Smart Buildings (Nonresidential Buildings) Market Outlook 2025-2034: Market Share, and Growth Analysis

The Smart Buildings (Nonresidential Buildings) Market is valued at USD 70.3 billion in 2025 and is projected to grow at a CAGR of 13.3% to reach USD 216.6 billion by 2034.

The smart buildings (nonresidential buildings) market is reshaping how commercial spaces operate, prioritize sustainability, and enhance occupant experience. These buildings leverage a combination of IoT, AI, cloud computing, sensors, and automation to monitor and control key functions such as HVAC, lighting, energy usage, security, and space utilization. Offices, hospitals, retail spaces, educational institutions, and industrial facilities are increasingly investing in smart building technologies to optimize operational costs, reduce environmental impact, and provide a safer, more comfortable environment. A smart building can analyze real-time data to anticipate maintenance needs, adjust energy consumption based on occupancy, and provide insights to improve space planning and resource allocation. The convergence of workplace flexibility, ESG compliance, and heightened health standards has placed smart building solutions at the forefront of commercial real estate strategy. These digital infrastructures are no longer considered futuristic innovations - they are becoming essential for businesses seeking efficiency, sustainability, and resilience in an increasingly connected world.

The smart buildings (nonresidential) market experienced significant growth across sectors like commercial offices, healthcare, and higher education. Enterprises deployed integrated building management systems (BMS) that combined environmental control, security, and occupancy tracking under a unified interface. AI-powered analytics enabled real-time energy optimization by adjusting lighting and HVAC systems based on usage patterns and weather conditions. Many buildings adopted air quality monitoring and filtration systems, aligning with wellness certifications such as WELL and Fitwel. The retrofitting trend gained momentum, as older buildings were upgraded with smart lighting, occupancy sensors, and energy dashboards to meet regulatory standards and attract eco-conscious tenants. Government policies in North America, Europe, and Asia accelerated adoption by offering tax incentives for energy-efficient buildings and mandating digital building performance assessments. Cloud-connected platforms became prevalent, supporting remote facilities management and predictive maintenance. As organizations sought to support hybrid work models, smart buildings adapted by offering flexible, bookable workspaces and real-time analytics on occupancy, ventilation, and sanitation status.

The smart buildings market for nonresidential properties is expected to deepen its focus on automation, interoperability, and climate resiliency. AI-driven systems will become more proactive, autonomously managing building operations based on predictive analytics, seasonal data, and external environmental conditions. Buildings will increasingly be designed or retrofitted to operate as dynamic assets - adapting in real time to energy demand, occupancy shifts, or even grid requirements in smart city frameworks. The integration of renewable energy sources, such as solar panels and energy storage systems, will become more seamless, supported by AI-powered energy orchestration tools. Cybersecurity will also become a critical priority, with smart building platforms implementing stricter protocols to safeguard data and operational integrity. Furthermore, interoperability between HVAC, lighting, fire safety, and access control systems will improve through open-source and standardized platforms. As governments continue tightening building codes to meet net-zero targets, the adoption of smart technologies in nonresidential buildings will not only be a strategic advantage - it will be a regulatory necessity for future-proof infrastructure.

Key Insights: Smart Buildings (Nonresidential Buildings) Market

• AI-Driven Energy Management Systems: Buildings are increasingly using AI to forecast energy demand and autonomously optimize consumption based on occupancy, weather conditions, and historical patterns, significantly reducing utility costs and carbon footprint.
• Rise of Wellness-Centric Building Features: Indoor air quality sensors, circadian lighting systems, and smart ventilation controls are being adopted to enhance occupant health and meet growing demand for wellness-certified spaces.
  • Retrofit Acceleration of Legacy Buildings: Property owners are retrofitting older buildings with smart systems - including sensors, digital meters, and automation tools - to meet ESG mandates and compete with new green-certified structures.
  • Integration with Renewable Energy Sources: Smart buildings are integrating on-site solar and battery storage systems, managed by energy orchestration software to align with grid needs and reduce reliance on fossil fuels.
    • Convergence of BMS and IoT Platforms: Unified platforms that connect HVAC, lighting, security, and access control systems are enabling streamlined management and data-driven decision-making for building operators and tenants alike.
  • Increasing Demand for Energy Efficiency: Organizations are adopting smart technologies to reduce energy consumption and meet sustainability targets, driven by rising energy costs and regulatory pressure to decarbonize commercial spaces.
  • Shift Toward Hybrid and Flexible Work Models: The need to support fluctuating occupancy levels has encouraged investment in adaptable workspaces with smart scheduling, occupancy monitoring, and environmental controls.
    • Government Incentives and Green Building Policies: Financial incentives, stricter codes, and global sustainability goals are motivating nonresidential building owners to adopt smart infrastructure that improves compliance and long-term asset value.
    • Demand for Data-Driven Operational Intelligence: Businesses seek real-time insights on building performance, space usage, and system health to make informed decisions and minimize downtime or inefficiencies.
  • High Initial Investment and ROI Concerns: Despite long-term savings, the upfront cost of smart systems, retrofitting complexity, and lack of clear ROI timelines remain key barriers for smaller businesses or aging infrastructure owners considering smart upgrades.

