Buildings) Market Share (%), by Geographical Region, 2023
The global smart buildings market for nonresidential buildings exhibits varying market shares across different geographical regions, reflecting regional differences in technological adoption, regulatory environments, and economic factors. North America commands a significant share of the market, driven by robust investments in smart building infrastructure, supportive government policies, and a strong emphasis on sustainability and energy efficiency. The region's market leadership is attributed to its advanced technological capabilities, coupled with stringent energy efficiency regulations and incentives that encourage the adoption of smart building solutions. Additionally, North America benefits from a high level of awareness regarding the benefits of smart buildings among building owners, operators, and tenants, further propelling market growth.
Europe follows closely behind, representing a substantial share of the global smart buildings market for nonresidential buildings. The region boasts a well-established smart buildings ecosystem, supported by progressive regulatory frameworks, ambitious sustainability targets, and a strong focus on environmental stewardship. European countries have implemented stringent energy efficiency standards and green building certifications, driving demand for smart building solutions that optimize energy usage, reduce carbon emissions, and enhance building performance. Moreover, government initiatives and financial incentives encourage building owners to invest in smart building technologies, contributing to the region's market dominance.
The Asia Pacific region is witnessing rapid growth in the smart buildings market, fueled by urbanization, economic development, and increasing investments in infrastructure projects across emerging economies such as China, India, and Southeast Asia. The region's burgeoning population, coupled with rising urbanization rates, has led to a surge in demand for smart building solutions to address challenges related to urbanization, resource scarcity, and environmental sustainability. Governments in the Asia Pacific region are promoting smart city initiatives and urban development projects, driving investments in smart buildings to improve livability, safety, and efficiency in urban areas. As a result, the Asia Pacific region is poised to emerge as a key growth market for smart buildings in the coming years.
Latin America and the Middle East & Africa regions also contribute to the global smart buildings market, albeit with smaller market shares compared to North America, Europe, and Asia Pacific. These regions are characterized by growing urbanization, increasing investments in infrastructure development, and a rising awareness of the benefits of smart buildings in enhancing energy efficiency, safety, and comfort. Governments in Latin America and the Middle East & Africa are implementing policies and initiatives to promote sustainable development and smart city projects, driving demand for smart building solutions across various sectors. Overall, geographical segmentation of the global smart buildings market provides valuable insights into regional trends, market dynamics, and growth opportunities, enabling stakeholders to tailor their strategies and investments accordingly.
Market Trends
This report provides an in depth analysis of various factors that impact the dynamics of Global Smart Buildings (Nonresidential Buildings) Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.
Drivers, Restraints and Opportunity Analysis
Drivers:
- Technological Advancements
- Regulatory Mandates
- Growing Urbanization-Growing urbanization is a significant driver shaping the global smart buildings market for nonresidential buildings. As the world's population increasingly migrates to urban areas, cities face unprecedented challenges related to infrastructure, resource management, and sustainability. Smart buildings play a crucial role in addressing these challenges by leveraging advanced technologies to optimize resource usage, enhance operational efficiency, and improve the overall quality of urban life.
With urbanization rates continuing to rise, the demand for smart building solutions is expected to surge, particularly in densely populated urban centers where the need for efficient infrastructure and sustainable development is most acute.One key aspect of growing urbanization driving the adoption of smart buildings is the need to accommodate a rapidly expanding urban population while minimizing the strain on resources and infrastructure. Smart building technologies offer innovative solutions to optimize energy, water, and waste management, ensuring efficient resource allocation and reducing environmental impact in urban environments.
By integrating smart building systems with city-wide infrastructure, such as smart grids, transportation networks, and public services, cities can achieve greater resilience, sustainability, and livability for residents and businesses.Moreover, growing urbanization is fueling demand for smart city initiatives and urban development projects aimed at creating more intelligent, interconnected urban environments. Smart buildings serve as foundational components of smart city ecosystems, providing essential infrastructure that supports the delivery of smart services, improves urban mobility, and enhances public safety and security.
By embracing smart building technologies, cities can enhance their attractiveness as vibrant, sustainable hubs for economic growth, innovation, and quality of life, attracting investment and talent while fostering inclusive and equitable urban development.Furthermore, the trend of urbanization is driving innovation and investment in smart building technologies, with governments, businesses, and technology providers collaborating to develop scalable solutions tailored to the unique needs of urban environments.
