Market Size (2017)
2017
$7.45B
Vertical: SEMIBase Year: 20189 Sections
Market Size (2017)
2017
$7.45B
Projected (2025)
2025
$25.73B
CAGR (2017–2025)
16.7%
16.7%Key Players
115+
Smart buildings, or at least discussions about them, began in the early 1980s. A New York Times article from 1984, for example, depicted real estate developers designing "a new breed of structures that nearly think for themselves." They are known as intelligent structures." A building of this type was characterised as "a marriage of two technologies—traditional building management and telecommunications." Several key technological advances were underway in the early 1980s. One was that the telecommunications business in the United States was deregulating, and new firms, products, services, and innovations were entering the telecom marketplace. The formation and rise of the personal computer industry was the second key trend, which appeared to be relatively different and unrelated at the time. This period also saw the birth of the first genuine link between real estate developers and technology. The newly unregulated telecoms market gave building owners with a chance to resell services within their premises and add value to their business. "Shared tenant services" was the name given to this new business model.
The installation and utilisation of modern and integrated building technology systems is required for a smart building. Building automation, life safety, telecommunications, user systems, and facility management systems are examples of these systems. Smart buildings acknowledge and reflect technology improvements and building system convergence, common system elements, and the added functionality that integrated systems give. Smart buildings give actionable information about a building or area within a building, allowing the owner or occupant to manage the structure or space. Smart buildings are the most cost-effective way to develop and deploy building technology systems. The conventional approach to building design and construction is to design, install, and run each system individually. The most cost-effective approach to design and implement building technology systems is through smart buildings. The standard method to building design and construction is to design, install, and operate each system separately. Technology systems must be integrated into a single and uniform construction document. The construction document outlines each system and covers common system elements or the systems' integration basis. These include cabling, cable routes, equipment rooms, system databases, and device communications protocols. A contractor known as a Technology Contractor or a Master System Integrator subsequently installs the one unified design.
Smart buildings provide a great amount of useful building data regarding how they are used. Analyzing this data can provide insight into usage patterns and trends, allowing you to make educated decisions about how to improve your building, resulting in the following benefits:
Increased Productivity - Providing a location that promotes appropriate indoor air quality, physical comfort, security, sanitation, illumination, efficient procedures, and the room that employees require to function optimally will help them to operate successfully. As a result, analysing and comprehending how people utilise and move about your facility is critical to improve the physical architecture in order to optimise visited space while decreasing waste. A practical example would be expanding the size of a congested high-traffic location. Smart buildings can no longer just focus on cost and energy savings. They must be efficient in order to benefit your employees. Implementing smart processes such as meeting room and desk booking can assist decrease wasted staff time while also making your environment smart.Reduce Energy Consumption - Smart buildings enable you to enhance your energy efficiency and, as a result, your energy expenditures. By adding IoT occupancy sensors to your building management system, you may automatically switch off lights or HVAC systems in empty rooms or areas, reducing the need for excessive energy usage.Reduce Operating Costs - Overhead costs are a substantial expense for any building owner/user. While these are required company expenses, the amount spent is frequently inefficient since it is not utilised sensibly. You may lower real estate expenditures by spotting trends surrounding unused spaces.
There are several advantages to incorporating smart technology into a building, ranging from cost savings to improved environmental credentials. Smart buildings are relatively new today, but considering the numerous benefits they provide, they will quickly become the standard. Smart buildings go beyond the notion of automation, which is a core aspect of the Internet of Things. A smart building system must be able to interpret the data it collects from sensors and act on it automatically, such as activating a sprinkler system without human involvement if there is a fire. Smart houses are intended to increase inhabitants' security and comfort by allowing remote management of numerous home equipment, automating home maintenance routines, monitoring energy consumption, and controlling home security systems.
