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building automation system market

Building Automation System Market Share, Size, Trends, Industry Analysis Report, By Product; Network; End-Use; By Region; Segment Forecast, 2022 - 2030

  • Published Date: Nov 2022
  • Pages: 117
  • Format: PDF
  • Report ID: PM2852
  • Base Year: 2021
  • Historical Data: 2018-2020

Report Summary

The global building automation system market was valued at USD 78.8 billion in 2021 and is expected to grow at a CAGR of 11.3% during the forecast period.

Rising demand for sophisticated energy-efficient interventions, expanding building automation system deployment, and increasing user experience demand are the key factors driving the building automation and controls market.

Building Automation System Market Size
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Building automation is an intelligent hardware/software system that keeps the building automated and gives authorized users security. Mostly, it is used in large projects with complex HVAC (Heating, Ventilation, and Air Conditioning), mechanical, and electrical systems. It aids in lowering the building's energy usage. It has services and instruments for disaster management, and it aids in preventing accidents like fire hazards. This system is a controlled system used to take care of gadgets made for controlling and monitoring building systems.

Building automation systems (BAS) are centralized networks with interconnected nodes that can check and regulate the environment in institutional, industrial, and commercial buildings. The major goal is to design an intelligent and efficient structure and lower the facility's energy and maintenance costs. A BAS-controlled form is typically called an intelligent building, smart building, or bright house. BAS can replace the need for human intervention or control over multiple systems when used in conjunction with sensors and other automation technologies.

Multiple concerns were caused by the COVID-19's impact on the global market, which led to enormous financial losses as numerous businesses all around the world came to a halt. Demand for building automation eventually fell as a result of supply chain interruptions and economic slowdowns in many countries. Most construction projects were put on hold as a result of the virus's spread. The decline in building activity harmed the market because automation systems are heavily used in the construction industry.

Additionally, the real estate market in many countries in Europe, North America, and Asia-Pacific suffered tremendously as a result of lockdowns, material shortages, and regulatory changes.

These regions are the largest users of BAS; hence it affected the growth of the global market. For example, due to a lack of labor, workers, and raw materials in the construction and manufacturing area, some projects have been delayed or abandoned because of the spread of the deadly virus.

Industry Dynamics

Growth Drivers
One of the biggest energy consumers, the building industry typically makes up more than one-third of all energy used globally. It contributes significantly to CO2 emissions. The international energy agency (IEA) estimates that up to 80% of the total energy consumed in some places that rely heavily on traditional biomass is used for building. Buildings are utilizing more electrical systems, which results in higher energy use and CO2 emissions. Thus, it is essential to use energy efficiently and sustainably.

A growing emphasis on lowering buildings' energy use and maintenance costs is driving the demand for building automation systems (BAS). BAS is crucial for maximizing energy efficiency and reducing energy expenses. Systems for controlling lighting and HVAC use the most energy. According to the IEA, buildings currently operate over 60% of the world's energy for heating and cooling the air and heating water. Consequently, they give a significant chance to lower a building's energy usage. BAS also helps to reduce the overall cost of building maintenance by giving building managers early equipment operational issue diagnosis. As a result, it drives the growth of the global market.

Report Segmentation

The market is primarily segmented based on product, network, end-use and region.

By Product

By Network

By End Use

By Region

  • HVAC
  • Facility Management System
  • Security and Surveillance System
  • Fire Protection System
  • Lightening Control System
  • Wireless
  • Wired
  • Commercial
  • Industrial
  • Residential
  • North America (U.S., Canada)
  • Europe (France, Germany, UK, Italy, Netherlands, Spain, Russia)
  • Asia Pacific (Japan, China, India, Malaysia, Indonesia, South Korea)
  • Latin America (Brazil, Mexico, Argentina)
  • Middle East & Africa (Saudi Arabia, UAE, Israel, South Africa)

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The security and surveillance system segment is expected to witness the fastest growth

The security and surveillance sector is anticipated to contribute the greatest market share during the projection period. These solutions improve the safety and security of structures. The need for security and surveillance systems has increased as a result of the need for higher security levels, activity monitoring, and access control. The commercial use of these systems in offices, shops, schools, and hospitals is most responsible for the segment's growth in the global market. The significant adoption of various products, including access control and video surveillance systems, in homes, businesses, government buildings, and financial institutions is the reason for the rise of the segment.

