Smart Buildings (Nonresidential Buildings) Market Report 2026

The smart buildings (nonresidential buildings) market size has grown rapidly in recent years. It will grow from $77.67 billion in 2025 to $87.53 billion in 2026 at a compound annual growth rate (CAGR) of 12.7%. The growth in the historic period can be attributed to historical reliance on conventional building systems, gradual introduction of automation technologies, increasing demand for energy-efficient commercial buildings, early adoption of access control and surveillance systems, expansion of non-residential construction activities.

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.

The growing adoption of Internet of Things (IoT) devices is expected to drive the expansion of the smart buildings (non-residential buildings) market in the coming years. IoT devices are interconnected smart systems equipped with sensors, software, and network connectivity that collect, exchange, and analyze data, enabling automated monitoring and control of physical environments. The increasing adoption of IoT devices is fueled by the need for operational efficiency and cost reduction, as organizations increasingly implement automated solutions to monitor building systems, optimize energy use, and lower operational expenses in real time. This trend is boosting demand for smart building infrastructure, as IoT-enabled systems allow automated control of lighting, heating, ventilation, security, and facility management, enhancing building performance and occupant comfort. For example, in February 2023, BuildOps Inc., a US-based software-as-a-service (SaaS) company, projected that the total number of IoT-connected devices would reach 16 billion by 2023, representing a 28% increase compared to 2022. Consequently, the rising use of IoT devices is driving growth in the smart buildings market.

Key players in the smart buildings (non-residential buildings) market are focusing on developing advanced solutions such as Artificial Intelligence (AI)-powered integrated building management platforms to improve energy efficiency, optimize building operations, and enhance occupant comfort. These platforms leverage data analytics, machine learning, and real-time sensor inputs to monitor, control, and optimize critical building systems automatically, helping facility managers reduce energy consumption, cut operating costs, and create safer, more comfortable, and sustainable 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. This AI-powered platform integrates essential building software and technologies into a single interface for non-residential portfolios, offering advanced cybersecurity encryption, remote monitoring and diagnostics, predictive maintenance, and energy management capabilities to reduce labor time, costs, and carbon footprint.

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

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.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs are affecting the smart buildings (non-residential) market by increasing costs of imported sensors, controllers, automation equipment, data networking hardware, and HVAC control components, resulting in higher construction and renovation expenditures across commercial, institutional, and industrial facilities. Regions with extensive reliance on imported electronicssuch as North America, Europe, and Asia-Pacificexperience the strongest disruptions in project timelines and budgets. However, tariffs can boost domestic production of automation technologies, strengthen local supply chains, and accelerate innovation in cost-effective smart building solutions.

The smart buildings (non-residential buildings) market research report is one of a series of new reports that provides smart buildings (non-residential buildings) market statistics, including smart buildings (non-residential buildings) industry global market size, regional shares, competitors with a smart buildings (non-residential buildings) market share, detailed smart buildings (non-residential buildings) market segments, market trends and opportunities, and any further data you may need to thrive in the smart buildings (non-residential buildings) industry. This smart buildings (non-residential buildings) market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The construction of smart buildings, specifically non-residential structures, involves the process of creating, modifying, repairing, enhancing, or demolishing any non-residential smart home based on a detailed design and plan. Smart homes, characterized as forward-looking buildings equipped with advanced electronics and wireless devices, operate through a smart home system that necessitates a web portal or smartphone application to serve as the user interface for interacting with the automated system.

The primary product categories within smart buildings, focusing on non-residential structures, include institutional buildings and commercial buildings. Commercial buildings encompass various structures such as office buildings, retail spaces, and warehouses, where commercial activities are conducted. These smart buildings incorporate automation technologies featuring intelligent security systems, building energy management systems, infrastructure management systems, network management systems, and others. They find applications in diverse sectors such as government, airports, hospitals, educational institutions, manufacturing and industrial facilities, among others. Smart building projects include both new construction and remodeling initiatives.Asia-Pacific was the largest region in the smart buildings (non-residential buildings) market in 2025. South America is expected to be the fastest-growing region in the global smart buildings (nonresidential buildings) market during the forecast period. The regions covered in the smart buildings (nonresidential buildings) market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the smart buildings (nonresidential buildings) market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Canada, Spain.

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.

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.

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