Global Building Analytics Market Size, Forecast, and Trend Highlights Over 2025-2037
Building Analytics Market size was valued at USD 12.7 billion in 2024 and is projected to reach USD 30.2 billion by the end of 2037, rising at a robust compound annual growth rate (CAGR) of 7.7% during the forecast period from 2025 to 2037. In 2025, the industry size of building analytics is estimated at 13 billion.
The market’s growth trajectory is favorably impacted by the rising adoption of smart building technologies that can optimize energy consumption. Multiple factors, ranging from the rising urbanization to the growth in smart city initiatives, are impacting the market dynamics. In terms of economic indicators, the Producer Price Index (PPI) for energy management systems has increased between 2024 and 2025, due to inflation in sensor components, connective infrastructure, and AI processing units. The PPI was estimated at 156.4 in early 2025.
In terms of operational metrics of the market, hybrid models of workflow have contributed to the fluctuation in utilization patterns. From the real estate sector, occupancy variances have exceeded 20% in certain urban hubs, leading to the rising demand for analytics solutions that bolster dynamic space management. Additionally, the regional pressure has intensified the adoption of building analytics. For instance, the EU’s Energy Performance of Buildings Directive (EPBD) and California’s Title 24 have pushed greater adoption of advanced analytics.
The market's supply chain is multifaceted, spanning software development and hardware production. The trade flow is experiencing a transfer of high-tech software solutions from developed markets to emerging economies. Moreover, the hardware components are flowing from APAC to North America and Europe. The global market is also impacted by a bifurcated investment pattern, especially with the capital expenditures for hardware manufacturing reflecting moderate levels of growth. The trends highlight that the market is poised to maintain its expansion throughout the anticipated timeline.
Building Analytics Sector: Growth Drivers and Challenges
Growth Drivers
- Energy benchmarking compliance driving adoption: A significant catalyst of the market is the push by regulatory compliance. In 2023, multiple jurisdictions, such as Local Law 97 of New York City, the Minimum Energy Efficiency Standards (MEES) of the UK, and the EU’s updated Energy Performance Buildings Directive (EPBD) mandated commercial buildings to report energy consumption annually. Additionally, the metrics highlighting measurable growth can be highlighted via MEES's enforcement, leading to the compliance rates in the UK increasing from 47% in 2022 to 73% in 2024. The market is projected to leverage these trends and maintain its expansion by the end of 2037.
- Real-time detection bolstered by edge computing improving operational resilience: The rapid advancements in edge computing, converging with the advent of AI algorithms, have enabled improved fault detection and predictive maintenance in building systems. This creates a favorable ecosystem for the heightened adoption of building analytics. The shift is particularly impacted by the rising IoT sensor deployment, and to avoid the surging cost of downtime in critical commercial infrastructures such as hospitals. In terms of impact, Siemens and Honeywell have reported over a 30% reduction in unplanned downtime in buildings that were equipped with analytics supported by edge AI in 2023. The convergence of analytics improvements driven by technological advancements and the rising connectivity across the world is poised to ensure that the market's momentum remains prolific throughout the forecast timeline.
Technological Trends Shaping the Global Building Analytics Market
The global market is evolving due to technological advancements driving improvements in analytics platforms. For instance, the improvements in IoT sensors have improved real-time monitoring, with telecom operators reporting 38% improvement in network site energy management. Another major advancement has been the proliferation of digital twins, which has significantly bolstered predictive maintenance. The table below highlights key adoption statistics of the market:
|
Technology |
Industry |
Adoption Statistics/Example |
|
AI Predictive Maintenance |
Manufacturing |
30.5% reduction in downtime and $15.3M annual savings |
|
IoT Sensor Networks |
Telecom |
40.2% improvement in network site energy management |
|
Edge Computing |
Finance |
27.3% increase in edge AI adoption for latency-sensitive tasks |
AI and ML Driving Transformation in Building Analytics
Due to the convergence of AI and ML, product development has been bolstered within the global market. The major companies in the market are leveraging AI-driven simulations to accelerate design cycles. In terms of measurable impact, Honeywell was successful in reducing product development time by over 20% by utilizing AI-powered virtual prototyping. The table below highlights the outcome of AI and ML integration by the major players in the market:
|
Company |
Integration of AI & ML |
Outcome |
|
Honeywell |
AI-driven virtual prototyping for product design |
25.5% reduction in product development time |
|
Johnson Controls |
AI-based supply chain optimization |
18.4% reduction in logistics costs, improved inventory accuracy |
|
Schneider Electric |
AI-powered predictive maintenance and quality control |
15.3% improvement in product quality |
|
Siemens |
ML algorithms for predictive maintenance and operational analytics |
30.6% decrease in equipment downtime |
|
ABB |
AI for dynamic building energy management |
20.7% reduction in operational energy costs |
Challenge
- Fragmented data ecosystem hindering integrated analytics delivery: The market suffers due to the fragmented nature of the data sources and regulatory standards. The diversity of heterogeneous datasets has exacerbated the impediments to integration. This leads to increased downtimes impacting various facets of the market, from the consumer to the operator. Additionally, the market’s reliance on multiple vendors void of unified data protocols compounds the challenge.
Building Analytics Market: Key Insights
| Report Attribute | Details |
|---|---|
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
7.7% |
|
Base Year Market Size (2024) |
USD 12.7 billion |
|
Forecast Year Market Size (2037) |
USD 30.2 billion |
|
Regional Scope |
|
Building Analytics Segmentation
The global building analytics market is divided by deployment into on premise, and cloud-based, out of which, the cloud-based segment is anticipated to hold the largest share in the market during the forecast period on the back of increasing penetration of cloud computing among various end-user verticals. Moreover, increasing population of the tech-savvy generation in developing countries, along with increasing usage of smartphones, is anticipated to boost the segment growth.
