Smart Building is any structure which uses automated processes for the management of different operation of the building such as heating, air conditioning, lighting, ventilation, security, and other systems as per the changing conditions. A smart building is specifically designed to make human lives easier with the help of sophisticated and smart technology. The smart building system uses information technology during the operation process to connect to a variety of subsystems in order to collect and share data information for optimizing the overall building’s performance. The core systems are linked with each other, which provides greater efficiency, reduces energy consumption, and improves safety & comfort at a cost-effective price that perfectly aligns with the goals of the property owners, managers, and tenants.
The primary factor responsible for the growth of the Saudi Arabia Smart Building Market includes the increasing demand for smart building driven by its exceptional benefits such as optimized efficiency and convenience for both operators and tenants. According to the Saudi Energy Efficiency Center, buildings in Saudi Arabia consume an excess of electricity, accounting to 80% of the total electricity consumed in Saudi Arabia. The key market players are emphasizing on the development of advanced technologies in the lighting, heating, and cooling systems that are environment-friendly and helps in decreasing the overall electricity consumption. The Smart building integrates technology and the Internet of Things (IoT) to reduce energy consumption, improve building efficiency, and increase the productivity of the occupants.
The Saudi Arabian government is launching numerous initiatives, including the National Transformation Program 2020 and the development of smart cities in Saudi Arabia, such as NEOM, by using innovative technology, digital tools, and smart policies. The rising infrastructural development in the country and growing trend for eco-friendly and green buildings, offering multiple smart features, will drastically accelerate the demand for smart buildings. Moreover, the rising awareness of space utilization is encouraging the organizations to opt for smart buildings to reduce the cost of electricity bills and deliver a more comfortable experience to the occupants at the same time. The government is heavily investing on the construction of multiple ongoing projects, including the Rea Sea project, Jeddah tower, Qiddiya entertainment city, Makkah Grand Mosque, King Abdullah Bin Abdulaziz Medical Complexes, King Fahd Medical City Expansion, and Hanergy Solar Park, which in turn, will create greater opportunities for the implementation of smart building solutions in Saudi Arabia over the coming years.
Based on Solutions, the Energy Management segment is anticipated to lead the market during the forecast period owing to the increasing demand for smart building management solutions driven by their remarkable features such as minimization of the energy consumed by the building. The owners and managers of multi-story buildings, schools, corporate offices, and multiplex shopping malls face a continuous challenge to reduce the operational expense cost, which can be attained by the adoption of smart building energy management solutions.
Based on the Building Type, the Saudi Arabia Smart Building market is segmented into Residential, Commercial, and Industrial. The Commercial segment is expected to grow at a higher CAGR during the forecast period due to the increasing adoption of smart building solutions in the commercial sector, including corporate offices, hospitals, airports, and railway stations. Various multinational companies are mainly focusing on the establishment of smart corporate offices to enhance the security system, boost the productivity of the employees, and for better space utilization while reducing energy consumption and operational cost.
Various notable players operating in the Saudi Arabia Smart Building market includes IBM Corporation, Honeywell Automation, Inc., Siemens Saudi Arabia, Johnson Controls, Schneider Electric Saudi Arabia, Hitachi Saudi Arabia, Ltd., Intel Corporation, ABB Saudi Arabia, L&T Electrical & Automation Saudi Arabia Company Ltd., and Telit.
- In 2018, Honeywell Automation, Inc., collaborated with the Saudi Arabia-based Advanced Electronics Company (AEC) to focus on business development activities, including the development of smart and connected buildings, smart cities, and critical infrastructure protection (CIP) in Saudi Arabia.
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