Connected Building Market: Global Industry Analysis and Forecast (2024-2030) Trends, Statistics, Dynamics, and Region
Connected Building Market was valued at USD 99.01 billion in 2023. Global Connected Building Market size is estimated to grow at a CAGR of 10.9 % over the forecast period.
Format : PDF | Report ID : SMR_686
Connected Building Market Definition:
The Connected building market analyzes and forecasts the market size, in terms of value, for the market. Further, the Connected Building Market is segmented by Component, Application, and Region. The Connected Building Market is segmented under Solutions and Services based on Component. Based on Application, the market is segmented into Residential and Commercial. The market sizing and forecasts for each segment are based on value (in USD Billion). North America is the dominant player in the market. The report thoroughly analyzes market drivers, limitations, and opportunities. The presentation of facts and figures gives key data for the historical period. The report explores the different segments and data that have been provided by market participants and regions.
A complex control system, consisting of sensors, actuators, and microchips, manages building functions such as ventilation, air conditioning, heating, lighting, and other systems in smart buildings. The market is gaining momentum as these buildings can reduce operating costs, tenant management, security management, and building performance management. The emergence of 5G technology and the rise in smart city projects are expected to create favourable opportunities for the growth of the smart building industry.
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Connected Building Market Dynamics:
Increasing Concerns about Energy Consumption:
Increasing concerns about the growing energy consumption around the world are anticipated to drive more sophisticated and energy-efficient technologies. According to IBM Corporation’s IoT and Smart building research, commercial and real estate buildings use 50% of water and energy. Buildings are expected to consume the most energy by the end of 2025. Buildings also account for 36% of carbon emissions, according to the Schneider Electric whitepaper. The overall cost of operations and maintenance rises as a result of excessive consumption and waste. Rigorous energy consumption regulations and green construction programs are increasing the demand for energy-efficient equipment in buildings. This factor is attributed to increasing the adoption of connected buildings around the world.
According to the IBM Corporation report, deploying sophisticated technology such as AI, IoT, and others reduced energy consumption by 40% and maintenance expenses by 10% to 30%. According to a survey by Deloitte, smart technologies and IoT devices saved 70% of energy in three years. This factor is expected to contribute to the growth of the connected building industry.
Rapid Adoption of IoT-enabled Building Management Systems (BMS):
Internet of Things has an impact on the commercial real estate (CRE) market with opportunities to improve building efficiency, improve tenant connectivity, and generate additional revenue. BMS can manage all building management services through a single infrastructure without manual intervention. Building management systems based on the Internet of Things are used for a variety of purposes, including monitoring and repairing building systems, cutting energy usage, and minimizing administrative costs. Property owners control air conditioning and heating according to data collected from exterior sensors, such as indoor environmental and space use. For these functions, a real-time lighting system helps to conserve and improve the interior ambiance.
Increasing trends in the connected city project:
Connected buildings play an important part in connected cities, even if they are not mutually exclusive. Sensor network allows buildings to track sustainability activities, monitor power and water usage in real-time, and communicate with other connected city features. Governments all around the world are pouring money into connected city projects, which will increase connected building adoption in many parts of the world. Increased connected city efforts by the various government are expected to boost the growth of the connected buildings market.
Lack of Teamwork between Standards Bodies Owing to Increasing Cyberattacks:
There appears to be a lot of interaction among standard corporations, local governments, organizations, and other stakeholders as IoT and existing smart building technologies work together. Collaboration in the development of smart cities is essential for maximizing the capabilities of these technologies. Property, tenant, and facility management all have a different set of needs and operating systems. Accessing data from building systems can be difficult because these technologies are generally designed to interface with other systems. The rising number of cyberattacks is a major obstacle to the growth of the market. All building systems and equipment are connected to intelligent technology.
Connected Building Market Segment Analysis:
Based on the Component, this sector is segmented into Services and Solutions. The service segment is expected to grow owing to the increased use of intelligent building technologies. Professional services like consulting, system integration, deployment, support, and maintenance are in high demand. The solutions segment is divided into building infrastructure management, security & emergency management, and energy management. Energy management is dominating the market because of the growing green construction programs and strict government requirements on energy consumption, the energy management sector is rising fast. For example, Shanghai’s New Development Bank (NDB) used intelligent building technologies to control inside lighting, electric curtains, and windows, resulting in a 15% reduction in energy use.
