Smart Building Market Summary
As per MRFR Analysis, the Global Smart Buildings Market was valued at USD 109120.2 Million in 2023 and is projected to reach USD 509007.5 Million by 2032, growing at a CAGR of 18.66% from 2024 to 2032. The market is driven by advancements in technology, government support for energy-efficient solutions, and the increasing need for sustainable building practices. Smart buildings provide valuable data for optimizing energy consumption and operational efficiency, addressing the significant energy usage in the building sector, which accounts for 42% of global electricity consumption. The commercial segment leads the market, contributing approximately 46.24% to the revenue in 2022, while North America holds the largest market share at 36.87%.
Key Market Trends & Highlights
Key trends driving the Smart Buildings Market include energy efficiency, automation, and security enhancements.
- Smart Buildings Market Size in 2023: USD 109120.2 Million
- Projected Market Size by 2032: USD 509007.5 Million
- CAGR from 2024 to 2032: 18.66%
- Commercial segment contributed ~46.24% to market revenue in 2022
Market Size & Forecast
2023 Market Size: USD 109120.2 Million
2024 Market Size: USD 129525.6774 Million
2032 Market Size: USD 509007.5 Million
Largest Regional Market Share in 2024: North America
Major Players
Control4 Corporation, HCL Technologies Limited, Panasonic Corporation, Advantech Co. Ltd, Johnson Controls International PLC, Hitachi Ltd, Sony Corporation, IBM Corporation, Cisco Systems, Honeywell International, Inc., Emerson Electric Co, Overkiz, ABB Group, Huawei Technologies Co. Ltd, Siemens AG.
The increased demand for energy efficiency & sustainability and government regulations & green building initiatives and IOT-enabled smart automation in buildings are driving the growth of the Smart Buildings Market.
As per the Analyst at MRFR, A wireless network or wireless connections are more vulnerable to eavesdropping and easily being manipulated compared to wired networks or connections. This is because a wired network uses a shielded copper wire or fiber optic cables as their medium to transmit and receive data which will be more difficult for an unauthorized user to perform eavesdrop and steal or manipulate information/data that are being transmitted, while a wireless network uses radio frequency to transmit data and this radiofrequency are traveling in the air, this allows unauthorized people to intercept the radio frequency and steal the information easily if the connection is not properly secured.
There are multiple types of attacks that can be used by an attacker to gain data that are being transmitted in the network for illegal use. As wireless networking is playing an important role in ubiquitous computing where more devices are continuously being connected to the internet connection and this causes more data or information to be transmitted wirelessly .
FIGURE 1: SMART BUILDINGS MARKET VALUE (2019-2035) USD BILLION

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Smart Buildings Market Opportunity
INTEGRATION OF RENEWABLE ENERGY TECHNOLOGIES (RETS) IN SMART BUILDINGS
Integrating on-site renewable energy systems with Smart Buildings can offer various opportunities to improve energy efficiency, reliability, and operation quality of a smart grid/city, with a balanced interaction through the electrical distribution network. Renewable energy systems can be used to reduce greenhouse gas emissions by offsetting electricity imported from the grid when an appropriate dispatch schedule is adopted and applied. This integration offers a multitude of advantages: reduced dependency on the grid, lowered operational costs due to decreased energy purchase, mitigation of carbon emissions, and the enhancement of a building's adaptability to changing energy scenarios. At the outset, it requires a comprehensive assessment of the building's energy profile, understanding peak demand times, and matching those with renewable energy generation patterns.
Whether it's the solar intensity for photovoltaics or wind patterns for turbines, the natural energy sources must be mapped with the building's consumption tendencies. Advanced Energy Management Systems, armed with predictive analytics, play a pivotal role here. They can forecast energy demand and adjust building operations to align with renewable energy supply. This means retrofitting structures with installations like solar panels, wind turbines, or energy storage solutions while ensuring that the building's systems can communicate effectively with these RET installations.
But overall, the optimization of the integrated energy systems with renewable components should be critically embraced to ensure good stability and optimize operational performance to achieve cost savings while maintaining the demand/supply-side flexibility. Increasing renewable electricity generation is an essential component in achieving a doubling of the renewable energy share in the global energy mix. Such a transition is technically feasible but will require upgrades of old grid systems and new innovative solutions to accommodate the different nature of renewable energy generation.