Wired Network accounted for the largest market share in 2021

Wired Networks will hold the highest market share in 2021. This is due to the mobility and lower cost of the wireless network in the building automation system. Moreover, it can be easily installed in existing buildings. Wireless networks are reliable because of the users' use of different security algorithms. Also, wireless networks can be used for agriculture, healthcare, surveillance, and industries. These are the reasons for the growth of the global market.

The commercial segment is expected to hold a significant revenue share.

The commercial category had the biggest revenue share in 2021. Approximately 30% of the energy consumed in commercial buildings is lost. It can be reduced by using a building automation system to control a building's lighting, appliances, heating and cooling, and other energy requirements to improve labor productivity and energy efficiency. To reduce the costs related to building management, commercial buildings such as restaurants, libraries, office buildings, supermarkets, museums, shopping malls, hospitals, warehouses, nursing homes, colleges, and schools are using these solutions. To save costs and boost productivity, governments and private businesses are putting more emphasis on integrating building automation technologies.

In 2021, the residential segment will dominate the global market, as it helps to minimize the risk of thieves in houses, increasing its demand globally. Additionally, this sector dominates the market with the rising use of smartphones in controlling building automation systems and rising consumer demand for managing and connectivity safety.

The APAC region is expected to witness significant growth

The global market is expected to witness the highest CAGR in the forecast period in the APAC region. Due to the region's growing adoption of the Internet of Things (IoT) and advanced technologies in commercial buildings and the industrial sector, building automation systems are increasingly in demand. Cities in China and India are luring investors in industrial expansion by offering the perfect medley of reasonably priced land, excellent infrastructure, and a sizable labor pool.

Competitive Insight

Some of the major players operating in the global market include Honeywell International, Cisco Systems, Trane Technologies, Lutron Electronics, Hubbell, Beijer Electronics, ABB, Siemens, Johnson Controls, Schneider Electric, General Electric, Legrand, Lutron Electronics, Control4 Corporation, Creston Electronics, Delta Controls, Lennox International and Rockwell Automation.

Recent Developments

In June 2022, the partnership between Siemens & NVIDIA to enable industry-based metaverse and to expand the use of digital twin technologies, to help advance industrial automation.

In June 2022, Siemens introduced “Siemens Xcelerator” It aims to transform digital transformation & to add value to all sizes in the buildings, businesses, grids, and transportation sectors. Siemens Xcelerator comprises a growing community of partners, a developing marketplace, and a selected portfolio of IoT-enabled software, hardware, and digital services between Siemens and third parties.

In Aug. 2021, Schneider Electric, a major provider of data center hardware, and American Power Conversion Line entered an on-demand leasing program hardware agreement for uninterruptible power supplies. Through the cooperation, channel partners can provide better visibility and front-end maintenance for the UPS systems of its clients.

Building Automation System Market Report Scope

Report Attributes

Details

Market size value in 2022

USD 86.8 billion

Revenue forecast in 2030

USD 204.2 billion

CAGR

11.3% from 2022 - 2030

Base year

2021

Historical data

2018 - 2020

Forecast period

2022 - 2030

Quantitative units

Revenue in USD billion and CAGR from 2022 to 2030

Segments Covered

By Product, By Network, By End-Use, By Region

Regional scope

North America, Europe, Asia Pacific, Latin America; Middle East & Africa

Key Companies

Honeywell International, Cisco Systems, Trane Technologies, Lutron Electronics, Hubbell Inc, Beijer Electronics, ABB, Siemens AG, Johnson Controls, Schneider Electric, General Electric, Legrand, Lutron Electronics, Control4 Corporation, Creston Electronics, Delta Controls, Lennox International and Rockwell Automation.

Key Take-Away
Polaris Market Research
Building Automation System Market Size & Share Global Analysis Report, 2022-2030