Building Automation System Market, By System (Security and Surveillance, HVAC, Lighting Solutions, Building Energy Management, Others), By Application (Commercial, Residential, Government, Others), By Region - Global Analysis Forecast Till 2030

The Building Automation System Market was worth USD 68.12 billion in 2021 and is expected to be worth USD 165.25 billion by 2030, growing at a CAGR of 11.16% from 2022 to 2030.

A building automation system (BAS) is a software and hardware-based intelligent system that connects heating, lighting, security, venting and air conditioning (HVAC), and other systems to communicate on a single platform. Building automation systems are interconnected, centralized networks capable of monitoring and controlling the environment in commercial, industrial, and institutional buildings. The primary goal is to create an intelligent and efficient building while lowering the facility's energy and maintenance costs. A building controlled by BAS is commonly referred to as an intelligent building, smart building, or smart home. Building Automation, when combined with sensors and other automation technologies, can potentially eliminate the need for human intervention or control over various systems.

Market Dynamics

Drivers

The construction industry is one of the most energy-intensive, accounting for more than one-third of global energy consumption. It contributes significantly to carbon dioxide (CO2) emissions.

According to the International Energy Agency (IEA), energy use in buildings accounts for up to 80% of total energy consumption in certain regions that rely heavily on traditional biomass. The growing emphasis on reducing energy consumption and building maintenance costs drives up demand for building automation systems. Building automation systems are crucial in optimizing energy usage and lowering energy costs. HVAC and lighting control systems use the most energy. According to the IEA, air heating and cooling and water heating currently account for around 60% of global energy consumption in buildings. As a result, they represent a significant opportunity to reduce building energy consumption. Building automation systems can also help automate HVAC and lighting systems, saving a significant percentage of a building's total energy consumption. Furthermore, building automation systems contribute to lower overall building maintenance costs by providing building operators with early detection of operational issues.

Restraints

Building automation systems requires trained professionals skilled in installation, monitoring, and maintenance. In addition, consumers are asking questions about the long-term viability of the systems, which is expected to affect the building automation system market. Uncertainties in controlling various processes also arise from issues such as managing a large number of devices and applications with different functionalities. These issues are expected to restrain building automation system market expansion in the near future.

Key players:

• Siemens AG

• Honeywell International Inc.

• Johnson Controls International plc

• ABB Group

• Schneider Electric SE

• Mitsubishi Electric Corporation

• Robert Bosch GmbH

• Trane Technologies plc

• Rockwell Automation Inc.

Market Segmentation:

By System

• Security and Surveillance

• HVAC

• Lighting Solutions

• Building Energy Management

• Others

By Application 

• Commercial

• Residential

• Government

• Others

By Region

• North America

• Latin America

• Europe

• Asia Pacific

• Middle East & Africa

Regional Analysis:

North America dominated the global building automation system market in 2021, with an estimated revenue share of over XX%. This is due primarily to technological advancements, stringent energy efficiency policies and regulations, and the rapid adoption of building automation. Furthermore, rising facility management costs in government buildings contribute to the region's adoption of these solutions.

Building automation systems are expected to be in high demand in Europe in the coming years. The key reason for the region's high growth rate is government initiatives and support for smart and energy-efficient infrastructure.

During the forecast period, APAC is expected to grow fastest in the building automation system market. The key drivers for the regional market are rising security concerns and the growing demand for integrated security systems. As the number of smart building solution providers has grown significantly and smart building technologies have become more affordable, the operational costs for the proper operation of a smart building project have steadily decreased in recent years.

Scope of the Report:

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