Smart Building Market Size - Industry Report on Share, Growth Trends & Forecasts Analysis (2025 - 2030)

The Report Covers Global Smart Building Solutions and Technology Trends. The Market is Segmented by Components (solutions (building Energy Management Systems, Infrastructure Management Systems, Intelligent Security Systems), Services), Applications (residential, Commercial), and Geography.

Smart Building Market Size - Industry Report on Share, Growth Trends & Forecasts Analysis (2025 - 2030)

Smart Building Market Size

Smart Building Market Summary
Study Period 2019 - 2030
Base Year For Estimation 2024
Forecast Data Period 2025 - 2030
CAGR 13.96 %
Fastest Growing Market Asia Pacific
Largest Market North America
Market Concentration Low

Major Players

Smart Building Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Smart Building Market Analysis

The Smart Building Market is expected to register a CAGR of 13.96% during the forecast period.

The smart building industry is experiencing rapid transformation driven by urbanization and technological advancement. According to the World Bank, 56% of the global population currently resides in urban areas, with this number projected to more than double by 2050. This demographic shift is creating unprecedented demands for intelligent infrastructure solutions. The OECD estimates that global investment in smart city initiatives may reach approximately USD 1.8 trillion between 2010 and 2030 across metropolitan infrastructure projects. This massive investment is facilitating the integration of advanced technologies like IoT sensors, AI-driven systems, and automated building automation solutions across urban developments.


The construction sector is witnessing substantial investments in smart building technologies. According to the US Census Bureau, the value of commercial construction reached USD 114.79 billion in 2022, indicating strong market fundamentals. This growth is accompanied by innovative technological deployments, as evidenced by Siemens Smart Infrastructure's introduction of Connect Box in March 2023, an IoT solution designed for small to medium-sized buildings that can optimize energy efficiency by up to 30% while improving indoor air quality. Similarly, Edgecore Networks' launch of a new enterprise switch lineup in August 2023 demonstrates the industry's commitment to enhancing scalability and performance across diverse sectors.


Strategic partnerships are reshaping the competitive landscape and driving innovation in smart building solutions. In September 2023, WattSense partnered with Choovio Inc. to enable remote access and monitoring of building systems using LoRaWAN technology, while ENVIRO GROUP Asia's collaboration with Disrupt-X aims to accelerate the adoption of cutting-edge technologies in the Asia-Pacific region. These partnerships are fostering the development of more sophisticated and integrated building automation systems that can address complex operational challenges while improving user experience.


Environmental sustainability remains a critical focus in the smart building sector, with the International Energy Agency reporting that building operations account for 30% of global final energy consumption and 26% of global energy-related emissions. This has led to increased adoption of IoT-enabled building management systems that optimize resource utilization and reduce environmental impact. The industry is witnessing a shift towards more sophisticated solutions that combine multiple technologies, including smart thermostats, automated lighting systems, and advanced HVAC controls, to create more efficient and sustainable building environments.

Segment Analysis: By Component

Solutions Segment in Smart Building Market

The smart building solutions segment dominates the intelligent building market, commanding approximately 83% market share in 2024, valued at USD 87.58 billion. This segment's prominence is driven by the growing demand for building energy management systems, infrastructure management systems, and intelligent security systems. The solutions segment encompasses comprehensive offerings, including HVAC automation, lighting controls, security systems, and energy optimization tools that help building owners and operators achieve improved efficiency and sustainability goals. Major technology providers are continuously innovating their solution portfolios, with companies like Siemens, Honeywell, and ABB introducing advanced IoT-enabled platforms and integrated building management systems. The segment's strong position is further reinforced by the increasing adoption of smart building solutions in commercial and residential sectors, particularly in regions like North America and Europe, where there is a strong focus on building energy efficiency and automation.

Market Analysis of Smart Building Market: Chart for By Component

Services Segment in Smart Building Market

The services segment is emerging as the fastest-growing segment in the smart building market, with a projected growth rate of approximately 15% during 2024-2029. This accelerated growth is attributed to the increasing demand for professional services such as system integration, consulting, and maintenance support for smart building implementations. The segment is benefiting from the rising complexity of building automation systems and the need for specialized expertise in deploying and managing these solutions. Service providers are expanding their offerings to include advanced capabilities like predictive maintenance, energy optimization services, and IoT-enabled monitoring solutions. The growth is further fueled by the trend toward managed services and cloud-based solutions, allowing building owners to outsource the complexity of managing smart building systems while ensuring optimal performance and reliability.

