USD 83.61 billion
Building Automation System Market Size, Share, Growth Analysis, By Component(Hardware and software), By Application(Industrial, residential, and commercial), By Region - Industry Forecast 2024-2031
Report ID:
SQMIG20B2052 |
Region:
Global |
Published Date: April, 2024
Pages:
202
|Tables:
61
|Figures:
75
Building Automation System Market Insights
Global Building Automation System Market size was valued at USD 83.61 billion in 2022 and is poised to grow from USD 92.22 billion in 2023 to USD 202.04 billion by 2031, growing at a CAGR of 10.3% in the forecast period (2024-2031).
A Building Automation System (BAS), also known as a Building Control System or Building Management System, is a system that controls many electrical, electronic, and mechanical systems in a building. Market Report tracks revenues that companies accumulate through leases function in the form of functional solutions sold outside the world.
Areas such as building control systems, lighting controls, fire detection, HVAC systems, and security systems are included in the analysis and extend to end-users such as residential and commercial. The global market for building systems automation is driven by the increasing popularity of the Internet of Things and rising security concerns.
According to Cisco's annual Internet report, there will be about 30 billion devices and network connections next year, from 18.4 billion in 2018 to 33% in 2023 (6.1 billion) in 2018, by comparison.
According to the U.S. According to the Department of Energy, buildings, and the U.S. are the single largest consumer of energy in the economy. They account for about 75% of the country’s electricity consumption and 40% of the total energy demand.
The International Energy Agency says all new buildings and 20% of existing buildings will have to be carbon-free as early as 2030 to meet the global zero-carbon target. According to a report published in the Proceedings of the National Academy of Sciences, an estimated 30% of the world’s population is expected to live in areas where the average temperature will exceed 29°C over the next 50 years due to rapid warming associated with climate change Rise and population expansion.
Currently, this atmosphere is present in 1% of the Earth’s surface, especially in the hottest parts of the Sahara Desert. But by 2070, this warming is expected to cover more than a fifth of the planet’s surface.
With advancing technologies, smart buildings are becoming increasingly complex, requiring rapid documentation through retro-commissioning. In addition, the risks associated with maintaining operational integrity are also increasing. Therefore, the demand for complete construction automation is expected to increase.
It is important to establish significant communication between the system provider/developer and the building owner to understand the function of the building.
Market Snapshot - 2024-2031
Global Market Size
Largest Segment
Hardware
Fastest Growth
Software
Growth Rate
10.3% CAGR
Global Commercial Building Automation Market ($ Bn)
Country Share for North America Region (%)
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Building Automation System Market Segmental Analysis
The global building automation system market is segmented based on component, application, and region. By component, the market is segmented into hardware and software. By application, the market is segmented into industrial, residential, and commercial. By region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
Analysis By Component
The hardware side is still strong, as real-world buildings do the system work. Sensors, controllers, and actuators are required to collect data from the building, process it, and perform control actions. The continued demand for advanced and efficient hardware solutions, especially in the area of the Internet of Things (IoT) and Industry 4.0, ensures continued dominance of the hardware segment. Intelligent devices and connected sensors increasing usage helps the hardware market continue to expand.
At the same time, the software segment is growing the fastest in the BAS market. This growth is driven by the growing need for sophisticated control solutions that optimize the overall efficiency of building automation. Software applications facilitate real-time analysis, data analysis, and decision-making, enabling smarter and more efficient construction projects. In addition to increasing emphasis on data-driven insights and the integration of artificial intelligence and machine learning that helps the software segment to expand rapidly, architectural systems have a workload that is becoming increasingly complex, and together, software plays an increasingly important role in providing easy integration and adaptability.
Analysis By Application
The commercial segment currently dominates the Building Automation System (BAS) market and is expected to continue to lead during the forecast period Commercial applications, including offices, retail, and public buildings, witnessed high adoption of BAS through increased energy efficiency, improved efficiency, and improve occupant comfort. The dominance of the commercial department comes from companies recognizing the cost savings and sustainable benefits associated with building solutions that are wisely about it. The integration of advanced technologies such as IoT and cloud computing in commercial buildings has further increased the demand for complete BAS.