Smart buildings enable consumers and organisations to minimise energy expenses by monitoring energy consumption, for example. Smart buildings have a lower carbon footprint and are more ecologically friendly since they save energy and use green technologies. The resale value of smart homes and buildings can be boosted by adopting smart technology. Smart buildings with smoke, fire, and gas sensors contribute to a safer living and working environment. Smart building monitoring automates maintenance plans and detects flaws in household appliances and factory machines. The underlying technologies of the Internet of Things are complicated, and new technologies arise on a regular basis in the market. Keeping up with developments in smart building application development may be costly for businesses.
The global Smart buildings market accounted for a valuation of USD 75,845.9 million in 2021, and it is projected to reach USD 372,164.6 million in 2030 at a 19.2% CAGR.
The study of the global Smart buildings market provides detailed information about the industry trends and dynamics, market size, competitive landscape, and growth opportunities. This research report categorizes the market based on automation and applications and region/country. Based on the automation, the Smart buildings market has been segmented into intelligent security system, building energy management system, infrastructure management system, and network management system. Based on application, the market has been segmented into commercial, industrial, government & public infrastructure, and residential. Based on region, the Smart buildings market has been segmented into North America, Europe, Asia-Pacific, Middle East & Africa and South America.
During the study, MRFR has identified the players that contributed a significant share to the growth of the global Smart buildings market. These players focus on innovation and thus, invest in research and development to present a cost-effective product portfolio. There have been recent mergers and acquisitions among the key players, a strategy the business entities leverage to strengthen their reach to the customers. Furthermore, the global market is highly fragmented, with the presence of several prominent vendors. providers in the market are adopting several organic and inorganic growth strategies, such as product enhancement & technological advancements, product launches, acquisitions, partnerships, agreements, and collaboration, to improve their position and excel in the global Smart buildings market.
The Smart Building Market market is projected to grow at a CAGR of 16.7% from 2017 to 2025.
Historical performance and future projections (2020–2030, USD Billion)
Subscribe to Wantstats
Unlock premium reports, insights, blogs, charts and more.
View Subscription PlansMarket Size (USD Mn)
Subscribe to Wantstats
Unlock premium reports, insights, blogs, charts and more.
View Subscription PlansA smart building is one that employs technology to make effective and economical use of resources while also providing residents with a safe and comfortable environment. Smart buildings may utilise a variety of existing technologies and are planned or modified in such a manner that future technological improvements may be integrated. Some of the mechanisms and robots that may be utilised in a smart building to regulate and enhance its performance include Internet of Things (IoT) sensors, building management systems, artificial intelligence (AI), and augmented reality.
Subscribe to Wantstats
Unlock premium reports, insights, blogs, charts and more.
View Subscription PlansSubscribe to Wantstats
Unlock premium reports, insights, blogs, charts and more.
View Subscription PlansSubscribe to Wantstats
Unlock premium reports, insights, blogs, charts and more.
View Subscription PlansThis report applies a rigorous multi-stage research process combining primary interviews, secondary data sources, and bottom-up market modelling to ensure accuracy and completeness across all segments and geographies.
Base Year
2018
Historical Period
2017 – 2018
Forecast Period
2018 – 2025
Primary Interviews
150+
Historical data (2017–2018) and forecast period (2018–2025)
Our research process spans primary interviews with industry stakeholders combined with comprehensive secondary data analysis, validated through triangulation across multiple independent sources.
Subscribe to Wantstats
Unlock premium reports, insights, blogs, charts and more.
View Subscription PlansThreat of New Entrants
The smart building market has a high growth potential. The capital investments and technology required for entering the market is moderate. Also, the impact of economies of scale on smart building market is high. However, the requirement of technical expertise for smart building market is considerably high. Therefore, the new entrants present a moderate to high threat to the major competitors in the market.
Bargaining Power of Suppliers
Smart building solutions are mainly implemented in residential buildings, commercial offices, and federal buildings. Smart buildings make use of IoT sensors and other hardware devices. The suppliers of these devices are in large numbers in the market. However, there are various government regulations which impact the market growth. As there are number of suppliers for smart building solutions in the market, the bargaining power of suppliers is presumed to be moderate.
