The overall market for smart building software is expected to grow from $6.4 billion in 2021 to surpass $8.5 billion in 2025, according to a new study from research firm Verdantix.
The forecasted annual growth rate of 7% will be driven by digitization programs and customers adopting new generation software solutions that drive better performance across processes such as maintenance management and room booking, the company said.
Verdantix also said that vendors positioned to benefit from this growth include firms offering smart building software, including BrainBox AI, Envizi, Envoy, Goby, Honeywell, Johnson Controls, Measurabl, MRI Software, Schneider Electric and Siemens.
“As expected, COVID-19 and the global economic downturn has had a far-reaching impact across the smart building market over the past 12 months,” said Verdantix Analyst Joy Trinquet. “Despite suppressed market growth, digitization programs and Covid-19 recovery will fuel growth across real estate investment, property management, maintenance management, space and workplace management, and energy management.”
According to the report, space and workplace management solutions will see the most significant increase in spending, growing at a compound annual growth rate of 13%, driven by space rationalization programs, increasing focus on occupant wellbeing and demand for innovative workplaces. Global market growth will reach a CAGR of 7% between 2020 and 2025 with APAC growing at the fastest rate, at a CAGR of 8% per year, followed by EMEA (7%), and North America (6%).
“Greater economic growth prospects in European countries, as well as higher electricity prices, contribute to the rapid expansion of the EMEA market,” Trinquet said. “Some of the key factors underpinning the stronger APAC growth trajectory are its growing workforce and high rates of predicted GDP growth throughout the forecast period.”