Smart Building Market

Smart Building Market by Type (Building Automation Software, Services), Building Type (Intelligent Security System, Building Energy Management System, Infrastructure Management, and Network Management System), and Region - Global Forecast to 2022

Report Code: TC 3445 Aug, 2017, by marketsandmarkets.com

[126 Pages Report] MarketsandMarkets forecasts the smart building market size to grow from USD 7.42 billion in 2017 to USD 31.74 billion by 2022, at a Compound Annual Growth Rate (CAGR) of 33.7% during 2017–2022. The growing need for integrated security and safety systems and decreasing operational costs are some of the major factors driving the growth of smart building market.

Smart Building Market

Based on type, services segment to grow at the highest CAGR from 2017 to 2022

The services segment is projected to grow at the highest growth rating during the forecast period. Service providers for smart buildings help in implementing intelligent automation and technologies for the efficient operation and maintenance of buildings in a cost-effective manner. The benefits of employing smart building services are the need for the implementation of optimal solutions, resulting in improved building performance, reduced energy usage, and reduced operating expenses.  

Based on building type, residential buildings segment to grow at the highest CAGR during forecast period

The residential buildings segment is growing at the highest CAGR, as this subsegment is a major end user of smart building technologies due to the increasing penetration of connected homes and Do It Yourself (DIY) home automation systems within residential premises. One of the drivers contributing to the growth of this market is the ability of communication standards and protocols to integrate different control devices and minimize the use of wires due to the emergence of wireless technologies. Moreover, growing concerns over energy consumption have resulted in the growing demand for energy management software. The integration of smart building technologies in residential premises is expected to enable improved safety and security, real time monitoring, and intelligent management of infrastructure facilities such as parking premises, water management, waste management, and communication infrastructure, among others.

Smart Building Market

Europe to hold the largest market size during forecast period

Europe is estimated to hold the largest share of the smart building market in 2017, owing to the increased initiatives by the region’s governments for building smart and intelligent structures. Moreover, in Europe initiatives to further push smart and zero energy buildings, with mandatory changes to country level building codes and the Energy Performance of Buildings Directive (EPBD), are expected to enhance existing infrastructure and lead to the growth of the smart building market.

Key Market Players

Major vendors in the smart building market include ABB Group (Switzerland), Siemens AG (Germany), Schneider Electric (France), Cisco Systems, Inc. (US), IBM Corporation (US), Delta Controls (Canada), Johnson Controls (US), Honeywell International Inc. (US), United Technologies Corporation (US), Legrand (France), and BuildingIQ (US). These companies have adopted various strategies, such as mergers & acquisitions, product developments, partnerships & collaborations, and Research & Development (R&D) activities to cater to the growing demand for smart building solutions across the globe as well as to strengthen their position in the market.

Scope of the Report

Report Metric

Details

Market size available for years

2015–2022

Base year considered

2016

Forecast period

2017–2022

Forecast units

Billion (USD)

Segments covered

Type, Building Type, and Region

Geographies covered

North America, Europe, Asia Pacific, Latin America, and Middle East & Africa

Companies covered

ABB Group (Switzerland), Siemens AG (Germany), Schneider Electric (France), Cisco Systems, Inc. (US), IBM Corporation (US), Delta Controls (Canada), Johnson Controls (US), Honeywell International Inc. (US), United Technologies Corporation (US), Legrand (France), and BuildingIQ (US)

The research report categorizes the smart building market based on type, building type, and region.

