AI in Smart Buildings and Infrastructure Market Analysis Shows Increasing Investment in Smart Infrastructure Technologies

InsightAce Analytic Pvt. Ltd. announces the release of a market assessment report on the "Global AI in Smart Buildings and Infrastructure Market - (By Type (Software, Hardware, Services), By Application (Building Energy Management, HVAC Control and Optimization, Security and Surveillance, Predictive Maintenance, Occupancy and Space Management, Lighting Control and Optimization, Emergency Management and Response), By End-User (Commercial Buildings, Residential Buildings, Industrial Buildings, Government Buildings, Healthcare Facilities, Educational Institutions, Retail Spaces), By AI Technology (Machine Learning, Natural Language Processing, Computer Vision, Deep Learning, Neural Networks)), Trends, Industry Competition Analysis, Revenue and Forecast To 2034."

According to the latest research by InsightAce Analytic, the Global AI in Smart Buildings and Infrastructure Market is valued at USD 40.1 Bn 2024, and it is expected to reach USD 338.5 Bn by the year 2034, with a CAGR of 23.9% during the forecast period of 2025-2034.

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Artificial Intelligence (AI) is increasingly integral to the advancement of smart buildings and intelligent infrastructure, enhancing design, operational management, and efficiency within contemporary urban environments. By leveraging data from interconnected sensors and integrated systems, AI-driven solutions optimize energy utilization, strengthen security protocols, and enable adaptive environments that respond dynamically to real-time conditions. This integration of technology is transforming the functionality of buildings and infrastructure, yielding improvements in performance, safety, sustainability, and operational resilience.

Nevertheless, the widespread implementation of AI in the built environment presents several challenges. These include the complexity of integrating AI into existing legacy systems, heightened concerns over data privacy and cybersecurity, and significant costs related to deployment and ongoing maintenance. Strategic investments, regulatory alignment, and the establishment of technological standards will be critical to facilitating large-scale adoption and realizing long-term value.

The market has experienced significant growth in recent years, with AI emerging as a key driver of enhanced energy efficiency, sustainability, and occupant experience. The application of machine learning, predictive analytics, and advanced data processing tools is reshaping facility management, operational decision-making, and environmental responsiveness, thereby accelerating the development of next-generation smart building ecosystems.

List of Prominent Players in the AI in Smart Buildings and Infrastructure Market:
• IBM Corporation
• Siemens AG
• Honeywell International Inc.
• Johnson Controls International plc
• Schneider Electric SE
• ABB Ltd.
• Intel Corporation
• Microsoft Corporation
• Google LLC
• Cisco Systems, Inc.
• Huawei Technologies Co., Ltd.
• Amazon Web Services, Inc.

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Market Dynamics
Drivers:
The global emphasis on energy efficiency is a primary factor driving the adoption of artificial intelligence (AI) in smart buildings and infrastructure. AI technologies enable the intelligent optimization of energy consumption, reducing operational costs while minimizing environmental impact. Additionally, AI-powered solutions for surveillance, access control, and predictive maintenance enhance security, operational reliability, and asset longevity.

Integration of AI into environmental control systems-including lighting, heating, ventilation, and air conditioning-further improves occupant comfort and productivity by facilitating automated, data-driven adjustments in real time. The proliferation of Internet of Things (IoT) devices and advanced sensors, which supply critical data for AI algorithms, is accelerating adoption. Moreover, the global expansion of smart city initiatives is driving demand for AI-enabled infrastructure management solutions that promote sustainability, operational efficiency, and urban livability.

Challenges:
Despite its transformative potential, AI deployment in smart buildings and infrastructure faces several obstacles. High capital investment requirements, particularly for retrofitting existing facilities, pose financial challenges. Data privacy and cybersecurity concerns arising from extensive data collection and processing increase regulatory and compliance pressures.

Integration is further complicated by compatibility and interoperability issues between legacy building management systems and advanced AI solutions. Additionally, a shortage of professionals with specialized expertise in AI system design, deployment, and maintenance presents a critical constraint. The discrepancy between the long operational lifespan of building assets and the rapid evolution of AI technologies necessitates ongoing upgrades and reinvestments, increasing lifecycle costs. Addressing these structural and technical challenges is essential to enabling scalable adoption and maximizing the benefits of AI in sustainable infrastructure management.

Regional Trends:
North America is expected to exhibit strong growth in AI adoption within smart building and infrastructure sectors, supported by rapid urbanization, early technology integration, and a heightened focus on energy efficiency and sustainability. AI-driven building management systems enhance operational intelligence, optimize energy utilization, and improve occupant experiences.

Advances in IoT connectivity, cloud computing, and data analytics continue to drive innovation in the region. Substantial public and private investments in smart city and green infrastructure initiatives are also acting as key catalysts for market expansion. As demand for intelligent and sustainable infrastructure solutions rises, North America is projected to achieve a robust compound annual growth rate (CAGR), creating significant opportunities for technological advancement and strategic industry collaboration.

Recent Developments
• In June 2024, Schneider Electric, a worldwide frontrunner in the digitalization of energy management and automation, revamped its Digital Buildings operations in Canada by introducing the SMART Buildings Division. This transformation represented a strategy shift towards providing all-encompassing solutions and services that aided building owners and operators in attaining their objectives of reducing carbon emissions and promoting sustainability.
• In April 2024, The Saudi real estate developer ROSHN Group has entered into an agreement with Cisco to investigate the application of the Internet of Things in the company's environmentally friendly intelligent buildings. The collaborative framework will involve the utilization of technology produced by the US-based company in the innovation hub of the giga-project, which is scheduled to launch next year.

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Segmentation of AI in Smart Buildings and Infrastructure Market-
By Type-
• Software
• Hardware
• Services
By Application-
• Building Energy Management
• HVAC Control and Optimization
• Security and Surveillance
• Predictive Maintenance
• Occupancy and Space Management
• Lighting Control and Optimization
• Emergency Management and Response
• Others
By End-User
• Commercial Buildings
• Residential Buildings
• Industrial Buildings
• Government Buildings
• Healthcare Facilities
• Educational Institutions
• Retail Spaces
• Others
By AI Technology
• Machine Learning
• Natural Language Processing
• Computer Vision
• Deep Learning
• Neural Networks
• Others
By Region-
North America-
• The US
• Canada
• Mexico
Europe-
• Germany
• The UK
• France
• Italy
• Spain
• Rest of Europe
Asia-Pacific-
• China
• Japan
• India
• South Korea
• South East Asia
• Rest of Asia Pacific
Latin America-
• Brazil
• Argentina
• Rest of Latin America
Middle East & Africa-
• GCC Countries
• South Africa
• Rest of Middle East and Africa

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InsightAce Analytic is a market research and consulting firm that enables clients to make strategic decisions. Our qualitative and quantitative market intelligence solutions inform the need for market and competitive intelligence to expand businesses. We help clients gain competitive advantage by identifying untapped markets, exploring new and competing technologies, segmenting potential markets and repositioning products. Our expertise is in providing syndicated and custom market intelligence reports with an in-depth analysis with key market insights in a timely and cost-effective manner.

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This release was published on openPR.