A report "Smart Building Market - Global Forecast to 2021" projects that the smart building market will grow by 34 % annually from 2016 through 2021. The market size, estimated at $ 5.7 Billion in 2016, is expected to grow to $ 25 Billion in 2021. From Markets and Markets' perspective the smart building industry is comprised of intelligent security systems, building energy management systems, infrastructure management systems (parking, water, and elevators), and network and communications management systems. The major vendors covered in the smart building market for this study include ABB Group (Switzerland), International Business Machines (IBM) Corporation (U.S.), Schneider Electric SE (France), Siemens AG (Germany), Cisco Systems, Inc. (U.S.), Honeywell International Inc.(U.S), Delta Controls (Canada), Johnson Controls (U.S), United Technologies Corporation (U.S), and BuildingIQ (Australia). Accenture, TCS, Wipro, HP, and Capgemini are market players providing assessment, consulting, system integration, and support services to smart building solutions.
The drivers for this boom in smart building technology are energy efficiency and reducing CO2 emissions, government initiatives for smart building projects, growing demand for integrated security and safety systems, and the proliferation of sensors and smart appliances comprising the Internet of Things (IoT).
According to the International Energy Agency, about 40% of the world’s energy is consumed by buildings. 72% of electric power demand in the U.S. is from buildings. Growing urbanization is expected to increase energy demand from buildings.
Europe's 20-20-20 goal and mandating near-zero-energy buildings starting in 2018/2019 is expected to drive the largest geographic market share in the smart building market.