Building Analytics Market By Application(Energy Management, Fault Detection and Monitoring, Others), By Deployment(Cloud-based, On-Premises), By Components(Software, Services), By Building(Residential, Commercial), By Region And Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, And Forecast 2023-2032

Report Overview

Building Analytics Market size is expected to be worth around USD 39.2 Bn by 2032 from USD 10.2 Bn in 2022, growing at a CAGR of 14.8% during the forecast period from 2023 to 2032.

Increased demand for energy-efficient systems and surging focus on declining working expenses are some of the key factors for market expansion. Most of the infrastructures use various innovations like building management systems, networked sensors, integrated workplace management systems, and IoT devices for dealing with day-to-day activities.

For example, in a large retail chain by using BMS, the central management can remotely monitor and control each store’s HVAC, lighting, and security system. The networked sensors offer real-time data on consumer foot traffic allowing for adjustments in staffing levels and inventory replenishment based on requirements.

In the hospitality sector, building analytics has proven irreplaceable. Restaurants and hotels can use building management systems (BMS) to regulate room temperatures and lighting, guaranteeing guest comfort while saving energy when rooms are empty. Networked sensors can find when rooms require cleaning or maintenance, allowing staff to respond instantly, considering factors such as guest choices and maintenance plans. These technologies have optimized operational efficiency, enhanced the customer experience, and are cost-effective.

Key manufacturing organizations are currently ongoing rapid AI-powered digital transformations that lead to the surging of the employment of advanced technologies. Such change has resulted in the rise of sensors in production line equipment as well as in other assets to simplify the collection and industry analysis of information for enhancing operations, optimizing productivity with less risk, and improving asset performance.

Moreover, the dispersion of the 5G network is another key factor that drives the market expansion. For example, the National University of Singapore Department of Built Environment has built up a new research hub to enhance the digital capabilities of the construction industry sector in Singapore and encourages the use of 5G technologies to build a smart environment landscape. As Singapore tries to offer worldwide 5G coverage by 2025, the center of 5G digital technology will play an important role in the nation’s transformation towards digital research.

Driving factors

Intelligent Infrastructure Adoption Drives Building Analytics Market Growth

The growing adoption of smart building is a primary driver for the building analytics market. Smart buildings use advanced technology and data analytics to manage energy use, optimize space, and maintain building health, contributing to a more efficient and sustainable operation. As the Internet of Things (IoT) continues to evolve, the integration of smart devices and systems within provides a wealth of data that can be analyzed to further enhance performance and reduce costs.

With the incorporation of sensors, smart meters, and integrated management systems, building analytics can provide actionable insights into energy consumption patterns, space utilization, and operational inefficiencies. The data collected from these smart systems allows for predictive maintenance, energy optimization, and enhanced occupant comfort, driving demand for building analytics solutions that can process and make sense of this information.

The trend towards smart building is expected to continue, with a long-term impact that could include widespread adoption of AI and machine learning algorithms to automate building management tasks, further fueling the growth of the building analytics market.

Increasing Energy Prices Fuel Building Analytics Market Growth

Increasing energy prices are a significant factor propelling the building analytics market forward. As energy costs rise, the financial pressure on building owners and operators to reduce consumption and improve efficiency intensifies. Building analytics plays a critical role in identifying areas where energy is not used optimally and suggesting modifications to reduce energy waste and costs.

The application of building analytics for energy management involves monitoring energy flows, benchmarking against similar, and detecting anomalies in usage patterns. By leveraging data-driven insights, operators can make informed decisions on energy conservation measures, which is increasingly important in a landscape of rising energy prices.

Over the long term, as energy prices are predicted to continue their upward trend, the role of building analytics in energy management is expected to become even more crucial, potentially leading to more advanced and automated energy optimization systems.

Restraining Factors

Rising Impact of IIoT Deployment Restrains Building Analytics Market Growth

The proliferation of the Industrial Internet of Things (IIoT) presents both opportunities and challenges for the building analytics market. While IIoT can enhance building analytics by providing more granular data, the market's growth is restrained by the complexity and scale of deployment. Integrating IIoT solutions requires significant investment in compatible systems and infrastructure, which can be cost-prohibitive for many potential adopters.

Additionally, the rapid evolution of IIoT technology means that some organizations may adopt a 'wait and see' approach, delaying investment in building analytics solutions while they assess the long-term viability and benefits of IIoT deployments.

Data Privacy and Security Concerns Restrain Building Analytics Market Growth

Concerns around data privacy and security significantly restrain the growth of the building analytics market. As building analytics systems collect and analyze vast quantities of data to optimize performance, the risk of data breaches and cyberattacks increases. Potential and existing customers may be hesitant to adopt or expand their use of building analytics solutions due to the fear of sensitive data being compromised.

