GVR Report cover Smart Building Market Size, Share, & Trends Report

Smart Building Market Size, Share, & Trends Analysis Report By Solution (Safety & Security Management, Energy Management), By Service (Consulting, Implementation), By End Use, By Region, And Segment Forecasts, 2023 - 2030

  • Report ID: GVR-4-68039-964-3
  • Number of Report Pages: 120
  • Format: PDF, Horizon Databook
  • Historical Range: 2018 - 2021
  • Forecast Period: 2023 - 2030 
  • Industry: Technology

Report Overview

The global smart building market size was valued at USD 75.89 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 26.5% from 2023 to 2030. The growing adoption of Business Information Modeling (BIM), Artificial Intelligence (AI), Internet-of-Things (IoT), Virtual Reality (VR), cloud computing, and data analytics is driving the growth of the market. Further, the growing popularity of home automation and rising preference towards working from home is further propelling the market growth.  Furthermore, the growing use of technologies to recycle & reuse through waste management solutions and increasing demand for commercial buildings featuring smart features, such as intelligent glass, smart thermostats, and smart elevators is expected to create a positive outlook for the market in the forecast period.

U.S. smart building Market size and growth rate, 2023 - 2030

The growing need for energy efficient structures and rising public & private investment in smart cities is fueling the growth of the market. The concept of smart cities has been gaining traction in recent years, and favorable initiatives are being introduced by governments in developing countries across Asia Pacific, MEA, and Latin America. These country’s governments have been undertaking increasingly diverse roles, such as solutions enablers, stewards, and strategists, by providing effective ecosystems for building solutions. Further, the growing population necessitates the development of smart cities such as intelligent lighting, electric transportation, smart buildings, and renewable energy generation systems, creating a favorable environment for the market.

A smart building is a structure that employs Internet of Things (IoT) and automated technologies to regulate various building systems, such as lighting, security, heating, ventilation, and air conditioning. The increasing usage of IoT for efficient management of connected devices is anticipated to create robust opportunities for the market. For instance, in March 2023, Siemens, a smart infrastructure provider, announced the launch of a smart IoT solution called Connect Box to manage smart buildings. Connect Box offers a user-friendly approach for monitoring building performances, helps optimize energy, and substantially improves the air quality inside small to medium buildings such as retail shops, schools, apartments, and small offices in smart city projects.

Smart building solutions assist in reducing the greenhouse effects by using smart utility solutions across waste management, water management, and energy management solutions, thereby boosting the market growth. The growing demand for green initiatives among OEMs, emphasizing reducing operating costs and greenhouse emissions, has increased the demand for smart building solutions over recent years. For instance, in June 2022, real estate investment company, SL Green announced to use IBM Corporation’s sustainability software, Enzivi to help develop the company's Environmental, Social, and Governance (ESG) agenda. Further, to better understand and track its ecological initiatives, find opportunities for increased efficiency, and promote sustainability throughout its large real estate operations, SL Green utilized Enzivi.

Various academic institutions, international standards, and governments are designing a smart & city and smart building industry framework to enable governments to quickly implement the relevant solution in the country. Several regulatory firms and academic institutes are partnering to design standards and regulatory frameworks for smart cities, creating a positive outlook for the market. For instance, in February 2022, the National Institute of Standards and Technology (NIST) and the National University of Ireland Galway jointly launched a new framework for smart cities, smart building, and their communities. This new framework defines the flow and computational method for smart & safety system design, technology integration, device mapping, and Key Performance Indicators (KPI) for the evaluation of systems, supporting the growth of the market.

Solution Insights

The safety & security management segment accounted for the largest market share of 35.34% in 2022. Safety and security segment includes consolidated administration, integration with other in-house systems, and data collection & analysis. Smart buildings are often equipped with Internet Protocol (IP)-enabled safety and security devices that provide facilities managers with new capabilities to improve the security and safety of the building, propelling the expansion of the market. Further, stringent government law related to safety & security of the building is anticipated to contribute to the segment growth in the forecast period.

