India Smart Building Market Overview, 2029

The concept of smart buildings in India is a relatively recent phenomenon, with its roots tracing back to the early 2010s. The initial push came from a confluence of factors: rising energy costs, growing concerns about environmental sustainability, and the burgeoning Indian IT sector's demand for high-performance workspaces. Early adopters were primarily multinational corporations and luxury residential projects, drawn to the promises of improved energy efficiency, enhanced occupant comfort, and streamlined building operations. Culturally, there's been a gradual shift towards a more tech-savvy populace, particularly in urban areas. This, coupled with the government's "Smart Cities Mission" launched in 2015, has created a fertile ground for smart building technologies. The initiative envisions creating urban centers with integrated infrastructure that leverages technology for improved efficiency and sustainability. This focus on smart cities has positioned smart buildings as a key component, influencing trends in the market. According to the research report "India Smart Building Market Overview, 2029," published by Bonafide Research, the Indian Smart Building market is projected to grow with more than 16% CAGR from 2024 to 2029. Several key drivers are propelling the Indian smart building market forward. Firstly, the ever-increasing cost of energy, a major pain point for businesses and residents alike, is driving the adoption of solutions that optimize energy usage. Smart building technologies like intelligent lighting systems, building automation systems, and efficient HVAC controls can significantly reduce energy consumption, leading to substantial cost savings. Secondly, the growing focus on environmental sustainability is another major driver. With India being a significant contributor to global greenhouse gas emissions, there's a growing awareness of the need for sustainable practices. Smart buildings, with their emphasis on energy efficiency and resource optimization, offer a compelling solution. Thirdly, the burgeoning real estate sector, particularly in the commercial segment, is creating a demand for high-quality, technologically advanced workspaces. Businesses are increasingly recognizing the value proposition of smart buildings, which can enhance employee productivity, improve space utilization, and create a more comfortable work environment. However, the Indian smart building market also faces some significant challenges. One major hurdle is the initial investment cost associated with implementing smart building technologies. While the long-term benefits are undeniable, the upfront costs can be a deterrent for some potential adopters, particularly budget-conscious developers and building owners. Another challenge lies in the fragmented nature of the market. The industry is populated by a multitude of players, ranging from established global giants to niche Indian startups. This lack of standardization can make it difficult for building owners to navigate the market and choose the right solutions for their needs. Furthermore, concerns around data security and privacy are a growing concern. Smart buildings generate a vast amount of data, and ensuring the security of this data is paramount. A robust regulatory framework needs to be established to address these concerns and build trust amongst potential users.

The market can be dissected into several key components, each playing a pivotal role in shaping the industry's trajectory. Firstly, under the component perspective, solutions emerge as the cornerstone, embodying the technological advancements that render buildings intelligent. Notably, energy management solutions take center stage, propelled by escalating energy expenses and mounting governmental mandates on energy efficiency. Concurrently, building infrastructure management solutions witness a surge in popularity, particularly among new developments emphasizing sustainability and occupant well-being. Additionally, safety and security solutions emerge as indispensable across all building categories, with heightened demand for video surveillance, access control, and intrusion detection systems. Complementing these solutions, network management ensures seamless data exchange within smart buildings, while the adoption of Integrated Workplace Management Systems (IWMS) gains momentum, offering a centralized platform for overseeing diverse building operations. On the services front, a robust interplay of implementation, consulting, and support services is observed. Implementation services stand out for their pivotal role in orchestrating the planning, installation, and configuration of varied technologies, while consulting services emerge as a sought-after resource, aiding building owners and developers in navigating their specific requirements. Meanwhile, support and maintenance services emerge as linchpins in sustaining the functionality of smart building infrastructures, demanding adept handling of intricate technologies. Moving to the solution-oriented segmentation, several distinct categories unfold. Safety and security management solutions address escalating concerns surrounding urban crime rates, with heightened demand for video surveillance, access control, and intrusion detection systems. Energy management solutions take precedence amid escalating energy costs and regulatory pressures, with Building Management Systems (BMS) optimizing HVAC systems, lighting controls, and smart metering solutions. In parallel, building infrastructure management solutions target the optimization of physical infrastructures, encompassing smart elevators, automated parking systems, and leak detection systems. Noteworthy is the burgeoning segment of network management solutions, essential for managing the surging interconnected devices within smart buildings. This encompasses network infrastructure, data security solutions, and tools for monitoring and optimizing networks. Lastly, Integrated Workplace Management Systems (IWMS) offer an encompassing platform for managing various facets of building operations, aligning with the overarching pursuit of operational efficiency and resource optimization among Indian organizations. Delving into application-specific segmentation, commercial establishments emerge as the dominant force, fueled by endeavors to curtail operational expenses, enrich occupant experiences, and allure tenants across office buildings, IT parks, shopping malls, and hospitality facilities. Concurrently, the residential segment exhibits burgeoning potential, underpinned by escalating urbanization, rising disposable incomes, and a burgeoning appetite for convenience and security, driving the adoption of smart home solutions. Finally, industrial facilities join the fray, embracing smart building solutions to bolster operational efficiency, ensure workforce safety, and optimize energy utilization, with smart lighting, access control systems, and predictive maintenance solutions gaining traction.

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Prashant Tiwari

Research Analyst

The Indian smart building market is on an upswing, but navigating the policy and regulatory landscape can be a complex task for both domestic and international players. While there's no single overarching legislation governing smart buildings, several policies and regulations from various government bodies like the Ministry of Electronics and Information Technology (MeitY), Bureau of Indian Standards (BIS), and Energy and Power Conservation Authority (EPCA) all play a role. For instance, MeitY's Smart Cities Mission outlines guidelines for developing smart infrastructure, including buildings. BIS lays down standards for various smart building components like fire safety systems, access control systems, and energy-efficient appliances. EPCA enforces energy efficiency regulations through its Building Energy Codes (BEC) which mandate minimum energy efficiency levels for new commercial buildings. Additionally, certification schemes like LEED (Leadership in Energy and Environmental Design) and GRIHA (Green Rating for Integrated Habitat Assessment) provide a framework for sustainable design and construction, gaining traction in the smart building domain. However, the fragmented nature of the regulatory ecosystem and lack of clarity around data privacy and security standards can pose challenges for market participants. As the smart building sector evolves, the government is expected to introduce more comprehensive policies and regulations to streamline the approval process, incentivize smart building adoption, and address data security concerns. This will create a more predictable and investor-friendly environment for the Indian smart building market. The future of the Indian smart building market looks promising. The government's continued push for smart cities, coupled with increasing awareness of the benefits of smart buildings, is expected to drive market growth. As the cost of technologies comes down and the market matures, we can expect wider adoption across various building segments, not just commercial spaces but also residential buildings and public infrastructure projects. Considered in this report • Historic year: 2018 • Base year: 2023 • Estimated year: 2024 • Forecast year: 2029 Aspects covered in this report • Smart Building market Outlook with its value and forecast along with its segments • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation By Component • Solutions • Services

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By Solution • Safety and security management • Energy management • Building infrastructure management • Network management • Integrated Workplace Management System (IWMS) By Services • Implementation • Consulting • Support and maintenance By Application • Commercial • Residential • Industrial The approach of the report: This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Smart Building industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.