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Smart Building Iot (SBIoT) Market Size, Share, Growth & Industry Analysis, By Component (Solutions, Services), By Building Type (Commercial, Residential, Industrial), and Regional Analysis, 2025-2032
Pages: 140 | Base Year: 2024 | Release: July 2025 | Author: Versha V.
Smart building IoT (SBIoT) refers to the use of interconnected devices, sensors, and systems to automate and optimize building operations such as lighting, HVAC, energy management, security, and occupancy control. It enables real-time data collection and analysis, allowing for efficient resource utilization, predictive maintenance, enhanced occupant comfort, and improved operational decision-making across building environments.
The global smart building Iot (SBIoT) market size was valued at USD 88.43 billion in 2024 and is projected to grow from USD 96.54 billion in 2025 to USD 194.84 billion by 2032, exhibiting a CAGR of 10.55% during the forecast period.
This growth is fueled by rapid urbanization and population growth, highlighting the need for smarter infrastructure to manage energy, space, and building operations efficiently. Organizations are increasingly shifting toward cloud-based building management platforms to enable centralized monitoring, scalable control, and real-time data access across multiple facilities, aiding market expansion.
Major companies operating in the smart building Iot (SBIoT) industry are Cisco Systems, Inc., Honeywell International Inc., Siemens, ABB, Schneider Electric, Johnson Controls, Hitachi, Ltd, Softdel, KMC Controls, Avnet, Inc., Legrand, Huawei Technologies Co., Ltd, Intel Corporation, ENTOUCH Controls and SPACEWELL INTERNATIONAL.
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The expansion of the global IoT sector in smart cities is fostering market progress by enabling greater integration between buildings and urban infrastructure. As cities are implementing connected systems for utilities, transportation, and public services, buildings are increasingly aligning with these networks through IoT technologies.
Rapid Urbanization and Population Growth
Rapid urbanization and population growth are creating a strong demand for advanced and efficient building management solutions to meet the evolving needs of urban environments. As cities expand, building operators focus on maximizing space utilization, minimizing energy use, and improving occupant safety and comfort.
Smart building IoT technologies support these goals by providing real-time system oversight, automating key operations, and providing actionable insights. These solutions improve resource efficiency, support regulatory compliance, and improve the performance and adaptability of modern buildings.
Lack of Standardized Protocols and Interoperability
The absence of standardized protocols and interoperability poses a major obstacle to the expansion of the smart building IoT market by limiting seamless integration between devices and systems from different vendors.
The absence of uniform communication standards makes data exchange inefficient and increases system compatibility issues. This lack of consistency raises implementation costs, prolongs deployment timelines, and creates challenges in scaling smart building IoT solutions across diverse platforms and devices.
To address this challenge, market players are adopting universal standards and building platforms that integrate easily with various systems. They are also collaborating with industry groups to improve compatibility across devices. By focusing on interoperability from the design stage, players aim to simplify integration and lower deployment costs while ensuring efficient performance in the smart building environments.
Shift toward Cloud-Based Building Management Platforms
The adoption of cloud-based platforms is reshaping the smart building IoT market by enabling centralized monitoring and real-time data access that support improved operational oversight. These platforms are supporting continuous system performance tracking and helping facilities reduce costs while scaling management across multiple buildings.
By integrating various building functions into a unified interface, they enhance energy efficiency, streamline maintenance, and improve overall operational sustainability.
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Segmentation |
Details |
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By Component |
Solutions (Building Energy Management Systems (BEMS), Intelligent Security Systems, Building Infrastructure Management (BIM), Network Management Systems, Others), Services (Consulting Services, Integration and Deployment Services, Support and Maintenance Services, Managed Services) |
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By Building Type |
Commercial (Office Buildings, Shopping Malls & Retail Spaces, Hotels & Hospitality, Others), Residential, Industrial |
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By Region |
North America: U.S., Canada, Mexico |
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Europe: France, UK, Spain, Germany, Italy, Russia, Rest of Europe |
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Asia-Pacific: China, Japan, India, Australia, ASEAN, South Korea, Rest of Asia-Pacific |
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Middle East & Africa: Turkey, U.A.E., Saudi Arabia, South Africa, Rest of Middle East & Africa |
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South America: Brazil, Argentina, Rest of South America |
Based on region, the market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and South America.
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The North America smart building Iot (SBIoT) market accounted for a share of 37.43% in 2024, valued at USD 33.10 billion. This dominance is reinforced by the adoption of advanced energy management technologies and the growing integration of intelligent automation.
The regional market further benefits from the rising use of systems that support automated demand control and predictive fault detection. The region is focusing on optimizing energy use and reducing operational costs through AI-powered solutions that enable intelligent system control across building operations.
Moreover, market players in the region are strengthening platform capabilities to align with carbon reduction goals and enhance performance efficiency. Building owners are transitioning from passive data collection to active system management, which is boosting the adoption of grid-responsive technologies and contributing to regional market expansion.
The Asia-Pacific smart building Iot (SBIoT) industry is set to grow at a robust CAGR of 11.33% over the forecast period. This growth is attributed to the increasing deployment of IoT connectivity networks and the rising demand for integrated facility management across the region.
Organizations are increasingly investing in large-scale automation solutions to enhance operational efficiency and energy performance. The expansion of low-power, wide-area networks is further enabling real-time monitoring and intelligent control across infrastructure systems.
Moreover, utility and enterprise operators in the region are adopting IoT-enabled systems to streamline building operations and address evolving sustainability targets. As connectivity providers are entering new markets, the regional market is experiencing advancements through improved service availability and broader access to data-driven tools that optimize long-term building performance.
Major players in the smart building IoT industry are acquiring full ownership of licensed spectrum assets to strengthen control over network infrastructure. They are simplifying operational structures to improve deployment efficiency and accelerate the rollout of low-power wide-area networks.
Numerous players are enhancing the reliability and scalability of their IoT connectivity services by securing dedicated spectrum that supports long-range communication with minimal interference. These strategies are supporting broader integration across smart building applications by ensuring consistent and secure data transmission that improves system interoperability and overall performance.
