Smart industrial buildings market expected to double in value by 2026

One market with good growth prospects over the next few years is smart industrial buildings, which are expected to expand at a rate of 95 per cent globally by 2026, totalling $14 billion compared to $7 billion in 2024.

Smart industrial buildings integrate Internet of Things (IoT) technology and automation to optimise energy use and raise levels of operational efficiency and sustainability. These environments can control various functions, such as heating, ventilation and lighting systems, based on real-time data and occupancy patterns.

According to a study by Juniper Research, growth will be driven by sustainability initiatives and the need to reduce industrial building management costs. The expectation is that Artificial Intelligence (AI)-based facility management solutions will be key to ensuring return on investment (ROI) in smart building platforms and also to achieving energy and sustainability targets.

Artificial Intelligence can, for example, help detect operational anomalies through in-depth data analyses, resulting in greater safety and reduced operating costs with less human intervention.

According to the research, the types of buildings that could benefit most from intelligent management using AI capabilities are warehouses, factories and agricultural facilities, as they have particularly high operating costs associated with breakdowns of high-value equipment, to name just one situation. The potential benefits that AI will bring to intelligent building platforms will enable global investments to exceed $42 billion by 2028.

In addition, the study predicts that smart building solutions will help the managers of these environments to fulfil sustainability goals. By integrating IoT sensors and networks with AI systems applied to real-time automation, it will be possible to generate significant savings and reduce emissions.

‘Smart buildings equipped with AI technologies can make efficient and economical use of resources while creating a safe and comfortable environment for occupants. This typically involves monitoring functions and the ability to respond intelligently to changes in the environment using automation,’ explains the Juniper Research report.

Smart vs. traditional buildings

The main difference between smart and traditional buildings is precisely their automation capacity. Smart buildings generally have IoT sensors connected to a building management or automation service. This system monitors and adjusts the use of resources, such as air conditioning and lighting, according to appropriate rules. In traditional buildings, this control is usually manual.

Another important difference has to do with remote monitoring. In the case of smart buildings, it is possible to control installations remotely via mobile phone applications. And the third difference is the ability to contribute to energy efficiency and, consequently, to reducing costs and emissions by automating services. Smart buildings can also carry out predictive maintenance and detect anomalies more easily.

Industry 5.0

According to Juniper Research, although the Industry 4.0 movement is still advancing, Industry 5.0 is already emerging as the next phase of the industrial revolution that aims to develop what is already being done in the current stage.

In the case of smart buildings, the main focus of Industry 5.0 is people and the well-being of employees in the workplace. It also aims to boost collaboration between professionals and AI resources in order to optimise spaces. Smart buildings and factories built on the premise of Industry 4.0 are already paving the way for Industry 5.0, combining AI with a better experience for the occupants of smart buildings.

However, Industry 5.0 will bring more concerns around privacy issues, fear and distrust of AI. Misuse of AI is also a major concern. It is therefore important to consider strict privacy policies, along with cybersecurity best practices, to combat these concerns when adopting smart industrial buildings.