Threat of Substitutes
The drift towards smart green buildings has stimulated the development of standardized, user-friendly solutions such as smart meters, electrical controllers, HVAC controllers, and luminance sensors among others. These solutions provide benefits such as energy efficiency management, security management, and lighting management. As the smart building solutions are still evolving, there are not many substitutes available in the market. Furthermore, there exist several untapped opportunities in the smart building market, therefore, it is unlikely that they would be substituted by any other fast emerging technology in the near future. Hence, the threat of substitutes is expected to be low.
Bargaining Power of Buyers
The concentration of buyers in the smart building market is high owing to large end-use applications of smart building technologies. The major end users of smart building solutions include commercial spaces, government buildings, public infrastructure, and residential buildings. These end users are well-established companies; they are price sensitive and well aware of various smart building technologies and mainly opt for large volumes of standardized, high-quality products from established vendors. Since buyers enter into long-term contracts with the providers and choose the products as per the end-use applications, their bargaining power is expected to be high.
Intensity of Rivalry
The market is expected to witness a high competition among the existing players. Furthermore, key market players are investing extensively in research and development of smart building automation technologies. Hence, the rivalry in the market is moderate but expected to increase in the coming years.
Market estimates by geography (2025)
InsightEurope leads with $7.54B by 2025, while Asia Pacific is projected to grow fastest at a 21.4% CAGR.
Subscribe to Wantstats
Unlock premium reports, insights, blogs, charts and more.
View Subscription Plans| REGION | 2017 | 2018 | 2025 | CAGR | SHARE |
|---|---|---|---|---|---|
| Middle East and Africa | $694.80M | $1.33B | $2.76B | 18.8% | 11% |
| North America | $2.72B | $4.21B | $7.12B | 12.8% | 28% |
| Asia Pacific | $1.58B | $3.23B | $7.45B | 21.4% | 29% |
| Europe | $2.16B | $3.82B | $7.54B | 16.9% | 29% |
| South America | $293.50M | $477.70M | $849.40M | 14.2% | 3% |
| Total | $7.46B | $13.07B | $25.72B | 16.7% | 100% |
Subscribe to Wantstats
Unlock premium reports, insights, blogs, charts and more.
View Subscription PlansTotal Market Size
$25.72B
| APPLICATION | REVENUE ($B) | GROWTH RATE | MARKET PENETRATION |
|---|---|---|---|
| Building Energy Management System | $8.21B | 16.7% | 89% |
| Infrastructure Management System | $6.88B | 16.7% | 67% |
| Intelligent Security System | $6.47B | 16.7% | 87% |
| Network Management System | $4.16B | 16.7% | 46% |
* Revenue projections based on 2025 estimates. Growth rates represent CAGR 2024–2030. Market penetration indicates current adoption rate within addressable market segments.
Subscribe to Wantstats
Unlock premium reports, insights, blogs, charts and more.
View Subscription PlansSee plans for professionals or small and medium businesses.

Analytical insights on Smart Building Market covering market dynamics, competitive landscape, and strategic outlook.
The Smart Building Market market is projected to reach $25.73B by 2025, growing at 16.7% CAGR. The Building Energy Management System segment holds the largest share.
The smart building market is expected to gain high growth in the coming years owing to factors such as growing need for energy-efficient building and an increasing number of government initiatives toward smart infrastructure. However, lack of technical expertise and poor infrastructure in some of the developing and under-developed countries is a major challenge for the growth of the smart building market.
Energy efficiency is a key factor for the sustainable development of a country. Due to the increasing global warming and government stringency, measures are increasingly being taken to reduce energy consumption as well as carbon pollution. The building sector accounts for a significant percentage of the world’s total energy consumption. According to a survey conducted by the International Energy Agency (IEA), the global building sector consumes 42% of the total generated electricity. With the increasing urbanization in developing countries, the number and size of smart buildings is expected to increase leading to an increased demand for energy-efficient building solutions.