Based on Type, the smart building market has the following segments:

  • Building Automation Software
    • Intelligent Security System
    • Building Energy Management System
    • Infrastructure Management
    • Network Management System
  • Services
    • Professional Services
    • Managed Services

Based on Building Type, the smart building market has the following segments:

  • Manufacturing Facilities
  • Residential Buildings
  • Commercial Buildings
  • University, School, & Hospital Buildings
  • Government & Public Infrastructure Facilities
  • Others (religious buildings, R&D laboratories, small scale retail stores, refinery & nuclear plants, and entertainment facilities, such as amusement parks and movie theatres)

Based on Region, the smart building market has the following segments:

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa

Recent Developments

  • In June 2017, Johnson Controls opened an Asia-Pacific headquarters in Shanghai, China. This expansion will enable the company to better serve and cater to China’s rapid development.
  • In May 2017, Cisco announced a partnership with KPMG Australia to deliver world-leading Smart City initiatives in Australia. The partnership will enable the company to deliver the Cisco Smart+Connected digital platform, which combines data from sensors and information systems to provide the main view of a city.
  • In April 2017, ABB acquired B&R, a key player in machine and factory automation. With this acquisition, ABB expands its industrial automation and digital offering by combining its portfolio of digital solutions with B&R’s offerings.
  • In January 2017, Honeywell launched Lyric Cameras and an eventual software upgrade for Lyric Security systems, which makes the system compatible with Apple’s HomeKit. Honeywell’s two new Wi-Fi indoor cameras—the Lyric C1 and C2—is now paired with the Lyric app to access live streaming, recorded events, and alerts.
  • In January 2016, Johnson Controls merged with Tyco International Plc to better focus on smart buildings, energy management, and energy storage.

Critical Questions the Report Answers

  • What are the current technology trends that are driving the smart building market?
  • What are the various components in the supply chain of smart building market?
  • Where will all these developments take the industry in the mid to long-term?
  • Which companies are the top vendors in the smart building market, and how is the competitive scenario of the market?
  • What are the drivers and challenges of the smart building market?

To speak to our analyst for a discussion on the above findings, click Speak to Analyst

Table of Contents

1 Introduction (Page No. - 14)
    1.1 Objectives of the Study
    1.2 Market Definition
    1.3 Market Segmentation
    1.4 Years Considered for the Study
    1.5 Currency Conversion Rate
    1.6 Stakeholders

2 Research Methodology (Page No. - 17)
    2.1 Research Data
           2.1.1 Secondary Data
           2.1.2 Primary Data
                    2.1.2.1 Breakdown of Primaries
                    2.1.2.2 Key Industry Insights
    2.2 Market Size Estimation
    2.3 Research Assumptions
    2.4 Limitations

3 Executive Summary (Page No. - 23)

4 Premium Insights (Page No. - 26)
    4.1 Attractive Market Opportunities in the Market
    4.2 Market, By Type
    4.3 Global Smart Building Market

5 Market Overview and Industry Trends (Page No. - 29)
    5.1 Introduction
    5.2 Supply Chain
    5.3 Market Dynamics
           5.3.1 Drivers
                    5.3.1.1 Growing Need for Integrated Security and Safety Systems
                    5.3.1.2 Decreasing Operational Cost
                    5.3.1.3 Increasing Government Initiatives on Smart Building Projects
                    5.3.1.4 Implementation of IoT Platform Within the Building Automation Technology
           5.3.2 Restraints
                    5.3.2.1 High Initial Investment
           5.3.3 Opportunities
                    5.3.3.1 Green Building Initiatives and Environmental Concerns
                    5.3.3.2 Rising Wave of Smart Cities
                    5.3.3.3 Growing Cloud Based IoT Platforms
           5.3.4 Challenges
                    5.3.4.1 Limited Functionality and Lack of Open Standards
                    5.3.4.2 Lack of Awareness
                    5.3.4.3 Limited Availability of Skilled Staff