Meanwhile, the fastest growing segment is expected to be the residential sector. BAS adoption is increasing in the residential market as more homeowners are looking for smart home solutions that offer improved security, energy efficiency, and convenience. The growing trend towards home automation including smart lighting, HVAC (temperature, ventilation, and air conditioning) control, and security systems is driving the residential BAS market. Growing demand for integrated solutions and ease of use, including affordable smart home appliances, and residence in the in-building automation systems market -Contributes to the rapid growth of the segment. As smart home technology becomes mainstream and accessible, it is observed allows the residential sector to grow substantially, albeit from a smaller area compared to the commercial sector.
Global Commercial Building Automation Market By Component
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Building Automation System Market Regional Insights
The North America market accounted for the highest revenue in the global construction systems automation market by 2022. Furthermore, the key players in the region as well as the rising systems are expected to boost the market revenue in this region during the forecast period. For example, in May 2023, Honeywell and Arcadis announced their partnership to provide equipment and services to help address energy efficiency and carbon emissions in commercial buildings around the world, helping companies to jointly accelerate progress towards carbon reduction targets. A range will be delivered, with an initial focus on five projects in different locations around the world.
The Asia Pacific market is expected to register the fastest growth in revenue in the global BAM market during the forecast period. This is due to the need for centralized control and management and technological advancement in countries such as India, China, and Japan. For example, in March 2022, Hitachi Elevator Company Limited, a joint venture of Hitachi Elevator Company Limited, announced the establishment of Siam Motors Group, the sole sales and service company for elevator stairs in Thailand. Through this launch, these companies will offer buildings with physical biometrics, such as facial recognition and QR code recognition pricing, reducing physical contact between individuals, ensuring safe and secure traffic content, and contributing to a safe and comfortable working environment for employees and visitors.
Global Commercial Building Automation Market By Region
- Largest
- Fastest
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Building Automation System Market Dynamics
Drivers
Evolution of wireless protocol and wireless sensor network technologies to build automation systems
- The continuous evolution of wireless protocols and standards presents incredible opportunities for established industry leaders and innovators to leverage this technology and innovate within the construction automation systems ecosystem. This trend has spurred the emergence of many start-ups, offering products and services with many sophisticated and innovative features. Notable wireless protocols such as Z-Wave, ZigBee, and EnOcean have come to the fore in this context. ZigBee for example has turned into a growing ecosystem boasting more than 400 companies, collectively involved in setting standards and developing a broad range of products for smart home applications. Similarly, Z -The Wave protocol covers a minimum of over 1,000 devices. Introducing LoRa as the newest addition to the wireless protocol family, it addresses the demand for low-power solutions in wide area networks (WANs) for IoT products. LoRa technology-driven devices often deliver distances Offers an impressive 10 batteries and boasts impressive battery life with 10 years of production. However, it is important to note that LoRa may not be suitable for applications that require high data rates. Large companies such as IBM Corporation, Cisco Systems, Semtech Corporation, and Multi-Tech Systems are among the manufacturers of LoRa-enabled hardware, further exemplifying the industry’s commitment to adopting innovative wireless solutions.
Restraints
Technical challenges and lack of qualified personnel
- Building system automation plays an important role in reducing the need for human involvement in maintaining and supporting building systems, including lighting, HVSC, and other systems. However, installation of this system requires compliance with specifications and technical standards, from internal organizational requirements to business processes and external factors such as software understanding, network expertise, system configuration, and testing. Internal barriers to successful implementation include inadequate technical knowledge, lack of training to operate complex software and equipment, and the need for professional inspection and maintenance errors on the control system. The technical challenges associated with the installation and maintenance of industrial buildings can severely hamper the expansion of the industrial building market. This challenge is particularly pronounced in industrialized countries developments such as India and Brazil, where the number of skilled specialists is very small.
