Smart building vendors will generate $21bn globally next year, a rise of more than one third in a single year from $15bn in 2025, according to Juniper Research.

The study identified growth of interoperable smart building platforms as key to global market growth next year. Open-source platforms are anticipated to play a pivotal role in enabling new deployment models that reduce barriers to adoption.

“A lack of interoperability across smart building solutions has been a key deterrent to growth in the past,” said Frederick Savage, research analyst at Juniper Research. “However, with the rise of interoperability frameworks and the increased replacement of legacy infrastructure, we expect more enterprises to deploy smart building systems next year, primarily motivated by cost and energy savings.”

Juniper Research anticipates that open-source platforms such as Voltron and OpenHab will create new interoperable ecosystems, mitigating vendor lock-in for building managers. Building managers will benefit from waived licensing fees, enabling faster feature deployment and lower system update costs.

Further cost reductions will come from improved energy efficiency, process optimisation and space use. These savings will strengthen RoI and attract small and medium-sized enterprises to smart building platforms.

To increase the benefits of open-source smart building technology, Savage advised: “Stakeholders must prioritise interoperability and modular deployment. This approach reduces long-term risk, supports scalable multi-site roll-outs, and enables rapid adaptation to evolving building needs, ultimately driving higher efficiency and revenue growth.”

An extract from the report, Smart Buildings Market 2025-2030, is available as a free download at www.juniperresearch.com/research/sustainability-smart-cities/smart-cities/smart-buildings-research-report.