6 Smart Building Market Analysis, By Type (Page No. - 35)
    6.1 Introduction
    6.2 Building Automation Software
           6.2.1 Intelligent Security System
                    6.2.1.1 Video Surveillance System
                    6.2.1.2 Access Control System
                    6.2.1.3 Emergency Management System
           6.2.2 Building Energy Management System
                    6.2.2.1 Energy Management Platform
                    6.2.2.2 HVAC Control System
                    6.2.2.3 Lighting Control System
           6.2.3 Infrastructure Management System
                    6.2.3.1 Parking Management System
                    6.2.3.2 Smart Water Management System
                    6.2.3.3 Elevators and Escalators Management System
           6.2.4 Network Management System
    6.3 Services
           6.3.1 Introduction
           6.3.2 Professional Services
                    6.3.2.1 Consulting Services
                    6.3.2.2 System Integration and Deployment Services
                    6.3.2.3 Support and Maintenance Services
           6.3.3 Managed Services

7 Smart Building Market Analysis, By Building Type (Page No. - 52)
    7.1 Introduction
    7.2 Manufacturing Facilities
    7.3 Residential Buildings
    7.4 Commercial Buildings
    7.5 University, School, & Hospital Buildings
    7.6 Government & Public Infrastructure Facilities
    7.7 Others

8 Geographic Analysis (Page No. - 58)
    8.1 Introduction
    8.2 North America
    8.3 Europe
    8.4 Asia-Pacific
    8.5 Middle East & Africa (Mea)
    8.6 Latin America

9 Competitive Landscape (Page No. - 80)
    9.1 Microquadrant Overview
           9.1.1 Visionary Leaders
           9.1.2 Innovators
           9.1.3 Dynamic Differentiators
           9.1.4 Emerging Companies
    9.2 Competitive Benchmarking
           9.2.1 Strength of Product Portfolio in Smart Building Market (25 Players)
           9.2.2 Business Strategy Excellence Adopted in Market (25 Players)

10 Company Profiles (Page No. - 84)
     10.1 ABB
(Business Overview, Strength of Product Portfolio, Business Strategy Excellence, Recent Developments, and Key Relationships)*
     10.2 Cisco
     10.3 IBM
     10.4 Siemens
     10.5 Schneider Electric
     10.6 Honeywell International
     10.7 Johnson Controls
     10.8 Delta Controls
     10.9 United Technologies Corporation
     10.10 BuildingIQ 
     10.11 Legrand
*Details on Business Overview, Strength of Product Portfolio, Business Strategy Excellence, Recent Developments, and Key Relationships Might Not Be Captured in Case of Unlisted Companies.
     10.12 Key Innovators
             10.12.1 Gridpoint
             10.12.2 Ecova
             10.12.3 Verdigris

11 Appendix (Page No. - 118)
     11.1 Industry Excerpts
     11.2 Discussion Guide
     11.3 Knowledge Store: MarketsandMarkets’ Subscription Portal
     11.4 Introducing RT: Real-Time Market Intelligence
     11.5 Available Customizations
     11.6 Related Reports
     11.7 Author Details


List of Tables (73 Tables)