The growing concerns of increasing energy consumption worldwide are expected to fuel more advanced and energy- efficient technology. For instance, as per the lot and smart building 2019 report of IBM Corporation, commercial and real estate buildings utilize 50% water and energy. The report further states that buildings are expected to consume maximum energy by the end of 2025. Similarly, according to Schneider Electric Whitepaper, 36% of carbon emission comes from buildings. This high consumption and wastages exponentially increase the overall cost of operations and maintenance. However, strict governance on energy consumption and green building initiatives boost the demand for energy- efficient technology across buildings. This factor is expected to propel the implementation of intelligent building solutions globally. According to the IBM Corporation report, implementing advanced technology, including Al, IoT, and others helped reduce energy usage by 40% and 10%-30% maintenance costs. Similarly, as per Deloitte's report, the implementation of smart technology and lot devices witnessed 70% energy saving in three years. This factor is expected to fuel the smart building market growth. In October 2021, the U.S. Department of Energy (DOE) announced USD 61 million in funding for ten pilot projects using new technology to transform thousands of homes and workplaces into cutting-edge, energy-efficient structures. These Connected Communities can interact with the electrical grid to optimize their energy consumption, significantly reducing carbon emissions and energy costs.
Climate change fuels the demand for energy efficiency in residential and commercial complexes for space heating and cooling, water heating, temperature control, and lighting. Additionally, building energy consumption is higher in industrialized countries and the importance of energy-efficient buildings is significant in developing countries which drives the growth of smart building market. Many enterprises are focused on implementing technologies for more efficient heating, air conditioning, and lighting which enables buildings to use less energy, further reducing greenhouse gas emissions. Energy-efficient buildings offer energy savings, comfort of living and working, low maintenance costs, and reduced usage of electricity for office machinery and domestic appliances. Moreover, in industrialized countries, factors such as government policies for smart buildings, codes for energy efficiency in new construction plans, and compliance with energy-efficient standards in various industries are fuelling the adoption of energy-efficient buildings. In addition, energy-efficient buildings provide better financial returns for SMEs as well as large enterprises, reduce emissions which cause climate change, and reduce health hazards due to air pollution which accounts for increasing the overall adoption rate.
The fifth generation of mobile and cellular technologies or 5G is expected to impact a wide range of IT technologies and services including smart building automation. With the integration of 5G cellular technologies, smart building technologies along with IoT will be able to manage building infrastructure, systems, and services more efficiently. This technology will provide building contractors with enhanced facility and space management, maintenance management, and sustainability & energy management. Intelligent lighting will help conserve electricity in smart buildings. 5G technology enables connection and control of devices including air conditioners, refrigerators, and heaters using a smartphone. According to GSMA, investments in 5G networks will reach USD 1 trillion worldwide by 2025, and the global 5G network will serve a longer investment cycle than 4G, which indicates that the coexistence of 4G and 5G will last into the 2030s.
Countries focused on achieving economic growth, improve living standards, smart home, and office environment and better communication, have a greater opportunity with the advent of 5G technology in building and making smart cities even smarter. Furthermore, 5G brings reliability, scalability, and security to several critical smart building services. Moreover, new network infrastructure will power the 5G networks to offer interconnectivity among smart homes and office buildings. This presents an opportunity for various smart building technology vendors with a massive rise in the number of IoT devices adopting 5G technology. In addition, 5G technology can allow the operators to swiftly process and transfer a large amount of building data across diverse range of devices providing better user experience.