On the basis of application, the building analytics market is segmented into fault detection and monitoring, energy management, parking management, emergency management, security management, and others, out of which the energy management segment is anticipated to garner a significant share over the forecast period, owing to the increasing awareness amongst people regarding energy conservation and optimization, combined with the rising need to monitor energy usage trends.
On the basis of end-user, the market is segmented into residential buildings, government buildings, commercial, and others, out of which, the residential buildings segment is foreseen to garner the largest revenue share over the forecast period, on the back of increasing construction of residencies for the growing population, coupled with the mounting demand for smart buildings for residential purposes. Moreover, there is a rising demand for efficient security systems, parking areas and maintenance structure in residential buildings, which is projected to generate the need for analytics services in such buildings, which, in turn, is expected to boost the market growth.
Our in-depth analysis of the global market includes the following segments
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By Type |
|
|
By Deployment |
|
|
By Application
|
|
|
By End User
|
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Vishnu Nair
Head - Global Business DevelopmentCustomize this report to your requirements — connect with our consultant for personalized insights and options.
Building Analytics Industry - Regional Synopsis
North America Market Forecast
The North America building analytics market is poised to account for a leading revenue share of 38.7% by the end of 2037. The market's growth is favorably impacted by a higher degree of economic integration, which is mapped by the intra-continental trade accounting for over 80% of building tech component flows in the region. Moreover, this creates a well-established value chain in the region. The market is supported by a favorable regulatory ecosystem, such as the North American Energy Standards Board implementing homogenous energy efficiency policies. Additionally, in terms of demographic trends, the urban population has expanded massively across the major metros, correlating with the surging deployment of smart buildings. These trends, converging together, are poised to ensure that the market maintains its dominant revenue share during the forecast timeline.
The U.S. market is poised to maintain its leading share in North America. The regional market is characterized by state-level differentiation, with the most lucrative opportunities for vendors concentrated in Texas, California, and New York. Federal policies, such as the Inflation Reduction Act (IRA), have impacted sub-markets, resulting in over 14% improvements in fault detection adoption in commercial real estate by the end of 2023. Strategic intelligence highlights that firms that are leveraging localized regulatory knowledge can capture premium pricing whilst expanding service portfolios.
APAC Market Forecast
The APAC building analytics market is slated to account for the fastest expansion, rising at a CAGR of 12.9% throughout the forecast timeline. A driving force behind APAC’s growth is the improvement in trade flow across the economies of APAC and a greater proliferation of smart city initiatives. Additionally, the RCEP tariff eliminations in 2023 increase the building automation imports within the region from Japan and South Korea by 17% and 14%, respectively. Additionally, bilateral agreements between Vietnam and South Korea, Indonesia, and Japan have spurred the technology transfer. The regional market also benefits from sovereign wealth funds such as the GIC of Singapore and Khazanah of Malaysia through the proactive investments in regional green building infrastructure. By the end of 2037, the surging urbanization across APAC has the potential to ensure a sustained market growth.
The China market is expected to register rapid growth owing to the Dual Circulation strategy. The domestic consumption has risen by 8.0% YoY in tier 1 cities such as Shanghai, contrasting with a 12.2% growth exhibited by the tier 2 cities in Wuhan and Chengdu, where large-scale infrastructure modernization is driving the deployment of building analytics. In terms of trends, consumers and businesses in China have exhibited a high responsiveness to green building certification, which bolsters the intent among end users to adopt building analytics tools, serving as a key bottom-of-the-funnel indication.
Companies Dominating the Building Analytics Landscape
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
The global market is projected to maintain its growth during the stipulated timeframe. The market is characterized by a mix of specialized firms and established conglomerates. Leading players include Schneider Electric, Siemens AG, Johnson Controls, etc. The mid-tier companies in the market have been successful so far in carving out niches by offering cloud-based analytics solutions targeted to specific building types. The table below highlights the major players in the global building analytics sector:
|
Company Name |
Revenue Share (2024) |
|
Schneider Electric (France) |
12.9% |
|
Siemens AG (Germany) |
11.4% |
|
Johnson Controls (Ireland) |
10.3% |
|
Honeywell International (USA) |
9.7% |
|
IBM Corporation (USA) |
8.2% |
|
BuildingIQ (USA) |
xx% |
|
ICONICS (USA) |
xx% |
|
Delta Electronics (Taiwan) |
xx% |
|
CopperTree Analytics (Canada) |
xx% |
|
General Electric (USA) |
xx% |
|
ENGIE Insight (France) |
xx% |
|
GridPoint (USA) |
xx% |
|
Planon (Netherlands) |
xx% |
|
Altus Group (Canada) |
xx% |
|
Matterport (USA) |
xx% |
Below are the areas covered for each company in the market:
Recent Developments
- In November 2024, Johnson Controls introduced generative AI controls and autonomous building adjustments. The adoption among large portfolios increased by 15% in the first quarter of 2025.
- In May 2024, Honeywell announced the launch of the Forge Performance for utilities platform. The AI-powered solutions have integrated digital twin capabilities with machine learning to bolster predictive maintenance. The platform seeks to bolster grid reliability to balance energy supply and demand.
Author Credits: Preeti Wani
- Report ID: 3258
- Published Date: Jun 05, 2025
- Report Format: PDF, PPT
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