Table 1 Smart Building Market Size, By Type, 2015–2022 (USD Million)
Table 2 Building Automation Software: Market Size, By Subtype, 2015–2022 (USD Million)
Table 3 Building Automation Software: Market Size, By Region, 2015–2022 (USD Million)
Table 4 Building Automation Software: Intelligent Security System Market Size, By System Type, 2015-2022 (USD Million)
Table 5 Intelligent Security System: Video Surveillance System, By System Type Market Size, By Region, 2015-2022 (USD Million)
Table 6 Intelligent Security System: Access Control System, By System Type Market Size, By Region, 2015-2022 (USD Million)
Table 7 Intelligent Security System: Emergency Management System, By System Type Market Size, By Region, 2015-2022 (USD Million)
Table 8 Building Automation Software: Building Energy Management System By System Type Market Size, 2015–2022 (USD Million)
Table 9 Building Energy Management System: Energy Management Platform By System Type Market Size, By Region, 2015-2022 (USD Million)
Table 10 Building Energy Management System: HVAC Control System By System Type Market Size, By Region, 2015-2022 (USD Million)
Table 11 Building Energy Management System: Lighting Control System By System Type Market Size, By Region, 2015-2022 (USD Million)
Table 12 Building Automation Software: Infrastructure Management System By System Type Market Size, 2015-2022 (USD Million)
Table 13 Building Automation Software: Parking Management System By System Type Market Size, By Region, 2015-2022 (USD Million)
Table 14 Building Automation Software: Smart Water Management By System Type Market Size, By Region, 2015-2022 (USD Million)
Table 15 Building Automation Software: Elevators and Escalators Management System, By System Type Market Size, By Region, 2015-2022 (USD Million)
Table 16 Building Automation Software: Network Management System By System Type Market Size, By Region, 2015-2022 (USD Million)
Table 17 Managed Services is Expected to Grow at the Highest CAGR During the Forecast Period
Table 18 Smart Building Market Size, By Services, 2015–2022 (USD Million)
Table 19 Services: Market Size, By Region, 2015–2022 (USD Million)
Table 20 Market: Professional Services Market Size, By Service Type, 2015-2022 (USD Million)
Table 21 Market: Professional Services Market Size, By Region, 2015–2022 (USD Million)
Table 22 Professional Services: Consulting Services By Service Type Market Size, By Region, 2015-2022 (USD Million)
Table 23 Professional Services: System Integration and Deployment Services By Service Type Market Size, By Region, 2015-2022 (USD Million)
Table 24 Professional Services: Support and Maintenance Services By Service Type Market Size, By Region, 2015-2022 (USD Million)
Table 25 Smart Building Market: Managed Services Market Size, By Region, 2015–2022 (USD Million)
Table 26 Market Size, By Building Type, 2015–2022 (USD Million)
Table 27 Market: Manufacturing Facilities Segment Market Size, By Region, 2015–2022 (USD Million)
Table 28 Market: Residential Buildings Segment Market Size, By Region, 2015–2022 (USD Million)
Table 29 Market: Commercial Buildings Segment Market Size, By Region, 2015–2022 (USD Million)
Table 30 Market: University, School, & Hospital Buildings Segment Market Size, By Region, 2015-2022 (USD Million)
Table 31 Smart Building Market: Government & Public Infrastructure Facilities Segment Market Size, By Region, 2015-2022 (USD Million)
Table 32 Market: Others Market Size, By Region, 2015-2022 (Million)
Table 33 Market Size, By Region, 2015–2022 (USD Million)
Table 34 North America: Market Size, By Type, 2015–2022 (USD Million)
Table 35 North America: Building Automation Software Segment, By Subtype, 2015–2022 (USD Million)
Table 36 North America: Intelligent Security System, By System Type, 2015-2022 (USD Million)
Table 37 North America: Building Energy Management System, By System Type, 2015-2022 (USD Million)
Table 38 North America: Infrastructure Management, By System Type, 2015-2022 (USD Million)
Table 39 North America: Market Size, By Services, 2015–2022 (USD Million)
Table 40 North America: Professional Services Segment, By Service Type, 2015-2022 (USD Million)
Table 41 North America: Market Size, By Building Type, 2015–2022 (USD Million)
Table 42 Europe: Smart Building Market Size, By Type, 2015–2022 (USD Million)
Table 43 Europe: Building Automation Software Segment, By Subtype, 2015–2022 (USD Million)
Table 44 Europe: Intelligent Security System, By System Type, 2015-2022 (USD Million)
Table 45 Europe: Building Energy Management System, By System Type, 2015-2022 (USD Million)
Table 46 Europe: Infrastructure Management, By System Type, 2015-2022 (USD Million)
Table 47 Europe: Market Size, By Services, 2015–2022 (USD Million)
Table 48 Europe: Professional Services, By Service Type, 2015-2022 (USD Million)
Table 49 Europe: Market Size, By Building Type, 2015–2022 (USD Million)
Table 50 Asia-Pacific: Smart Building Market Size, By Type, 2015–2022 (USD Million)
Table 51 Asia-Pacific: Building Automation Software Segment, By Subtype, 2015–2022 (USD Million)
Table 52 Asia-Pacific: Intelligent Security System, By System Type, 2015-2022 (USD Million)
Table 53 Asia-Pacific: Building Energy Management System, By System Type, 2015-2022 (USD Million)
Table 54 Asia-Pacific: Infrastructure Management, By System Type, 2015-2022 (USD Million)
Table 55 Asia-Pacific: Market Size, By Services, 2015–2022 (USD Million
Table 56 Asia-Pacific: Professional Services Segment, By Service Type, 2015-2022 (USD Million)
Table 57 Asia-Pacific: Market Size, By Building Type, 2015–2022 (USD Million)
Table 58 Middle East & Africa: Smart Building Market Size, By Type, 2015–2022 (USD Million)
Table 59 Middle East & Africa: Building Automation Software Segment, By Subtype, 2015–2022 (USD Million)
Table 60 Middle East & Africa: Intelligent Security System, By System Type, 2015–2022 (USD Million)
Table 61 Middle East & Africa: Building Energy Management System, By System Type, 2015–2022 (USD Million)
Table 62 Middle East & Africa: Infrastructure Management, By System Type, 2015–2022 (USD Million)
Table 63 Middle East & Africa: Market Size, By Services, 2015–2022 (USD Million
Table 64 Middle East & Africa: Professional Services Segment, By Service Type, 2015-2022 (USD Million)
Table 65 Middle East & Africa: Market Size, By Building Type, 2015–2022 (USD Million)
Table 66 Latin America: Smart Building Market Size, By Type, 2015–2022 (USD Million)
Table 67 Latin America: Building Automation Software Segment, By Subtype, 2015–2022 (USD Million)
Table 68 Latin America: Intelligent Security System, By System Type, 2015–2022 (USD Million)
Table 69 Latin America: Building Energy Management System, By System Type, 2015–2022 (USD Million)
Table 70 Latin America: Infrastructure Management, By System Type, 2015–2022 (USD Million)
Table 71 Latin America: Market Size, By Services, 2015–2022 (USD Million
Table 72 Latin America: Professional Services, By Service Type, 2015-2022 (USD Million)
Table 73 Latin America: Market Size, By Building Type, 2015–2022 (USD Million)


