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Smart Buildings Market to Grow by USD 76.8 Billion (2025-2029), Rising Demand for Automation Enhances Business Outcomes, Report on How AI is Driving Market Transformation – Technavio

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NEW YORK, Jan. 31, 2025 /PRNewswire/ — Report with the AI impact on market trends – The global smart buildings market size is estimated to grow by USD 76.8 billion from 2025-2029, according to Technavio. The market is estimated to grow at a CAGR of almost 11.3% during the forecast period. Growing need for building automation to enhance business outcomes is driving market growth, with a trend towards increasing integration of iot with building automation software. However, challenges in integrating building automation software coupled with interoperability issues poses a challenge. Key market players include ABB Ltd, Advantech Co. Ltd., BuildingLogiX, Cisco Systems Inc., Delta Electronics Inc., Emerson Electric Co., Honeywell International Inc., International Business Machines Corp., Johnson Controls, L and T Technology Services Ltd., Legrand SA, Panasonic Holdings Corp., Robert Bosch GmbH, RTX Corp., Schneider Electric SE, Siemens AG, Smarteh d.o.o., Snap One LLC, Softdel System Pte. Ltd., and Switch Automation.

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Smart Buildings Market Scope

Report Coverage

Details

Base year

2024

Historic period

2019 – 2023

Forecast period

2025-2029

Growth momentum & CAGR

Accelerate at a CAGR of 11.3%

Market growth 2025-2029

USD 76.8 billion

Market structure

Fragmented

YoY growth 2022-2023 (%)

9.9

Regional analysis

North America, Europe, APAC, South America, and Middle East and Africa

Performing market contribution

APAC at 34%

Key countries

US, UK, Germany, China, Japan, France, Canada, India, Brazil, and UAE

Key companies profiled

ABB Ltd, Advantech Co. Ltd., BuildingLogiX, Cisco Systems Inc., Delta Electronics Inc., Emerson Electric Co., Honeywell International Inc., International Business Machines Corp., Johnson Controls, L and T Technology Services Ltd., Legrand SA, Panasonic Holdings Corp., Robert Bosch GmbH, RTX Corp., Schneider Electric SE, Siemens AG, Smarteh d.o.o., Snap One LLC, Softdel System Pte. Ltd., and Switch Automation

Market Driver

The Smart Buildings Market is experiencing significant growth due to the integration of advanced technologies such as 5G, IoT, AI, and VR. These technologies enable building automation, energy efficiency, and resource management in both commercial and residential sectors. In commercial buildings, AI-enabled innovations like intelligent glass, smart thermostats, and energy-efficient structures reduce energy consumption and improve space utilization. In urban areas, smart cities are being developed with networked infrastructure for efficient waste management and secure environment. Home automation, including smart lighting systems and home security, is a growing trend in residential buildings. The integration of cloud computing and data analytics facilitates real-time monitoring and management of building premises. The commercial segment also benefits from AI-driven network and workforce management systems. 5G technology and IP-based solutions enhance network management, while blockchain ensures information security. Energy management, waste management, and fire safety are key concerns addressed by these technologies. Urban environments are becoming smarter with the integration of automated technologies like sensors, actuators, and microchips. The focus on environmental effects and resource management is driving the adoption of smart buildings in both residential and industrial sectors. 

Non-smart buildings rely on manual control, leading to high operational costs and lengthy lead times. Traditional building automation faces limitations due to complex wired or slow wireless connectivity. The Internet of Things (IoT) integration into building automation addresses these challenges, enabling advanced IP-based internet connections. This technology allows end-users to monitor multiple building systems via a central hub, driving demand for advanced building automation. IoT adoption, fueled by increasing internet penetration, presents a significant growth opportunity for the global smart buildings market, creating a new market niche for building automation software. 

