The smart building market is experiencing a remarkable surge, driven by the integration of artificial intelligence, the Internet of Things, and energy efficiency technologies. Discover the key drivers behind this digital revolution shaping the built environment.
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The global smart building market is projected to reach $252 billion by 2025, according to a report by Xylem Vue, fuelled by the adoption of advanced technologies such as artificial intelligence (AI), the Internet of Things (IoT), and data analytics.
This growth, with an estimated compound annual rate between 21.8% and 29.7%, marks a significant shift in urban resource management. Smart buildings, equipped with integrated digital platforms, are optimising systems such as lighting, climate control, and parking in real time. Emerging solutions like digital twins and energy management systems are enhancing operational efficiency and enabling predictive maintenance.
District heating and cooling (DHC) networks are also gaining prominence as essential tools for urban sustainability. Managed through digital platforms, these systems integrate renewable energy sources and tailor thermal distribution to the specific needs of each building, supporting circular models and reducing emissions. Commercial buildings are expected to lead the market, accounting for 53% of the sector, reinforcing their role as key drivers of energy efficiency and operational cost reduction. This digital transformation of the built environment is positioning smart infrastructure at the heart of resilient and sustainable urban development.