The solution for security and emergency management is expected to obtain the most market share. Security systems, surveillance systems, advanced building operation services, and smart workspace solutions are in high demand in commercial buildings. These factors are attributed to the growth of the emergency management solutions market. It is divided into three categories: access control, video surveillance, and safety. The building infrastructure management is expected to grow steadily because of the growing challenges of optimizing the operating costs of large commercial buildings. It is further classified into parking management systems, intelligent water management systems, and elevator and escalator systems.
Based on the Application, the commercial segment is expected to dominate the segment owing to the increasing focus of stakeholders such as commercial real estate developers and owners (CREs) on smart buildings to reduce operating costs. Governments in all countries are considering CRE for investment and improvement of energy-efficient building practices. The commercial segment is further divided into hotels, healthcare, retail, corporate offices, and more. Healthcare is expected to dominate the market because of the rising demand for innovative technologies to manage hospital operations. The residential market is anticipated to increase the adoption of intelligent building solutions to handle safety and security, smart maintenance, energy consumption, and other issues.
Connected Building Market Regional Insights:
North America has dominated the connected buildings market, with the highest revenue share in 2023. The US and Canada are making major contributions to regional technology development. The U.S. companies have invested heavily in connected building metrics such as building system integration and building control and system storage to provide safer, smarter, and more sustainable buildings. The Asia Pacific is anticipated to be the fastest-growing region during the forecast period. The rapid growth can be attributed to the region’s major economies. The rapid modernization and increase in construction activities in APAC have boosted the growth connected buildings market in this region.
Connected Building Market Key Players Insights:
The market is characterized by the existence of a number of well-known firms. These companies control a large portion of the market, have a wide product portfolio, and have a global presence. In addition, the market comprises small to mid-sized competitors that sell a limited variety of items, some of which are self-publishing organizations.
The market's major companies have a significant impact because most of them have extensive global networks through which they can reach their massive client bases. To drive revenue growth and strengthen their positions in the global market, key players in the market, particularly in North America and Europe, are focusing on strategic initiatives such as acquisitions, new collection launches, and partnerships.
The objective of the report is to present a comprehensive analysis of the Global Connected Building Market to the stakeholders in the industry. The report provides trends that are most dominant in the Global Connected Building Market and how these trends will influence new business investments and market development throughout the forecast period. The report also aids in the comprehension of the Global Connected Building Market dynamics and competitive structure of the market by analyzing market leaders, market followers, and regional players.
The qualitative and quantitative data provided in the Global Connected Building Market report is to help understand which market segments, regions are expected to grow at higher rates, factors affecting the market, and key opportunity areas, which will drive the industry and market growth through the forecast period. The report also includes the competitive landscape of key players in the industry along with their recent developments in the Global Connected Building Market. The report studies factors such as company size, market share, market growth, revenue, production volume, and profits of the key players in the Global Connected Building Market.
The report provides Porter's Five Force Model, which helps in designing the business strategies in the market. The report helps in identifying how many rivals exist, who they are, and how their product quality is in the Global Connected Building Market. The report also analyses if the Global Connected Building Market is easy for a new player to gain a foothold in the market, do they enter or exit the market regularly, if the market is dominated by a few players, etc.
The report also includes a PESTEL Analysis, which aids in the development of company strategies. Political variables help in figuring out how much a government can influence the Global Connected Building Market. Economic variables aid in the analysis of economic performance drivers that have an impact on the Global Connected Building Market. Understanding the impact of the surrounding environment and the influence of environmental concerns on the Global Connected Building Market is aided by legal factors.
Connected Building Market Scope:
Connected Building Market |
|
Market Size in 2023 |
USD 99.01 Bn. |
Market Size in 2030 |
USD 204.27 Bn. |
CAGR (2024-2030) |
10.9% |
Historic Data |
2018-2022 |
Base Year |
2023 |
Forecast Period |
2024-2030 |
Segment Scope |
By Component
|
By Application
|
|
Regional Scope |
North America- United States, Canada, and Mexico Europe – UK, France, Germany, Italy, Spain, Sweden, Austria, and Rest of Europe Asia Pacific – China, India, Japan, South Korea, Australia, ASEAN, Rest of APAC Middle East and Africa - South Africa, GCC, Egypt, Nigeria, Rest of the Middle East and Africa South America – Brazil, Argentina, Rest of South America |
CONNECTED BUILDING MARKET KEY PLAYERS:
- Honeywell International Inc
- Siemens AG
- ABB Ltd.
