Siemens is looking forward to quickly expanding its building technologies business when compared to the overall construction market in 2019, according to a statement issued by Business’ Chief Executive Matthias Rebellius. The company may look for acquisition as a way to expand its business, according to the statement issued on 4 December.

Switzerland-based Siemens is a manufacturer of smart devices and software which are used to monitor smart heating, energy, and lighting to be used in smart buildings. The construction market is expected to expand by nearly three percent in 2019 which is the major reason why Siemens is setting a tough competition for its rivals including Honeywell and Johnson Controls.

Explaining the strategy of the company Rebellius said that the firm is eying to grow 1% above the market. The company has already started to expand its footprints by opening its business in Zug. The Zug office will include an office building as well as a production site. The firm has invested as many as $215 million on the site which is likely to be operational in the near future.

The unit is focusing on Asia where it currently enjoys sales of 10%. Besides that, the company is focusing on digital buildings capable of collecting and analyzing data to enhance utility usage for instance. The building technology unit of Siemens reported a year-on-year decline in profit from 784 million to 755 million in 2018. However, its sales rose from 6% to 6.6 billion Euros. In the 2018 financial year, the unit was able to secure a profit margin of 11.4% which was above the targeted range of 8 to 11%.

In 2019, the business will be folded into a new division dubbed Smart Infrastructure which will have a portion from Siemen’s energy management and digital factories businesses and will aim high profits. The new unit was first announced in August and now it is expected to have a profit margin in the range of 10-15%.

The new unit will be the central business for Siemens as explained by Rebellius. The unit will focus on exploring different trends such as artificial intelligence, urbanization, public growth. Rebellius further said that the company may look forward to acquisitions as well. In 2018, the company reportedly bought three companies as it focused on expanding its expertise in smart buildings.

Although the company may look for acquisitions, the deals will not be larger, Rebellius mentioned in a statement. It was not revealed as for whether or not the company is targeting a particular niche of business for acquisition.

Further talking about the new business, Rebellius informed that it will house about 71,000 employees across the world. Rebellius will take up the role of chief operating officer and will be answerable to Cedrik Neike, a board member of Siemens.

The company, as of now, hasn’t revealed its investment plans in the expansion. Although it has been made clear that the company would expand by acquiring firms and expanding its presence with new products.