With a rising focus on energy efficiency, renewable energy, and reduction of CO2 emissions in the environment, there exists an increased demand for expert workers. Moreover, emerging economies lack smart infrastructure to be able to develop and adopt smart building automation solutions. Few of the companies in countries such as Africa and Asia-Pacific are reluctant to realize the importance of leveraging smart building technology to fuel growth. Furthermore, the overall awareness regarding the benefits of smart building technologies along with the complexity associated with them are a few challenges restraining the adoption of smart infrastructure. Many operators have little or no technical expertise to analyse a large amount of building data which can lead to more training and understanding of these technologies. Many SMEs in developing countries are conservative to adopt high-end infrastructure owing to the costs and lack of funding for building upgrades including smart technology. In addition, many construction professionals are required to be trained in analytical skills and smart building automation technology. With digitization in the construction industry, organizations need professionals who possess key competencies and can work with smart infrastructure. Conclusively, the shortage of skilled workers and poor IT infrastructure can hamper the adoption of smart building technologies.
Near-term growth will likely concentrate in modular bioreactor lines and closed-system media workflows that shorten validation cycles while preserving batch traceability.
Partnerships between CDMOs and instrumentation vendors should accelerate standard datasets for comparability across sites, improving forecasting models used in capacity planning.
Longer horizon, organoid and microphysiological adoption may reshape segment mix; teams that invest early in assay interoperability and cloud QC hooks are better positioned to capture upside without fragmenting their analytics stack.
Profiles of 115 companies operating in the Smart Building Market market, including revenue, employee count, and market positioning where available.
Showing 115 of 115 companies
Overkiz
Company Headquarters: France Founded: 2007 Workforce: ~70 Company Working: Overkiz engages in the provision of IoT solutions that monitor, control, and install equipment from different manufacturers and technologies from building and home automation. The company provides an IoT platform that includes cloud architecture, gateways, mobile applications, application program interface (APIs), and e-maintenance tools. The company helps service and telecom providers, manufacturers, developers, and smart device distributors to quickly deploy powerful services and solutions. Overkiz is an original equipment manufacturer (OEM) and is a subsidiary of Somfy Group, which engages in the automatic control of opening and closures in homes and buildings. The company operates in Europe, North America, and Middle East, and Asia.
GEZE GmbH
Company Headquarters: Germany Founded: 1863 Workforce: ~ 3200 Company Working: GEZE GmbH is a leading manufacturer and developer of construction systems. The company provides various products for door, window, and safety technology. GEZE GmbH’s product range includes smoke and heat extraction systems, window and ventilation technology, automatic door & glass systems, and various safety technologies. The company has registered 1,226 patents worldwide in the fiscal year 2018–19. GEZE GmbH has its manufacturing sites in Turkey, China, and Serbia. The company has 32 subsidiaries in Europe, Asia-Pacific, and Africa.
Sony Corporation
Company Headquarters: Japan Founded: 1946 Workforce: ~114,400 Company Working: Sony Corporation (Sony) engages in the development, design, manufacture, and sale of electronic equipment, instruments, devices, game consoles, and software for consumers, professionals, and industrial markets. The company operates through the following segments: games and network services, music, pictures, home entertainment and sound, imaging products and solutions, mobile communications, semiconductors, financial services, and all others. Gaming machines, software, and network services are part of the games and network services segment. The music segment produces and publishes music and provides visual media platforms. The picture segment handles film production, television program creation, and media networks. The home entertainment and sound segment offer LCD televisions, home audio, Blu-ray disc players and recorders, and memory-based portable audio devices. The imaging products and solutions segment provide digital imaging products, professional solutions, and medical goods. The mobile communications segment deals with mobile phones and internet services businesses. The semiconductor segment provides image sensors and camera modules. The financial services segment manages the life insurance and non-life insurance operations and banking business. The other segments include the personal computer (PC) business, overseas Blu-ray discs, DVD and CD manufacturing, and the battery business. Sony classifies its operations geographically into Japan, Europe, the US, Asia-Pacific, China, and other regions.