The energy management segment is expected to grow at a CAGR of 27.7% during the forecast period. The remarkable growth can be attributed to the increasing importance of implementing Energy Management Systems (EMS) across residential, commercial, and industrial properties. The companies in the market have been coming up with sustainable smart home energy management solutions, attracting customers to the market. For instance, in January 2023, Schneider Electric unveiled its home energy management solution, which enables homeowner energy independence and comfort at CES (Consumer Electronics Show). The newly unveiled solution includes a high-power solar inverter, home battery for clean energy storage, connected electric socket and light switches, electric vehicle charger, and smart electric panel. 

Service Insights

The implementation segment accounted for the largest market share of 34.98% in 2022. The segment growth can be attributed to the rising adoption of smart building software & services across various business sectors. To develop a smart building, service providers first connect the fundamental systems, such as fire alarms, water pumps, power meters, lighting, and heating systems, with sensors and control systems. The implementation service providers assist building owners, facility managers, and operators in easy deployment and improving the operational efficiency of the fundamental systems. Such benefits of implementation services will improve segment growth through 2030.

The support and maintenance segment is expected to grow at a CAGR of 29.8% over the forecast period. The increasing implementation of smart building solutions globally is creating robust opportunities for segment growth. The support and maintenance services offer smart building management solutions support, maintenance, and upgradation to the building operators. Moreover, these service vendors also assist smart building operators in intelligent automation & techniques implementation for the efficient and cost-effective operations of smart buildings. These capabilities if support and maintenance services will supplement the segment growth from 2023 to 2030.

End-use Insights

The commercial segment held a market share of 53.36% in 2022 and is expected to dominate the market by 2030. The high segment share can be attributed to the rising implementation of smart building solutions in IT companies, shopping malls, stadiums, and healthcare. Companies in the market have been coming up with various technology solutions aimed at offering better solutions, which has been driving the growth of the commercial segment. For instance, in March 2023, ABB Ltd. unveiled its new smart building management tool, ABB Ability Building Analyzer, which enables commercial building operators to reduce energy consumption and emissions.

Global smart building Market share and size, 2022

The residential segment is expected to grow at a CAGR of 26.3% over the forecast period. The growth of the residential segment can be attributed to the demand for Heating, Ventilation, and air Conditioning (HVAC) management, smart door lock security systems, smart home lighting, and smart meters to manage and monitor the building's mechanical and electrical systems. Further, the COVID-19 pandemic propelled the use of smart home technologies to curb the virus transmission, is creating a positive outlook for segment growth in the market. Consumers used video doorbells to ensure hands-free operation, robotic vacuum cleaners for house cleaning, and advanced security cameras for safety. Moreover, the segment is expected to benefit from improved power line communication, growth of the consumer electronics sector, and rising disposable income in developing economies.

Regional Insights

The North America regional market dominated the smart building market in 2022 and accounted for a market share of 32.90%. The regional market growth can be attributed to the advancements in digital infrastructure solutions, and rising public & private investments in smart city solutions. The companies operating in the North America smart building industry are unveiling their innovations to stay competitive. For instance, in February 2022, Rogers Communications Inc.’s enterprise division, Rogers Business, expanded its IoT-based smart building solutions portfolio. It offered solutions such as indoor air quality monitoring & purification system, water leak detection, and smart washrooms.

smart building Market Trends, by Region, 2023 - 2030

The Asia Pacific is anticipated to rise as the fastest developing regional market at a CAGR of 28.5% due to shifting consumer focus toward remote management services through IoT technology, high urbanization, and increasing internet penetration. Established industry participants in the region are forming strategic partnerships with smart-building solution providers to enhance their service offerings. For instance, in April 2022, Bajaj Electricals Limited (BEL) partnered with wtec, a smart building solution provider, to develop a digital building infrastructure platform for the emerging markets of India.

