Smart buildings have structured wiring that allows occupants to operate a variety of electronic home equipment remotely. The electronic devices can be programmed by a single and simple command. Intelligent buildings can reduce construction and operating costs while reducing the environmental impact, as well as ensuring the safety & security of the building.
The global smart building market is anticipated to witness high growth owing to energy efficiency and comfort in buildings coupled with the rising need for safety & security. Further, the favorable government initiatives and stringency in regulation is propelling the market growth. Additionally, the governments across major countries are taking initiatives toward energy efficiency and sustainability in the construction sector. A constant increase in awareness about energy conservation and the rising demand for eco-friendly infrastructure has led to the construction of smart buildings in the developed countries.
In addition, smart technologies such as smart thermostats, occupancy sensors, and HVAC and lighting controls help reduce energy usage in unoccupied offices, conference rooms, and other spaces which are expected to enhance the demand for the smart buildings market. However, the high cost associated with the installation and assembly of equipment may hamper the smart building market growth. On the other hand, the rising need for reduction in greenhouse gas emissions and deployment of renewable sources of energy in smart cities is expected to offer lucrative opportunities for the smart building market in the forecast period.
The global smart buildings market is segmented on the basis of type, application, and region. Based on the type, the global market is split into building management systems (BMS), lighting control, security & access control, emergency alarm & evacuation system, audio & visual effects, and others. The application segment consists of commercial, educational facilities, hospitals, government buildings, and residential.
Geographically, the North America region is anticipated to lead the global smart buildings market during the forecast period. Factors such as rapid technological advancement in smart building solutions such as cloud computing, data analytics, artificial intelligence, and IoT are driving the growth of this market in this region. The US and Canada are the frontrunners for the adoption of smart buildings solutions in the North America region due to high investment in building controls and building systems integration, to leverage energy efficiency and energy storage. On the other hand, Asia Pacific region is estimated to hold the second foremost position in the market and is anticipated to account for a moderate share over the forecast period. This is attributed to the rapid infrastructure development in emerging countries such as China and India.
A highly competitive market for smart buildings exists in the global market due to the presence of major international players. Siemens AG, Schneider Electric SE, United Technologies Corporation, Co., Ltd., BuildingIQ, Cisco System Inc., Honeywell International Inc., Johnson Controls International, ABB Ltd., Bosch Security Systems, BuildingLogix, Delta Controls Inc. are some of the major players that are operating in the global smart buildings market.
In May 2021, Siemens AG had entered into a strategic collaboration with Telefónica Tech. The collaboration will contribute to the development of intelligent buildings and services on the Spanish market.