Segment Analysis: By Application

Commercial Segment in Smart Building Market

The commercial segment dominates the smart building market, holding approximately 72% market share in 2024, driven by the increasing demand for energy-efficient solutions and building automation technologies in office spaces, retail establishments, and other commercial properties. This segment's prominence is attributed to the growing focus on reducing operational costs, improving building efficiency, and enhancing occupant comfort in commercial spaces. The segment is experiencing robust growth due to increasing investments in commercial construction projects and the rising adoption of building energy management systems (BEMS) for optimizing energy consumption. Major technology providers are actively introducing innovative solutions specifically designed for commercial applications, such as advanced HVAC controls, smart lighting systems, and integrated security solutions. The segment's growth is further supported by government initiatives promoting sustainable building practices and the increasing awareness among commercial property owners about the benefits of smart building solutions in reducing energy costs and improving operational efficiency.

Residential Segment in Smart Building Market

The residential segment in the smart building market is witnessing significant transformation as homeowners increasingly embrace smart technologies for enhanced comfort, security, and energy efficiency. This segment is being driven by the growing urban population and the increasing need to reduce energy consumption through efficient HVAC systems, smart lighting, and automated energy management. The adoption of various security and safety systems in residential buildings is rising, particularly in urban areas with rapidly growing residential real estate projects. Smart building solution providers are introducing innovative technologies for residential applications, including lighting controls, emergency lighting, and integrated security systems. The segment's growth is further supported by the increasing awareness among homeowners about the benefits of smart building solutions in reducing energy costs and improving living conditions. Additionally, the rising demand for connected living spaces and the growing focus on sustainable living practices are contributing to the segment's expansion in the smart building market.

Smart Building Market Geography Segment Analysis

Smart Building Market in North America

North America represents the most mature and technologically advanced market for smart building solutions, holding approximately 34% of the global smart building market share in 2024. The region's leadership position is driven by its robust technological infrastructure, high adoption rates of IoT-enabled devices, and a strong presence of major industry players. The United States, in particular, demonstrates significant market potential due to its extensive commercial building sector and growing emphasis on energy-efficient solutions. The region's market is characterized by sophisticated demand for integrated building automation systems, with a particular focus on intelligent security systems and advanced energy management solutions. High internet speeds and greater internet penetration make North American countries ideal locations for IoT, AI, and smart building projects. The region's growth is further supported by strong consumer spending capabilities for newer technology, driving vendors to introduce innovative solutions targeting different needs. With the minimization of semiconductor and sensor costs, numerous companies and start-ups are collaborating to produce enhanced smart building technology solutions. The market is particularly strong in areas such as building energy management systems, infrastructure management, and intelligent security solutions, reflecting the region's comprehensive approach to smart building implementation.

Market Analysis of Smart Building Market: Forecasted Growth Rate by Region

Smart Building Market in Europe

Europe has emerged as a significant hub for smart building technologies, demonstrating robust growth with an approximate 12% annual growth rate from 2019 to 2024. The region's market is characterized by its strong focus on sustainability and energy efficiency, driven by stringent environmental regulations and high environmental consciousness. Countries like the United Kingdom, France, Germany, and Scandinavian nations are at the forefront of smart building adoption in Europe, leveraging their high GDP per capita and technological advancement to implement sophisticated building automation solutions. The European market particularly excels in building energy management systems, reflecting the region's commitment to reducing carbon emissions and improving energy efficiency. The region's unique geographical setup and predominantly urban population create ideal conditions for smart building implementation. High living standards and strong purchasing power enable European citizens to invest significantly in building automation and smart integration of living spaces. The market is further strengthened by the presence of leading technology providers and a robust regulatory framework supporting sustainable building practices. The region's approach to smart building solutions is characterized by a strong emphasis on integration, sustainability, and user comfort.