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Building Automation System Market Competitive Landscape
The global building automation system market is experiencing healthy growth, driven by growing demand for energy-efficient solutions, enhanced occupant comfort, and a rising focus on smart and sustainable buildings. Key players in the market are actively engaged in strategic initiatives such as mergers and acquisitions, partnerships, and product innovations to strengthen their market presence. Additionally, the market is characterized by the emergence of new entrants and technology startups offering specialized solutions, contributing to a competitive landscape marked by continuous advancements in automation technologies, integration of IoT (Internet of Things), and a heightened emphasis on data analytics to optimize building performance. As the industry evolves, competition intensifies, fostering innovation and pushing companies to deliver comprehensive, intelligent building automation solutions tailored to the evolving needs of the global market.
Top Player’s Company Profiles
- Siemens AG
- Johnson Controls International plc
- Schneider Electric SE
- Honeywell International Inc.
- United Technologies Corporation (now part of Raytheon Technologies Corporation)
- ABB Ltd
- Delta Controls
- Crestron Electronics, Inc.
- Legrand
- Trane Technologies plc
- Emerson Electric Co.
- Beckhoff Automation GmbH & Co. KG
- Lutron Electronics Co., Inc.
- Ingersoll Rand Inc. (now part of Trane Technologies plc)
- Carrier Global Corporation
- Distech Controls Inc. (Acuity Brands)
- Automated Logic Corporation (UTC Climate, Controls & Security)
- Control4 Corporation (SnapAV)
- Iconics Inc.
- BuildingIQ Inc.
Recent Developments
- In January 2024, ABB introduced Busch-art linear®, a range of high-quality light switches that can be integrated into building automation systems and offer sustainability and premium design.
- In January 2024, St. Cloud based SCR, Inc. announced its acquisition of MN Controls Solutions, a company that develops and installs software for building control management systems.
- In January 2024, Honeywell launched Advance Control for Buildings, a groundbreaking platform marking one of the company's most substantial leaps in building controls innovation to date.
Building Automation System Key Market Trends
- The Internet is transforming the construction automation industry by reducing energy consumption, providing real-time diagnostics and support systems, and improving security systems based on IoT for construction projects to provide automation, supporting remote construction projects, and reducing operating costs. Internet of Things (IoT)-based building automation systems help maintain equipment such as HVAC, lighting, and other energy systems based on conditions. The automation system provides controlled household appliances, improved safety and security, and continuous monitoring of the electrical equipment connected to the system. According to the International Energy Agency, more than 1 billion homes and 11 billion smart devices will be connected to connected systems by 2040, creating lucrative opportunities for the systems market, and contributing to the market growth of the system.
Building Automation System Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Component types of teams that Collects, Collates, Co-relates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
According to our global building automation system market analyses, the market is witnessing significant expansion globally, driven by the increasing demand for intelligent solutions that enhance intelligence efficiency, occupant comfort, and overall building performance. The increasing trend towards sustainable and intelligent buildings, coupled with the increasing awareness of the benefits of automation, has led to major market growth entrants such as Siemens AG, Johnson Controls International Plc, Schneider Electric SE, Honeywell International Inc., and United Technologies Corporation Strategic partnerships, acquisitions, new product offerings, and media are actively paving the way. This market is characterized by a dynamic competitive environment, with established industry leaders facing competition from start-up companies introducing key technologies. As the industry continues to evolve, BAS solutions that use the Internet (IoT), data analytics, and artificial intelligence are increasingly integrated and emphasize a future shaped by intelligence-connected building ecosystems.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 83.61 billion |
| Market size value in 2031 | USD 202.04 billion |
| Growth Rate | 10.3% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
|
| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Building Automation System Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Building Automation System Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Building Automation System Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Building Automation System Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Building Automation System Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Building Automation System Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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