Smart Building Market Trends

Statistics for the 2023 & 2024 Smart Building market trends, created by Mordor Intelligence™ Industry Reports. Smart Building trend report includes a market forecast to 2029 and historical overview. Get a sample of this industry trends analysis as a free report PDF download.

Market Trends of Smart Building Industry

Intelligent Security Systems to be the Fastest Growing Solution Segment

  • Intelligent security systems in the market refer to technologies and solutions that use automation, sensors, and data analytics to enhance the safety and security of occupants and assets within a building.
  • With the steady growth of smart cities and intelligent buildings, there comes an inherent need for greater security for property and individuals. As facilities become more connected, security breaches and invasions are also predicted. Some intelligent security system solutions used in smart buildings are fire safety, video surveillance, access controls, theft detection, intrusion detection, network systems, etc.
  • According to the IMD Smart City Index 2023, Zurich is an advanced smart city with the highest Human Development Index score, making it one of the most livable cities in the world. Notable exceptions to the HDI to IMD index were Dubai, Beijing, and Abu Dhabi. Beijing is a notable outlier, ranking 12th in the Digital Smart City rankings, but is almost 90 points behind Zurich in the HDI score. On the other hand, Munich is the 20th digital city with an HDI value of 950.
  • IoT-enabled emergency lighting solutions are designed to provide a wide range of solutions for safe evacuation in some emergency or fire for all buildings, from hotels to offices, schools, hospitals, stadiums, and train stations. These solutions drive more excellent security solutions for intelligent buildings and give a more holistic approach while reducing the total cost of ownership throughout the building life cycle.
  • The leverage of IoT-enabled tools, such as motion detection, presence simulation, and remote video access, will put greater control back in the hands of the customer. Solutions like door entry systems now provide commissioning and good usage for enhanced security and communication by offering interaction between door entry, access control, and video surveillance so that distance in buildings is now only a matter of IP connectivity. Intelligent security technology solutions can further assist in monitoring a building and warn about unauthorized entry. These systems can also supervise safe building evacuation, emergency call stations, and detection alarms for water, smoke, and gas leaks.
Smart Building Market -  Ranking of Leading 20 Smart Cities Globally, By Human Development Index (HDI) Score, 2023

North America is Expected to Hold Significant Market Share

  • North America is one of the significant markets for smart buildings and IoT-enabled smart devices, and the region witnesses an increased application and acceptance of smart building solutions.
  • By solution, intelligent security system is expected to grow exponentially in North America. With increasing environmental awareness, more Americans are looking for connected, smart, and automated building solutions with add-in capabilities, like fire safety, safety and alarm systems, surveillance, and security. Hence, IoT-enabled smart building solutions are widely accepted in the United States.
  • In the North American region, the United States is one of the largest IoT-enabled markets as it is the largest consumer of IoT-compatible devices. Moreover, it has the highest number of ongoing IoT projects related to smart and connected buildings, smart energy, and smart cities, which is expected to create ample growth opportunities for the market.
  • High Internet Speed and greater internet penetration make the North American countries an ideal hotspot for IoT, AI, and Smart Buildings projects. Consumer spending capabilities for newer technology are also augmenting the adoption and driving vendors to introduce new solutions targeting different needs. With minimized semiconductor and sensor costs, more companies and start-ups are thus working together to produce better Smart Building Technology. The United States, especially being a hub for start-ups and its robust economic and financial presence, has become a significant spot for new technology markets, including Smart Building Solutions.
  • In November 2022, View Inc., a provider of smart building technologies, introduced the View Partner Marketplace, an app store available to the customers of the company's recently launched Smart Building Cloud, the industry's first complete cloud-native platform for smart buildings. The View Partner Marketplace allows customers to deploy popular real estate applications, software platforms, and sensors with a single click, making it much easier for owners and operators to digitize their portfolios quickly and securely.
  • Overall, with the rise in developments related to smart buildings, including partnerships, product launches, and investments, the market is expected to expand comprehensively.
Smart Building Market - Growth Rate by Region

Smart Building Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)