Building Automation Systems Market - Size, Share & Industry Trends (2024)

Building Automation and Control System Market is segmented by Component (Hardware, Software, Services), End-User (Residential, Commercial, Industrial), and Geography (North America, Europe, Asia-Pacific, Latin America, and Middle East and Africa). The market sizing and forecasts are provided in terms of value (USD billion) for all the above segments.

Building Automation Systems Market Analysis

The Building Automation Systems Market size is estimated at USD 201.08 billion in 2024, and is expected to reach USD 332.01 billion by 2029, growing at a CAGR of 10.55% during the forecast period (2024-2029).

A building automation system (BAS), also referred to as a building control system or a building management system, is a system that controls several electric, electronic, and mechanical systems throughout a building. The market report tracks the revenue accrued by the companies through the sale of building automation solutions worldwide. Components like building management systems, lighting controls, fire detection, HVAC controls, and security systems are included in the scope of the study and span across end users like residential and commercial.

• The global market for building automation systems has been driven by the increased popularity of the Internet of Things and rising security concerns. According to Cisco's Annual Internet Report, by the next year, nearly 30 billion network-connected devices and connections are expected to exist, increasing from 18.4 billion in 2018. IoT devices are expected to account for 50% (14.7 billion) of all networked devices by 2023, compared to 33% (6.1 billion) in 2018.
• According to the US Department of Energy, buildings are the single largest energy-consuming sector of the US economy. They account for approximately 75% of the nation's electricity use and 40% of its total energy demand. The International Energy Agency states that to hit global net-zero targets, all new buildings and 20% of existing buildings must be zero-carbon as soon as 2030.
• According to a report published in Proceedings of the National Academy of Sciences, in the next 50 years, 30% of the world's estimated population is expected to reside in regions where the average temperature is above 29°C due to climate change-related rapid temperature rise and population expansion. Currently, this climate only exists on less than 1% of the Earth's land surface, mainly in the hottest regions of the Sahara desert. But by 2070, these temperatures are expected to be present across about a fifth of the planet's terrestrial surface.
• With the growth of technology, smart buildings are growing more and more complex, requiring quicker follow-up looks via retro-commissioning. Adding to that, the risks associated with sustained operational integrity are also mounting. Hence, the demand for comprehensive building automation systems is expected to spike. It is very important to establish the necessary communication between the system providers/designers and owners of the buildings to understand the functioning of the building.
• With the COVID-19 outbreak, most commercial and industrial construction projects started at a slower pace, while some were canceled. Production lines at some HVAC manufacturers had to be put on hold for several weeks, and installers saw their new installation projects being limited by sanitary guidelines. However, in European countries such as Italy, AHU sales benefitted from the increased ventilation demand due to COVID-19.

Building Automation Systems Market Trends

This section covers the major market trends shaping the Building Automation Systems Market according to our research experts:

Surge in Demand for HVAC Housing, Owing to Rapid Population Growth

Europe to Hold Significant Market Share with Germany Leading the Region's Growth

Building Automation Systems Industry Overview

The Building Automation Systems Market is fragmented, with major players like Honeywell International Inc., Cisco Systems Inc., Trane Technologies, Lutron Electronics Co. Ltd, and Hubbell Inc. Companies are also increasing their market presence by introducing new products, expanding their operations, or by entering into strategic mergers and acquisitions.

• May 2022: Mitsubishi Electric Trane HVAC US, a leading provider of ductless and ducted mini-split and variable refrigerant flow (VRF) heat-pump and air-conditioning systems, announced the release of Building Connect+, an expanded version of the cloud-based controls and monitoring platform. Building Connect+ is a pre-engineered cloud-based secure control and monitoring platform for controlling and managing CITY MULTI systems and BACnet-enabled third-party devices.
• March 2022 - Hitachi Elevator Co. Ltd, a joint venture company of Hitachi Ltd and Siam Motors Group (the exclusive sales and service company of elevators and escalators in Thailand), announced that it had launched a full-scale Smart Building Solution business for the first time in Thailand and Southeast Asia. This aims to provide value to buildings with physical security system and digital service for the new normal by utilizing teh Lumada IoT platform.