Smart Buildings (Nonresidential Buildings) Market Segmentation

By Automation Type

• Intelligent Security System
• Building Energy Management System
• Infrastructure Management System
• Network Management System

By Product Type

• Institutional Buildings
• Commercial Buildings

By Type

• New Constructions
• Remodeling Projects

By Application

• Government
• Airports
• Hospitals
• Institutes Manufacturing & Industrial facilities
• Other Applications

Key Companies Analysed

• 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

Smart Buildings (Nonresidential Buildings) Market Analytics

The report employs rigorous tools, including Porter’s Five Forces, value chain mapping, and scenario-based modeling, to assess supply-demand dynamics. Cross-sector influences from parent, derived, and substitute markets are evaluated to identify risks and opportunities. Trade and pricing analytics provide an up-to-date view of international flows, including leading exporters, importers, and regional price trends.

Macroeconomic indicators, policy frameworks such as carbon pricing and energy security strategies, and evolving consumer behavior are considered in forecasting scenarios. Recent deal flows, partnerships, and technology innovations are incorporated to assess their impact on future market performance.

Smart Buildings (Nonresidential Buildings) Market Competitive Intelligence

The competitive landscape is mapped through proprietary frameworks, profiling leading companies with details on business models, product portfolios, financial performance, and strategic initiatives. Key developments such as mergers & acquisitions, technology collaborations, investment inflows, and regional expansions are analyzed for their competitive impact. The report also identifies emerging players and innovative startups contributing to market disruption.

Regional insights highlight the most promising investment destinations, regulatory landscapes, and evolving partnerships across energy and industrial corridors.

Countries Covered

• North America - Smart Buildings (Nonresidential Buildings) market data and outlook to 2034
  • United States
  • Canada
  • Mexico
  
  
• Europe - Smart Buildings (Nonresidential Buildings) market data and outlook to 2034
  • Germany
  • United Kingdom
  • France
  • Italy
  • Spain
  • BeNeLux
  • Russia
  • Sweden
  
  
• Asia-Pacific - Smart Buildings (Nonresidential Buildings) market data and outlook to 2034
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Malaysia
  • Vietnam
  
  
• Middle East and Africa - Smart Buildings (Nonresidential Buildings) market data and outlook to 2034
  • Saudi Arabia
  • South Africa
  • Iran
  • UAE
  • Egypt
  
  
• South and Central America - Smart Buildings (Nonresidential Buildings) market data and outlook to 2034
  • Brazil
  • Argentina
  • Chile
  • Peru

Research Methodology

This study combines primary inputs from industry experts across the Smart Buildings (Nonresidential Buildings) value chain with secondary data from associations, government publications, trade databases, and company disclosures. Proprietary modeling techniques, including data triangulation, statistical correlation, and scenario planning, are applied to deliver reliable market sizing and forecasting.

Key Questions Addressed

• What is the current and forecast market size of the Smart Buildings (Nonresidential Buildings) industry at global, regional, and country levels?
• Which types, applications, and technologies present the highest growth potential?
• How are supply chains adapting to geopolitical and economic shocks?
• What role do policy frameworks, trade flows, and sustainability targets play in shaping demand?
• Who are the leading players, and how are their strategies evolving in the face of global uncertainty?
• Which regional “hotspots” and customer segments will outpace the market, and what go-to-market and partnership models best support entry and expansion?
• Where are the most investable opportunities - across technology roadmaps, sustainability-linked innovation, and M&A - and what is the best segment to invest over the next 3-5 years?

Your Key Takeaways from the Smart Buildings (Nonresidential Buildings) Market Report

• Global Smart Buildings (Nonresidential Buildings) market size and growth projections (CAGR), 2024-2034
• Impact of Russia-Ukraine, Israel-Palestine, and Hamas conflicts on Smart Buildings (Nonresidential Buildings) trade, costs, and supply chains
• Smart Buildings (Nonresidential Buildings) market size, share, and outlook across 5 regions and 27 countries, 2023-2034
• Smart Buildings (Nonresidential Buildings) market size, CAGR, and market share of key products, applications, and end-user verticals, 2023-2034
• Short- and long-term Smart Buildings (Nonresidential Buildings) market trends, drivers, restraints, and opportunities
• Porter’s Five Forces analysis, technological developments, and Smart Buildings (Nonresidential Buildings) supply chain analysis
• Smart Buildings (Nonresidential Buildings) trade analysis, Smart Buildings (Nonresidential Buildings) market price analysis, and Smart Buildings (Nonresidential Buildings) supply/demand dynamics
• Profiles of 5 leading companies - overview, key strategies, financials, and products
• Latest Smart Buildings (Nonresidential Buildings) market news and developments

Additional Support

With the purchase of this report, you will receive:

• An updated PDF report and an MS Excel data workbook containing all market tables and figures for easy analysis.
• 7-day post-sale analyst support for clarifications and in-scope supplementary data, ensuring the deliverable aligns precisely with your requirements.
• Complimentary report update to incorporate the latest available data and the impact of recent market developments.

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