An increase in industrialization and the need to optimize energy consumption is leading to growth in the smart buildings market, which is estimated to be valued at $78.2 billion by 2030, according to a report by Allied Market Research.
The energy management segment holds the highest share of the smart buildings market, contributing to around one-third of the total market share based on application, per the report. Allied Market Research expects that energy management will continue to hold a dominant share of the market through the forecast period.
Based on end-use, the commercial segment contributed to the largest share analyzed in the report. It accounted for more than two-fifths of energy-efficient and automated smart buildings and is expected to grow at 9.7% during the forecast period.
Overall, the market is expected to grow at a CAGR of 9.4% from 2021 through 2030, says the report. It was valued at $32 billion in 2020.
Buildings are an intensive energy and emissions producer, and smart buildings are viewed as an important part of sustainable and energy transitions. With their ability to manage everything from heating and cooling systems to lighting to being able to integrate renewable energy sources, they are expected to drastically make buildings energy use more efficient.
Advancements such as a partnership by Schneider Electric and Intel to develop a distributed control node are also helping to make smart systems more efficient.
Last year the United States Department of Energy unveiled a $61 million program to increase smart building implementation and estimates that grid-interactive efficient buildings can cut up to $18 billion in annual power system costs and reduce carbon emissions by 80 million tons.
A study earlier in 2022 by Juniper Research estimates more than 115 million buildings will deploy smart technologies by 2026, up from 45 million this year. That report also says 90% of smart buildings will be non-residential in 2026.
North America made up the highest regional share in 2020, accounting for more than one-third of the smart buildings market. The region is expected to continue leading the market with a CAGR of nearly 10% through 2030.
The market is rebounding from COVID-19 slowdowns, where some materials productions were partially or completely stopped, while slower new construction depressed demand. The smart buildings market is currently being impacted as well by higher costs of installation and maintenance.
Key players in the smart buildings market include Cisco Systems, Leviton Manufacturing, Control4 Corporation, Siemens Building Technologies, Schneider Electric, Honeywell Scanning & Mobility, United Technologies, Emerson Electric, Smarthome, and LG Electronics.
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