Ensuring high levels of security involves additional costs and complexities, which can deter investment from building owners and managers who are not convinced that the benefits of building analytics outweigh the risks associated with data privacy and security.

Segmentation Analysis of Building Analytics Market

By Application Analysis

Energy management is the preeminent basis of application within the building analytics market. This dominance can be attributed to the escalating global focus on energy efficiency and the implementation of strict regulations regarding energy consumption. Advanced analytics are leveraged to identify energy wastage and optimize energy usage, which is crucial in reducing operational costs and carbon footprints.

Other applications like fault detection and monitoring are critical for preventive maintenance, while security management is essential for safeguarding occupants and assets. Operations, network, emergency, parking, elevators, and escalators management, although smaller segments, are integral to the smooth functioning of modern, complementing energy management initiatives and contributing to overall market growth.

By Deployment Analysis

Cloud-based deployment is leading within the building analytics market, favored for its scalability, flexibility, and lower upfront costs. This approach facilitates real-time data analysis and remote management capabilities, which are vital for the optimization of building performance operations. In the realm of cloud-based solutions, deployment methods play a major factor in shaping the Building Analytics Market.

On-premises solutions, while not as predominant, remain relevant for organizations that require control over their data and can invest in and maintain on-site IT infrastructure.

By Components Analysis

Software is the cornerstone of the building analytics market, providing the necessary tools for data collection, analysis, and visualization to facilitate informed decision-making in building management.

Services, which include installation, maintenance, and consulting, play a supportive role in ensuring the effective implementation and utilization of building analytics software.

By Building Type Analysis

The residential sector stands out in the building analytics market, driven by the growing demand for smart home automation systems and the need to reduce energy expenses. The adoption of analytics in residential buildings is aimed at enhancing comfort while minimizing energy usage.

The commercial building segment uses analytics to manage large-scale operations and reduce overheads, while industrial setups apply analytics to ensure process efficiency and workplace safety. These sectors are vital to the market's diversification and expansion.

The building analytics market is experiencing robust growth, propelled by the need for energy-efficient, cost-effective, and intelligent solutions. Energy management through cloud-based software in residential buildings has emerged as the market’s core focus, reflecting the industry's response to environmental concerns and operational efficiency demands. The integration of analytics across various applications is pivotal to the sector's ongoing evolution and growth trajectory.

Key Market Segments

By Application

• Energy Management
• Fault Detection and Monitoring
• Security Management
• Operations Management
• Network Management
• Emergency Management
• Parking Management
• Elevators and Escalators Management
• Others

By Deployment

• Cloud-based
• On-Premises

By Components

• Software
• Services

By Building

• Residential
• Commercial
• Industrial

Growth Opportunity

Government Initiatives and Incentives Offer Growth Opportunity in Building Analytics Market

The Government buildings policies and incentives aimed at promoting energy efficiency are significantly contributing to the expansion of the building analytics market. These initiatives often include tax rebates, grants, and subsidies for the adoption of smart building technologies, which can include advanced analytics to optimize energy use. The global push towards sustainability is encouraging building owners to invest in these technologies, thereby driving growth in the market.

Demand for Energy-Efficient Systems Spurs Growth in Building Analytics

The increasing demand for energy-efficient building systems is creating a substantial growth opportunity for the building analytics market. As energy costs rise and environmental awareness grows, managers are turning to analytics solutions to reduce operational costs and carbon footprints. These systems provide actionable insights enabling energy savings and operational efficiency, leading to accelerated adoption.

Emerging Smart Buildings Create New Avenues for Building Analytics

Expansion Role: The emergence of smart buildings is providing new avenues for growth in the building analytics industry. Smart buildings leverage IoT devices and integrated systems to manage building performance operations more efficiently. The data generated by these technologies is vast and requires advanced analytics to derive meaningful insights, thereby driving demand for sophisticated building analytics solutions.

Regional Analysis

North America Dominates with 36.10% Market Share in the Building Analytics Market

North America stands at the forefront of the building analytics market, commanding a 36.10% share. This dominance is underpinned by the major region's rapid adoption of smart building technologies, stringent regulatory policies for energy efficiency, and the presence of leading market players specializing in building analytics solutions.

Key drivers include the push for sustainable development, the modernization of infrastructure, and a focus on cost-saving through energy efficiency. The region’s advanced IT infrastructure and the integration of the Internet of Things (IoT) in building management systems also significantly contribute to the adoption of building analytics.