- Schneider Electric SE
- IBM Corporations
- Huawei Technologies Co. Ltd
- Intel Corporations
- Hitachi Ltd
- Johnson Controls International PLC
- PTC Inc
- Cisco Systems
- Endeavor Business Media
- Legrand SA
Frequently Asked Questions
North America region is expected to hold the highest share in the Connected Building Market.
The market size of the Connected Building Market by 2030 is expected to reach USD 204.27 Billion.
The forecast period for the Connected Building Market is 2024-2030
The market size of the Connected Building Market in 2023 was valued at USD 99.01 Billion.
1. Research Methodology
1.1 Research Data
1.1.1. Primary Data
1.1.2. Secondary Data
1.2. Market Size Estimation
1.2.1. Bottom-Up Approach
1.2.2. Top-Down Approach
1.3. Market Breakdown and Data Triangulation
1.4. Research Assumption
2. Connected Building Market Executive Summary
2.1. Market Overview
2.2. Market Size (2023) and Forecast (2024 – 2030) and Y-O-Y%
2.3. Market Size (USD) and Market Share (%) – By Segments and Regions
3. Connected Building Market: Competitive Landscape
3.1. SMR Competition Matrix
3.2. Key Players Benchmarking
3.2.1. Company Name
3.2.2. Headquarter
3.2.3. Business Segment
3.2.4. End-user Segment
3.2.5. Y-O-Y%
3.2.6. Revenue (2023)
3.2.7. Profit Margin
3.2.8. Market Share
3.2.9. Company Locations
3.3. Market Structure
3.3.1. Market Leaders
3.3.2. Market Followers
3.3.3. Emerging Players
3.4. Consolidation of the Market
3.4.1. Strategic Initiatives
3.4.2. Mergers and Acquisitions
3.4.3. Collaborations and Partnerships
3.4.4. Developments and Innovations
4. Connected Building Market: Dynamics
4.1. Connected Building Market Trends by Region
4.1.1. North America
4.1.2. Europe
4.1.3. Asia Pacific
4.1.4. Middle East and Africa
4.1.5. South America
4.2. Connected Building Market Drivers
4.3. Connected Building Market Restraints
4.4. Connected Building Market Opportunities
4.5. Connected Building Market Challenges
4.6. PORTER’s Five Forces Analysis
4.6.1. Intensity of the Rivalry
4.6.2. Threat of New Entrants
4.6.3. Bargaining Power of Suppliers
4.6.4. Bargaining Power of Buyers
4.6.5. Threat of Substitutes
4.7. PESTLE Analysis
4.7.1. Political Factors
4.7.2. Economic Factors
4.7.3. Social Factors
4.7.4. Technological Factors
4.7.5. Legal Factors
4.7.6. Environmental Factors
4.8. Technological Analysis
4.8.1. Internet of Things
4.8.2. Artificial Intelligence and Machine Learning
4.8.3. Building Information Modeling
4.8.4. Cloud Computing
4.8.5. Big Data Analytics
4.8.6. Technological Roadmap
4.9. Regulatory Landscape
4.9.1. Market Regulation by Region
4.9.1.1. North America
4.9.1.2. Europe
4.9.1.3. Asia Pacific
4.9.1.4. Middle East and Africa
4.9.1.5. South America
4.9.2. Impact of Regulations on Market Dynamics
4.9.3. Government Schemes and Initiatives
5. Connected Building Market: Global Market Size and Forecast by Segmentation (by Value in USD Million) (2024-2030)
5.1. Connected Building Market Size and Forecast, by Component (2024-2030)
5.1.1. Solutions
5.1.1.1. Building Infrastructure Management
5.1.1.2. Security & Emergency Management
5.1.1.3. Energy management
5.1.2. Services
5.2. Connected Building Market Size and Forecast, by Application (2024-2030)
5.2.1. Residential
5.2.2. Commercial
5.2.2.1. Hotel
5.2.2.2. Healthcare
5.2.2.3. Retail
5.2.2.4. Corporate Offices
5.2.3. Others
5.3. Connected Building Market Size and Forecast, by Region (2024-2030)
5.3.1. North America
