HOME › Research Insight › Key Players have Adopted Various Growth Strategies, such as Expansions, Acquisitions, and Joint Ventures with Partnerships in Smart Building Market
Key Players have Adopted Various Growth Strategies, such as Expansions, Acquisitions, and Joint Ventures with Partnerships in Smart Building Market
The smart building market size is estimated to be USD 5.73 Billion in 2016 and is projected to reach USD 24.73 Billion by 2021, at a CAGR of 34.0% during the forecast period. Some of the major factors that are driving the growth of the smart building market include the growing government initiatives for the development of smart building projects, rising focus on green buildings, and evolution of building management Internet of Things (IoT) platforms, rise in the demand for integrated and next generation security systems, evolution of cloud-based solutions, and the increasing wave of smart cities. The adoption of smart building automation software is propelled by the increasing demand for energy efficient and integrated secured buildings. Moreover, the advancements in wireless communication technologies have lessened the complexity as well as the cost involved in installing building automation and control systems in the existing buildings. The emergence of IoT has also enabled the exchange of information among several electronic devices as well as cloud without the need for direct human interaction, which makes buildings smarter.
Technological giants such as ABB Group (Switzerland), International Business Machines (IBM) Corporation (U.S.), Schneider Electric SE (France), Siemens AG (Germany), Cisco Systems, Inc. (U.S.), Honeywell International Inc. (U.S) and United Technologies Corporation (U.S.) offer leading smart building products, solutions, and services to cater to the needs and demands of the market. These players have adopted various growth strategies, such as expansions, acquisitions, and joint ventures with partnerships and new product launches being the key strategies. Partnerships and mergers and acquisition have been the major strategical trends, accounting for more than half of the market share of all the growth strategies adopted by the major market players.
IBM has adopted a strategic mix of organic and inorganic growth strategies, such as new product developments, partnerships, acquisitions, and business expansions. In 2016, IBM partnered with Siemens building technologies division to provide cloud-based solutions for building automation technologies. The partnership has been a major game changer in the smart building market.
Similarly, Schneider Electric, in May 2016, entered into a partnership with Digital Lumens, the leading provider of intelligent lighting systems. With this partnership, Schneider Electric customers can leverage the power of IoT across a variety of building environments. The company also entered into a strategic collaboration with BuildingIQ to develop and provide next generation building management IoT platform products.
Smart Building Market by Building Automation Software (Intelligent Security Systems, Energy Management, Infrastructure Management), Building Type (Commercial, Residential, Government), Services (Professional and Managed) - Global Forecast to 2021
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