Key Companies & Market Share Insights

Market players are observed to invest resources in research & development activities to support growth and enhance their internal business operations. The report will include company analysis based on their financial performances, product benchmarking, key business strategies, and recent strategic alliances. Companies can be seen engaging in mergers & acquisitions and partnerships to further upgrade their products and gain a competitive advantage in the market. They are effectively working on new product development, and enhancement of existing products to acquire new customers and capture more market shares.

For instance, in September 2022, announced a partnership with Caverion. The main aim of the partnership is to hasten the creation of sustainable and energy-efficient buildings. The partnership aims to jointly provide customers with cutting-edge, clever solutions for creating carbon-neutral buildings and meeting their sustainability goals. Prominent players operating in the global smart building market include:

  • ABB Ltd.


  • Cisco Systems Inc.

  • Emerson Electric Co.

  • Hitachi, Ltd.

  • Honeywell International Inc.

  • INTEL Corporation

  • Johnson Controls

  • KMC Controls

  • LG Electronics Inc.

  • Legrand

  • Schneider Electric SE

  • Siemens

  • Sierra Wireless

  • Telit 

Smart Building Market Report Scope

Report Attribute


Market size value in 2023

USD 87.01 billion

Revenue forecast in 2030

USD 450.53 billion

Growth Rate

CAGR of 26.5% from 2023 to 2030

Base year for estimation


Historical data

2018 - 2021

Forecast period

2023 - 2030

Report updated

September 2023

Quantitative units

Revenue in USD billion and CAGR from 2023 to 2030

Report coverage

Revenue forecast, company market share, competitive landscape, growth factors, and trends

Segments covered

Solution, service, end use, region

Regional scope

North America; Europe; Asia Pacific; Latin America; Middle East & Africa

Country scope

U.S.; Canada; U.K.; Germany; France; Italy; Spain; China; India; Japan; Australia; South Korea; Brazil; Mexico; Argentina; UAE; Saudi Arabia; South Africa

Key companies profiled

ABB Ltd.; BOSCH; Cisco Systems Inc.; Emerson Electric Co.; Hitachi, Ltd..; Honeywell International Inc.; INTEL Corporation; Johnson Controls; KMC Controls; LG Electronics; Legrand.; Schneider Electric SE; Siemens; Sierra Wireless; Telit

Customization scope

Free report customization (equivalent to up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope.

Pricing and purchase options

Avail customized purchase options to meet your exact research needs. Explore purchase options


Global Smart Building Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the smart building market based on solution, services, end-use, and region:

Global smart building Market Report Segmentation

  • Solution Outlook (Revenue, USD Billion, 2018 - 2030)

    • Safety & Security Management

      • Access Control System

      • Video Surveillance System

      • Fire and Life Safety System

    • Energy Management

      • HVAC Control System

      • Lighting Management System

      • Others (Data Management, Asset Performance Optimization, and Application Platform)

    • Building Infrastructure Management

      • Parking Management System

      • Water Management System

      • Others (Elevators and Escalators Management and Waste Management)

    • Integrated Workplace Management System (IWMS)

      • Real Estate Management

      • Capital Project Management

      • Facility Management

      • Operations and Services Management

      • Environment and Energy Management

    • Network Management

      • Wired Technology

      • Wireless Technology

  • Service Outlook (Revenue, USD Billion, 2018 - 2030)

    • Consulting

    • Implementation

    • Support & Maintenance

  • End-use Outlook (Revenue, USD Billion, 2018 - 2030)

    • Residential

    • Commercial

      • Healthcare

      • Retail

      • Academic

      • Others (Hotels, Public Infrastructure, and Transport)

    • Industrial

  • Regional Outlook (Revenue, USD Billion, 2018 - 2030)

    • North America

      • U.S.

      • Canada

    • Europe

      • U.K.

      • Germany

      • France

      • Italy

      • Spain

    • Asia Pacific

      • China

      • India

      • Japan

      • Australia

      • South Korea

    • Latin America

      • Brazil

      • Mexico

      • Argentina

    • Middle East & Africa

      • UAE

      • Saudi Arabia

      • South Africa

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