AI in Smart Buildings and Infrastructure Market Report 2026

The AI in smart buildings and infrastructure market size has grown exponentially in recent years. It will grow from $35.78 billion in 2025 to $43.48 billion in 2026 at a compound annual growth rate (CAGR) of 21.5%. The growth in the historic period can be attributed to growth of building management systems, rising energy efficiency regulations, adoption of iot sensors, urban infrastructure modernization, demand for operational cost reduction.

The AI in smart buildings and infrastructure market size is expected to see exponential growth in the next few years. It will grow to $93.48 billion in 2030 at a compound annual growth rate (CAGR) of 21.1%. The growth in the forecast period can be attributed to expansion of smart city initiatives, increasing sustainability mandates, advancements in edge AI devices, rising demand for automated facility management, integration of AI with digital twins. Major trends in the forecast period include AI-driven building automation, predictive maintenance for infrastructure, energy optimization using ai, intelligent security and surveillance, occupant-centric smart building systems.

The increasing demand for energy-efficient and sustainable building solutions is expected to drive the growth of AI in smart buildings and infrastructure. Energy-efficient and sustainable building solutions aim to design and implement systems that reduce energy consumption, minimize environmental impact, and enhance long-term sustainability in buildings. This growing demand is largely due to heightened environmental concerns and the effects of climate change. Such solutions help decrease carbon footprints, lower energy costs, and ensure compliance with stricter government regulations on sustainability. AI contributes to optimizing energy consumption in smart buildings by automating climate control, lighting, and predictive maintenance, leading to improved efficiency and sustainability. For example, in March 2024, the Department for Energy Security and Net Zero in the UK reported that 318,600 energy efficiency measures were installed in 2023 across properties in Great Britain through government support programs, a 49% increase from 2022. As a result, the rising need for energy-efficient and sustainable building solutions is fueling the growth of AI in the smart buildings and infrastructure market.

Major companies operating in the AI in smart buildings and infrastructure market are emphasizing technological innovation, such as intelligent autonomous building control platforms, to improve energy efficiency, elevate occupant comfort, and enhance overall operational performance. Intelligent autonomous building control platforms are advanced, self-governing systems that use AI capabilities and sensor-derived data to automatically regulate and optimize building operations across energy management, environmental conditions, and security functions. For example, in June 2025, Honeywell International Inc., a US-based multinational technology and industrial company, introduced an AI-driven building management solution aimed at simplifying facility operations, lowering energy usage, and strengthening predictive maintenance capabilities. The solution combines AI-based analytics with interconnected sensors to deliver real-time insights, enable automated system optimization, and detect inefficiencies at an early stage. By facilitating more informed decision-making and minimizing operational expenses, Honeywell’s AI-enabled platform contributes to the development of more sustainable, resilient, and high-performing smart buildings and infrastructure.

In December 2024, Trane Technologies Plc, an industrial machinery manufacturing company based in Ireland, acquired BrainBox AI, a Canadian AI technology company specializing in smart building solutions and HVAC energy efficiency. This acquisition enhances Trane Technologies' advanced building management and digital capabilities by leveraging BrainBox AI's AI technology to reduce energy consumption and greenhouse gas emissions in commercial buildings.

Major companies operating in the AI in smart buildings and infrastructure market are Google LLC, Microsoft Corporation, Amazon Web Services Inc., Robert Bosch GmbH, Hitachi Ltd., Siemens AG, Intel Corporation, Panasonic Corporation, International Business Machines Corporation (IBM), Cisco Systems Inc., Oracle Corporation, Schneider Electric SE, Honeywell International Inc., ABB Ltd, NEC Corporation, Johnson Controls International plc, Samsung SDS, Autodesk Inc., Terminus Group, GridPoint Inc., Verdigris Technologies, BuildingIQ Inc., Built Robotics.

North America was the largest region in the AI in smart buildings and infrastructure market in 2025. The regions covered in the AI in smart buildings and infrastructure market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the AI in smart buildings and infrastructure market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Tariffs have impacted the AI in smart buildings and infrastructure market by increasing costs for imported sensors, edge AI devices, and smart metering equipment. Commercial and government building projects in North America and Europe are particularly affected due to reliance on global electronics supply chains. Higher costs have slowed deployment of large-scale smart infrastructure projects. Building owners are responding by prioritizing phased implementations and high-impact use cases. Tariffs are also encouraging local production of smart building hardware. This is supporting domestic technology providers and improving long-term supply stability.

The AI in smart buildings and infrastructure market research report is one of a series of new reports that provides AI in smart buildings and infrastructure market statistics, including AI in smart buildings and infrastructure industry global market size, regional shares, competitors with a AI in smart buildings and infrastructure market share, detailed AI in smart buildings and infrastructure market segments, market trends and opportunities, and any further data you may need to thrive in the AI in smart buildings and infrastructure industry. This AI in smart buildings and infrastructure 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 artificial intelligence (AI) in smart buildings and infrastructure refers to the integration of AI technologies into the design, operation, and management of buildings and urban infrastructure. This enables automation, efficiency, sustainability, and enhanced user experience through data-driven decision-making.

The primary types of AI in smart buildings and infrastructure are software, hardware, and services. Software for AI in smart buildings and infrastructure involves systems that enhance automation, efficiency, security, and sustainability. These software solutions leverage artificial intelligence (AI) to optimize operations, improve user experiences, and reduce costs. Various technologies involved, such as machine learning, natural language processing, computer vision, robotic process automation, and others, cater to applications including building automation, energy management, security and surveillance, predictive maintenance, smart parking, and more. These serve end-user industries such as commercial buildings, residential buildings, industrial buildings, government buildings, healthcare facilities, educational institutions, retail spaces, and others.

The AI in smart buildings and infrastructure market consists of revenues earned by entities providing services such as intelligent automation, predictive maintenance, and energy management. The market value includes the value of related goods sold by the service provider or included within the service offering. The AI in smart buildings and infrastructure market also includes sales of motion sensors, temperature and humidity sensors, smart meters, and cameras. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

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.

This product will be delivered within 1-3 business days.