Smart building market in Western Europe is growing rapidly, driven by end-users, building owners, and environmental regulations. Germany is the largest market in the region with 26 per cent of the regional market share, while the Netherlands is emerging as an industry leader in integration and BMS platforms.
FREMONT, CA: The demand for smart building products in Western Europe is experiencing exponential growth, with a projected 10.8 per cent compound annual growth rate from 2018 to 2023.
Germany is the largest market in Western Europe, accounting for approximately 26 per cent of the regional market share in both connected equipment and BMS platforms. The country is considered a mature market for building technology products, including building automation, heating, ventilation, air conditioning, lighting, and access control systems. Despite Germany's dominant market presence, the Netherlands is emerging as an industry leader in integration and BMS platforms. The country's openness to innovation and modernisation has driven the development of smart building projects, particularly in major cities such as Amsterdam, Eindhoven, and Rotterdam.
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Despite the uncertainty surrounding Brexit, the UK has also been a significant player in the smart building sector. Market revenues for connected equipment are forecast to almost double to reach USD 1.3 billion in 2023, and the BMS platform market is expected to grow at a 6.2 per cent CAGR from 2018 to 2023. Occupants and people are becoming a significant factor in driving investment decisions and smart building strategies in the UK, especially within the office building sector, where owners and facility managers are implementing solutions to improve employees' health, well-being, and comfort.
The growth of the smart building market in Western Europe is driven by end-users and building owners, particularly in the Netherlands, and environmental regulations enforced by the European Union. The Energy Performance of Buildings Directive and the Energy Efficiency Directive has been instrumental in promoting energy efficiency and sustainability in building construction.
The smart building market still has to overcome obstacles like a shortage of skilled labour in Germany, price sensitivity in the French construction sector, and a probable downturn in real construction spending in the UK. The cost of staff training and support, as well as the fear of change, also pose significant barriers to the integration of building technologies.
In conclusion, the smart building market in Western Europe is expanding rapidly, driven by end-users, building owners, and environmental regulations. Despite the challenges, the market is expected to continue growing, with the Netherlands emerging as an industry leader in the integration of building technologies. The push for smart building technologies in the UK is primarily driven by occupants and people, while the traditional Irish market is gradually transitioning towards digital buildings. The smart building market holds significant promise and opportunity, but overcoming the barriers posed by cost, lack of skilled labour, and fear of change will be crucial to realizing its full potential.