Building Automation Systems Market Leaders

1. Honeywell International Inc.

2. Cisco Systems Inc.

3. Trane Technologies

4. Lutron Electronics Co. Ltd

5. Hubbell Inc.

*Disclaimer: Major Players sorted in no particular order

Building Automation Systems Market Report - Table of Contents

1. 1. INTRODUCTION

   1. 1.1 Study Assumptions and Market Definition

   2. 1.2 Scope of the Study

2. 2. RESEARCH METHODOLOGY

3. 3. EXECUTIVE SUMMARY

4. 4. MARKET INSIGHTS

   1. 4.1 Market Overview

   2. 4.2 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.2.1 Threat of New Entrants

      2. 4.2.2 Bargaining Power of Buyers

      3. 4.2.3 Bargaining Power of Suppliers

      4. 4.2.4 Threat of Substitute Products

      5. 4.2.5 Intensity of Competitive Rivalry

   3. 4.3 Industry Value Chain Analysis

   4. 4.4 Impact of COVID-19 on the Industry

5. 5. MARKET DYNAMICS

   1. 5.1 Market Drivers

      1. 5.1.1 Increasing Demand for Energy and Operational Efficiency, Supported by Government Initiatives

   2. 5.2 Market Challenges

      1. 5.2.1 Absence of Technology Alignment and High Acquisition and Implementation Costs

6. 6. MARKET SEGMENTATION

   1. 6.1 By Component (Market Sizing and Forecast, Trends, and Dynamics)

      1. 6.1.1 Hardware (Controllers and Field Devices)

      2. 6.1.2 Software

      3. 6.1.3 Services

   2. 6.2 By End User (Market Sizing and Forecast, Trends, and Dynamics)

      1. 6.2.1 Residential

         See Also

         Network Automation Market Size & Global Report [2031]

      2. 6.2.2 Commercial

      3. 6.2.3 Industrial

   3. 6.3 By Geography

      1. 6.3.1 North America

      2. 6.3.2 Europe

      3. 6.3.3 Asia Pacific

      4. 6.3.4 Latin America

      5. 6.3.5 Middle East and Africa

7. 7. COMPETITIVE LANDSCAPE

   1. 7.1 Company Profiles

      1. 7.1.1 Honeywell International Inc.

      2. 7.1.2 Cisco Systems Inc.

      3. 7.1.3 Trane Technologies

      4. 7.1.4 Lutron Electronics Co. Ltd

      5. 7.1.5 Hubbell Inc

      6. 7.1.6 United Technologies Corporation

      7. 7.1.7 Hitachi Ltd

      8. 7.1.8 Huawei Technologies Corporation

      9. 7.1.9 Emerson Electric Co.

      10. 7.1.10 Mitsubishi Electric Corporation

   2. *List Not Exhaustive

8. 8. INVESTMENT ANALYSIS

9. 9. FUTURE OF THE MARKET

**Subject to Availability

Building Automation Systems Industry Segmentation

Building automation systems exhibit functions such as control of the building's environment, operating systems depending on the energy demand, and monitoring the system performance, based on which the systems produce sound alerts as required. Moreover, it centrally controls the building's heating, ventilation, and air conditioning (HVAC), electrical, lighting, shading, access control, security systems, and other interrelated systems.

Building automation systems (BASs) or building automation control systems exhibit functions such as control of the building's environment and operating systems (depending on the energy demand) and monitor the system performance, based on which the systems produce sound alerts as required. A BAS has related hardware and software for controlling and monitoring electrical systems, heating, ventilation, air-conditioning (HVAC), lighting control, security, and surveillance in buildings.

The report on the building automation systems market is segmented by component (hardware, software, services), end-user (residential, commercial, industrial), and geography (North America, Europe, Asia-Pacific, Latin America, and Middle East and Africa). The market sizing and forecasts are provided in terms of value (USD billion) for all the above segments.

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Building Automation Systems Industry Report

The building automation system market is witnessing remarkable growth, fueled by the increasing demand for energy efficiency and enhanced security in residential and commercial sectors. The integration of Internet of Things (IoT) technology has led to a surge in interconnected devices, boosting the demand for advanced building automation solutions. These systems, which include HVAC, lighting, and security, play a crucial role in optimizing operations, reducing energy consumption, and ensuring occupant comfort and safety. The market benefits from the integration with renewable energy sources, aligning with the global push for sustainability. Rapid urbanization and heightened awareness of automation benefits in building management are propelling the market forward. Technological advancements, such as wireless protocols and sensor networks, are making these systems more accessible and efficient. Despite challenges like technical complexities and the need for skilled professionals, the building automation system market size is set for significant growth, driven by smart, energy-efficient building trends. For detailed statistics on the market share, size, revenue growth rate, and a forecast outlook, Mordor Intelligence™ Industry Reports offer an in-depth analysis. Access a free report PDF download for a comprehensive market overview and insights into the building automation systems analysis.

• Building Automation Systems Market Size
• Building Automation Systems Market Share
• Building Automation Systems Market Trends
• Building Automation Systems Companies

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