From smart office buildings and commercial complexes to smart healthcare facilities and educational institutions, the adoption of smart building solutions is proliferating across various sectors to meet the demands of urbanization. As cities continue to grow and evolve, smart buildings will play a pivotal role in shaping the urban landscape, driving efficiency, sustainability, and resilience in nonresidential buildings and contributing to the creation of smarter, more connected cities of the future.
Restraints:
- High Initial Costs
- Integration Challenges
- Security Concerns-Security concerns represent a significant challenge in the global smart buildings market for nonresidential buildings, as interconnected building systems and devices increase vulnerabilities to cyber threats and unauthorized access. With the proliferation of IoT devices, sensors, and interconnected networks in smart buildings, there is a growing risk of cybersecurity breaches, data breaches, and privacy violations. Malicious actors may exploit vulnerabilities in smart building systems to gain unauthorized access, disrupt operations, or steal sensitive information, posing significant security risks to building occupants, assets, and infrastructure.One of the primary security concerns in smart buildings is the risk of cyber attacks targeting interconnected building systems and networks.
Hackers may exploit vulnerabilities in building automation systems, access control systems, or surveillance cameras to infiltrate building networks, compromise data integrity, or launch denial-of-service attacks. Cyber attacks on smart buildings can have far-reaching consequences, including disruptions to building operations, financial losses, and reputational damage to building owners and operators. Moreover, the interconnected nature of smart buildings increases the potential impact of cyber attacks, as compromised systems may cascade to other building systems, exacerbating the security threat.Additionally, data privacy and compliance are critical security concerns in smart buildings, particularly with the collection and processing of sensitive personal and operational data.
Smart building systems collect a vast amount of data on building occupancy, energy usage, and operational activities, raising concerns about data privacy, consent, and compliance with data protection regulations such as GDPR and CCPA. Unauthorized access to sensitive data can result in privacy violations, identity theft, and legal liabilities for building owners and operators, highlighting the importance of implementing robust data security measures and privacy controls in smart building systems.Furthermore, physical security and access control are paramount in smart buildings to prevent unauthorized entry, mitigate security threats, and ensure the safety of building occupants and assets.
Access control systems, video surveillance, and perimeter security measures play a crucial role in securing smart buildings against physical threats such as theft, vandalism, and unauthorized intrusions. However, vulnerabilities in access control systems or inadequate security protocols may expose buildings to security breaches, allowing unauthorized individuals to gain entry or compromise building security. As smart buildings continue to evolve, addressing security concerns and implementing robust security measures will be essential to building trust, ensuring resilience, and safeguarding the integrity of nonresidential buildings in the digital age.
Opportunities:
- Demand for Smart Cities
- Emerging Technologies-Emerging technologies are driving innovation and transformation in the global smart buildings market for nonresidential buildings, offering new opportunities to enhance building efficiency, sustainability, and occupant comfort. One of the key emerging technologies is the Internet of Things (IoT), which enables the connectivity of various devices and sensors within smart buildings, allowing for real-time data collection, analysis, and control. IoT sensors embedded in building systems and equipment provide valuable insights into building performance, occupancy patterns, and environmental conditions, enabling predictive maintenance, energy optimization, and personalized user experiences.
Artificial Intelligence (AI) and machine learning are also playing a significant role in shaping the future of smart buildings by enabling intelligent automation, decision-making, and optimization. AI-powered algorithms analyze vast amounts of data generated by smart building systems to identify patterns, predict trends, and optimize building operations in real-time. Machine learning algorithms can adapt and improve over time, optimizing energy usage, space utilization, and occupant comfort based on historical data and real-time feedback. Additionally, AI-driven predictive maintenance systems can identify potential equipment failures before they occur, reducing downtime, maintenance costs, and enhancing system reliability.
Another emerging technology transforming the smart buildings market is edge computing, which involves processing data locally at the edge of the network, closer to where it is generated. Edge computing enables faster response times, lower latency, and reduced bandwidth requirements, making it ideal for real-time applications in smart buildings. By processing data locally at the edge, smart building systems can respond more quickly to changes in occupancy, environmental conditions, and energy demand, optimizing building operations and enhancing user experiences without relying solely on cloud-based resources.
