- This growing market acts as a driver to other smart product markets like occupancy sensors, smart thermostats, and HVAC and lighting controls
- The other plus for the market comes from different governments across the world who are promoting the construction and growth of smart buildings
- These initiative makes the players who are relating to smart cities projects more interested and thriving to use these products in their respective projects.
The rise in need for efficient energy related inventions in infrastructure industry, increased market for Building automation and control system, and growth in the use of Internet of Things (IoT) in the building management system are some of the factors which are increasing the growth of the smart building market.
Increasing development of smart city projects across the globe is also expected to provide good opportunities for the smart building market.
Drivers and Challenges
Attention to energy conservation throughout the world and the adoption of green building and eco-friendly infrastructure has led to the construction of smart buildings. This growing market acts as a driver to other smart product markets like occupancy sensors, smart thermostats, and HVAC and lighting controls. The other plus for the market comes from different governments across the world promoting construction and growth of smart buildings. These initiatives makes the players who are relating to smart cities projects more interested and thriving to use these products in their respective projects.
The factors which would affect the growth of smart building are the markets like Building Automation, Smart sensors market, growth of construction industry, urbanization rate of the world, shift to digitization for emerging countries and other such factors.
While there are drivers for the market, factors like operation between intelligent buildings and the cost of connecting and deploying the systems to make a smart buildings are some of the factors which are restraining the market.
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The global smart building market can be segmented on the basis of component, system type, end user and region. On the basis of component, the smart building market can be segmented into: Hardware, Software, and Services. On the basis of system type, the smart building market can be segmented into: Intelligent Security Systems, Building Energy Management Systems, Infrastructure Management Systems, Network Management Systems, or Coaxial/Copper Cable.
The Intelligent Security System and Network Management System segments are anticipated to be the fastest growing segments for the market due to growing need for integrated security and safety systems and the implementation of the IoT platform in building automation technology.
On the basis of end user, the smart building market can be segmented into: Commercial, Residential, or Industrial.
The smart building market, currently, is considerably competitive, with continuous product and technology developments by established as well as new players. Some of the key players in the smart building market are Legrand, Johnson Controls, Delta Controls, United Technologies Corporation, ABB, Cisco Systems Inc., Siemens AG, Honeywell International Inc., Intel Corporation, Schneider Electric, IBM Corporation, BuildingIQ, TYCO International, Emerson Electric, Ingersoll Rand Security Technologies, Hitachi and others.
On the basis of geography, the smart building market can be segmented into North America, Latin America, Europe, East Asia, South Asia, Oceania and Middle East & Africa. Among the various regions, the smart building market for Europe and North America is expected to dominate during the forecast period, due to many local vendors in the market. Europe is expected to hold a major share in the global smart building market due to the high demand and adoption of these structures and also due to the rapid technological advancements in the region.
Europe and North America regions in the smart building market are expected to be followed by South Asia and Latin America during the forecast period, owing to increased spending on the research on the new technologies. Apart from these the markets in different regions are seen to be specifically connected with the spending power of the countries in the region.
In April 2018, University of Technology, Sydney deployed a systems to cut energy costs of their building which was Cisco’s intelligent building systems for smart energy usage, with an energy management system and building management system controlling essential functions. This product had an upgraded and customized features for UTS provided by Cisco.