Building Automation Systems Market Snapshot
In a recent market survey, Future Market Insights (FMI) has forecast the global building automation systems market to reach a valuation of US$ 44.6 Bn in 2021.
After countering the initial impacts of COVID-19, the market is poised to grow at a robust 7.8% CAGR through 2031.
Emergence of smart cities and connective technology such as the Industrial Internet of things (IIoT) will continue augmenting market growth, with the U.S., the U.K., Germany, and Japan emerging as top producers during the assessment period.
Key Points Covered in Building Automation Systems Market Survey
- Market estimates and forecast 2021-2031
- Key drivers and restraints impacting market growth
- Segment-wise, Country-wise, and Region-wise Analysis
- Competition Mapping and Benchmarking
- Brand share and Market Share Analysis
- Key Product Innovations and Regulatory Climate
- COVID-19 Impact on Building Automation Systems and how to Navigate
- Recommendation on Key Winning Strategies
Building Automation Systems Market Historic Sales Compared to 2021-2031 Forecast Outlook
Demand for building automation systems (BAS) has been increasing at a steady pace in the past few years, with the market growing at a 5.7% CAGR. Numerous advancements in BAS have propelled its adoption in small and medium-sized buildings in tandem with large buildings, and the trend is anticipated to prevail in the forthcoming years.
In the first quarter of FY'2020, sales of building automation systems witnessed a downturn due to restrictions imposed to contain the coronavirus outbreak. However, with expedited vaccine drives across the world, the market is expected to retain its pre-pandemic status.
As per FMI, the building automation system market exhibited year-over-year growth by 7.0% between 2020 and 2021.
Building automation systems have witnessed tremendous improvements in recent years with the objective of providing optimal safety and comfort to occupants. As traditional technologies such as open protocols are taking a backseat, market players are keen on launching novel connective technologies and systems to facilitate advanced automation metrics.
These factors are indicative of lucrative growth prospects in building automation systems market during the forecast period.
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How are Smart Cities Propelling the Adoption of Building Automation Systems?
The success of smart cities relies on the efficiency of connective technologies and their benefits that streamline operations, maintain a data-driven environment, and the ability to address urban challenges.
Rapid urbanization in various developed and developing economies is providing tailwinds to the adoption of building management systems to create sophisticated smart cities.
Smart cities employ a myriad of technologies to form a robust interconnected infrastructure for the convenience and leisure of occupants. Structural health management, traffic management, emergency alarm systems, and superior energy management are some key features that shape the core of a smart city.
One of the key properties of connective buildings is predictive maintenance. Through building automation systems, constant monitoring and evaluation of asset lifecycle and repair and replacement of individual components can be achieved. Further, losses incurred due to unprecedented shutdowns can be avoided.
BAS also offers efficient energy management in a centralized manner. Connected buildings unify the maintenance and management of heating, cooling, and lighting functions using advanced sensors.
These systems allow temperature control and smart thermostats that can be turned down in the absence of occupants. In addition to temperature control, usage of solar panels also reduces dependency on electricity and fossil fuels, which makes smart cities sustainable infrastructures in the long run.
Considering the interconnected nature of smart buildings, enhanced security systems can be integrated to provide occupants the highest degree of safety and security. Building managers can effectively integrate fire, intrusion, and theft alarm systems that comply with local and state safety guidelines.
Owing to these factors, the application of building automation systems in smart cities will continue gaining momentum, thereby boosting the overall market growth in upcoming years.
Will the Industrial Internet of Things (IIoT) Affect Building Automation Systems Sales?
The inception of highly advanced connective technology has changed the role of building automation systems over time. Increasing applications of internet of things (IoT), artificial intelligence (AI), machine learning (ML), and cloud computing is shifting manufacturers' focus from traditional open protocol connectivity (OPC) to smart computing systems.
The industrial internet of things (IIoT) Is defined as an extension and application of IoT in the industrial and construction sector. With a strong focus on big data, machine-to-machine communication (M2M), and machine learning, IIoT enables end-use industries to derive better efficacy and reliability in operations.
Encompassing robotics, medical devices, software-defined production, and alert systems, IIoT goes way beyond internetworking and connectivity of consumer devices. In addition, the fusion of IIoT and operation technologies offer networking systems such as human-machine interfaces (HMIs), distributed control systems (DCSs), supervisory control and data acquisition (SCADA), and programmable logic controllers (PLCs).
