A new study from Juniper Research reveals that smart building vendors are projected to generate $21 billion globally in 2026, marking a significant increase from $15 billion in 2025.
This rise of over one-third underscores the growing importance of interoperable smart building platforms in driving market expansion.
The study highlights that the lack of interoperability has previously hindered growth in the smart buildings sector. However, the emergence of new interoperability frameworks, alongside the replacement of outdated infrastructure, is expected to encourage more enterprises to adopt smart building systems.
“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.
“With the rise of interoperability frameworks, we expect increased deployment of smart building systems next year, driven primarily by cost and energy savings.” Frederick Savage
Open-source platforms such as VOLTRON and openHAB are anticipated to play a crucial role in creating interoperable ecosystems. These platforms will help mitigate vendor lock-in for building managers by eliminating licensing fees, resulting in quicker feature deployment and reduced costs for system updates.
This shift is particularly beneficial for small and medium-sized enterprises, enhancing their ability to adopt smart building technologies.
The report indicates that additional cost reductions will stem from improvements in energy efficiency, process optimisation, and space utilisation. These enhancements are expected to bolster return on investment (ROI) for stakeholders.
To fully leverage the advantages of open-source smart building solutions, Savage advises that “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.” Frederick Savage
The findings from this study reflect a transformative shift in the smart building landscape, with a growing emphasis on interoperability and open-source solutions. As the market continues to evolve, stakeholders who embrace these changes are likely to find themselves at the forefront of innovation and efficiency.