The market dynamics are further shaped by North America’s culture of innovation, with continued investments in R&D by tech giants and startups alike. A highly competitive environment encourages the development of sophisticated analytics solutions that offer deeper insights into energy management and operational efficiency.

Forecast implications suggest that North America’s influence on the global building analytics market will remain strong. The industry trends towards green building and the evolution of smart cities are expected to drive further growth in the sector. Additionally, as AI and machine learning technologies advance, their integration into building analytics tools is likely to open new horizons for market development.

Europe: A Robust Market for Building Analytics

Europe's building analytics market is driven by its commitment to environmental sustainability and energy efficiency, especially within the framework of the EU’s energy directives. This region benefits from high environmental awareness among citizens and businesses, which fuels the demand for intelligent building automation systems.

The market is bolstered by the widespread adoption of advanced analytics to optimize performance and meet stringent regulatory standards. Moving forward, Europe's market is expected to grow steadily as the region continues to invest in smart technologies and sustainable practices.

Asia-Pacific: An Emerging Leader in Building Analytics

The Asia-Pacific region is rapidly emerging as a significant player in the building analytics market. Economic growth, urbanization, and smart city initiatives across major economies, like China and India, drive this expansion. The region's construction industry boom presents vast opportunities for the integration of building analytics professional services.

With increasing awareness of sustainability and the need for energy conservation, the market in Asia-Pacific is poised for substantial growth. The infusion of smart technologies into new and existing is expected to accelerate, positioning Asia-Pacific as a future leader in the building analytics services space.

Key Regions and Countries

North America

• The US
• Canada
• Rest of North America

Europe

• Germany
• France
• The UK
• Spain
• Italy
• Russia
• Netherlands
• Rest of Europe

Asia-Pacific

• China
• Japan
• South Korea
• India
• New Zealand
• Singapore
• Thailand
• Vietnam
• Rest of Asia Pacific

Latin America

• Brazil
• Mexico
• Rest of Latin America

Middle East & Africa

• South Africa
• Saudi Arabia
• UAE
• Rest of Middle East & Africa

Key Players Analysis

The building analytics market is a dynamic sector dominated by a blend of established conglomerates and specialized analytics firms. IBM and Siemens are at the forefront, leveraging their extensive technological infrastructure and data analytics capabilities to provide comprehensive solutions for energy management and operational efficiency in the industry. Their strategic positioning is reinforced by a strong legacy in innovation and a global reach, granting them significant market influence.

Schneider Electric and General Electric are recognized for their smart building solutions that integrate with existing building systems, driving the market toward interconnected, sustainable infrastructures. Honeywell International and Johnson Controls International have solidified their roles as major players by focusing on automation and energy-efficient solutions, appealing to a market increasingly concerned with reducing carbon footprints.

Collectively, these key companies are driving the evolution of the building analytics market, emphasizing the integration of IoT, machine learning, and AI to advance the operational efficiency of building systems, catering to a global clientele seeking smarter, more energy-efficient building solutions.

Top Key Players in Building Analytics Market

• IBM Corporation
• Siemens
• Schneider Electric SE
• General Electric
• Honeywell International Inc.
• Johnson Controls International
• BuildingIQ
• ICONICS Inc.
• Delta Electronics
• BuildingLogix
• ENGIE Insight Services Inc.
• Lucid
• EnerNOC, Inc.
• Crestron Electronics, Inc.
• PointGrab Inc
• Buildpulse Inc.
• GridPoint Inc.
• SAS Institute Inc.
• Oracle Corporation
• Fair Isaac Corporation
• Noveda Technologies Inc.
• Iconics, Inc.

Recent Development

• In 2023, NICE remains a constant in the Leader quadrant, and it is a strong investment in AI and partnerships. NICE has a vision for supporting end-to-end digital-first journeys, including the use of search engine optimization analytics to optimize digital self- and assisted-service experiences.
• In 2023, AWS enters the Leader quadrant, despite not being placed there in the previous year. AWS has quietly gathered customers of all sizes, including large contact centers, and focuses on delivering a best-in-class, AI-based CCaaS solution to its customers. The integration with other AWS services simplifies the development process.
• In 2023, Talkdesk moves from Leader to Visionary. The company has adopted a vertical approach, focusing on retail, healthcare, and financial services. Changes in its leadership and business momentum should help it return to a more favorable position in the MQ.
• In 2023, NEC Corporation - Weathering the Change Hero NEC Corporation, a Japanese company, has embarked on a digital transformation journey by modernizing its IT infrastructure to better support its customers' long-term needs. NEC achieved this by migrating many systems to the cloud in a more rapid, seamless, and cost-effective manner. This approach reduced migration costs by 91% and operational costs by 19%.

Report Scope