Global Homes and Buildings Industry Outlook, 2024

The Impact of the Top 3 Strategic Imperatives on the Homes and Buildings Industry

Innovative Business Models

• Why:
  • Businesses worldwide are experiencing a slowdown in growth, necessitating the adoption of innovative business models to accelerate the penetration of products and solutions to offset the effects of the uncertain economic climate.
  • Both B2B customers and direct consumers are facing challenges because of rising credit rates and inflationary pressures.
• Frost Perspective:
  • Building technology, construction management, PropTech, and smart home device vendors are striving to maximise their revenues from software and services by leveraging outcome-linked and subscription service business models, including software-as-a-service, heat-as-a-service, and many more, thereby reducing the financial burden on customers during a tough economic environment.

Disruptive Technologies

• Why:

  • The built environment is increasingly embracing digital solutions driven by AI, ML, IoT, cloud, and accelerated computing technologies.
  • Vendors offering software solutions and connected products have observed double-digit growth in the last few years.
• Frost Perspective:
  • The markets for AI and IoT-driven building energy management, building information modeling (BIM)-enabled digital twin, AI-driven customer experience platforms, IoT-driven building automation, and data-driven facility management are rapidly expanding.
  • These technologies can tackle energy efficiency and carbon emissions challenges in the built environment.

Transformative Mega Trends

• Why:
  • Mega Trends in the homes and buildings industry are essential for achieving a sustainable and net-zero built environment.
  • Industry participants must embrace relevant Mega Trends to implement strategic initiatives that address pressing challenges related to climate change mitigation, resource optimization, and reduced carbon emissions.
• Frost Perspective:
  • Some of the leading and emerging participants have recently realigned their portfolios to accelerate growth by leveraging key Mega Trends, including urbanization, digitalization, decarbonization, electrification, energy transition, demographic change, and more.

Research Scope

• Base Year: 2023
• Study Period: 2023–2024
• Forecast Period: 2024
• Industry Segments:
  • Lighting
  • Critical Building Equipment
  • Smart Building Management
  • Facility Management
  • Smart Homes
  • Construction Management
• Geographic Scope:
  • Asia-Pacific (APAC): India, China, and the rest of APAC
  • Europe: United Kingdom and EU-27
  • North America: United States and Canada
  • Rest of World: Middle East and Latin America

Market Segmentation

Homes and Buildings

Lighting

• Light-emitting diode (LED) lighting
• Lighting controls
• Smart street lighting and smart lamp poles
• Emergency lighting
• Horticulture and aquaculture lighting

Critical Building Equipment

• Low-voltage power distribution
• HVAC&R
• Indoor air quality
• Fire safety (detection and suppression)
• Electronic security
• Elevators and escalators

Smart Building Management

• Building automation
• Building energy management system (BEMS)
• Workplace analytics

Facility Management

• Single services
• Bundled services
• Integrated facility management (IFM)

Smart Homes

• Home energy management
• Home automation and controls
• Home safety and security
• Home entertainment
• Health and wellness

Construction Management

• BIM
• Digital twin
• Construction management software