Smart buildings incorporate various information and communications technology solutions to automate building operations and integrate building systems. They use sensors, controllers, and other digital technologies and data to automatically optimize energy consumption, comfort, safety, and productivity in buildings. Smart buildings utilize lighting control systems, HVAC control systems, safety and security systems, and various other building management systems to reduce energy consumption and improve operational efficiencies. With growing concerns about energy conservation and sustainability, smart building solutions are becoming increasingly important in modern construction.
The global Smart Building Market is estimated to be valued at US$ 101.23 Bn in 2024 and is expected to exhibit a CAGR of 13% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
The opportunity for energy conservation through smart building technologies is driving significant growth in the market. Smart building solutions enable real-time monitoring and control of various energy-intensive systems such as HVAC, lighting, and security through automation and data analytics. This allows issues to be identified and addressed proactively, improves system efficiencies, reduces wastage, and ultimately leads to substantial energy savings. Studies have shown that smart buildings can conserve 10-30% of energy usage compared to conventional buildings through optimized operations. With stringent regulations and policies promoting sustainable construction practices, the market opportunity for smart building technologies enabling enhanced energy efficiency is immense over the forecast period.
Porter's Analysis
Threat of new entrants: The smart building market has moderate barriers for new entrants to enter due to established brand loyalty of customers, large capital requirements and extensive research and development activities undertaken by existing players in the market.
Bargaining power of buyers: The bargaining power of buyers is moderate as buyers have several product and technology options available from different established vendors in the market.
Bargaining power of suppliers: The bargaining power of suppliers is low since there are large number of component suppliers for smart building technologies.
Threat of new substitutes: Threat of substitutes is low as there are limited substitutes for smart building solutions that provide integrated solutions for managing various building operations.
Competitive rivalry: High due to presence of numerous international and regional vendors offering wide range of smart building solutions.
SWOT Analysis
Strength: Smart building technologies enable optimization of energy usage, operational cost savings and enhanced safety & security features. Growing acceptance of IoT and analytics is driving the demand.
Weakness: High initial investment costs and complexity of upgrading existing buildings limits widespread adoption. Lack of trained professionals poses implementation challenges.
Opportunity: Governments across regions are introducing supportive policies and incentives for green buildings to reduce carbon footprint. Rise of smart cities presents new avenues.
Threats: Cyber security threats from network intrusions can compromise building operations. Lack of standardization increases integration issues.
Key Takeaways
The Global Smart Building Market Size is expected to witness high growth during the forecast period of 2024 to 2031 supported by initiatives for sustainable infrastructure and focus on energy efficiency.
Regional analysis: North America accounts for the largest share currently owing to stringent norms and greater awareness. Asia Pacific is anticipated to showcase highest growth on back of increasing investments in smart infrastructure projects, especially in China, India and Japan. Countries like UAE, Saudi Arabia are fast adoptors in Middle East & Africa region.
Key players: Key players operating in the smart building market include Abbott, Hologic Inc., Becton, Dickinson and Company, Southwest Precision Instruments, LLC, F. Hoffmann-La Roche Ltd, Sysmex Corporation, Thermo Fisher Scientific Inc., Danaher, Life Technologies Corporation, Merck KGaA, Koninklijke Philips N.V., Perkin Elmer, and Trivitron Healthcare. Major players are focusing on partnerships and mergers to expand their smart building solutions portfolio.
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https://www.trendingwebwire.com/smart-building-market-size-share-growth-outlook-2023/
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