Global Smart Building Market Research Report Forecast to 2023
A smart building is a structure which uses automated processes to control various building operations such as air conditioning, heating, security, energy management, and ventilation. Smart buildings are equipped with various types of smart devices and electronic components such as sensors, microchips, microcontrollers, and microprocessors to collect and process relevant data and manage it to control automatic operations of the building. This helps the facility managers and owners of the building to reduce energy use, increase comfort level, improve performance, enable optimal use of building space, and minimize environmental degradation. The increasing requirement for energy efficient buildings and favorable government initiatives towards smart infrastructure is driving the market growth. As smart buildings can monitor everything remotely from lighting and elevators to security and temperature of the building, they save a lot of power. Automatic and remote monitoring of such elements of the building reduces manual procedures, operating cost, and error in building systems.
In 2017, the global smart building market accounted for USD 7,458.5 million and is expected to grow with a CAGR of 29.96% during the forecast period 2018–2023. In 2017, North America dominated the accounting for USD 2,615.31 million and is expected to grow with a CAGR 27.17% during the forecast period 2018–2023. However, Asia-Pacific region is projected to be the fastest growing market with a CAGR of 33.03% during the forecast period, and 22% of the total market in 2017. The presence of developed and developing countries in Asia-Pacific drives the growth of the smart building market; furthermore, various initiatives taken by the government for green buildings also contribute to the market growth. For instance, the Chinese government has initiated a project for the development of smart building and Green Building policies for school, airports, railway stations and others. Similarly, in India, the government is taking an initiative for adopting smart cities for the reduction of building maintenance cost and also to enhance the quality of living.
The global smart building market has been segmented based on automation and application. Based on automation, building energy management system accounted for the largest market share of 36.8% in 2017, with a market value of USD 2,743.90 million and is projected to grow at the CAGR of 26.6% during the forecast period 2018–2023. Based on application, the commercial segment held the largest market share in 2017, with a market value of 2,826.09 million, and is expected to grow with a CAGR of 28.33% during the forecast period.
The key players of the smart building market areCisco Systems, Inc. (US), ABB Group(Switzerland), IBM Corporation(US), Honeywell International, Inc. (US), Siemens AG (Germany), Control4 Corporation (US), Emerson Electric Co (US), Schneider Electric (France), United Technologies Corporation (US), Johnson Controls International PLC (US), and Legrand SA (France) among others.
Global Smart Building Market Analysis & Forecast, from 2017 to 2023
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