Smart Building Market value $24.73bn by 2021-Report

A market research report “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”, published by MarketsandMarkets shows the smart building market size is expected to grow from USD 5.73 Billion in 2016 to USD 24.73 Billion by 2021, at a Compound Annual Growth Rate (CAGR) of 34.0% during 2016–2021.

The major drivers for upsurge in demand for smart building technology solutions include emphasis on energy efficient buildings and reducing CO2 emission, growing initiatives by government authorities for the development of smart building projects, rising need for integrated security and safety systems, and rising adoption of Internet of Thing (IoT) platforms within the building automation technology.

Evolving cloud-based IoT platforms and environmental concerns and green building initiatives offer major opportunities for smart building solution providers

Buildings consume a lot of energy, and according to the International Energy Agency, almost around 40 percent of the world’s energy is consumed by buildings.

The growing consumption can be attributed to the increasing number of electrical appliances; increasing use of energy is raising the amount of energy wastage and CO2 emission, which leads to an urgent need for sustainable and efficient usage of energy.

The market size of building energy management systems is the highest and is expected to grow at a significant rate across the globe. Moreover, growing demographics and hyper-urbanisation is also pushing the market to adopt building energy management systems.

System integration and deployment services segment is expected to grow at the highest CAGR during the forecast period

The market for services would witness a major increase because of the rise in the adoption of smart building automation software, which is propelled by the increasing demand for system integration, consulting, support and maintenance, and managed service that support the implementation of smart solutions across the various building types.

Europe is expected to hold the largest market share in the smart building market.

As per the geographic analysis, Europe is likely to benefit from its technological advancements and a large number of smart city initiatives being undertaken in the region, which are already underway.

The adoption of smart building solutions across Europe is estimated to rise at a significant rate due to the regulatory push, amended policy framework, operational efficiencies, cost containment, and sustainability benefits and the changing business dynamics. This which would eventually increase the penetration of system integration and deployment services in this region.

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