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Connected Building Market Value Expansion And Long-Term Growth Outlook
The connected building market has experienced rapid expansion in recent years. Projections indicate its expansion from $87.65 billion in 2025 to $96.72 billion in 2026, demonstrating a compound annual growth rate (CAGR) of 10.3%. Historically, this growth stemmed from factors such as the initial incorporation of building automation technologies, the proliferation of smart commercial infrastructure, increased need for centralized facility monitoring, the uptake of digital energy-saving systems, and the creation of connected residential communities.
The connected building market is projected to experience swift expansion over the coming years. By 2030, this market is anticipated to reach $142.4 billion, demonstrating a compound annual growth rate (CAGR) of 10.2%. This projected increase is largely due to the expanding implementation of AI-driven building management systems, the proliferation of cloud-based automation platforms, heightened investment in IoT-enabled infrastructure, an increasing emphasis on sustainable smart buildings, and the accelerated uptake of predictive building analytics. Key trends during this period encompass a surging demand for smart building automation, broader utilization of integrated energy optimization, the widening scope of real-time sensor monitoring, enhanced adoption of smart access and safety systems, and the growth in connected residential infrastructure.
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Connected Building Market Expansion Drivers: What Is Shaping Future Growth?
The expanding need for energy-efficient solutions is anticipated to drive the expansion of the connected building market in the future. Energy efficiency describes a system, device, or process’s capacity to utilize less power to execute the same task or reach peak performance while minimizing waste. This growing demand stems from the necessity to decrease energy consumption and lessen environmental footprints. With energy costs consistently climbing, both businesses and homeowners are seeking methods to reduce expenses by implementing energy-saving solutions like intelligent HVAC systems and automated building management. Connected buildings leverage IoT-enabled devices, sensors, and automation to continuously monitor and manage lighting and other energy-intensive operations. These innovations contribute to reducing energy wastage, decreasing utility expenses, and improving sustainability, thus appealing to both commercial and residential sectors. For instance, in October 2022, a report from Energy UK, a UK-based trade association for the UK’s energy industry, highlighted the requirement for energy efficiency projects to escalate from 500,000 installs in 2025 to one million per year by 2030. Consequently, the rising demand for energy-efficient systems is propelling the growth of the connected building market.
#Connected Building Market Segment Landscape And Growth Potential
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
Connected Building Market Strategic Trends: What Is Defining The Next Phase Of Growth?
Major companies operating in the connected building market are focusing on developing innovative products, such as sustainable building, with the goal of improving efficiency, reducing environmental impact, and promoting sustainable urban forestry practices. Sustainable building involves the development and implementation of eco-friendly technologies, materials, and practices that enhance buildings’ energy efficiency, environmental performance, and resilience. For instance, in June 2024, Schneider Electric, a France-based automation company, established a SMART buildings division to further sustainable building innovation. This new division is designed 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, thereby reinforcing Schneider Electric’s commitment to guiding the future of energy-efficient and digitally advanced infrastructure.
Connected Building Market Competitive Landscape: Who Are The Leading Companies?
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
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Connected Building Market Regional Outlook: Where Are The Largest Opportunities Located?
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.
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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.