The global market for smart buildings is poised for sustained growth. According to a recent report by Grand View Research, Inc., the global market volume for smart buildings will grow to £554.02 billion by 2033. Analysts forecast an average annual growth rate (CAGR) of 18.9 per cent for the period from 2026 to 2033. A key finding of the report is that the safety and security management sector will already be the market segment with the highest turnover by 2025.
Digitalisation and smart city programmes as growth drivers
The report identifies government digitalisation initiatives and the global expansion of smart city projects as key drivers of market growth. Public and private investment in digital infrastructure is steadily increasing, laying the foundation for connected buildings, integrated control systems and data-driven operating models.
In the commercial sector in particular, there is a growing demand for solutions that optimise energy consumption, make operating procedures more efficient and automate processes. These requirements are significantly accelerating the market penetration of intelligent building technologies.
Technological innovation accelerates market development
According to Grand View Research, the growth of the smart building market is largely driven by rapid technological progress. Artificial intelligence, big data, cloud computing and the Internet of Things (IoT) form the technological basis for new, powerful applications. These technologies not only enable adaptation to new working and living models, but also create individualised working environments and improved user experiences.
As an example, the report cites the introduction of the ABB Ability Building Analyzer, which provides building managers with detailed insights into usage patterns and energy consumption. Such solutions support emission reductions and significant energy savings and highlight the growing importance of data-based building control.
Security and protection solutions dominate the market
A key finding of the study is the strong market position of security solutions. The safety and security management segment accounted for the largest market share in 2025. This includes AI-supported access control systems, biometric identification, video surveillance, emergency and communication systems, and cybersecurity solutions. The protection of people, data and infrastructure is thus becoming an integral part of modern smart building concepts.
The Solution segment also achieved the largest share of sales in 2025, with over 77 per cent. This segment brings together technological solutions that combine security, efficiency and comfort. In addition, the Implementation segment dominated, driven by the installation of sensors, actuators and microcontrollers for data collection and optimisation of building operations.
Commercial buildings and regional focal points
The commercial sector represented the largest user segment in 2025. Intelligent solutions in office buildings, retail, hotels and other commercial facilities are primarily aimed at energy efficiency, operational performance and user well-being.
From a regional perspective, North America led the global smart building market with a share of over 35 per cent of sales. High levels of investment and rapid digitalisation in commercial, industrial and, increasingly, residential applications are key factors here.
Dynamics in the Asia-Pacific region
The market in the Asia-Pacific region is developing particularly dynamically. Several countries there are specifically promoting the introduction of digital technologies without neglecting data protection. Among other things, the report refers to smart city projects in India, where the use of intelligent building technologies has reduced energy consumption by up to 20 per cent – while simultaneously improving quality of life and economic attractiveness.
Conclusion
The latest report from Grand View Research clearly shows that smart buildings are becoming a central component of digital infrastructure worldwide. Security and protection solutions play a key role in this. This presents significant growth opportunities for providers in the fields of security, access control, video surveillance and building technology – especially in the commercial sector and in international smart city projects.