In 2012, as part of the “International Year for Sustainable Energy for All” (SE4ALL), the International Renewable Energy Agency (IRENA) launched REMAP 2030, a global renewable energy roadmap aiming to double the share of renewables in the global energy mix by 2030. Initial results indicated that the renewable share in electricity generation must increase from 20% to at least 40%, requiring developed countries to modernize grid systems and emerging economies to avoid reliance on conventional energy. Such government initiatives and roadmaps play a big role in advancing more in integrating on-site renewable energy systems with smart buildings as initiatives worldwide are also increasing for adoption of smart technologies and digital transformation for energy efficiency.
CASE STUDIES:
- The Edge (Amsterdam): This building achieves near-zero energy consumption by using solar panels, harvesting rainwater, and a smart design that optimizes energy use. Energy Digital Magazine notes that it achieved the highest BREEAM score ever for an office building, at 98.36%, mainly due to its extensive solar panel network and aquifer thermal energy storage system.
- The 'Pearl River Tower' in Guangzhou, China. Known as one of the most energy-efficient super-tall structures in the world, it exemplifies the integration of wind turbines directly into its architectural design. The building's shape funnels wind towards these turbines, producing energy that powers various operations within the building. Alongside, the tower employs solar panels, geothermal cooling, and a host of smart building technologies to The Journal of Engineering and Exact Sciences – jCEC 6 regulate energy consumption meticulously. A skyscraper that stands as a testament to sustainable, smart design. However, it wasn't without challenges. Designing the building to be aerodynamically apt for wind energy harvesting required extensive simulations and iterations. But the outcomes, both in energy savings and as a blueprint for future constructions, have been invaluable.
- Another case is the 'Bullitt Center' in Seattle, also known as the 'greenest commercial building in the world.' This six-story structure is known for renewable energy integration, with a massive solar panel array on its roof and rainwater harvesting systems that are methodically processed for potable use. The building's energy consumption is rigorously monitored and adjusted using smart technologies, ensuring that its operations are almost entirely powered by the energy it generates.
Smart Buildings Market Segment Insights
Smart Buildings by Solution Type Insights
Based on Solution Type, this segment includes Building Automation Systems (BAS) (HVAC Control Systems, Lighting Control Systems, Smart Elevator and Escalator Systems), Energy Management Systems (Smart Meters and Energy Monitoring, Renewable Energy Integration (Solar Panels, Wind Turbines), Demand Response Systems), Security and Access Control Systems (Smart Surveillance Cameras, Biometric and RFID Access Control, Intrusion Detection Systems), IoT-Enabled Infrastructure (Occupancy and Motion Sensors, Connected Appliances and Devices, Smart Thermostats), Communication Systems (Unified Communication Platforms, Smart Intercom Systems).
The Energy Management Systems segment dominated the global market in 2024, while it is projected to be the fastest–growing segment during the forecast period. An energy management system (EMS) is a set of tools combining software and hardware that optimally distributes energy flows between connected distributed energy resources (DERs). Companies use energy management systems to optimize the generation, storage and/or consumption of electricity to lower both costs and emissions and stabilize the power grid. EMS collects, analyzes and visualizes data in real time and dynamically controls energy flows. An energy management system is the building block of future energy use cases as it intelligently monitors and controls a variety of energy assets within a household, building or larger site.
FIGURE 2: SMART BUILDINGS MARKET SHARE BY SOLUTION TYPE 2024 AND 2035 (USD BILLION)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Smart Buildings by Technology Insights
Based on Technology, this segment includes Artificial Intelligence (AI) for Predictive Maintenance, Internet of Things (IoT) for Device Connectivity, Cloud Computing for Remote Monitoring and Management, Blockchain for Secure Data Sharing, Augmented Reality (AR) and Virtual Reality (VR), Others. The Internet of Things (IoT) for Device Connectivity segment dominated the global market in 2024, while the Artificial Intelligence (AI) for Predictive Maintenance segment is projected to be the fastest–growing segment during the forecast period. Internet of Things (IoT) for device connectivity in smart buildings refers to the use of interconnected devices and sensors that communicate with each other via the internet or local networks to automate, monitor, and optimize building operations.
