Smart Building Market to Quadruple by 2022

Smart Buildings

 

September 22, 2017

The global smart building market is projected to grow from an estimated $US7.42 billion in 2017 to $US31.74 billion by 2022, at a Compound Annual Growth Rate (CAGR) of 33.7%, according to a new market report. A growing need for integrated security and safety systems and decreasing operational costs are some of the major factors driving the market.

A smart building uses automated process to control required operations, including heating, ventilation, air conditioning and other systems. Smart buildings enable occupants to use control lighting, temperature and air quality more efficiently and at a lower cost than buildings that are not connected.

Based on building type, the residential building segment is expected to grow at the highest CAGR. However, commercial buildings are estimated to be the largest segment in the smart building market in 2017. Commercial buildings account for a major share of the overall building automation software market, as it includes large office buildings, commercial building parks, retail facilities such as malls and shopping stores, hotels and restaurants, and other non-manufacturing commercial buildings that use increasingly automated technology. The demand for energy conservation and reduction of overall operating costs is the highest in this sector.

Factors that affect market growth include the high initial investment costs for a smart building. Thus, the high initial costs involved in the design and installation of building automation is a major restraint for building owners or buyers with respect to the smart building concept. Building owners and end users often do not realize that the cost is primarily dependent on the complexity involved in integrating different applications. However, growing efforts by manufacturers, facility managers, and governments to increase customer awareness of the long-term benefits of installing building automation systems are expected to reduce the impact of this restraining factor in future.

The 126-page report, 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, contains 73 market data tables and 33 figures. Find out more: http://www.marketsandmarkets.com/PressReleases/smart-building.asp

image: https://www.forbes.com/sites/honeywell/2016/10/28/why-we-need-smart-buildings/#2bcd552d77d9

Related Articles


Latest Articles


Changing Scene

  • Mac’s II Agencies Announce Addition to Project & Specification Sales Team

    Mac’s II Agencies Announce Addition to Project & Specification Sales Team

    July 10, 2025 Mac’s II Agencies is pleased to announce that Drazen Jerkovic will be joining their Project & Specification Sales team in the Lighting Division later this fall. With over 25 years of experience in the lighting and electrical industry, Drazen is a highly respected consultant known for his technical knowledge and deep understanding of project delivery…. Read More…

  • Intralec Named New Sales Agency Partner for IDEAL Electrical in Central & Southwestern Ontario

    Intralec Named New Sales Agency Partner for IDEAL Electrical in Central & Southwestern Ontario

    July 7, 2025 Intralec Electrical Products is proud to announce our new partnership with IDEAL Electrical as their sales agency for the Central & Southwestern Ontario regions. As a Canadian manufacturer with over 60 years of experience producing quality products—many of which, like the Can-Twist wire connector and Yellow 77 lubricant, are made in Ajax,… Read More…

  • City of Winnipeg Continues to Improve Online Permits System

    City of Winnipeg Continues to Improve Online Permits System

    July 4, 2025 The City of Winnipeg has launched an improved Permits Online web portal. This upgrade aims to make the permit process more convenient for customers. Permits Online is a one-stop shop to manage the permit process. Now, the web portal is easier to use because customers can navigate it using their mobile device. The portal… Read More…

  • Schneider Electric Launches Chapter 3 of Sustainability School

    Schneider Electric Launches Chapter 3 of Sustainability School

    July 4, 2025 Schneider Electric, the leader in the digital transformation of energy management and automation, has launched Chapter 3 of its online Sustainability School, a free training program designed to empower its channel ecosystem partners to become leaders in sustainability. This chapter will focus on teaching businesses how to decarbonize and unlock the competitive… Read More…