List of Figures (33 Figures)

Figure 1 Smart Building Market: Research Design
Figure 2 Breakdown of Primary Interview: By Company Type, Designation, and Region
Figure 3 Data Triangulation
Figure 4 Market Size Estimation Methodology: Bottom-Up Approach
Figure 5 Market Size Estimation Methodology: Top-Down Approach
Figure 6 Services Segment to Grow at A Higher Rate From 2017 to 2022
Figure 7 Intelligent Security System Segment to Grow at the Highest CAGR From 2017 to 2022
Figure 8 Europe Estimated to Hold the Largest Share of the Market in 2017
Figure 9 Rise in Adoption of IoT Platforms Expected to Boost the Smart Building Market in the Forecast Period
Figure 10 Services Segment to Grow at A Higher Rate From 2017 to 2022
Figure 11 University, School & Hospital Buildings Segment to Grow at the Highest CAGR During the Forecast Period
Figure 12 Europe Estimated to Hold the Largest Share of the Market in 2017
Figure 13 Immense Opportunities for Growth of the Market in Asia-Pacific
Figure 14 Smart Building Market Supply Chain Analysis
Figure 15 Drivers, Restraints, Opportunities, and Challenges in the Market
Figure 16 Services Segment to Grow at the Highest Rate During the Forecast Period
Figure 17 The Residential Buildings Segment is Expected to Grow at the Highest CAGR During the Forecast Period
Figure 18 Asia-Pacific Market to Grow at the Highest Rate From 2017 to 2022
Figure 19 Regional Snapshot: Asia-Pacific is the Emerging Region in the Market
Figure 20 North America Market Snapshot
Figure 21 Europe Market Snapshot
Figure 22 Asia-Pacific Market Snapshot
Figure 23 Smart Building Market: Competitive Leadership Mapping, 2017
Figure 24 ABB: Company Snapshot
Figure 25 Cisco: Company Snapshot
Figure 26 IBM: Company Snapshot
Figure 27 Siemens: Company Snapshot
Figure 28 Schneider Electric: Company Snapshot
Figure 29 Honeywell International: Company Snapshot
Figure 30 Johnson Control: Company Snapshot
Figure 31 United Technologies Corporation: Company Snapshot
Figure 32 BuildingIQ: Company Snapshot
Figure 33 Legrand: Company Snapshot