IoT enables seamless connectivity between various building systems such as lighting, HVAC, security, and energy management through smart devices like sensors, smart meters, and controllers. These devices collect and transmit data in real-time to centralized platforms, allowing building managers to monitor energy usage, adjust environmental settings, track occupancy, and even predict maintenance needs.
Smart Buildings by Application Insights
Based on Application, this segment includes Energy Optimization and Management, Space Management, Safety and Security Enhancement, Predictive Maintenance and Analytics, Environmental Monitoring, Others. The Energy Optimization and Management segment dominated the global market in 2024, while it is projected to be the fastest–growing segment during the forecast period. In smart buildings, energy optimization and management leverage technology to reduce energy consumption and costs through real-time monitoring, automated control, and data analytics, ultimately leading to more efficient and sustainable buildings.
Energy optimization and management in smart buildings involve the use of advanced technologies and IoT devices to monitor, control, and reduce energy consumption across the building. Through the integration of smart meters, sensors, and automated systems, smart buildings continuously gather real-time data on energy usage from various systems, including lighting, heating, ventilation, and air conditioning (HVAC), appliances, and more. This data is then analyzed to identify inefficiencies, peak consumption times, and opportunities for energy savings.
Smart Buildings by Building Type Insights
Based on Building Type, this segment includes Residential Buildings (Apartments and Smart Homes, Multi-Family Housing), Commercial Buildings (Office Spaces, Retail Stores and Shopping Centers, Hospitality (Hotels, Resorts)), Industrial Buildings (Manufacturing Facilities, Warehouses and Distribution Centers), Institutional Buildings (Healthcare Facilities (Hospitals, Clinics), Educational Institutions (Schools, Universities), Government and Public Buildings). The Commercial Buildings segment dominated the global market in 2024, while it is projected to be the fastest–growing segment during the forecast period.
Commercial buildings in smart buildings are office spaces, retail centers, or other business facilities that utilize advanced technologies, IoT devices, and automation to optimize operations, enhance productivity, and improve occupant comfort. These buildings integrate systems such as lighting, heating, ventilation, air conditioning (HVAC), security, and energy management to create an intelligent, efficient environment. Smart lighting systems automatically adjust based on occupancy or natural light levels, while HVAC systems optimize energy usage by adjusting temperatures according to building occupancy or weather conditions.
Smart security features, including surveillance cameras, smart access control, and motion sensors, enhance safety and streamline access management. Additionally, energy management systems track energy consumption and identify inefficiencies, helping businesses reduce operational costs and carbon footprint.
Smart Buildings by Functionality Type Insights
Based on Functionality Type, this segment includes Energy Management Solution (Smart Meters, Battery Storage System, Others), Building Automation Solution (Smart Thermostats, Occupancy and Daylight Sensors, Automated Irrigation System, Water Flow Sensors and Leak Detector Sensors, Others), Security and Access Control Solutions (Biometric Scanner, RFID Enabled Door Lock, Smart Intercom, Smoke Detectors and Fire Alarms, Others), IoT and Connectivity Solutions (IoT Hubs and Gateways, Mesh Networks, Others), Space and Occupancy Management (Sewer Inspection Camera, Others), Comfort and Wellness Solutions (Air Quality Sensors, Smart Air Purifiers and Humidifiers, Others), Data Analytics and Management Solutions (Temperature and Humidity Sensors, Viberation Meters, Pressure Sensors, Others), Smart Power Utilities and Solution (EV Charging with IoT integration, Others), Infrastructure Management Solution (IoT Enabled Elevator, Others). The Energy Management Solution segment dominated the global market in 2024, while it is projected to be the fastest–growing segment during the forecast period.
In smart buildings, energy management solutions, often called Building Energy Management Systems (BEMS). An intelligent building energy management system is called a BEMS and is responsible for regulating service systems (for example, heating, boilers and pumps, thermal regulation to achieve the optimum room temperature needed, regulation of lights or other devices that consume energy, and logging data from energy meters). It can, for example, regulate the air conditioning in buildings with the cooling system distributing cold air throughout the building using devices like fans.
The variety of intelligent networking and advanced control functions is obviously made possible by advances in hardware and software, as well as by the reliability of the electronics used and the network protocols, sensors, the transition to wireless and the massive diffusion of the internet of things through sensors for the interconnection of objects and systems.
