According to recent reports published by Grand View Research, Inc., the global smart building market is projected to achieve a valuation of USD 570.02 billion by the year 2030, with an anticipated compound annual growth rate (CAGR) of 28.5% from 2024 to 2030. This significant expansion is largely driven by the proactive efforts of governments around the world, which are increasingly undertaking initiatives to promote digital transformation. In particular, the implementation of smart city projects has played a pivotal role in accelerating the market’s development. In parallel, both public and private sectors are ramping up investments in digital infrastructure, further fueling market expansion.

Moreover, there is a growing demand within the commercial sector to adopt smart technologies that optimize energy usage, improve operational efficiency, and automate various building processes. This demand is contributing significantly to the robust growth of the smart building market.

A key driving force behind the market’s growth is the rapid advancement of technology. Looking ahead, further progress in artificial intelligence (AI) is expected to pave the way for transformative innovations that will enhance daily life and work environments. Technologies such as big data analytics, cloud computing, and the Internet of Things (IoT) are playing an increasingly vital role in not only supporting evolving lifestyles and job functions but also in enabling more efficient, responsive, and personalized workplaces.

As an example, in March 2023, ABB launched an advanced smart building management tool aimed at reducing emissions and maximizing energy efficiency. Known as the ABB Ability™ Building Analyzer, this solution equips facility managers with essential insights into building usage patterns and utility consumption, helping them to achieve considerable energy savings.

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Smart Building Market FAQ

1. What is the projected size of the global smart building market by 2030?

The global smart building market is expected to reach USD 570.02 billion by 2030, growing at a CAGR of 28.5% from 2024 to 2030.

2. What factors are driving the growth of the smart building market?

Key drivers include:

• Government Initiatives: Countries are launching smart city projects and supporting digitalization efforts.

• Investments in Digital Infrastructure: Both public and private sectors are increasing investments in digital infrastructure.

• Commercial Sector Demand: Businesses seek to optimize energy consumption, enhance operational efficiency, and automate processes.

• Technological Advancements: Progress in AI, IoT, big data, and cloud computing is accelerating market growth. 

3. Which regions are leading in smart building adoption?

• North America: Dominated the global market in 2023 with a 35.3% share.

• Asia Pacific: Expected to be the fastest-growing region, driven by urbanization and IoT adoption.

4. What are the main segments within the smart building market?

• Solutions: Energy Management, Safety & Security, Building Infrastructure, Integrated Workplace Management Systems (IWMS), and Network Management. 

• Services: Consulting, Implementation, and Support & Maintenance. 

• End-Use: Residential, Commercial (Healthcare, Retail, Academic, etc.), and Industrial. 

• Regions: North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. 

5. What are some notable developments in the smart building sector?

• ABB: Launched the ABB Ability™ Building Analyzer in March 2023, a tool that aids in emission reduction and significant energy savings.

• AVEVA Group: Announced a merger with Namchi (Sikkim) Smart City in May 2022 to develop a digital platform and integrated cross-city command center, aiming to streamline municipal services and reduce energy use by 20%.

6. How is the commercial sector benefiting from smart buildings?

Commercial buildings are leveraging smart technologies to:

• Optimize energy consumption through advanced HVAC and lighting systems.

• Enhance security with integrated surveillance and access control systems.

• Automate operations for improved efficiency and reduced operational costs.

7. What role do AI and IoT play in smart buildings?

• AI: Facilitates predictive maintenance, energy optimization, and intelligent automation.

• IoT: Enables real-time monitoring and control of building systems, leading to improved management and user experience. 

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