According to a new report published by Introspective Market Research, titled, “Connected Building Market by Platform, Service, and Application.: Opportunity Analysis and Industry Forecast, 2024–2032,”
The Connected Building market was worth USD 90.2 Billion in 2023. As such, the forecast is that the market is expected to reach USD 236.41 Billion by 2032 with a CAGR of 11.3% over the period from 2024 to 2032.
The Connected Building Market is experiencing rapid growth driven by advancements in IoT (Internet of Things), AI (Artificial Intelligence), and smart technologies. This market encompasses various solutions aimed at optimizing building operations, enhancing occupant experience, and improving sustainability.
Key components of connected buildings include smart sensors, actuators, IoT devices, and integrated systems that gather data and facilitate automation. These technologies enable building managers to remotely monitor and control various aspects such as lighting, HVAC (Heating, Ventilation, and Air Conditioning), security, and energy usage in real-time.
One of the primary drivers of this market is the increasing focus on energy efficiency and sustainability. Connected building solutions offer insights into energy consumption patterns, allowing for more efficient resource utilization and cost savings. Additionally, smart building technologies enable the implementation of predictive maintenance strategies, reducing downtime and extending the lifespan of building systems.
Another significant factor contributing to market growth is the rising demand for enhanced occupant comfort and productivity. Connected buildings can adjust environmental conditions based on occupancy levels, preferences, and activity patterns, creating a more comfortable and productive workspace.
The proliferation of cloud computing and data analytics is also fueling market expansion by enabling scalable and cost-effective deployment of connected building solutions. Advanced analytics algorithms help derive actionable insights from the vast amounts of data generated by building systems, driving optimization and performance improvement.
New and powerful capabilities for intelligent buildings are enhanced by the advent of 5G technology. It contributes significantly to the growth of loT-enabled devices by offering effective real-time operational and analytics capabilities. Due to loT-enabled devices in smart buildings, a significant volume of data is generated; nonetheless, 5G technology enables the speedy building of data transit, interpretation, and effective actions conducted inexpensively. The building Internet of Things (BloT) and Al-enabled technologies made possible by 5G greatly improve the user/occupant experience.
Connected Building Market, Segmentation
The Connected Building market is segmented based on Platform, Service, and Application
Platform:
Platform application management is central to the Connected Building Market, facilitating seamless integration and control of diverse building systems. These platforms serve as centralized hubs, enabling efficient monitoring, analysis, and optimization of building operations. They empower stakeholders to remotely manage energy usage, security, HVAC, and other critical systems through intuitive interfaces. By harnessing data analytics and IoT connectivity, these platforms drive intelligent decision-making, predictive maintenance, and sustainability initiatives. With their ability to adapt to evolving needs and technologies, platform application management solutions emerge as indispensable tools for modern buildings, fostering efficiency, comfort, and sustainability in the built environment.
Application:
The commercial segment reigns supreme in the Connected Building Market due to its expansive applications and significant economic impact. Businesses leverage connected building technologies to enhance operational efficiency, optimize energy usage, and improve occupant comfort and safety. Integrated systems for lighting, HVAC, security, and occupancy management streamline operations, reduce costs, and offer valuable data insights. Moreover, the commercial sector's scale and diversity, encompassing office spaces, retail establishments, and hospitality venues, drive widespread adoption of connected building solutions. This dominance underscores the pivotal role of technology in shaping modern business environments and sustaining competitiveness in an increasingly digitized world.
Region:
North America is at the forefront of technology thanks to significant investments in R&D. The introduction of cutting-edge smart building solutions, which use cutting-edge technologies like the Internet of Things (IoT), big data, deep learning, cloud computing, data analytics, and artificial intelligence (IT), to save energy, reduce operational outflows, and improve collective occupancy comfort, is what controls the growth factor in North America. Additionally, this is improved by adhering to the laws and standards set forth by the North American government.
Some of The Leading/Active Market Players Are-
- Rockwell Automation, Inc. (Us)
- Jacobs (Us)
- Tech Mahindra Limited (India)
- Infosys Limited (India)
- Capgemini Service Sas (France)
- Fujitsu (Japan)
- Bain & Company (Us)
- General Electric (Us)
- Constellation Research Inc. (Us)
- Enghouse Interactive (Us)
- Cbt Company (Us), Other Active players
Key Industry Developments: -
- In March 2023, Johnson Controls, a prominent leader in smart building technologies, sealed a game-changing acquisition deal with Open Blue, a distinguished provider of cloud-based connected building solutions. This strategic move solidifies Johnson Controls' foothold in the market while significantly expanding its array of service offerings.
- In April 2023, Microsoft introduced a ground-breaking technology, "Azure Digital Twins," set to redefine the management of connected buildings. This innovative solution creates virtual replicas or simulations of physical spaces, empowering real-time monitoring, data analysis, and predictive maintenance.
Key Findings of the Study:
- North America emerges as a frontrunner in the connected building market, driven by substantial investments in research and development. Advanced technologies such as IoT, big data, AI, and cloud computing are being leveraged to enhance energy efficiency, reduce operational costs, and elevate occupant comfort across various commercial settings. Compliance with governmental regulations and standards further propels market growth in the region.
- The commercial segment holds sway in the connected building market, owing to its wide-ranging applications and substantial economic impact. Businesses deploy connected building solutions to streamline operations, optimize energy consumption, and enhance occupant safety and comfort. Integrated systems for lighting, HVAC, security, and occupancy management play a pivotal role in driving efficiency, cost savings, and data-driven decision-making within commercial spaces.
