An Overview of the Intelligent Building Market in the MEA Region

As per 6W’s exclusive report produced for Light + Intelligent Building ME, the Middle East Intelligent Building market has witnessed a significant growth rate between 2018 and 2020, owing to the increasing demand for IoT-enabled devices. The IoT connections are expected to reach a staggering 1.1 billion by 2025 with a compound annual growth of 16% in the region.

With the resumption of construction activities post pandemic, the market has been on a growth trajectory. The commercial sector in UAE is anticipated to witness significant growth in the coming years, owing to the rising demand for office and retail space in the country.

According to a report by Knight Frank, Abu Dhabi is expected to see the delivery of over 680,000 square meters of retail space by 2023, a 36% increase from 2019. Similarly, in Dubai, retail space is expected to increase by 56% from 2019 to 5.81 million square meters in 2025.

In addition to the UAE, Egypt is also aiming to build up to 17 new smart cities across the country, with the construction of a massive $58 billion "New Administrative Capital" 30 miles east of Cairo already underway. The city is expected to have 2,000 educational institutions, a technology and Innovation Park, 663 hospitals and clinics, 1,250 mosques and churches, a 90,000 seat stadium, 40,000 hotel rooms, and a major theme park once completed. With an increase in infrastructure projects and growing awareness and acceptance of IoT systems, the demand for home and building automation solutions is expected to rise in the Middle East and Africa region in the coming years.

The key market drivers for Intelligent Building in Middle East & Africa amount to Government Initiatives, Rising Smart City Projects and increase in the number of Green Buildings. The government has been championing energy conservation and efficiency in the last few years due to the rapid population growth. UAE, Saudi Arabia, Egypt and Qatar have clear visions to go green and become energy efficient in the coming years. The second key driver is the rise of smart city projects in the Middle East & Africa region. This is attributed to several government initiatives that aim to become a trillion-dollar digital economy by 2025. The average annual investment in the smart city project reached a whopping $2 billion in 2021 for the Middle East region. Smart cities are going to be the key pillars of the Intelligent Buildings market in the MENA region. #smartbuildings #smartcities #circulareconomy #lightbuildingme

In conclusion, the Middle East & Africa Intelligent Building market has been growing steadily, with the COVID-19 outbreak having a temporary setback in 2020. It’s an exciting space to watch in the future which will contribute to rapid development of economies keeping sustainability at the center. To read the detailed report, click here and get your copy!