The global smart building market was valued at around $5.8 million in the year 2016 and is expected to reach approximately $61.9 million by 2024. The global smart building market is expected to exhibit a CAGR of more than 34% between 2017 and 2024, according to a report from Zion Market Research.
The major factor driving the growth of the smart building market is the globally increasing concerns about energy consumption. The utilization of energy is increasing at a rapid rate thus making it necessary to find efficient ways to utilize it wisely. Since there has been an increase in the number of commercial complexes that consumes a significant amount of electricity and other types of energy the requirement for the automation systems has increased.
The commercial buildings segment accounted for the largest share in 2016 and is expected to retain its dominance throughout the forecast period. According to the report, the commercial building segment is anticipated to register a CAGR of approximately 34% during the forecast period. The increasing energy-saving concern in order to reduce the operational cost will drive the growth of this segment.
Europe holds the dominant position in the smart building market followed by North America and the Asia Pacific. The factors that are driving the market in Europe are the high adoption rate of technological advancements and improved and favorable government initiatives to build smart and intelligent structures. The report anticipates that Asia Pacific will grow with the highest CAGR of approximately 35% between 2017 and 2024. The factors that are positively affecting the growth of the market in the Asia Pacific are increasing disposable income, growing commercial infrastructures, and rising adoption of advanced automated technologies, especially in the developing regions.
The professional services segment contributed more than 50% of the market share in 2016. The professional services segment is expected to retain its dominance in the forecast period. Professional services offer consultation and training activities by understanding organization requirements, technical goals, and challenges. Thus, it helps the organizations to find effective ways to resolve their challenges.
The report includes detailed profiles of the prominent market players that are trending in the market, including:
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