Smart Building Market in Asia-Pacific

The Asia-Pacific smart building market represents the most dynamic and fastest-growing market for smart building solutions, with a projected growth rate of approximately 17% from 2024 to 2029. This region stands out as one of the world's fastest-growing construction markets, creating substantial opportunities for smart building solution providers. The market is driven by rapid urbanization, economic advancement, and the rising spending power of the middle class in countries like China, Singapore, India, Japan, and South Korea. The region's real estate sector is increasingly embracing smart building solutions, leveraging efficient building management capabilities and energy efficiencies to help building operators run facilities more cost-effectively. Infrastructure management systems are gaining particular traction in the region, reflecting the growing need for comprehensive management of technical and operational components. The market is characterized by a strong focus on both new construction projects and the retrofitting of existing buildings with smart technologies. The region's approach to smart building implementation is marked by a balance between technological innovation and practical efficiency, with particular emphasis on solutions that can deliver tangible operational benefits and energy savings.

Smart Building Market in Latin America

Latin America's smart building market is experiencing steady growth, driven by increasing urbanization and growing awareness of energy efficiency benefits. The region's market is characterized by a strong focus on commercial and residential applications, particularly in major metropolitan areas. Countries like Brazil and Mexico are leading the regional adoption of smart building technologies, supported by their large urban populations and growing commercial sectors. The market shows particular strength in building energy management systems, reflecting the region's increasing focus on energy efficiency and sustainable building practices. New buildings in the private sector represent transformation and the region's embrace of smart technologies, particularly in major cities like São Paulo and Mexico City. These urban centers are pioneering the implementation of cutting-edge technologies and energy-efficient solutions using integrated smart building systems. The region's approach to smart building implementation is pragmatic, focusing on solutions that deliver clear operational benefits and cost savings. The market is further supported by growing recognition of smart buildings' environmental and economic benefits, though there remains substantial untapped potential for such constructions.

Smart Building Market in Middle East and Africa

The Middle East and Africa region presents a unique landscape for smart building solutions, characterized by ambitious development projects and growing environmental awareness. Middle Eastern countries, particularly the UAE and Saudi Arabia, are proactively working to equip their buildings with smart building and energy devices. The region's market is driven by significant investments in new construction projects and the transformation of existing buildings into smart facilities. Dubai leads the regional transformation, followed by Saudi Arabia and other Gulf nations, with mega-projects serving as key driving forces behind the increasing demand for building automation solutions. The market is particularly influenced by social and economic factors, including rising disposable income, potential financial returns, and evolving lifestyles in Middle Eastern countries. The adoption of smart building technologies is further supported by government initiatives and vision programs aimed at creating sustainable and technologically advanced urban environments. The African market, while still developing, shows promising growth potential, particularly in countries like South Africa, Egypt, and Kenya, where green building initiatives are gaining traction.

Smart Building Industry Overview

Top Companies in Smart Building Market

The smart building companies market features prominent technology leaders like Honeywell, Siemens, ABB, Schneider Electric, IBM, Huawei, Cisco Systems, Johnson Controls, Legrand, Avnet, Hitachi, and Softdel. These companies are driving innovation through advanced IoT integration, AI-powered building management systems, and cloud-based solutions for energy optimization. Strategic partnerships and collaborations have become increasingly common as companies seek to enhance their technological capabilities and expand market reach. Companies are focusing on developing comprehensive end-to-end smart building solutions that incorporate everything from hardware infrastructure to software platforms and digital services. The emphasis on sustainability and energy efficiency has led to increased investment in R&D for smart building technologies, while operational agility is being achieved through modular and scalable solutions that can adapt to varying customer needs. Geographic expansion, particularly in emerging markets, remains a key growth strategy, with companies establishing regional centers of excellence and strengthening their local presence through strategic partnerships.

Market Consolidation Drives Industry Evolution Forward

The smart building market exhibits a fragmented competitive landscape with a mix of global technology conglomerates and specialized smart building vendors. Global players like Honeywell, Siemens, and ABB leverage their extensive resources, established distribution networks, and comprehensive product portfolios to maintain market leadership. These companies benefit from their ability to offer integrated solutions across multiple building systems and their strong brand recognition in the industrial automation sector. Regional and specialized players compete by focusing on specific market segments or technologies, often developing niche solutions for particular applications or geographic markets.