The study consisted of four major activities to estimate the current market size of the smart building market. Extensive secondary research was done to collect information on the market, the peer markets, and the parent market. The next step was to validate these findings, assumptions, and market sizing with the industry experts across the value chain through primary research. Both top-down and bottom-up approaches were employed to estimate the complete market size. Thereafter, market breakdown and data triangulation procedures were used to estimate the market size of the segments and subsegments of the smart building market.

Secondary Research

In the secondary research process, various secondary sources such as D&B Hoovers and Bloomberg BusinessWeek were referred to for identifying and collecting information for the study. Secondary sources included annual reports, press releases, and investor presentations of companies; whitepapers, certified publications, and articles by recognized authors; gold standard and silver standard websites; Research and Development (R&D) organizations; regulatory bodies; and databases.

Primary research

Various primary sources from both supply and demand sides of the smart building market were interviewed to obtain qualitative and quantitative information for the study. The primary sources from the supply side included industry experts, such as Chief Executive Officers (CEOs), Vice Presidents (VPs), marketing directors, technology and innovation directors, and related key executives from various vendors of smart building solutions, associated service providers, and system integrators operating in the targeted regions. All possible parameters that affect the market covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data. Following is the profile breakup of primary respondents:

Smart Building Market

To know about the assumptions considered for the study, download the pdf brochure

Market Size Estimation

Both top-down and bottom-up approaches were used to estimate and validate the total size of the smart building market. The methods were also used extensively to estimate the size of various subsegments in the market. The research methodology used to estimate the market size includes the following:

  • Key players in the market were identified through extensive secondary research.
  • The market size, in terms of value, was determined through primary and secondary research processes.
  • All percentage shares, splits, and breakups were determined using secondary sources and verified through primary sources.

Data Triangulation

With data triangulation and validation through primary interviews, the exact value of the overall parent market size was determined and confirmed using the study. The overall market size was then used in the top-down procedure to estimate the size of other individual markets via percentage splits of the market segmentation.

Report objectives

  • To determine and forecast the global smart building market based on type, building type, and region from 2017 to 2022. and analyze the various macro- and micro-economic factors that affect market growth
  • To forecast the size of market segments with respect to four main regions, namely, North America, Europe, Asia Pacific (APAC), Middle East & Africa (MEA), and Latin America
  • To provide detailed information regarding the major factors, such as drivers, restraints, opportunities, and challenges influencing the growth of the smart building market
  • To strategically analyse each submarket with respect to individual growth trends, prospects, and contribution to the total smart building market
  • To analyze the opportunities in the market for stakeholders by identifying high-growth segments of the smart building market
  • To profile key market players, provide comparative analysis based on business overviews, product offerings, regional presence, business strategies, key financials, with the help of in-house statistical tools to understand the competitive landscape
  • To track and analyse competitive developments, such as mergers & acquisitions, product developments, partnerships & collaborations, and Research & Development (R&D) activities in the market

Available Customizations

With the given market data, MarketsandMarkets offers customizations as per the company’s specific needs. The following customization options are available for the report:

Geographic Analysis

  • Further country-level breakdown of the North America smart building market
  • Further country-level breakdown of the Europe smart building market
  • Further country-level breakdown of the Asia Pacific smart building market

Company Information

  • Detailed analysis and profiling of additional market players up to 5
Report Code
TC 3445
Published ON
Aug, 2017
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