These systems provide industries and building managers with improved system integration regarding automation and optimization, along with better visibility of supply chains and logistics. This in turn has made it easier to monitor and control physical infrastructure in industrial operations including manufacturing, transport, healthcare, and agriculture through remote sensor control.
IIoT plays an integral role in cyber-physical systems and production processes in building automation systems. Real-time data from sensors and other information sources help building managers in 'decision-making' through valuable insights and specific actions.
By leveraging connected and smart devices, enterprises are able to gather and analyze and manage greater amounts of data at greater speeds. This not only enhances scalability and performance but also bridges the gap between offices and production floors.
As these systems facilitate superior automation and comfort of building managers and tenants alike, the incorporating of IIoT in building automation systems will continue gaining momentum in the upcoming years, which in turn will boost building automation systems sales through 2031.
Development of Energy Efficient Buildings to Spur Building Automation Systems Demand
The implementation of building automation components, particularly HVAC systems and renewable energy sources, improves the possibility to increase the energy efficiency quotient of buildings further than intended.
Increasing concerns regarding greenhouse emissions and frequent climatic changes have urged manufacturers to implement BAS to smartly monitor and control electricity consumption in residential and commercial complexes.
By integrating these technologies, it is possible to control the thermal settings of centralized heating and cooling systems, improve thermal storage capabilities and electrical characteristics to meet the electricity grid needs.
Apart from this, building automation systems potentially manage and control water and gas supply, further correcting any inefficiencies and excess waste. Sensors, sub-meters, and alerting systems detect water and gas leakage, facilitate uninterrupted supply and ensure appropriate consumption of electricity to improve decarbonization capabilities.
Moreover, some key areas where BAS can help reduce energy costs are lightings, security and access control, and HVAC. Having greater control over these systems in modern buildings enables facility managers to maximize operational performance and make cost-effective adjustments based on data collected over time.
Alternatively, BAS can help mitigate unprecedented problems in real-time, which in turn creates a more preventive posture in residential and commercial spaces. These solutions can be tailored according to size and capacity of facilities, helping managers and supervisors to control and provide an uninterrupted supply of electricity, water, and gas.
How Will the Building Automation Systems Expand Across the U.S.?
Expansion of the commercial and residential sector in the U.S. is anticipated to emerge as a key growth accelerator in the North America building automation systems market. FMI projects the market to grow at a healthy 7.2% CAGR over the forecast period.
Rapid adoption of technological solutions in industrial and commercial processes will continue driving sales of building automation systems in the U.S. Apart from this, rising concerns regarding excessive energy consumption across various sectors including manufacturing, transport, and corporate are propelling the implementation of building automation systems.
Will the U.K. Market Continue Exhibiting High Growth?
In the U.K., growth of building automation systems market is largely backed by the regulations imposed by the European Union to promote energy efficiency in buildings. In 2018, as a part of the 'Clean Energy for all Europeans' package, the EU set a new target to cut reduce energy consumption by 32.5% by 2031.
As per EU regulations, the overall energy performance of commercial and residential buildings needs to be improved, as 40% of total energy consumption is accounted for by the building sector.
Besides this, building automation systems are paving way into educational institutes and tourist attractions such as museums, art galleries, and amusement parks, where power supply and consumption are controlled by BAS.
Moreover, home networks and entertainment electronics such as safety systems, door closer systems, windows, and blinds ensure increased comfort and convenience in the residential sector, which is significantly boosting the adoption of BAS in modern homes.
Owing to these factors, the European building automation systems market is anticipated to grow at a positive 7.0% CAGR, opines FMI.
Why Will China Emerge as a Lucrative Market?
With increasing concerns regarding environmental pollution, the Chinese government is actively promoting the development of green buildings across the country. However, the concept of building automation systems is relatively new in China, which is allowing market players to expand their footprints and offer novel and sophisticated BAS solutions in the Chinese market.
As per the Chinese National Bureau of Statistics, China has approximately 40 million square meters of green building space, with over 645 million square meters of office and commercial space constructed between 1998 to 2011.
As these spaces have no building control systems installed, there are tremendous opportunities to construct green buildings with advanced building automation systems. Apart from commercial spaces, demand for convenience and comfort among city dwellers is also driving sales of building automation systems.
These factors are indicative of lucrative growth prospects in the building automation systems market in China through 2031.
