Smart Buildings (Nonresidential Buildings) Market Report 2026

Smart Buildings (Nonresidential Buildings) Market Overview

• Smart Buildings (Nonresidential Buildings) market size has reached to $77.67 billion in 2025 • Expected to grow to $141.98 billion in 2030 at a compound annual growth rate (CAGR) of 12.9% • Growth Driver: Increasing Use Of Internet Of Things (Iot) Devices Driving The Market Growth Due To Operational Efficiency Requirements • Market Trend: Advancements In AI Technology Empower Smarter And More Sustainable Buildings • Asia-Pacific was the largest region and fastest growing region.

The key promising market opportunities in the Smart Buildings (Nonresidential Buildings) market include: • Building Energy Management System (BEMS) (Segmentation By Automation Type ) → Expected gain of $27 Billion • Intelligent Security System (Segmentation By Automation Type ) → Expected gain of $18 Billion • Infrastructure Management System (Segmentation By Automation Type ) → Expected gain of $12 Billion

What Is Covered Under Smart Buildings (Nonresidential Buildings) Market?

Smart buildings (non-residential Buildings) construction is the process of building, altering, repairing, improving, or demolishing any non-residential smart home using a detailed design and plan. Smart homes are futuristic buildings equipped with advanced electronics and wireless devices. The smart home system requires a web portal or smartphone application to interact with the automated system as a user interface. The main types of products in smart buildings (non-residential buildings) are institutional buildings and commercial buildings. Commercial buildings are structures, such as office buildings, retail space, and warehouses, where commercial activity takes place. The automation type of building has intelligent security systems, building energy management systems, infrastructure management systems, network management systems, and others used in government, airports, hospitals, institutes, manufacturing and industrial facilities, and other applications. Various types of buildings include new construction and remodeling projects.

What Is The Smart Buildings (Nonresidential Buildings) Market Growth Forecast?

The smart buildings (nonresidential buildings) market size is expected to see rapid growth in the next few years. It will grow to $141.98 billion in 2030 at a compound annual growth rate (CAGR) of 12.9%. The growth in the forecast period can be attributed to rising integration of advanced BEMS solutions, growing demand for cloud-connected automation platforms, increasing adoption of predictive maintenance technologies, expansion of IoT-enabled smart infrastructure, rising regulatory pressure for energy-efficient non-residential buildings. Major trends in the forecast period include rising adoption of bems-driven energy optimization, increasing deployment of smart security and access-control systems, expansion of cloud-connected building automation platforms, growth in integrated infrastructure and network management solutions, rising use of predictive maintenance and remote monitoring technologies.

What Is The Driver Of The Smart Buildings (Nonresidential Buildings) Market?

The increasing use of internet of things (IoT) devices is expected to propel the growth of the smart buildings (nonresidential buildings) market going forward. Internet of things (IoT) devices are interconnected smart devices embedded with sensors, software, and network connectivity that collect, exchange, and analyze data to enable automated monitoring and control of physical environments. The adoption of IoT devices is rising due to the need for operational efficiency and cost reduction, as organizations increasingly seek automated solutions to monitor building systems, optimize energy consumption, and reduce operational expenses in real time. The rising use of IoT devices drives demand for smart building infrastructure as these interconnected systems enable automated control of lighting, heating, ventilation, security, and facility management to enhance building performance and occupant comfort. For instance, in February 2023, according to the BuildOps Inc., a US-based software-as-a-service (SaaS) company, the total number of IoT-connected devices is projected to reach 16 billion by 2023, representing a 28% increase compared to 2022. Therefore, the increasing use of internet of things (IoT) devices is driving the growth of the smart buildings (nonresidential buildings) industry.

How Will The Drivers Impact Growth In The Global Smart Buildings (Nonresidential Buildings) Market?

• Increasing Adoption Of Building Energy Management Systems (BEMS) (Medium) – During the forecast period, the increasing adoption of building energy management systems (BEMS) is expected to emerge as a major factor driving the expansion of the smart buildings (nonresidential buildings) market by 2030. building owners are increasingly deploying intelligent energy management platforms to optimize HVAC, lighting, ventilation, and power consumption while improving operational efficiency and occupant comfort. growing compliance with green building standards, rising energy prices, and stronger corporate sustainability initiatives are further encouraging investment in advanced BEMS technologies across commercial facilities. • Growing Integration Of Internet Of Things (IoT) And Connected Building Technologies (Low) – During the forecast period, the growing integration of Internet of Things (IoT) and connected building technologies is expected to emerge as a major factor driving the expansion of the smart buildings (nonresidential buildings) market by 2030. smart sensors, connected devices, cloud platforms, and AI-enabled analytics enable real-time monitoring, predictive maintenance, and centralized management of building operations, improving resource utilization and reducing maintenance costs. as organizations continue investing in intelligent infrastructure and digital facility management, demand for IoT-enabled building solutions continues to strengthen. • Rising Demand For Intelligent Security And Building Automation Solutions (Medium) – During the forecast period, the rising demand for intelligent security and building automation solutions is expected to act as a key growth catalyst for the smart buildings (nonresidential buildings) market by 2030. commercial facilities are increasingly adopting integrated platforms that combine AI-powered surveillance, biometric access control, intrusion detection, visitor management, and automated control of lighting, HVAC, elevators, and other building systems. these technologies improve safety, streamline facility operations, enhance occupant experience, and reduce operating costs across a wide range of nonresidential buildings.

How Will The Restraints Impact Growth In The Global Smart Buildings (Nonresidential Buildings) Market?