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Market Challenges

The Smart Buildings Market is experiencing significant growth due to the integration of advanced technologies like 5G, IoT enabled devices, AI, and VR. Commercial and residential building owners are investing in energy-efficient structures, intelligent glass, smart thermostats, and elevators to reduce greenhouse gas emissions and improve resource management. The use of AI, sensors, actuators, and microchips enables automated technologies for space utilization, energy management, network management, workforce management, and waste management. In urban areas, smart cities are being developed with secure environments using blockchain, information security, and smart lighting systems for energy conservation. Challenges include environmental effects, security concerns, and the integration of AI, IoT, and cloud computing for efficient building operations. Smart Homes and Intelligent Security Systems, including fire safety, video surveillance, access controls, theft detection, and intrusion detection, are also gaining popularity in the residential segment. The market includes various sub-segments like heating, ventilation, air conditioning, and network systems.Building automation systems in smart buildings involve integrating various equipment and appliances to enhance energy efficiency and optimize operations. The complexity increases with larger structures, requiring specialized technical skills to manage the software. Effective communication between hardware systems is crucial for efficient operation. Interfacing software ensures compatibility and configures devices on a single platform. Integrating legacy systems with new software can pose challenges, potentially leading to faulty installations and security vulnerabilities. Professionally managing these complexities is essential for successful smart building implementation.

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Segment Overview

This smart buildings market report extensively covers market segmentation by

ProductBMSHVACLighting ControlSecurity And Access ControlOthersComponentSoftwareHardwareServicesGeographyNorth AmericaEuropeAPACSouth AmericaMiddle East And Africa

1.1 BMS- The Building Management Systems (BMS) segment is the largest and leading part of the global smart buildings market. Known alternatively as Building Automation Systems (BAS), BMS are vital components of intelligent buildings, integrating various standalone control and monitoring systems for efficient control. Comprised of software, servers, sensors, and major components like HVAC, lighting, and emergency systems, BMS monitor and manage devices collectively. The cost of implementing BMS ranges from USD2.50 to USD7.0 per square foot, making ROI a significant challenge. Europe and APAC are major contributors to the BMS market’s growth due to increasing industrialization, commercialization, and energy efficiency awareness. In the commercial sector, high-end residential buildings, and services sector, BMS adoption is anticipated due to the need to connect different control systems. Technology advancements, including IoT, analytics, and cloud computing, further fuel BMS adoption for effective monitoring, controlling, and operating building facilities. These factors will significantly boost the growth of the BMS segment in the global smart buildings market.

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Research Analysis

The Smart Buildings Market is experiencing significant growth due to the integration of advanced technologies such as 5G, IoT-enabled devices, AI, and VR. These technologies are transforming commercial and residential buildings into energy-efficient structures with intelligent systems for home automation and working from home. 5G technology enables real-time data transfer and communication between devices, enhancing the performance of AI-enabled innovations like energy conservation, waste management solutions, and data analytics. Cloud computing facilitates remote access and management of these systems, while smart lighting systems and intelligent security systems ensure energy efficiency and safety. Smart cities are also adopting these technologies to create interconnected infrastructure for efficient energy usage and improved living conditions. The market includes various sub-segments like smart thermostats, smart elevators, intelligent glass, and fire safety systems, all aimed at reducing greenhouse gas emissions and promoting sustainability.

Market Research Overview

The Smart Buildings Market is experiencing rapid growth due to the integration of advanced technologies such as 5G, IoT-enabled devices, AI, and VR. These technologies enable building automation, energy efficiency, and resource management in both commercial and residential buildings. In urban areas, smart buildings contribute to reducing greenhouse gas emissions and promoting sustainable urban environments. Cloud computing and data analytics play a crucial role in managing building premises, optimizing space utilization, and analyzing environmental effects. Home automation, including smart thermostats, intelligent glass, and smart elevators, enhances comfort and convenience for residents. Working from home and waste management solutions are also driving the demand for smart buildings. Energy management, network management, workforce management, and security concerns are addressed through automated technologies, sensors, actuators, and microchips. Building owners benefit from energy conservation, space utilization, and improved security. Smart cities are integrating smart buildings to create secure environments and manage urban resources efficiently. Blockchain technology ensures information security and transparency in energy trading and resource management. The market includes smart lighting systems, intelligent security systems, fire safety, video surveillance, access controls, theft detection, intrusion detection, and network systems. Heating, ventilation, and air conditioning systems are optimized for energy efficiency and occupant comfort. The Internet-of-Things (IoT) connects various building systems, enabling seamless integration and remote management.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

ProductBMSHVACLighting ControlSecurity And Access ControlOthersComponentSoftwareHardwareServicesGeographyNorth AmericaEuropeAPACSouth AmericaMiddle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/

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SOURCE Technavio

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Technology

Flō Networks Announces Intention to Launch Public Tender Offers to Acquire Up to 100% of Controladora Axtel, S.A.B. de C.V. and Axtel, S.A.B. de C.V.