The market is experiencing active consolidation through mergers, acquisitions, and strategic partnerships, as companies seek to expand their technological capabilities and market presence. Large technology companies are acquiring smaller, innovative firms to enhance their smart building offerings and access new markets. Strategic alliances between hardware manufacturers, software developers, and system integrators are becoming increasingly common, creating comprehensive solution ecosystems. This trend is particularly evident in the integration of building automation systems with emerging technologies like artificial intelligence, machine learning, and advanced analytics.

Innovation and Integration Key to Success

Success in the smart building market increasingly depends on companies' ability to deliver integrated, scalable solutions that address evolving customer needs. Incumbent players must focus on continuous innovation in their product offerings, particularly in areas such as energy management, security, and occupant comfort. Companies need to develop strong partnerships with technology providers and system integrators while maintaining flexibility in their solutions to accommodate different building types and user requirements. The ability to provide comprehensive after-sales support, including maintenance services and system upgrades, has become crucial for maintaining market position.


For new entrants and smaller players, success lies in identifying and exploiting specific market niches where they can develop specialized expertise. This includes focusing on particular building types, specific technological applications, or regional markets where they can build strong relationships with local stakeholders. The increasing emphasis on sustainability and energy efficiency creates opportunities for companies that can demonstrate clear value propositions in these areas. Regulatory requirements around building energy performance and safety standards continue to shape market dynamics, making compliance capabilities a critical success factor. The relatively low risk of substitution for smart building solutions, combined with growing end-user awareness of their benefits, creates a favorable environment for market expansion. The building automation market is further bolstered by the presence of the largest building automation companies, which continue to innovate and drive industry standards.

Smart Building Market Leaders

  1. Honeywell International Inc.

  2. Siemens AG

  3. Schneider Electric SE

  4. IBM Corporation

  5. ABB Ltd

  6. *Disclaimer: Major Players sorted in no particular order
Smart Building Market Concentration
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Smart Building Market News

  • In March 2023, Siemens Smart Infrastructure introduced Connect Box, an open and easy-to-use IoT solution for small- to medium-sized buildings. The addition to the Siemens Xcelerator portfolio, Connect Box, is mainly a user-friendly approach for monitoring building performance, with the potential to optimize energy efficiency by up to around 30% and to substantially improve the overall indoor air quality in small to medium-sized buildings such as schools, retail shops, apartments, or small offices.
  • In May 2023, Delta, a global provider of power and thermal management solutions, announced a smart community hub enabled by its broader portfolio of IoT-based Smart Green Solutions. The "Intelligent Sustainable Connecting Hub" features an intelligent Operation Center with a multi-functional management platform for companies to manage critical operations, including carbon emissions inventory and renewable power matching. Moreover, the new VORTEX, cloud-based video surveillance as a service (VSaaS), the smart microgrid-supported EV charging infrastructure, and the energy-efficient data center solution demonstrate how Delta's solutions integrate seamlessly to ensure the sustainable development of many sectors.

Smart Building Market Report - Table of Contents

1. INTRODUCTION

  • 1.1 Study Assumptions and Market Definition
  • 1.2 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET INSIGHTS

  • 4.1 Market Overview
  • 4.2 Industry Value Chain Analysis
  • 4.3 Industry Attractiveness - Porter's Five Forces Analysis
    • 4.3.1 Threat of New Entrants
    • 4.3.2 Bargaining Power of Buyers
    • 4.3.3 Bargaining Power of Suppliers
    • 4.3.4 Threat of Substitute Products
    • 4.3.5 Intensity of Competitive Rivalry
  • 4.4 Assessment of COVID-19's Impact on the Market

5. MARKET INSIGHTS

  • 5.1 Market Drivers
    • 5.1.1 Growing Concerns about the Energy Consumption Leading to Adopt Smart Solutions
    • 5.1.2 Government Initiatives on Smart Infrastructure Projects
  • 5.2 Market Challenges
    • 5.2.1 Lack of Technology Alignment and Skilled Professionals

