Trends: Sustainability concerns set to drive smart building technology boom

The total market value of smart building technology is set to reach $14 billion globally, up from just $7 billion in 2024.

This is the headline finding by UK digital technology analyst Juniper Research in its latest research report into the smart building sector.

The analyst also expects the global market value of smart building technology to grow 95% by 2026.

According to Juniper Research, this growth will be driven by increasing sustainability initiatives and the need for cost reductions in building management systems (BMS).

Interestingly, the report suggests AI-based building management solutions are poised to be the cornerstone of smart building tech market expansion.

We’ve summarised the report’s key findings below.

Key data: 2024-2029 forecast period for global smart building tech market

$24.7bn -Total smart building spend expected in 2024

$112.7bn -Total smart building spend expected in 2029

356% -2024 to 2029 market growth

The rise of AI in smart buildings

AI solutions help secure a robust return on investment in smart building platforms while simultaneously achieving sustainability and energy efficiency goals. AI has the capability to detect operational anomalies through advanced data analytics, which enhances safety, reduces operational costs, and minimizes the need for human intervention.

Warehouses, factories, and agricultural buildings all stand to gain the most from AI-based smart building technology. These industries, known for their high operational costs, can use AI to pre-emptively identify and address potentially expensive issues, such as high-value equipment malfunctions, helping to save costs in the long term.

Global market distribution of smart building technology

By 2026, the global industrial smart building spend will be spread across eight key regions:

• North America
• Central & East Europe
• Rest of Asia Pacific
• Latin America
• Far East & China
• Africa & Middle East
• West Europe
• Indian Subcontinent

Future projections

The benefits brought by AI to smart building platforms are projected to push global spending beyond $42 billion by 2028. One of the critical advantages of smart building solutions is their contribution to meeting sustainability goals.

By integrating IoT networks and sensors with AI systems that automate building functionalities in real-time, significant cost savings and reductions in emissions can be achieved.

The report concludes that, as AI continues to evolve and integrate into building management systems, industries will see smart BMS deliver further benefits in safety, cost-efficiency, and environmental impacts. This, in turn, will generate further demand for this exciting, future-focused technology.

Since our launch in 2009, Content Coms has forged close connections with some of the most innovative companies in the world providing the technology for smarter buildings.

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