• High Initial Installation And Construction Costs (Medium) – During the forecast period, high Initial Installation And Construction Costs remain one of the most significant restraints for the Smart Buildings (Nonresidential Buildings) market because implementing intelligent building technologies requires substantial capital investment. Developers must invest in advanced sensors, IoT devices, automation controllers, communication networks, intelligent lighting, HVAC control systems, software platforms, and cybersecurity infrastructure, all of which increase construction costs compared to conventional buildings. In addition, system integration, engineering design, commissioning, employee training, and ongoing maintenance further add to the total project expenditure. Although these investments provide long-term energy savings and operational efficiencies, the high upfront costs often discourage small and medium-sized developers, educational institutions, and businesses with limited budgets from adopting comprehensive smart building solutions, particularly in emerging economies. • Complex Integration And Interoperability Challenges (Low) – During the forecast period, complex Integration And Interoperability Challenges continue to restrict market growth because smart buildings depend on seamless communication among multiple technologies supplied by different manufacturers. Integrating HVAC systems, lighting controls, elevators, fire safety systems, security platforms, energy management software, and IoT devices into a single building management system is technically complex and often requires specialized expertise. Differences in communication protocols, software standards, and hardware compatibility can create integration difficulties, increase project timelines, and raise implementation costs. Furthermore, upgrading existing commercial buildings with modern automation technologies presents additional challenges due to legacy infrastructure. These technical complexities may delay project execution and discourage organizations from investing in large-scale smart building deployments. • Cybersecurity And Data Privacy Concerns (Medium) – During the forecast period, cybersecurity And Data Privacy Concerns are becoming increasingly important restraints as smart buildings rely extensively on connected devices, cloud-based platforms, wireless networks, and Internet of Things technologies for daily operations. These interconnected systems continuously collect and exchange sensitive operational and occupant data, making them potential targets for cyberattacks, ransomware, unauthorized access, and data breaches. A successful cyber incident can disrupt essential building functions such as access control, surveillance, energy management, and emergency response, resulting in financial losses and reputational damage. Moreover, organizations must comply with evolving data protection regulations and implement robust cybersecurity frameworks, which increase implementation complexity and operational costs. These concerns can slow investment decisions and reduce the pace of smart building adoption, especially among organizations handling highly sensitive information.

Key Players In The Global Smart Buildings (Nonresidential Buildings) Market

Major companies operating in the smart buildings (nonresidential buildings) market are China State Construction Engineering Co., Ltd., VINCI, Bechtel Corporation, Skanska AB, Turner Construction Company, Jacobs Engineering Group Inc., The Whiting-Turner Contracting Company, PCL Construction, AECOM, BESIX Group, Shanghai Construction Group (SCG), SGS Group, Larsen & Toubro, GMR Group, Hindustan Construction Company, GVK Group, Kajima Corporation, Shimizu Corporation, Shanghai Intelligent Building Technology (SIBT), Obayashi Corporation, Taisei Corporation, Balfour Beatty, Bouygues, Royal BAM Group, Laing O`Rourke, ACS Group, EllisDon Corporation, Aecon Group Incorporated, Ledcor Group of Companies, Gilbane Building Company, Empresas ICA SAB de CV, Carso Infraestructura y Construcción S.A.B., Clark Group, Swinerton, Hensel Phelps, Lendlease, Arabian Construction Company, WBHO Construction (Pty) Ltd., Stefanutti Stocks (Pty) Ltd, WK construction, Redcon Construction Company, Estim Construction Co. Ltd, Eco-Beam, Ecomo, TSAI design studio

Global Smart Buildings (Nonresidential Buildings) Market Trends and Insights

Major companies operating in the smart buildings (non-residential buildings) market are focusing on developing innovative solutions, such as artificial intelligence (AI)-powered integrated building management platforms, to enhance energy efficiency, optimize building operations, and improve occupant comfort. Artificial Intelligence (AI)-powered integrated building management platforms use advanced data analytics, machine learning, and real-time sensor inputs to automatically monitor, control, and optimize key building systems, helping facility managers reduce energy consumption, lower operating costs, and create safer, more comfortable, and sustainable non-residential environments. For instance, in June 2025, Honeywell International Inc., a US–based building-automation and industrial-technology company, launched Honeywell Connected Solutions (built on their Forge platform), an AI-powered platform that integrates critical building software and technologies into a single interface for non-residential portfolios. The solution provides advanced encryption for cybersecurity, remote monitoring and diagnostics, predictive maintenance and energy-management capabilities to help operators reduce labour time, cost and carbon footprint.

What Are Latest Mergers And Acquisitions In The Smart Buildings (Nonresidential Buildings) Market?

In December 2023, Honeywell International Inc., a US-based technology and manufacturing company, acquired Carrier Global Corporation’s Global Access Solutions business for $4.95 billion. With this acquisition, Honeywell aimed to enhance its building-automation segment by expanding into cloud-based access, security and digital-credentials capabilities. Carrier Global Corporation is a US-based refrigeration and air conditioning company that specializes in providing access control systems, electronic locking solutions, and mobile-credential platforms.

What Defines the Smart Buildings (Nonresidential Buildings) Market?

The smart buildings (non-residential) construction market includes revenues earned by entities by constructing non-residential smart buildings such as offices, sports, college buildings, and other commercial buildings. The establishments in this market include non-residential general contractors, non-residential for-sale builders, non-residential design-build firms, and non-residential project construction management firms. The non-residential green building construction work performed includes new work, additions, alterations, maintenance, and repairs. Smart buildings use automatic processes to control the buildings' operations such as air conditioning, lighting, security, and other systems. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

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 theSmart Buildings (Nonresidential Buildings) Market Report 2026?

The smart buildings (nonresidential buildings) 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 smart buildings (nonresidential buildings) 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.