Hitachi Ltd
Company Headquarters: Japan Founded: 1910 Workforce: ~295,950 Company Working: Hitachi Ltd manufactures and sells electrical equipment. The company operates through information and telecommunication systems, social infrastructure and industrial systems, electronic systems and equipment, construction machinery, high functional materials and components, automotive systems, smart life and eco-friendly systems, and financial services segments. The information and telecommunication systems segment offer outsourcing services, system integration, disk array subsystems, servers, software, mainframes, telecommunications equipment, and automated teller machine (ATM) services. The social infrastructure and industrial systems segment provide industrial equipment, infrastructure products and services, and energy-saving solutions to help reduce environmental impact and promote urban development. The electronic systems and equipment segment manufacture semiconductors, test and measurement equipment, medical electronics equipment, liquid crystal display (LCD), power tools, and electronic parts manufacturing systems. The construction machinery segment offers products for building and structural demolition, civil engineering and construction, mining and excavation such as hydraulic excavators, wheel loaders, and mining dump trucks. The high functional materials and components segment produces wires and cables, circuit boards and materials, semiconductors and display-related materials, magnetic materials and components, specialty steels, and high-grade casting components and materials. The automotive systems segment offers engine management systems, drive control systems, electric power train systems, and car information systems. The smart life and eco-friendly systems segment provides energy-efficient home appliances, refrigerating and air-conditioning solutions, and lighting and housing equipment. The company also offers logistics and property management services. The financial services segment deals with leases, loan guarantees, and insurance services, and conducts business in the area of securitization. Hitachi Ltd operates in North America, Europe, and Asia-Pacific.
Johnson Controls International PLC
Company Headquarters: Cork, Ireland Founded: 1885 Workforce: ~102,000 Company Working: Johnson Controls International plc is a global diversified technology and multi-industrial company that specializes in building efficiency, smart technology, and energy solutions. With a history dating back to 1885, the company has evolved into a leader in providing innovative products, services, and solutions for buildings, HVAC systems, energy storage, and automotive interiors. The company also specializes in engineering, developing, manufacturing, and installing a wide range of building products and systems. Their extensive portfolio includes HVAC equipment, fire suppression systems, distributed energy storage, fire detection solutions, industrial refrigeration, building automation and controls, digital solutions, residential and smart home security, and retail solutions, among others. In addition to their product offerings, The company also provides heating, cooling, and refrigeration solutions for various applications, ranging from residential homes to large industrial facilities. Their expertise lies in creating efficient, sustainable systems that contribute to indoor comfort and energy savings. Johnson Controls provides technical assistance, energy management advice, and data-driven solutions to support their customers in the residential and non-residential building markets. With a global presence, the company sells its equipment and services through a network of offices worldwide, serving a diverse customer base. Johnson Controls operates in over 150 countries, serving a diverse customer base that includes commercial building owners, industrial facilities, governments, and automotive manufacturers.
Advantech Co. Ltd
Company Headquarters: Taiwan Founded: 1981 Workforce: ~ 8,930 Company Working: Advantech Co., Ltd manufactures and sells embedded computing modules, embedded computing modules, and applied & industrial computers. The company offers computer on modules, edge AI, and the Internet of Things solutions, digital signage, embedded PCs & single board computers, embedded software, gaming platform solutions, industrial flash, industrial display systems, and memory solutions, industrial and semi-industrial motherboards, and RISC computing platforms. It also provides automation controllers, building automation systems, embedded automation computers, human-machine interfaces, machine automation, panel PCs, certified solutions, power & energy, and remote I/O and wireless sensing modules, as well as Web Access software and Edge SRP. In addition, the company also offers data acquisition and communication, modular IPC, and slot Single board computer (SBC) and backplanes computer peripherals, motherboards, and servers and storage solutions. It operates in different regions across Asia, North America, and Europe, among others.
Powering the world's best teams.
From next-gen startups to established enterprises.
Trusted by forward-thinking businesses
for data-driven intelligence
Smart Building Market