5.3.2. Europe
5.3.3. Asia Pacific
5.3.4. Middle East and Africa
5.3.5. South America
6. North America Connected Building Market Size and Forecast by Segmentation (by Value in USD Million) (2024-2030)
6.1. North America Connected Building Market Size and Forecast, by Component (2024-2030)
6.1.1. Solutions
6.1.1.1. Building Infrastructure Management
6.1.1.2. Security & Emergency Management
6.1.1.3. Energy management
6.1.2. Services
6.2. North America Connected Building Market Size and Forecast, by Application (2024-2030)
6.2.1. Residential
6.2.2. Commercial
6.2.2.1. Hotel
6.2.2.2. Healthcare
6.2.2.3. Retail
6.2.2.4. Corporate Offices
6.2.3. Others
6.3. North America Connected Building Market Size and Forecast, by Country (2024-2030)
6.3.1. United States
6.3.2. Canada
6.3.3. Mexico
7. Europe Connected Building Market Size and Forecast by Segmentation (by Value in USD Million) (2024-2030)
7.1. Europe Connected Building Market Size and Forecast, by Component (2024-2030)
7.2. Europe Connected Building Market Size and Forecast, by Application (2024-2030)
7.3. Europe Connected Building Market Size and Forecast, by Country (2024-2030)
7.3.1. United Kingdom
7.3.2. France
7.3.3. Germany
7.3.4. Italy
7.3.5. Spain
7.3.6. Sweden
7.3.7. Austria
7.3.8. Rest of Europe
8. Asia Pacific Connected Building Market Size and Forecast by Segmentation (by Value in USD Million) (2024-2030)
8.1. Asia Pacific Connected Building Market Size and Forecast, by Component (2024-2030)
8.2. Asia Pacific Connected Building Market Size and Forecast, by Application (2024-2030)
8.3. Asia Pacific Connected Building Market Size and Forecast, by Country (2024-2030)
8.3.1. China
8.3.2. S Korea
8.3.3. Japan
8.3.4. India
8.3.5. Australia
8.3.6. Indonesia
8.3.7. Malaysia
8.3.8. Vietnam
8.3.9. Taiwan
8.3.10. Rest of Asia Pacific
9. Middle East and Africa Connected Building Market Size and Forecast by Segmentation (by Value in USD Million) (2024-2030)
9.1. Middle East and Africa Connected Building Market Size and Forecast, by Component (2024-2030)
9.2. Middle East and Africa Connected Building Market Size and Forecast, by Application (2024-2030)
9.3. Middle East and Africa Connected Building Market Size and Forecast, by Country (2024-2030)
9.3.1. South Africa
9.3.2. GCC
9.3.3. Nigeria
9.3.4. Rest of ME&A
10. South America Connected Building Market Size and Forecast by Segmentation (by Value in USD Million) (2024-2030)
10.1. South America Connected Building Market Size and Forecast, by Component (2024-2030)
10.2. South America Connected Building Market Size and Forecast, by Application (2024-2030)
10.3. South America Connected Building Market Size and Forecast, by Country (2024-2030)
10.3.1. Brazil
10.3.2. Argentina
10.3.3. Rest Of South America
11. Company Profile: Key Players
11.1. Honeywell International Inc
11.1.1. Company Overview
11.1.2. Business Portfolio
11.1.3. Financial Overview
11.1.3.1. Total Revenue
11.1.3.2. Segment Revenue
11.1.3.3. Regional Revenue
11.1.4. SWOT Analysis
11.1.5. Strategic Analysis
11.1.6. Recent Developments
11.2. Siemens AG
11.3. ABB Ltd.
11.4. Schneider Electric SE
11.5. IBM Corporations
11.6. Huawei Technologies Co. Ltd
11.7. Intel Corporations
11.8. Hitachi Ltd
11.9. Johnson Controls International PLC
11.10. PTC Inc
11.11. Cisco Systems
11.12. Endeavor Business Media
11.13. Legrand SA
12. Key Findings
13. Analyst Recommendations
13.1. Strategic Recommendations
13.2. Future Outlook