Smart Buildings Market Size & Growth Report to 2030

The global smart buildings market size was valued at around USD 100 billion in 2024 and anticipated to register a significant CAGR of around 18.5% during the forecast period from 2025 to 2030. The market is witnessing rapid growth, fueled by increasing urbanization, the rising adoption of Internet of Things (IoT) technologies, and a global shift toward energy-efficient infrastructure. Smart buildings integrate advanced technologies such as automated HVAC systems, lighting controls, energy management systems, and security solutions to enhance operational efficiency, reduce energy consumption, and improve occupant comfort. These innovations not only optimize building performance but also contribute to sustainability goals, aligning with government regulations and environmental standards across various regions. The integration of AI, cloud computing, and predictive maintenance is further enhancing the intelligence and responsiveness of modern buildings.

The market is segmented into residential, commercial, and industrial applications, with the commercial segment dominating due to increased demand for intelligent office spaces, hotels, and retail infrastructure. North America currently leads the market, driven by early adoption of smart technologies and supportive regulatory frameworks, while Asia Pacific is emerging as the fastest-growing region, propelled by smart city initiatives in countries like China and India. With a projected higher CAGR through 2030, the smart buildings market is set to play a critical role in the future of urban development and sustainable architecture.

Market Snapshot:

Market Drivers:

The primary force driving the global smart buildings market is the growing imperative for energy efficiency and decarbonization. Buildings account for approximately 37% of global emissions, and up to 70% in cities, making them a critical target for reducing carbon footprints. In response, governments worldwide are introducing stricter energy performance regulations—such as the EU’s Energy Performance of Buildings Directive and the UK’s Net Zero Carbon Building Standard—and incentivizing retrofits to existing structures. This shift toward smart automation—integrating advanced HVAC systems, lighting, and energy management—is not only regulatory, but economically driven as well, with corporations and real estate investors increasingly viewing sustainability as essential to ESG compliance and asset valuation.

Meanwhile, advancements in IoT, AI, and automation technologies are catalyzing the shift to intelligent built environments. Sensors, AI-driven analytics, and predictive control systems now enable buildings to adjust lighting, heating, cooling, and occupancy in real time—radically improving efficiency and occupant comfort. A recent report by the American Council for an Energy‑Efficient Economy (ACEEE) found that retrofitting commercial spaces with smart technologies delivered average utility savings of 18% in offices, 14% in retail stores, and 8% in hospitals. As implementation costs decrease and urban density rises—particularly within smart city programs—the demonstrable ROI from smart building upgrades continues to accelerate market adoption significantly.

Market Trends:

Convergence of IT, OT, and Edge-to-Cloud Architectures

One of the most significant shifts in the smart building landscape is the integration of Information Technology (IT)—like cloud computing, data analytics, and software platforms—with Operational Technology (OT)—such as HVAC controls, elevators, and lighting systems. Traditionally, these systems operated in silos, but now they are being integrated into unified platforms that allow centralized monitoring and decentralized control. Edge computing plays a critical role in processing data locally for immediate decision-making (e.g., adjusting lighting or temperature), while cloud systems are used for deeper analysis, predictive insights, and centralized updates. This hybrid model not only improves responsiveness and resilience but also allows building operators to manage multiple facilities from a single interface. It enhances scalability, simplifies maintenance, and ensures that buildings remain future-ready.

AI-Powered Intelligence and Digital Twin Adoption

Artificial Intelligence (AI) is rapidly becoming the brain of smart buildings. AI algorithms analyze real-time data from sensors, occupancy systems, and utility meters to optimize building performance. For instance, they can predict when maintenance is needed for an elevator or detect patterns in energy usage that indicate inefficiencies. Moreover, digital twins—virtual representations of physical assets—are increasingly used to simulate, monitor, and optimize buildings throughout their lifecycle. These digital replicas help facility managers test changes before implementation, simulate energy usage, and improve long-term maintenance planning. Combined with AI, digital twins offer powerful capabilities for real-time visualization, scenario forecasting, and sustainability tracking.

Occupant-Centric Wellness and Personalized Comfort

Modern smart buildings go beyond automation to focus on enhancing the occupant experience. With advances in smart sensors and environmental monitoring, buildings can now adjust lighting, HVAC, and even window shading based on human presence, preferences, and behavior. There is growing demand for occupant-aware systems that personalize temperature settings, lighting intensity, and airflow based on who is in the room and how they interact with the space. Additionally, post-COVID concerns about air quality and safety have accelerated the adoption of indoor air quality monitoring, touchless access controls, and UV disinfection systems. Certifications such as WELL Building Standard and Fitwel are driving building owners to invest in features that improve health, wellness, and productivity.

