The global industrial smart building market is projected to undergo substantial expansion, with expectations of deployments soaring to $14 billion by 2026. This represents a notable increase of 95% from the current projected figure of $7 billion in 2024. The surge can primarily be attributed to mounting sustainability initiatives as well as the growing necessity for cost efficiencies in building management practices.
Key advancements in artificial intelligence (AI) are pivotal in the evolution of smart building platforms. AI technologies are being harnessed to maximise return on investment while simultaneously achieving sustainability and energy objectives. According to the report by LightNOW, AI effectively identifies operational anomalies through advanced data analytics. This results in heightened safety, lowered operational costs, and a significant reduction in the need for human intervention.
The report further highlights the essential nature of automation in driving cost reductions and supporting sustainability. AI-powered automation systems are capable of recognising and addressing potential issues prior to their escalation, a feature that proves particularly advantageous for industries where operational expenses are notably high.
In terms of market size, the global smart buildings market is anticipated to expand from $117.42 billion in 2024 to an impressive $568.02 billion by 2032, boasting a compound annual growth rate (CAGR) of 21.8%. Another forecast anticipates reaching approximately $160 billion by 2026, with a CAGR of 15.3% observed from 2019 to 2026. Projections indicate that global spending on AI in smart building systems could exceed $42 billion by 2028.
Certain sectors are expected to derive significant benefits from AI-based smart building technologies, particularly industrial establishments such as warehouses, factories, and agricultural facilities. The capacity of AI to flag potential faults in high-value equipment before they arise can lead to substantial long-term savings for these industries.
Regional dynamics also play a crucial role in the development of the smart building market. North America currently holds a dominant position, commanding a 40.33% market share as of 2023. However, the Asia Pacific region is predicted to realise the highest CAGR over the forecast period stretching from 2024 to 2029.
The insights reported by LightNOW underscore the transformative impact that AI and automation are poised to have on business practices across various industries, enhancing efficiency while concurrently addressing the urgent challenges of sustainability.
Source: Noah Wire Services