Smart Buildings Regional Insights
Based on the Region, the global Smart Buildings are segmented into North America, Europe, Asia-Pacific, South America and Middle East & Africa. The North America dominated the global market in 2024, while the Europe is projected to be the fastest–growing segment during the forecast period. Major demand factors driving the North America market are the increased demand for energy efficiency & sustainability and government regulations & green building initiatives and IOT-enabled smart automation in buildings.
A smart building in North America is one that utilizes advanced technologies such as Internet of Things (IoT) devices, sensors, and automated systems to improve energy efficiency, enhance occupant comfort, and reduce operational costs. These buildings are designed to optimize performance and sustainability by monitoring and adjusting lighting, heating, ventilation, and air conditioning (HVAC), as well as security and safety systems.
FIGURE 3: SMART BUILDINGS MARKET VALUE BY REGION 2024 AND 2035 (USD BILLION)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Further, the countries considered in the scope of the Application Tracking System Market are the US, Canada, Mexico, Germany, UK, France, Russia, Italy, Spain, China, India, Japan, South Korea, Malaysia, Thailand, Indonesia, Brazil, Argentina, GCC Countries, South Africa and others.
Global Smart Buildings Key Market Players & Competitive Insights
Many global, regional, and local vendors characterize the Smart Buildings Market. The market is highly competitive, with all the players competing to gain market share. Intense competition, rapid advances in technology, frequent changes in government policies, and environmental regulations are key factors that confront market growth. The vendors compete based on cost, product quality, reliability, and government regulations. Vendors must provide cost-efficient, high-quality products to survive and succeed in an intensely competitive market.
The major competitors in the market are Itron, Inc., Panasonic Holdings Corporation, Johnson Controls, HCL Technologies Ltd., Cisco Systems, Inc., ABB Group, Siemens, Hitachi Ltd., Honeywell, IBM are among others. The Smart Buildings Market is a consolidated market due to increasing competition, acquisitions, mergers and other strategic market developments and decisions to improve operational effectiveness.
Key Companies in the Smart Buildings Market include
- Itron, Inc.
- Panasonic Holdings Corporation
- Johnson Controls
- HCL Technologies Ltd.
- Cisco Systems, Inc.
- ABB Group
- Siemen
- Hitachi, Ltd.
- Honeywell
- IBM
Smart Buildings Market Industry Developments
February 2025: ABB-Samsung Electronics Smart Building Technology Partnership. ABB and Samsung Electronics announced the upcoming integration of ABB’s InSite energy management system into Samsung’s SmartThings and SmartThings Pro platforms, marking a significant advancement in smart building technology.
January 2024: Honeywell launches a new control system to enhance building energy management. The platform works with a building’s existing wiring to increase operational efficiency and sustainability while also protecting cybersecurity.
July 2024: Hitachi to Announce Capital Reorganization of Air Conditioning Joint Venture. Hitachi to transfer its shares to Bosch together with joint venture partner Johnson Controls to establish a global partnership in the air conditioning business.
December 2024: ABB Electrification has opened a new Smart Buildings & Smart Power Technology Hub to showcase power distribution and building automation solutions for data centres and both commercial and residential buildings.