Advances in building materials, energy storage, and renewable energy technologies are driving innovation in the construction and operation of smart buildings. Sustainable building materials, such as advanced insulation, energy-efficient windows, and eco-friendly construction materials, are reducing energy consumption, enhancing indoor air quality, and lowering environmental impact in smart buildings. Energy storage solutions, such as batteries and thermal storage systems, enable smart buildings to store excess energy generated from renewable sources, such as solar panels and wind turbines, for use during peak demand periods or grid outages, enhancing resilience and reducing reliance on the grid. Overall, emerging technologies are revolutionizing the smart buildings market, offering new capabilities and opportunities to create more intelligent, efficient, and sustainable nonresidential buildings for the future.
Competitive Landscape Analysis
Key players in Global Smart Buildings (Nonresidential Buildings) Market include:
- Honeywell International Inc.
- Siemens AG
- Johnson Controls International plc
- Schneider Electric SE
- IBM Corporation
- Cisco Systems, Inc.
- ABB Ltd.
- PCl Construction
- Skanska
- Arabian Construction Company
- Besix
- Spire Realty Group
In this report, the profile of each market player provides following information:
- Company Overview and Product Portfolio
- Key Developments
- Financial Overview
- Strategies
- Company SWOT Analysis
- Introduction
- Research Objectives and Assumptions
- Research Methodology
- Abbreviations
- Market Definition & Study Scope
- Executive Summary
- Market Snapshot, By Component
- Market Snapshot, By Application
- Market Snapshot, By Region
- Global Smart Buildings (Nonresidential Buildings) Market Dynamics
- Drivers, Restraints and Opportunities
- Drivers
- Technological Advancements
- Regulatory Mandates
- Growing Urbanization
- Restraints
- High Initial Costs
- Integration Challenges
- Security Concerns
- Opportunities
- Demand for Smart Cities
- Emerging Technologies
- Drivers
- PEST Analysis
- Political Analysis
- Economic Analysis
- Social Analysis
- Technological Analysis
- Porter's Analysis
- Bargaining Power of Suppliers
- Bargaining Power of Buyers
- Threat of Substitutes
- Threat of New Entrants
- Competitive Rivalry
- Drivers, Restraints and Opportunities
- Market Segmentation
- Global Smart Buildings (Nonresidential Buildings) Market, By Component, 2020 - 2030 (USD Million)
- Solution
- Building Infrastructure Management
- Parking Management System
- Smart Water Management System
- Elevators and Escalators System
- Building Infrastructure Management
- Security and Emergency Management
- Access Control System
- Video Surveillance System
- Safety System
- Energy Management and Services
- Solution
- Global Smart Buildings (Nonresidential Buildings) Market, By Application, 2020 - 2030 (USD Million)
- Government
- Airports
- Hospitals
- Institutes Manufacturing & Industrial facilities
- Others
- Global Smart Buildings (Nonresidential Buildings) Market, By Geography, 2020 - 2030 (USD Million)
- North America
- United States
- Canada
- Europe
- Germany
- United Kingdom
- France
- Italy
- Spain
- Nordic
- Benelux
- Rest of Europe
- Asia Pacific
- Japan
- China
- India
- Australia & New Zealand
- South Korea
- ASEAN(Association of South East Asian Countries)
- Rest of Asia Pacific
- Middle East & Africa
- GCC
- Israel
- South Africa
- Rest of Middle East & Africa
- Latin America
- Brazil
- Mexico
- Argentina
- Rest of Latin America
- North America
- Global Smart Buildings (Nonresidential Buildings) Market, By Component, 2020 - 2030 (USD Million)
- Competitive Landscape
- Company Profiles
- Honeywell International Inc.
- Siemens AG
- Johnson Controls International plc
- Schneider Electric SE
- IBM Corporation
- Cisco Systems, Inc.
- ABB Ltd.
- PCl Construction
- Skanska
- Arabian Construction Company
- Besix
- Spire Realty Group
- Company Profiles
- Analyst Views
- Future Outlook of the Market
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