The Business Research Company’s 2026 market reports combine market attractiveness scoring, total addressable market sizing, company benchmarking matrices, interactive Excel dashboards, deeper supply chain intelligence, emerging startup tracking, and granular product-level insights to deliver research that is more actionable and strategically valuable.
Connected Building Market Size Review: What Shaped Past Growth And What Will Drive Future Expansion?
The connected building market has experienced rapid expansion in recent years. This market is projected to expand from $87.65 billion in 2025 to $96.72 billion in 2026, exhibiting a compound annual growth rate (CAGR) of 10.3%. Historically, this growth was driven by factors such as the early integration of building automation technologies, the expansion of smart commercial infrastructure, an increasing demand for centralized facility monitoring, the adoption of digital energy-saving systems, and the development of connected residential communities.
The connected building market size is projected for significant expansion in the coming years. It is anticipated to reach $142.4 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 10.2%. This growth during the forecast period is fueled by several factors, including the increasing implementation of AI-driven building management solutions, the broadening of cloud-based automation platforms, greater investment in IoT-enabled infrastructure, an increased emphasis on sustainable smart buildings, and the accelerating uptake of predictive building analytics. Key trends expected within the forecast timeframe involve the surging demand for smart building automation, the expanding utilization of integrated energy optimization, the widening scope of real-time sensor monitoring, the greater integration of smart access and safety systems, and the development of connected residential infrastructure.
Access Free Sample Pages From The Connected Building Market Report 2026:
Understanding The Main Driver Of The Connected Building Market
The expanding need for energy-saving solutions is projected to fuel the expansion of the connected building market in the future. Energy efficiency describes how a system, device, or operation can utilize less power to achieve its intended function or maximum output, simultaneously reducing waste. This growing demand stems from the necessity to decrease power usage and lessen environmental effects. With ongoing increases in energy expenses, both commercial entities and residential property owners are looking for methods to lower costs by implementing energy-saving technologies like smart HVAC units and automated building management. Connected buildings leverage IoT-powered devices, sensors, and automated mechanisms to continuously oversee and manage lighting and other power-intensive activities. Such innovations contribute to decreasing energy wastage, reducing utility expenditures, and boosting sustainability, thus making them appealing to businesses and individual residents alike. For example, a report released in October 2022 by Energy UK, a UK-based trade association for the UK’s energy industry, indicated that the number of energy efficiency projects should escalate from 500,000 installs in 2025 to one million per year by 2030. Consequently, the heightened need for energy-efficient systems is fueling the expansion of the connected building market.
Connected Building Market Segment Mapping For 2026 And Beyond
The connected building market covered in this report is segmented –
1) By Component: Solutions, Services
2) By Technology Platform: Internet Of Things (IoT), Mobile Applications, Artificial Intelligence And Machine Learning, Big Data Analytics, Edge Computing Technologies
2) By Deployment Type: On-Premises Solutions, Cloud-Based Solutions, Hybrid Solutions
4) By End-User: Manufacturing, IT And Telecom, Banking, Financial Services, And Insurance (BFSI), Healthcare, Residential, Other End-Users
Subsegments:
1) By Solutions: Energy Management Solutions, Lighting Control Systems, HVAC Management Solutions, Security And Access Control Systems, Building Automation Platforms, Data Analytics And IoT Solutions, Smart Metering Solutions, Fire And Life Safety Solutions, Network Management Solutions
2) By Services: Consulting Services, Deployment And Integration Services, Managed Services, Support And Maintenance Services, Training And Education Services, Professional Services, Cloud-Based Services
What Key Trend Is Expected To Shape The Connected Building Market Over The Forecast Period?
Major companies operating in the connected building market are concentrating on developing innovative products, such as sustainable building, to enhance operational efficiency, reduce environmental impact, and foster sustainable urban forestry practices. Sustainable building involves creating and implementing eco-friendly technologies, materials, and methods that improve buildings’ energy efficiency, ecological performance, and resilience. For instance, in June 2024, Schneider Electric, a France-based automation company, launched a SMART buildings division to propel sustainable building innovation. This new division aims to accelerate the adoption of intelligent, energy-efficient, and digitally connected building solutions. This initiative aligns with Canada’s sustainability goals and the increasing demand for smart, net-zero buildings, emphasizing Schneider Electric’s commitment to advancing the future of energy-efficient and digitally sophisticated infrastructure.
Connected Building Market Major Players And Industry Competition Overview
Major companies operating in the connected building market are Microsoft Corporation, Amazon Web Services (AWS), Huawei Technologies Co Ltd, Hitachi Ltd, Siemens AG, Intel Corporation, IBM Corporation, Cisco Systems Inc, Schneider Electric, Honeywell International Inc, Mitsubishi Electric, ABB Ltd, Johnson Controls, Eaton Corporation, Delta Electronics Inc, Legrand, Rockwell Automation, Advantech Co Ltd, Bosch Building Technologies, Lutron Electronics
Full Connected Building Market Report: Market Size, Trends, Segments And Key Players:
Connected Building Market Geographic Segmentation: Regions Covered In The Report
North America was the largest region in the connected building market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the connected building market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
Reach Out To Our Team:
The Business Research Company: https://www.thebusinessresearchcompany.com/
Americas: +1 310-496-7795
Asia: +44 7882 955267 & +91 8897263534
Europe: +44 7882 955267
Email us at: marketing@tbrc.info
Follow us on:
LinkedIn: https://in.linkedin.com/company/the-business-research-company
YouTube: https://www.youtube.com/channel/UC24_fI0rV8cR5DxlCpgmyFQ
Global Market Model: https://www.thebusinessresearchcompany.com/global-market-model
Wasay has over a decade of experience in market research, data modelling, and analytics, with prior experience at GlobalData and Decision Tree Consulting Services. At The Business Research Company , he leads research operations across syndicated studies, customized consulting engagements, and the Global Market Model platform. His professional experience includes supporting organizations such as Boston Consulting Group, KPMG, and Ernst & Young. Wasay holds a degree in Electronics and Communications Engineering, postgraduate management qualifications from International Management Institute Belgium and Indian School of Business and Entrepreneurship, and completed the Integrated Program in Business Analytics from Indian Institute of Management Indore.