Smart Buildings Market Segmentation
Smart Buildings by Solution Type Outlook
-
Building Automation Systems (BAS)
- HVAC Control Systems
- Lighting Control Systems
- Smart Elevator and Escalator Systems
-
Energy Management Systems
- Smart Meters and Energy Monitoring
- Renewable Energy Integration (Solar Panels, Wind Turbines)
- Demand Response Systems
-
Security and Access Control Systems
- Smart Surveillance Cameras
- Biometric and RFID Access Control
- Intrusion Detection Systems
-
IoT-Enabled Infrastructure
- Occupancy and Motion Sensors
- Connected Appliances and Devices
- Smart Thermostats
-
Communication Systems
- Unified Communication Platforms
- Smart Intercom Systems
Smart Buildings by Technology Outlook
- Artificial Intelligence (AI) for Predictive Maintenance
- Internet of Things (IoT) for Device Connectivity
- Cloud Computing for Remote Monitoring and Management
- Blockchain for Secure Data Sharing
- Augmented Reality (AR) and Virtual Reality (VR)
- Others
Smart Buildings by Application Outlook
- Energy Optimization and Management
- Space Management
- Safety and Security Enhancement
- Predictive Maintenance and Analytics
- Environmental Monitoring
- Others
Smart Buildings by Building Type Outlook
-
Residential Buildings
- Apartments and Smart Homes
- Multi-Family Housing
-
Commercial Buildings
- Office Spaces
- Retail Stores and Shopping Centers
- Hospitality (Hotels, Resorts)
-
Industrial Buildings
- Manufacturing Facilities
- Warehouses and Distribution Centers
-
Institutional Buildings
- Healthcare Facilities (Hospitals, Clinics)
- Educational Institutions (Schools, Universities)
- Government and Public Buildings
Smart Buildings by Functionality Type Outlook
-
Energy Management Solution
- Smart Meters
- Battery Storage System
- Others
-
Building Automation Solution
- Smart Thermostats
- Occupancy and Daylight Sensors
- Automated Irrigation System
- Water Flow Sensors and Leak Detector Sensors
- Others
-
Security and Access Control Solutions
- Biometric Scanner
- RFID Enabled Door Lock
- Smart Intercom
- Smoke Detectors and Fire Alarms
- Others
-
IoT and Connectivity Solutions
- IoT Hubs and Gateways
- Mesh Networks
- Others
-
Space and Occupancy Management
- Sewer Inspection Camera
- Others
-
Comfort and Wellness Solutions
- Air Quality Sensors
- Smart Air Purifiers and Humidifiers
- Others
-
Data Analytics and Management Solutions
- Temperature and Humidity Sensors
- Viberation Meters
- Pressure Sensors
- Others
-
Smart Power Utilities and Solution
- EV Charging with IoT integration
- Others
-
Infrastructure Management Solution
- IoT Enabled Elevator
- Others
Smart Buildings Regional Outlook
-
North America
-
Europe
- Germany
- UK
- France
- Russia
- Italy
- Spain
- Rest of Europe
-
Asia-Pacific
- China
- India
- Japan
- South Korea
- Malaysia
- Thailand
- Indonesia
- Rest of APAC
-
South America
- Brazil
- Argentina
- Rest of South America
-
Middle East & Africa
- GCC Countries
- South Africa
- Rest of MEA
Report Attribute/Metric
|
Details
|
Market Size 2024
|
USD 83.49 Billion
|
Market Size 2025
|
USD 96.37 Billion
|
Market Size 2035
|
USD 427.33 Billion
|
Compound Annual Growth Rate (CAGR)
|
16.1% (2025-2035)
|
Base Year
|
2024
|
Forecast Period
|
2025-2035
|
Historical Data
|
2019-2023
|
Forecast Units
|
Value (USD Billion)
|
Report Coverage
|
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
|
Segments Covered
|
By Solution Type, By Technology, By Application, By Building Type, By Functionality Type
|
Geographies Covered
|
North America, Europe, Asia Pacific, South America, Middle East & Africa
|
Countries Covered
|
The US, Canada, Mexico, Germany, UK, France, Russia, Italy, Spain, China, India, Japan, South Korea, Malaysia, Thailand, Indonesia, Brazil, Argentina, GCC Countries, South Africa
|
Key Companies Profiled
|
Itron, Inc., Panasonic Holdings Corporation, Johnson Controls, HCL Technologies Ltd., Cisco Systems, Inc., ABB Group, Siemens, Hitachi, Ltd., Honeywell, IBM
|
Key Market Opportunities
|
· Integration of renewable energy technologies (rets) in smart buildings
· Growth in retrofit and upgrade projects for existing buildings
|
Key Market Dynamics
|
· Increased demand for energy efficiency & sustainability
· Government regulations & green building initiatives
· Iot-enabled smart automation in buildings
|
Smart Building Market Highlights:
Frequently Asked Questions (FAQ) :
USD 83.49 Billion is the Smart Buildings Market in 2024
The Energy Optimization and Management segment by Application holds the largest market share and grows at a CAGR of 31.8 % during the forecast period.
North America holds the largest market share in the Smart Buildings Market.
Itron, Inc., Panasonic Holdings Corporation, Johnson Controls, HCL Technologies Ltd., Cisco Systems, Inc., ABB Group, Siemens, Hitachi, Ltd., Honeywell, IBM are prominent players in the Smart Buildings Market.
The Internet of Things (IoT) for Device Connectivity segment dominated the market in 2024.