The smart buildings market continues to accelerate beyond its initial growth phase. Earlier research from Juniper projected that the number of buildings deploying smart technologies would increase from 45 million in 2022 to 115 million by 2026, representing growth of over 150%. This rapid adoption was driven primarily by rising energy costs, regulatory pressure, and the need for operational efficiency.
Looking ahead to 2026–2032, the market is expected to transition from early large-scale adoption to deep optimization, analytics, and AI-driven performance management.
At THMI, this trend directly aligns with our mission: enabling efficient, safe, and comfortable environments through intelligent building control.
Market Forecast: Key Metrics (2026–2032)
| Metric | 2026 (Baseline) | 2032 (Projected) | Impact |
|---|---|---|---|
| Global Market Value | ~$140B+ | ~$380B–$600B+ | Sustained double-digit CAGR* |
| Average CAGR (2026–2032) | — | ~16–23% | Driven by AI, analytics, and ESG* |
| Non-Residential Share | ~90% | Dominant | Commercial buildings remain primary investors |
| Energy Savings Potential | 20–30% | 30–40%+ | AI-driven optimization and predictive control |
| Building Analytics Market | Emerging core layer | ~$23B by 2032 | Data becomes the main value driver |
Sources: Smart Building Market to Grow at a CAGR of 21.2% by 2032, Smart Building Market – Global Market Size, Share, and Trends Analysis Report – Industry Overview a…, Smart Building Market Size & Share | Industry Report, 2033
CAGR – Compound annual growth rate
ESG – Environmental, Social, and Governance
In the smart building landscape, ESG matters because buildings consume energy, house people, and require good operational governance. Technologies that improve efficiency, safety, and compliance help meet ESG goals while creating financial and reputational value.
What Makes a Building “Smart”?
Juniper defines a smart building as one that uses connectivity to optimize resource usage while creating a safe and comfortable environment for its occupants. This includes automating and monitoring functions like heating, cooling, ventilation, lighting, and security systems.
The benefits are clear: not only can buildings operate more efficiently, but they also become more enjoyable and productive spaces for workers and residents alike.
The Opportunity in Smart Buildings
Non-residential buildings are expected to drive the majority of smart building investment. This is mainly due to stronger economies of scale in commercial properties and the fact that most smart building technologies are designed with commercial use in mind.
For THMI, this highlights the importance of developing solutions that can handle complex commercial systems, while remaining flexible enough to be applied to smaller or residential installations.
Analytics: The Key to Maximizing Value
Analytics consistently emerges as one of the most effective ways to unlock value from smart building deployments. By transforming raw data into clear insights, analytics enables better decision-making and more efficient building operations.
Industry observers continue to share perspectives on where smart buildings are headed, especially as the market enters a period of adjustment rather than disruption. While no one can predict the future with certainty, several themes are emerging that are likely to influence decisions by building owners, operators, and technology providers.
Smart Buildings: Market Signals and Strategic Implications
The smart buildings sector is moving into a more pragmatic phase, shaped less by hype and more by operational realities. Instead of dramatic shifts driven by a single technology or economic factor, change is occurring through a combination of cost pressure, gradual digital adoption, and evolving delivery models. For platforms such as THMI, this environment rewards clarity of value and adaptability.
Cost Pressure and Energy Awareness
Energy-related expenses are becoming harder for building owners to ignore. When prices rise, maintaining stable consumption no longer guarantees predictable costs, increasing interest in tools that offer deeper visibility and control. However, heightened awareness does not automatically translate into rapid technology uptake. Many portfolios already rely on established systems, and the effort required to replace or reconfigure them remains a significant barrier. As a result, solutions that improve performance without forcing wholesale change are better positioned to gain traction.
AI Adoption: Progress Over Promises
Artificial intelligence is increasingly present in product roadmaps and marketing narratives, yet its practical impact remains uneven. Real-world adoption is shaped by readiness—data quality, integration complexity, and internal processes all play a role. Rather than sweeping automation, progress is more likely to take the form of targeted enhancements that support existing workflows. This favors restrained, use-case-driven applications over broad claims of transformation.
Energy savings: AI-driven systems can reduce building energy consumption by 10–30% through predictive control and optimized HVAC operation.
AI can detect equipment issues weeks before failure, reducing downtime and maintenance costs by 20–25%.
From Data to Operational Insight
As buildings generate more data, the focus is shifting toward usability and relevance. Operators are less interested in raw information and more concerned with understanding what actions to take. Visualization, performance tracking, and early warning mechanisms are becoming standard expectations, supporting day-to-day operational decisions rather than long-term analysis alone.
Changing Routes to Market
How smart building solutions reach customers is also evolving. Integrators and service partners remain central, but the nature of what they deliver is changing. Software-driven offerings introduce new sales dynamics, with value increasingly judged by outcomes rather than specifications. This has created demand for platforms that not only serve building owners, but also help service providers operate more efficiently and differentiate their offerings.
System Openness and Flexibility
Modern building portfolios rarely rely on a single vendor or technology stack. As a result, openness and compatibility are becoming essential. Platforms that can work across diverse systems and adapt to different technical environments are more aligned with how buildings are actually managed today.
Operational Practicality
Finally, there is growing emphasis on simplicity and reliability. With limited resources and increasing system complexity, building teams favor tools that reduce manual effort, clarify priorities, and support faster response times. Features that look impressive on paper matter less than those that fit naturally into everyday operations.
Why THMI is Well Positioned
With the global adoption of smart building technology growing so rapidly, solutions like THMI are more important than ever. By combining intuitive interfaces, powerful analytics, and seamless control of building systems, we make it easier for businesses and residents to capitalize on energy efficiency trends, while ensuring their environments are safe, comfortable, and well-managed.
The smart building market is booming, and THMI is ready to help operators navigate this complex landscape—turning data into actionable insights and transforming how buildings are managed.