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22 seconds ago

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September 1, 2026

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MEXICO CITY and EL PASO, Texas, Sept. 1, 2026 /CNW/ — Transtelco Holding, Inc. (doing business as Flō Networks, or “Flō”), a U.S.-based, independent digital infrastructure provider operating its own fiber-optic network across Mexico, the Southwestern United States and Latin America, today announced its intention to launch concurrent public tender offers (ofertas públicas de adquisición, or the “Offers”) to acquire up to 100% of the outstanding shares of Controladora Axtel, S.A.B. de C.V. (“Controladora Axtel”) and up to 100% of the outstanding CPOs of Axtel, S.A.B. de C.V. (“Axtel,” and together with Controladora Axtel, the “Axtel Companies”).

Flō has received preliminary approval from the Boards of Directors of both Axtel Companies to continue the process

Flō has received preliminary approval from the Boards of Directors of both Axtel Companies to continue the process toward launching the Offers, and is working to obtain the required regulatory approvals.

The commencement of the Offers remains subject to authorization by the Comisión Nacional Bancaria y de Valores, clearance by the Comisión Nacional Antimonopolio, the receipt of any other required regulatory approvals, and the satisfaction of the applicable contractual and corporate conditions. Subject to the satisfaction of these requirements, Flō is prepared to move promptly toward commencement of the Offers. The terms and conditions of the Offers, including the applicable offering documents, will be published in accordance with Mexican securities laws and the regulations of the Bolsa Mexicana de Valores at the appropriate time.

“This is an important step in our long-term vision for Flō and for the digital infrastructure that will support Mexico’s continued economic and technological development,” said Miguel Fernandez, Chief Executive Officer of Flō Networks. “By bringing together the complementary networks, capabilities and talent of Flō and Axtel, we have an opportunity to create a stronger digital infrastructure platform with greater scale, reach and capacity to serve customers across Mexico and beyond. We believe that stronger infrastructure enables stronger businesses, greater innovation and new opportunities for the communities and economies we connect.”

The proposed acquisition would combine complementary assets and expertise to strengthen Flō’s ability to invest in network resilience, expand its portfolio of digital services and deliver greater value to businesses operating in Mexico and across the region. Flō believes the combination would create meaningful operational and commercial synergies while supporting continued investment in the infrastructure required for critical technologies for productivity and competitiveness. The transaction would also create opportunities for long-term value creation for customers, employees, shareholders, partners and the communities the companies serve.

About Flō Networks

Founded as Transtelco in 2001, Flō Networks is a leading digital infrastructure provider connecting companies on both sides of the U.S.-Mexico border and across the Americas. Flō provides comprehensive connectivity solutions and advanced cloud infrastructure to Fortune 500 companies, telecommunications providers and cable operators through a fiber-optic network spanning more than 30,000 route miles across the Southwestern United States and Mexico, with connectivity across fifteen countries throughout the Americas. For more information, visit flo.net.

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SOURCE Flō Networks

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Technology

Arista Demand Hires Jordanna Howard to Strengthen the Company’s Continued Growth

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24 seconds ago

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September 1, 2026

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SAN FRANCISCO, Sept. 1, 2026 /PRNewswire/ — Arista Demand, a leading provider of B2B demand generation solutions, is pleased to announce Jordanna Howard has joined the company as VP, Global Integrated Sales, effective September 1, 2026.

Prior to joining Arista Demand, Jordanna spent five years at Veritas Media Group, serving as VP of Client Services. Jordanna played a key part in growing VMG’s client portfolio and driving net-new revenue through new business partnerships, while also expanding and strengthening existing client relationships. She was instrumental in championing VMG’s reputation for white-glove service, exceptional client experiences, and long-term client success.

Jordanna joins Arista Demand as the organization continues to expand its capabilities, strengthen and build client partnerships, and help B2B organizations connect with the right prospects through results-driven demand generation and media initiatives.

