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.

 

Connected Building Market

 

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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.

 

Connected Building Market

 

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

 

  • Solutions
  • Building Infrastructure management
  • Security & Emergency management
  • Energy management
  •  Services

By Application

 

  • Residential
  • Commercial
  • Hotel
  • Healthcare
  • Retail
  • Corporate Offices
  • Others

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

The segments covered in the Connected Building Market report are based on Component and Application.

  1. Scope of the Report
  2. Research Methodology
    • Research Process
    • Global Connected Building Market: Target Audience
    • Global Connected Building Market: Primary Research (As per Client Requirement)
    • Global Connected Building Market: Secondary Research
  3. Executive Summary
  4. Competitive Landscape
    • Market Share Analysis by Region in 2023(%)
      • North America
      • Europe
      • Asia Pacific
      • Middle East and Africa
      • South America
    • Stellar Competition matrix
      • Global Stellar Competition Matrix
      • North America Stellar Competition Matrix
      • Europe Stellar Competition Matrix
      • Asia Pacific Stellar Competition Matrix
      • South America Stellar Competition Matrix
      • Middle East and Africa Stellar Competition Matrix
    • Key Players Benchmarking: - by Type, Pricing, Investments, Expansion Plans, Physical Presence, and Presence in the Market.
    • Mergers and Acquisitions in Industry: - M&A by Region, Value, and Strategic Intent
    • Market Dynamics
    • Market Drivers
    • Market Restraints
    • Market Opportunities
    • Market Challenges
    • PESTLE Analysis
    • PORTERS Five Force Analysis
    • Value Chain Analysis
  5. Global Connected Building Market Segmentation
    • Global Connected Building Market, by Region (2023-2030)
      • North America
      • Europe
      • Asia-Pacific
      • Middle East & Africa
      • South America
    • Global Connected Building Market, by Component (2023-2030)
      • Solutions
        • Building Infrastructure management
        • Security & Emergency management
        • Energy management
      •  Services
    • Global Connected Building Market, by Application (2023-2030)
      • Residential
      • Commercial
        • Hotel
        • Healthcare
        • Retail
        • Corporate Offices
      • Others
  6. North America Connected Building Market Segmentation
    • North America Connected Building Market, by Component (2023-2030)
      • Solutions
        • Building Infrastructure management
        • Security & Emergency management
        • Energy management
      •  Services
    • North America Connected Building Market, by Application (2023-2030)
      • Residential
      • Commercial
        • Hotel
        • Healthcare
        • Retail
        • Corporate Offices
      • Others
    • North America Connected Building Market, by Country (2023-2030)
      • United States
      • Canada
      • Mexico
  7. Europe Connected Building Market Segmentation
    • Europe Connected Building Market, by Component (2023-2030)
    • Europe Connected Building Market, by Application (2023-2030)
    • Europe Connected Building Market, by Country (2023-2030)
  8. Asia Pacific Connected Building Market Segmentation
    • Asia Pacific Connected Building Market, by  Load Balancer Type (2023-2030)
    • Asia Pacific Connected Building Market, by Application (2023-2030)
    • Asia Pacific Connected Building Market, by Country (2023-2030)
  9. Middle East and Africa Connected Building Market Segmentation
    • Middle East and Africa Connected Building Market, by Component (2023-2030)
    • Middle East and Africa Connected Building Market, by Application (2023-2030)
    • Middle East and Africa Connected Building Market, by Country (2023-2030)
  10. South America Connected Building Market Segmentation
    • South America Connected Building Market, by Component (2023-2030)
    • South America Connected Building Market, by Application (2023-2030)
    • South America Connected Building Market, by Country (2023-2030)
  11. Company Profiles
    • Key Players
      • Honeywell International Inc
        • Company Overview
        • Product Portfolio
        • Financial Overview
        • Business Strategy
        • Key Developments
      • 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
  12. Key Findings
  13. Recommendations

 

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