Cybersecurity, Interoperability, and “As-a-Service” Business Models

As buildings become more connected and reliant on digital technologies, cybersecurity has emerged as a top priority. A single vulnerability in a connected HVAC or lighting system could lead to system-wide breaches, data theft, or even operational downtime. Therefore, building platforms are now being designed with multi-layered security frameworks, secure device onboarding, and ongoing vulnerability management. At the same time, the market is moving toward interoperable platforms that can integrate devices from different manufacturers seamlessly, ensuring flexibility and vendor independence. Moreover, the rise of “as-a-service” models—such as Smart Building-as-a-Service (SBaaS), Energy-as-a-Service, and Lighting-as-a-Service—is changing how buildings are managed. These subscription-based offerings reduce upfront costs, provide access to the latest technology, and simplify maintenance through managed services.

Integration with Smart Cities, Renewable Energy, and 5G Connectivity

Smart buildings are no longer isolated entities—they are integral components of broader smart city ecosystems. These buildings can communicate with city-wide systems such as public utilities, traffic controls, and emergency services to optimize urban operations. The integration of renewable energy sources, such as rooftop solar panels, along with energy storage systems, allows buildings to operate more sustainably and contribute to the grid through demand response programs. Moreover, the rollout of 5G networks is unlocking new possibilities for real-time data exchange, enabling faster and more reliable communication between building systems and mobile applications. This opens doors to high-speed IoT connectivity, augmented reality applications for maintenance, and real-time emergency response coordination.

Market Opportunities:

The global smart buildings market is poised for significant growth, driven largely by the urgent need to decarbonize the built environment and upgrade aging infrastructure. A key opportunity lies in the retrofitting of existing buildings with intelligent systems such as advanced HVAC, lighting automation, and energy management platforms. As energy prices rise and regulations tighten, building owners are under increasing pressure to improve efficiency, reduce emissions, and enhance operational resilience. This shift is being reinforced by supportive government policies and financial incentives across major economies, particularly in North America and Europe. For solution providers and system integrators, this presents a vast and growing revenue opportunity, especially in the commercial and industrial sectors where the return on investment is becoming increasingly attractive.

A second major opportunity is emerging from the global rollout of smart cities, particularly across the Asia-Pacific and Middle Eastern regions. Countries like China, India, and the UAE are investing heavily in urban infrastructure that incorporates smart building technology at its core, enabling tighter integration with traffic, energy, and emergency management systems. Simultaneously, commercial property developers and corporate occupiers are increasingly aligning with ESG goals and carbon-neutral strategies, prompting widespread adoption of intelligent building platforms. A 2024 industry report from Schneider Electric noted that buildings outfitted with smart energy management systems can achieve up to 30% energy cost savings, making the investment highly attractive. As more cities and corporations seek digital, sustainable, and resilient infrastructure, the smart buildings market stands to gain significantly.

Market Insights:

By Solution:

The global smart buildings market is bifurcated into solution, services, end-use, and geography. On the basis of solutions, the safety & security management segment dominated the market in 2024 with the largest revenue share of over 1/3 of the market, driven by increasing global concerns about physical security, emergency preparedness, and regulatory compliance. This segment includes integrated systems such as access control, video surveillance, fire detection and suppression, intruder alarms, and emergency evacuation protocols. As buildings become more complex and densely populated—especially in commercial, healthcare, and educational settings—stakeholders are prioritizing smart, automated security infrastructures. Additionally, the proliferation of AI-powered video analytics, facial recognition, and real-time threat detection has transformed traditional surveillance into a proactive, intelligent security network, making this solution indispensable in modern smart building ecosystems.

Moreover, regulatory mandates and liability concerns are accelerating adoption across sectors. For example, in many developed countries, building codes now require the integration of fire safety, surveillance, and emergency communication systems. Insurance providers are also incentivizing adoption through premium reductions for buildings with advanced security infrastructure. Beyond compliance, organizations are recognizing that intelligent security not only protects people and assets but also improves operational efficiency—by reducing false alarms, minimizing manual checks, and integrating security with other building systems (like HVAC and lighting during emergency scenarios). As a result, Safety & Security Management continues to lead the market in both new construction and retrofit projects, with widespread implementation across government, commercial real estate, healthcare, and transportation infrastructure.

By Service:

On the basis of service, the global smart buildings market is further segmented into consulting, implementation, and support & maintenance. The implementation dominated the market in 2024, accounting for the largest share of around 40% of the market due to its critical role in bringing smart infrastructure plans to life. This segment includes the end-to-end deployment of smart systems—such as energy management, HVAC automation, lighting controls, and security infrastructure. As buildings become more complex and technology-driven, the need for specialized expertise to integrate various solutions into a seamless and interoperable ecosystem has grown significantly. Whether in new constructions or retrofitting older buildings, implementation services ensure that all components—hardware, software, and connectivity—work cohesively to deliver real-time performance, energy savings, and user comfort.

