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In recent years, India's swift urbanization and its ambitious agenda for infrastructural development are expected to unlock substantial prospects within the smart building material space. The government's goal of reshaping India into a contemporary and sustainable economic powerhouse has triggered heightened investments in the infrastructure sector.
The Indian government has introduced several prominent programs such as Bharatmala Pariyojana, National Infrastructure Pipeline, Sagarmala, and Smart Cities Mission. These initiatives are geared towards bolstering road networks, fostering port advancement, and catalyzing urban metamorphosis. Notably, there is a sustained augmentation of budgets allocated in the Union Budget to support these endeavors. This strategic vision, coupled with policy interventions, is not only propelling growth in the building material sector but also paving the way for the emergence of a dynamic and innovative smart building material industry.
The surge in urban population and the subsequent demand for modern living spaces have prompted the Indian government to undertake transformative initiatives that include expansive urban development projects, transportation networks, and advanced energy systems. This approach to infrastructural enhancement has resulted in a strong growth environment for the building material industry in India. Investments are being channeled into cutting-edge construction projects, creating an ecosystem where the sector can grow at a substantial rate from the long-term perspective.
The booming commercial real estate sector is another factor that is expected to contribute to the growth of the smart materials market in India over the next five to seven years. The adoption of smart glass technology is expected to grow in the commercial construction space in India from the medium to long-term perspective.
Based on the estimates of ConsTrack360, the market in India is expected to grow at a compound annual growth rate (CAGR) of 10.9% from 2023 to 2027. During this period, the industry is projected to increase from US$944 million in 2023 to reach US$1.42 billion by 2027 in India.
The adoption of smart glass technology is also projected to grow in the United States market from the short to medium-term perspective. The Inflation Reduction Act, passed in the United States in August 2022, contains tax and investment incentives for various clean-energy technologies. This includes electric cars, solar panels, and wind turbines. Additionally, the Inflation Reduction Act also features a 30% tax credit for lesser-known players in the energy space, including those operating in the smart glass segment.
The 30% tax credit offered by the Inflation Reduction Act is, therefore, expected to aid innovation in the segment, and subsequently leading to new product launches in the market. For modern buildings, this smart glass technology can be used to temper intense sunlight and expand the use of shared spaces. This ability of the smart material product will drive the adoption in the United States from the short to medium-term perspective, subsequently supporting the growth of the overall market.
The projections from ConsTrack360 indicate that the smart materials market in the United States will grow at a compound annual growth rate (CAGR) of 9.6% from 2023 to 2027. During the forecast period, the market will increase from US$15.9 billion in 2023 to reach US$22.9 billion by 2027.
In the United States, innovation is also growing in other smart construction material product categories. Scientists from the Pritzker School of Molecular Engineering (PME) have unveiled a groundbreaking intelligent substance designed to control indoor temperatures within buildings. Particularly noteworthy is the chameleon-like nature of this building material, which can alter its infrared hues. Moreover, the material showcases the capacity to adjust the quantity of heat it captures and releases, adapting to external temperatures.
From self-repairing concrete to materials that regulate building temperatures, the trend is projected to further continue from the short to medium-term perspective in the North American region. The government's emphasis on sustainability and efficiency is fostering innovation in the smart building material space.
With more and more nations placing stronger emphasis on sustainable construction practices, ConsTrack360 expects more innovative and smart construction materials to emerge in the market from the short to medium-term perspective.
To know more and gain a deeper understanding of the global smart materials market, click here.
