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

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

  • Report ID: GVR-4-68039-964-3
  • Number of Pages: 120
  • Format: Electronic (PDF)
  • Historical Range: 2018 - 2021
  • Industry: Technology

Report Overview

The global smart building market size was valued at USD 93.93 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 26.8% from 2023 to 2030. The growing adoption of the Internet of Things (IoT), Artificial Intelligence (AI), Virtual Reality (VR), and Business Information Modeling (BIM) in the new Building Management System (BMS) is expected to play a key role in driving the growth of the market. The outbreak of the COVID-19 pandemic had a moderate impact on this market. Advances in the latest technologies, such as IoT, digital twins, and AI, would play a vital role in shaping the post-pandemic smart building market as building owners would be more anxious to assess the security, efficacy, and financial ramifications of policy changes before they are broadly implemented.

U.S. Smart Building Market size and growth rate, 2023 - 2030

The market is expanding primarily due to smart cities expansion and the increased need for energy-efficient structures. The demand for smart buildings is also growing as IoT-based remote monitoring devices become more widely used. The market is expanding further due to the rising popularity of building automation systems for security, entertainment, telecommunications, and facility management. The industry is also being driven by rapid urbanization and an increase in government attempts to build smart infrastructure in both developed and developing countries. Buildings can now be monitored and controlled in a far more effective way than in the past owing to developments in digital technology, sensors, and telecommunications.

In addition, buildings have more opportunities to play a major role in self-generation or grid-supplied energy, increasing the demand for non-carbon or low-carbon solutions for managing building energy. Machine Learning (ML) and AI can provide ways to examine building data to enhance the effectiveness of numerous building operations as well as the building’s capacity for revenue generation. These systems can gather the required data, transform it into useful information, and use the new knowledge for the purpose of organizations’ objectives in the current unpredictable and fast-changing environment.The proliferation of technology plays a crucial role in driving the growth of the market.

Companies offer maintenance and support for upgrading solutions to improve the management and performance of smart buildings. Furthermore, businesses are conducting routine solution evaluations to make specialized technological changes and procedure improvements for performance optimization. For instance, in December 2020, Hitachi Ltd. launched an IoT platform to enhance building operations. In addition, the platform also offered a better user experience and high management efficiency. These developments would further drive the market growth during the forecast period.Smart buildings depend on several IoT sensors and computer networks to automate solutions, such as managing lighting, heating, and elevators, fire detection, video surveillance, and badge access.

Building Automation System (BAS) and these sensors work together to deliver a multitude of insightful and helpful information about the safety and performance of buildings. However, BAS and IoT sensors are vulnerable to cyberattacks because they frequently lack fundamental cybersecurity capabilities. Most cyberattacks on smart buildings result from malicious hackers trying to access the BAS control systems. To strengthen the IoT update process, market players create policies defining procedures for various upgrades, including bug patches, new releases, and emergency updates. For instance, the building industry is taking measures to secure building networks with BACnet Secure Connect (BACnet/SC), which interfaces seamlessly with the IT architecture and uses best practices and methodologies in IT.

Solution Insights

The safety & security management segment accounted for the largest revenue share of 35.34% in 2022. Safety & security include data collection and analysis, integration with other in-house systems, and consolidated administration. Furthermore, for safety and security, several smart buildings are incorporated with advanced fire systems, by which managers can overview the health and performance of their buildings and fire systems remotely through their laptops, desktops, and smartphones. These benefits associated with advanced safety & security management systems are expected to drive the growth of the segment over the forecast period. The energy management segment is expected to grow at a CAGR of 28.0% during the forecast period.

The segment growth can be attributed to the growing awareness about the benefits of implementing Energy Management Systems (EMS) across industrial, commercial, and residential properties. An increase in the number of government initiatives aimed at reducing energy consumption is one of the key factors driving the growth of the segment. For instance, the government of India developed the Energy Conservation Building Code (ECBC) in May 2007 to set minimum requirements for the design and construction of energy-efficient buildings and systems. In October 2021, the U.S. Department of Energy (DOE) invested USD 61 million in smart building projects, promoting the adoption of renewable energy sources and using technology to transform homes and offices into energy-efficient buildings.

Service Insights

The implementation segment accounted for the largest revenue share of 34.98% in 2022. The segment growth is attributed to a rise in the adoption of smart building services and software across various business sectors. Advanced building technology systems are installed and used as part of the service of smart buildings. Smart buildings use a range of actuators, sensors, and microchips to gather data and manage based on a business's activities and services. This infrastructure offers owners, operators, and facility managers the chance to enhance their assets' dependability and performance. These benefits offered by implementation services will boost segment growth.

