Connected Building Market Report 2026

Connected Building Market Overview

• Connected Building market size has reached to $87.65 billion in 2025 • Expected to grow to $142.4 billion in 2030 at a compound annual growth rate (CAGR) of 10.2% • Growth Driver: Increasing Demand For Energy-Efficient Systems Fuelling The Growth Of The Market Due To Cost Reduction And Sustainability Goals • Market Trend: Sustainable Building Innovation Driving Growth In The Market • North America was the largest region in 2025 and Asia-Pacific is the fastest growing region.

What Is Covered Under Connected Building Market?

Connected building is a smart infrastructure integrating smart technologies to enhance efficiency, security, and sustainability. It enables real-time monitoring, remote control, and predictive maintenance, improving operational efficiency and sustainability. They are commonly used in commercial, residential, and industrial settings to create smarter, more responsive environments. The main components of the connected building are solutions and services. Solutions in the connected building refer to integrated technological systems designed to optimize building functions. The various technology platforms involved are the internet of things (IoT), mobile applications, artificial intelligence and machine learning, big data analytics, edge computing technology, which are deployed on on-premises solutions, cloud-based solutions, hybrid solutions by manufacturing, it and telecom, banking, financial services, and insurance (bfsi), healthcare, residential, other end-users.

What Is The Connected Building Market Growth Forecast?

The connected building market size is expected to see rapid growth in the next few years. It will grow to $142.4 billion in 2030 at a compound annual growth rate (CAGR) of 10.2%. The growth in the forecast period can be attributed to growing deployment of AI-driven building management, expansion of cloud-based automation platforms, increased investment in IOT-enabled infrastructure, rising focus on sustainable smart buildings, accelerating adoption of predictive building analytics. Major trends in the forecast period include rising demand for smart building automation, growing use of integrated energy optimization, expansion of real-time sensor monitoring, increased adoption of smart access and safety systems, growth in connected residential infrastructure.

Global Connected Building Market Segmentation

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 Is The Driver Of The Connected Building Market?

The increasing demand for energy-efficient systems is expected to propel the growth of the connected building market going forward. Energy efficiency refers to the ability of a system, device, or process to use less energy to perform the same function or achieve optimal output while minimizing waste. The rising demand for energy-efficient systems is due to the need to reduce energy consumption and minimize environmental impact. As energy prices continue to rise, businesses and homeowners seek ways to cut costs by adopting energy-efficient solutions such as smart HVAC systems and automated building controls. Connected buildings use IoT-enabled devices, sensors, and automation systems to monitor and control lighting and other energy-consuming operations in real time. These technologies help reduce energy waste, lower utility costs, and enhance sustainability, making them attractive to businesses and homeowners. For instance, in October 2022, according to a report published by Energy UK, a UK-based trade association representing the UK's energy industry, the volume of energy efficiency projects needs to increase from 500,000 installs in 2025 to one million per year by 2030. Therefore, the increasing demand for energy-efficient systems is driving the growth of the connected building industry.

Key Players In The Global Connected Building Market

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

Global Connected Building Market Trends and Insights

Major companies operating in the connected building market are focusing on developing innovative products, such as sustainable building, to enhance efficiency, reduce environmental impact, and promote sustainable urban forestry practices. Sustainable building refers to developing and implementing eco-friendly technologies, materials, and practices that improve buildings' energy efficiency, environmental performance, and resilience. For instance, in June 2024, Schneider Electric, a France-based automation company, launched a SMART buildings division to drive 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, reinforcing Schneider Electric's commitment to driving the future of energy-efficient and digitally advanced infrastructure.

What Are Latest Mergers And Acquisitions In The Connected Building Market?

In July 2023, Johnson Controls International plc, an Ireland-based conglomerate company, acquired FM Systems for an undisclosed amount. With this acquisition, Johnson Controls aims to expand its OpenBlue digital building capabilities by integrating advanced workplace management software into its smart building solutions. FM Systems is a US-based software company that provides solutions that enhance workplace experiences, improve portfolio performance, and drive building efficiencies.

Regional Insights

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 this market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in this market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

What Defines the Connected Building Market?

The connected building market consists of revenues earned by entities providing services such as fire and life safety systems, occupancy management systems, and parking management systems. The market value includes the value of related goods sold by the service provider or included within the service offering. The connected building market also includes sales of smart sensors, smart thermostats, and smart lighting systems. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

How is Market Value Defined and Measured?

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified). The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

What Key Data and Analysis Are Included in theConnected Building Market Report 2026?

The connected building market research report is one of a series of new reports from The Business Research Company that provides market statistics, including industry global market size, regional shares, competitors with the market share, detailed market segments, market trends and opportunities, and any further data you may need to thrive in the connected building industry. The market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future state of the industry.