Sales of BAS Services to Continue Gaining Momentu
In terms of product, BAS services are anticipated to record maximum sales during the forecast period. In comparison with BAS hardware and software, BAS services are widely being preferred by end-users owing to recent developments in BAS technology and robust aftersales services.
Apart from this, players operating in the building automation market are offering attractive packages and deals, along with post-sales assistance in maintenance and installation, which is propelling sales of the same.
Applications of Building Automation Systems in Commercial Sector to Witness Uptick
Based on applications, the commercial sector is anticipated to witness high adoption of building automation systems in the forthcoming years.
Commercial buildings such as hospitals, corporate offices, universities, schools, fitness centers and retail stores require centralized control systems that streamline operations in the absence of supervisors. This factor is a chief growth accelerator in the building automation systems market, finds FMI.
Demand for Security & Surveillance Systems To Remain High
As per FMI’s market survey, security & surveillance systems are projected to dominate the segment. Growth of this segment can be attributed to increasing significance of sensor-based security alarm systems that enable users to remotely access, supervise and manage operations in homes and commercial buildings.
Additionally, with the integration of IoT, it is possible to keep a track of operations through devices such as tablets, mobile phones, and wearables. Along with convenience, these systems are highly sensitive to foreign activity and quickly take necessary actions to alert users and local authorities in cases of theft and fraud.
Top 5 players in the global building automation market include Siemens AG, Honeywell International, ABB, Schneider Electric, and Johnson Controls, plc. As per FMI’s analysis, top 5 players are anticipated to account for 44% of the total market share.
As a part of their growth strategies, leading players operating in the global building automation systems market are emphasizing on product developments, intensive research and development, and strategic collaborations, mergers, and acquisitions to establish a firm foothold in the market. For instance:
- In August 2021, Schneider Electric, a global data center hardware giant, entered an on-demand leasing program hardware deal with American Power Conversion line for uninterruptable power supplies (UPS). The partnership will allow channel partners to offer improved visibility and front-end maintenance across their customers' UPS systems.
- In July 2021, ASM Global, a global leader of entertainment experience, announced a strategic collaboration with Honeywell International, a leader in connected buildings, to create smarter and safer venue operations and more enjoyable audience experiences across ASM’s diverse portfolio.
Scope of Report
Historical Data Available for
USD Million for Value
Key Regions Covered
North America, Latin America, Europe, East Asia, South Asia, Oceania, and the Middle East & Africa
Key Countries Covered
US, Canada, Germany, U.K., France, Italy, Spain, Russia, China, Japan, South Korea, India, Thailand, Malaysia, Indonesia, Australia, New Zealand, GCC Countries, Turkey, Northern Africa, and South Africa
Key Segments Covered
Product Type, System Type, Application Type, and Regions
Key Companies Profiled
Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives
Customization & Pricing
Available upon Request
Key Questions Answered in the Report
What is the current building automation systems market value?
The building automation systems market reached a valuation of US$ 44.6 Bn in 2021.
At what rate did the building automation systems market grow between 2016 and 2020?
The Building Automation Systems market experienced steady growth, exhibiting a 5.7% CAGR between 2016 and 2020.
What are the key trends driving building automation systems sales?
Periodic upgrades and after-sales software updates offered by key market players, coupled with the development of smart cities across various countries are key trends driving building automation systems sales.
Who are the leading players in the building automation systems market?
Leading players operating in the building automation systems market include Siemens AG, Honeywell International, ABB, Schneider Electric, and Johnson Controls, plc.
What will be the demand outlook for North America Building Automation Systems market?
North America Building Automation Systems market is projected to grow at a robust 7.2% CAGR during the forecast period.
What is the market share of leading players in Building Automation Systems market?
Leading players in the global building automation systems market are estimated to account for 44% of the total market share.
What will be the building automation systems market share in Europe?
The building automation systems market in Europe is anticipated to expand at a healthy 7.0% CAGR between 2021 to 2031.
What is the current market share of Japan and South Korea in the global building automation systems market?
Japan and South Korea are anticipated to hold 7% of the global building automation systems market share collectively.
Building Automation Systems Market by Category
By Product Type:
By System Type:
- Security & Surveillance
- Lighting Solutions
- BEMS (Building Energy Management)
By Application Type:
- North America
- Latin America
- South Asia
- East Asia
- Middle East and Africa