Industrial Smart Building Market To Nearly Double By 2026

The global industrial smart building market is set for significant growth, with deployments expected to reach $14 billion by 2026, a 95% increase from $7 billion in 2024. This growth is primarily driven by sustainability initiatives and the need for cost reductions in building management.

Key Drivers and Trends

AI-based Solutions: Artificial Intelligence is becoming crucial for securing return on investment in smart building platforms while meeting sustainability and energy goals. AI detects operational anomalies through data analytics, leading to increased safety, decreased operational costs, and reduced human intervention.

Automation: The study emphasizes the importance of automation for cost reductions and sustainability. AI-powered automation can detect potential issues before they occur, which is particularly beneficial for industries with high operational costs.

Sustainability Goals: Smart building solutions enable operations managers to meet sustainability targets by integrating IoT networks and sensors with AI systems that automate building functionality in real-time.

Market Projections

• The global smart buildings market is expected to grow from $117.42 billion in 2024 to $568.02 billion by 2032, with a CAGR of 21.8%.
• Another forecast suggests the market will reach $160 billion by 2026, growing at a CAGR of 15.3% from 2019 to 2026.
• The benefits of AI in smart building platforms are projected to drive global spending to exceed $42 billion by 2028.

Industry Applications

Industrial buildings such as warehouses, factories, and agricultural facilities are expected to benefit the most from AI-based smart building technology due to their high operational costs. AI can detect potential issues with high-value equipment before they occur, resulting in long-term savings.

Regional Insights

North America dominated the smart building market with a 40.33% share in 2023. However, the Asia Pacific region is estimated to grow at the highest CAGR over the forecast period (2024-2029).

More information is available here and here.

David Shiller

David Shiller is the Publisher of LightNOW, and President of Lighting Solution Development, a North American consulting firm providing business development services to advanced lighting manufacturers. The ALA awarded David the Pillar of the Industry Award. David has co-chaired ALA’s Engineering Committee since 2010. David established MaxLite’s OEM component sales into a multi-million dollar division. He invented GU24 lamps while leading ENERGY STAR lighting programs for the US EPA. David has been published in leading lighting publications, including LD+A, enLIGHTenment Magazine, LEDs Magazine, and more.

See Full Bio