6. MARKET SEGMENTATION

  • 6.1 By Component
    • 6.1.1 Solutions
    • 6.1.1.1 Building Energy Management Systems
    • 6.1.1.2 Infrastructure Management Systems
    • 6.1.1.3 Intelligent Security Systems
    • 6.1.1.4 Other Solutions
    • 6.1.2 Services
  • 6.2 By Application
    • 6.2.1 Residential
    • 6.2.2 Commercial
  • 6.3 By Geography
    • 6.3.1 North America
    • 6.3.2 Europe
    • 6.3.3 Asia-Pacific
    • 6.3.4 Latin America
    • 6.3.5 Middle East and Africa

7. COMPETITIVE LANDSCAPE

  • 7.1 Company Profiles
    • 7.1.1 Honeywell International Inc.
    • 7.1.2 Siemens AG
    • 7.1.3 ABB Ltd.
    • 7.1.4 Schneider Electric SE
    • 7.1.5 IBM Corporation
    • 7.1.6 Huawei Technologies Co. Ltd
    • 7.1.7 Cisco Systems Inc.
    • 7.1.8 Johnson Controls International PLC
    • 7.1.9 Legrand SA
    • 7.1.10 Avnet Inc.
    • 7.1.11 Hitachi Ltd
    • 7.1.12 Softdel (A UNIDEL Company)
  • *List Not Exhaustive

8. INVESTMENT ANALYSIS

9. FUTURE OF THE MARKET

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Smart Building Industry Segmentation

Smart buildings automate processes that control lighting, infrastructure, heating, security systems, ventilation, and air conditioning. Smart buildings integrate technology into basic building infrastructure and other equipment, components, and structures to make buildings safer, more efficient, and sustainable and reduce costs. The smart building solutions investigated are part of the rising IoT and connected sensor ecosystem. Smart buildings use automation to optimize all or some of the processes inside the building: heating and cooling, ventilation, security, lighting, water usage, and more. Some benefits include reduced environmental impact, proactive maintenance of equipment, and reduced energy use and costs.

The Smart Building Market is segmented by Component (Solutions (Building Energy Management Systems, Infrastructure Management Systems, Intelligent Security Systems), Services), by Application (Residential, Commercial), and by Geography (North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa). The market sizes and forecasts are provided in terms of value in USD for all the above segments.

By Component Solutions Building Energy Management Systems
Infrastructure Management Systems
Intelligent Security Systems
Other Solutions
Services
By Application Residential
Commercial
By Geography North America
Europe
Asia-Pacific
Latin America
Middle East and Africa
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Smart Building Market Research FAQs

What is the current Smart Building Market size?

The Smart Building Market is projected to register a CAGR of 13.96% during the forecast period (2025-2030)

Who are the key players in Smart Building Market?

Honeywell International Inc., Siemens AG, Schneider Electric SE, IBM Corporation and ABB Ltd are the major companies operating in the Smart Building Market.

Which is the fastest growing region in Smart Building Market?

Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2025-2030).

Which region has the biggest share in Smart Building Market?

In 2025, the North America accounts for the largest market share in Smart Building Market.

What years does this Smart Building Market cover?

The report covers the Smart Building Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Smart Building Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.

Smart Building Market Research

Mordor Intelligence offers extensive expertise in analyzing the smart building market. We deliver comprehensive insights into building automation and intelligent building technologies. Our research thoroughly examines smart building industry trends across key regions, including the North America smart building market, Europe smart building market, and Asia Pacific smart building market. The report provides a detailed analysis of smart building solutions and connected building technologies. It focuses particularly on developments in the building automation industry and smart building data analytics.

Stakeholders gain valuable insights through our detailed examination of the smart building market size and smart building market forecast projections. The report, available as an easy-to-download PDF, covers crucial aspects, including smart building vendors, building technology market dynamics, and emerging smart building dataset applications. Our analysis benefits decision-makers by providing actionable intelligence on smart building network solutions and opportunities in the connected building solution market. It also tracks smart building industry developments across various sectors, including commercial, residential, and industrial applications.

Smart Building Market Report Snapshots