“We are thrilled to welcome Jordanna to Arista Demand,” said Managing Director, Jennifer Sand. “She brings tremendous experience, energy, and a client-focused approach that aligns perfectly with how we work. Jordanna will be an important part of our continued growth, and we’re excited to have her on the team.”

In her new role, Jordanna will focus on client development, partnerships, and sales. Her experience in digital and non-traditional media will further strengthen Arista Demand’s ability to deliver innovative and integrated, measurable solutions, beyond lead gen, for clients.

“I’m excited to join Arista Demand and become part of a team that is so focused on its clients and their success,” said Howard. “I look forward to contributing to the company’s growth and helping our clients achieve meaningful results.”

Jordanna lives in Napa, California, with her partner, Jeff, and daughter, Mackie. Outside of work, she loves spending time with family and friends and is passionate about giving back.

She serves on UCSF’s Board of Directors for “All May See” vision foundation as well as sfBIG’s Board, supporting and connecting the Bay Area advertising community. Jordanna is also actively involved in her daughter’s school and is the troop leader for her local Girl Scouts Brownie troop.

About Arista Demand

Arista Demand helps B2B organizations accelerate revenue through intent targeted demand generation programs designed to connect brands with their respective audience that matter most. Through a combination of intent, 1st party data, strategy, technology, and client-focused execution, Arista Demand helps marketers build pipeline and drive measurable business results. Arista Demand brings buyers and sellers together around the globe. 

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SOURCE Arista Demand

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Technology

Reducto Unveils a Frontier Parsing Model That Makes the World’s Hardest Documents AI-Ready for 1¢ a Page

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27 seconds ago

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September 1, 2026

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The new r-1 model is the first in a family of document intelligence models that reduces parsing errors by up to 20% while replacing complex, multi-tool pipelines with a single model that costs up to 6× less.

SAN FRANCISCO, Sept. 1, 2026 /PRNewswire/ — Reducto today introduced r-1, a frontier document parsing model that turns complex PDFs, scans, spreadsheets, and other files into accurate, structured data for AI systems.

Reducto has already established itself as a leader in document parsing by handling the long tail of complex files that break conventional tools. Available today in preview, r-1 extends that lead—reducing errors by up to 20%, improving latency at high volumes, and bringing the all-in cost down to 1¢ per page.

Before an AI system can reason over a document, it must first understand what is on the page. That becomes difficult when meaning is encoded not only in text, but also in tables, handwriting, reading order, formatting, checkboxes, strikethroughs, and the position of content. A parser that misreads a financial table can give an AI agent the wrong numbers. One that drops a strikethrough can reverse the meaning of a contract.

Established services such as Amazon Textract and Azure Document Intelligence helped make cloud document processing widely available. But organizations working with complex documents often still combine multiple tools, models, and layers of post-processing to achieve the accuracy they need. In Reducto’s evaluations, r-1 outperformed commonly used hyper-scaler products and large LLMs on complex documents while providing a complete parse at one all-in price.

Built from the ground up and trained on some of the most challenging document data in the world, r-1 combines layout detection, reading order, tables, formatting, grounding, and granular citations in a single model. It is designed for the long tail of documents where simpler parsers break down, including dense tables, unusual layouts, low-quality scans, handwriting, watermarked content, and files that do not follow predictable templates.

By combining these capabilities, r-1 can handle an organization’s full document workload without requiring teams to route files among providers or maintain separate pipelines for different document types. Its flat price of 1¢ per page includes the complete parse, without additional model charges or feature-based multipliers.

r-1 is the first in a broader family of Reducto parsing models designed for different points on the accuracy, latency, and cost curve. Planned additions include r-1 mini, a smaller model for speed- and cost-sensitive workloads, and automatic routing that selects the right model for each page.

Organizations using another parser can receive up to $5,000 in credits to test r-1 on their most difficult documents, along with hands-on benchmarking support, at reducto.ai/migrate. r-1 is also available today in preview through a configuration flag in the Reducto Parse API.

About Reducto

Reducto is an agentic document platform that turns complex, real-world documents into structured data for AI agents and document-intensive workflows. The company has raised more than $108 million from investors including Andreessen Horowitz and First Round Capital and has processed more than a billion pages a month. Its customers include Harvey, Scale AI, Vanta, Airtable, Toast, and Fortune 10 enterprises.

 

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SOURCE Reducto

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