The rising demand for smart building solutions in commercial real estate, healthcare facilities, airports, and government infrastructure has further fueled this segment’s growth. Clients often rely on system integrators and technology providers to handle the full deployment process—from device installation and configuration to network setup and compliance assurance. As smart city initiatives and green building mandates expand globally, the scale and complexity of projects are also increasing, making implementation services indispensable. Moreover, many companies are offering bundled services with implementation as the core focus, ensuring that the systems are not only installed but also optimized for long-term performance. This makes implementation the most essential and revenue-generating service in the smart buildings ecosystem.

The smart buildings market research report presents the analysis of each segment from 2020 to 2030 considering 2024 as the base year for the research. The compounded annual growth rate (CAGR) for each respective segment is calculated for the forecast period from 2025 to 2030.

Historical & Forecast Period

• 2020-23 – Historical Year
• 2024 – Base Year
• 2025-2030 – Forecast Period

Market Segmentation:

By Solution:

• Safety & Security Management
  • Access Control System
  • Video Surveillance System
  • Fire And Life Safety System
• Energy Management
  • HVAC Control System
  • Lighting Management System
  • Others (Data Management, Asset Performance Optimization, and Application Platform)
• Building Infrastructure Management
  • Parking Management System
  • Water Management System
  • Others (Elevators and Escalators Management and Waste Management)
• Integrated Workplace Management System (IWMS)
  • Real Estate Management
  • Capital Project Management
  • Facility Management
  • Operations and Services Management
  • Environment and Energy Management
• Network Management
  • Wired Technology
  • Wireless Technology

By Service:

• Consulting
• Implementation
• Support & Maintenance

By End-Use:

• Commercial Buildings
• Residential Building
• Governmental and Public Infrastructure Facilities
• Educational Institutions
• Others

By Region:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

Regional Analysis:

Geographically, the North America is currently the dominant region in the global smart buildings market in 2024, accounting for the largest market share of over 1/3 of the market. This leadership position is driven by the region’s early adoption of smart technologies, well-developed IT infrastructure, and strong focus on energy efficiency and sustainability. The U.S. and Canada have implemented numerous green building regulations, energy codes, and tax incentives that encourage the integration of smart solutions such as automated HVAC systems, lighting controls, and intelligent security. In the U.S., mandates like LEED certification and New York City’s Local Law 97 are pushing property developers and building owners to modernize infrastructure with smart building technologies. Moreover, high demand from sectors like commercial real estate, healthcare, education, and government has made North America a hotspot for large-scale smart building projects.

Additionally, the presence of major technology players—such as Honeywell, Johnson Controls, Cisco Systems, and IBM—contributes significantly to the region’s dominance. These companies offer advanced solutions and partner with real estate developers, facility managers, and municipalities to deploy comprehensive smart building systems. Investment in smart city initiatives and retrofitting aging infrastructure with intelligent systems further supports regional growth. As buildings increasingly require integrated systems for sustainability, energy management, and occupant comfort, North America continues to lead in both innovation and implementation. However, it’s important to note that Asia-Pacific is emerging as the fastest-growing region, fueled by rapid urbanization and major smart city investments.

Competitive Landscape:

Some of the prominent market players operating in the global smart buildings market are Honeywell International Inc., Johnson Controls International plc, Siemens AG, Schneider Electric SE, Cisco Systems, Inc., and ABB Ltd. Companies are exploring markets by expansion, new investment, the introduction of new services, and collaboration as their preferred strategies. Players are exploring new geography through expansion and acquisition to gain a competitive advantage through joint synergy.

Key Companies:

• Honeywell International Inc.
• Johnson Controls International plc
• Siemens AG
• Schneider Electric SE
• Cisco Systems, Inc.
• ABB Ltd.
• Legrand SA
• BOSCH
• Emerson Electric Co.
• Hitachi, Ltd.
• INTEL Corporation
• KMC Controls

Key Questions Answered by Smart Buildings Market Report

• Global smart buildings market forecasts from 2025-2030
• Regional market forecasts from 2025-2030 covering Asia-Pacific, North America, Europe, Middle East & Africa, and Latin America
• Country-level forecasts from 2025-2030 covering 15 major countries from the regions as mentioned above
• Smart buildings submarket forecasts from 2025-2030 covering the market by solution, service, end-use, and geography
• Various industry models such as SWOT analysis, Value Chain Analysis about the market
• Analysis of the key factors driving and restraining the growth of the global, regional, and country-level smart buildings markets from 2025-2030
• Competitive Landscape and market positioning of top 10 players operating in the market