The support and maintenance segment is expected to grow at a CAGR of 30.2% over the forecast period. Smart building solutions are implemented with the assistance of support services. To enhance the management and performance of smart buildings, vendors provide ongoing support and maintenance for upgrading solutions. Furthermore, service providers for smart buildings assist in the implementation of intelligent automation and techniques for the cost-effective and efficient maintenance and operation of buildings. These capabilities will supplement the growth of the segment during the forecast period.

End-use Insights

The commercial segment held a revenue share of 53.36% in 2022 and is expected to dominate the market even during the forecast years. In commercial buildings, advanced IoT sensors are installed in smart commercial buildings to gather data from various building systems and subsystems. The building operator can use this data to automate and improve building operations and maintenance. For instance, in June 2021, Endeavor Business Media, LLC launched Smart Buildings Technology, a new brand dedicated to incorporating integrated intelligence into new and existing commercial buildings. Advanced IoT sensors are installed in smart commercial buildings to gather data from various building systems and subsystems.

Global Smart Building Market share and size, 2022

The residential segment is expected to grow at a CAGR of 26.6% over the forecast period. Amid the COVID-19 pandemic, people started using smart home technology that helped prevent the spread of the virus. Consumers employed advanced security cameras for safety, robotic vacuum cleaners to keep their houses clean, and video doorbells to ensure hands-free operation. Moreover, the segment is expected to benefit from the growth of the consumer electronics sector, improved power line communication, rising personal income in developing economies, and increased awareness about smart grids. These factors will supplement the demand for smart building solutions in the residential segment during the forecast period.

Regional Insights

The North America region dominated the market in 2022 and accounted for a revenue share of 32.9%. The regional growth can be attributed to the Increasing public and private investments and growing digitalization. Furthermore, the rising government investments in digital infrastructure to accelerate the U.S. transition toward a digital economy are creating a positive outlook for smart buildings in the U.S. The U.S. government is focusing on digitizing commercial buildings to enhance citizens’ experiences and establish transparency in services. These key factors are creating demand for smart building solutions in the region.

The Asia Pacific region is anticipated to register the fastest CAGR of 28.9% due to increasing internet penetration, rapid urbanization, and shifting consumer focus toward remote management services through IoT technology. Furthermore,

Smart Building Market Trends by Region, 2023 - 2030

the shifting focus of consumers toward converting their existing buildings into smart buildings is boosting regional market growth. For instance, in January 2022, Singtel, a telecommunication company, announced its collaboration with Lendlease, a real estate group, to convert its Comcentre headquarters in Singapore into a smart building with an investment of USD 2.21 billion. These key factors are creating demand for smart buildings in the region.

Key Companies & Market Share Insights

Industry 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 June 2022, Cisco Systems, Inc. introduced its new security solutions for hybrid cloud infrastructure. The company is developing Cisco Security Cloud to offer holistic security solutions for the entire IT infrastructure in various end-use sectors, including smart buildings. With secure access, the company unveiled different advanced functionalities of its new security solutions, such as session trust analysis, risk-based authentication, and continuous trusted access. This is expected to enable Cisco Systems, Inc. to increase its brand representation for infrastructure security software.Prominent players in the global smart building market include:

  • ABB Ltd.


  • Cisco Systems Inc.

  • Emerson Electric Co.

  • Hitachi, Ltd.

  • Honeywell International Inc.

  • INTEL Corp.

  • 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 108.00 billion

Revenue forecast in 2030

USD 570.02 billion

Growth rate

CAGR of 26.8% from 2023 to 2030

Base year for estimation


Historical data

2018 - 2021

Forecast period

2023 - 2030

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; UK; 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 Corp.; 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 and provides an analysis of the latest trends in each of the sub-segments from 2018 to 2030. For this report, 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

    • Building Infrastructure Management

      • Parking Management System

      • Water Management System

      • Others

    • Others

  • 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

      • UK

      • 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

Frequently Asked Questions About This Report

gvr icn


gvr icn

This FREE sample includes market data points, ranging from trend analyses to market estimates & forecasts. See for yourself.

gvr icn


We can customize every report - free of charge - including purchasing stand-alone sections or country-level reports, as well as offer affordable discounts for start-ups & universities.

Contact us now to get our best pricing.

esomar icon

ESOMAR certified & member

D&B icon

Leading SME award by D&B

We are GDPR and CCPA compliant! Your transaction & personal information is safe and secure. For more details, please read our privacy policy.

great place to work icon