Impact Analysis of Covid-19

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Market Insight- Global Building Automation Systems Market

Market Overview

A building automation system (BAS) is an intelligent system comprised of software and hardware, connecting heating, lighting security, venting and air conditioning system (HVAC), and other systems to communicate on a single platform. Building automation systems are interlinked, centralized networks that can monitor and control the environment in commercial, industrial, and institutional facilities. The primary aim is to create an intelligent and efficient building and reduce energy and maintenance cost of the facility. Generally, a building controlled by BAS is referred to as an intelligent building or smart building or a smart home. When combined with sensors and other automation technologies, BAS can eliminate the requirement for human interference or control over various systems.

The global building automation systems market was valued US$ 69.64 Bn in 2019 and expected to reach US$ 153.43 Bn by 2027.

Market Dynamics- Drivers

  1. Increasing demand for building automation system solutions, in order to reduce energy consumption is expected to drive growth of the global building automation systems market during the forecast period

According to the United Nations Environment Programme (UNEP), buildings such as residential, government, commercial, and others utilize around 40% of energy generated worldwide, while commercial and residential buildings utilize  around 60% of the global electricity and uncontrolled building operations resulting unnecessary energy wastage of between 10% and 25%. In such cases, BAS help in reducing these numbers, which in turn, is expected to support the market growth. Furthermore, building automation systems offer improved monitoring and control over numerous applications, thereby providing cost saving and optimization of energy consumption. According to the U.S. Department of Energy report, Building Automation Systems (BAS) can aid in annual energy savings ranging between 2% and 26%, with a median saving of 15%. In terms of cost, BAS solutions can aid with a median saving of US$ 0.12 /sq. ft. annually.

  1. Increasing security threat and growing demand for integrated security solutions are expected to propel the global building automation systems market growth over the forecast period

Increasing security concerns and rising demand for integrated security and monitoring solutions are expected to boost the global building automation systems market growth over the forecast period. Among all the segments, security & access controls holds the majority revenue share in the global building automation market. These solutions are safety-critical (e.g. fire or social alarm systems) and security-critical (e.g. intrusion alarm or access control systems) services.

North America region dominated the global building automation systems market in 2019, accounting for 42.0% share in terms of value, followed by Europe and Asia Pacific, Middle East and Latin America respectively.

Building Automation Systems  | Coherent Market Insights

Source: Coherent Market Insights

Market Dynamics- Restraints

  1. High initial cost and complications involved in implementation is expected to restrain growth of the global building automation systems market over the forecast period

Initial investment required for installation of building automation system combined with a long cost recovery periods are major factors hampering adoption of BAS solutions. The initial cost of installation is very high and may not be feasible for small-size buildings and stores. Moreover, implementation involves interoperability between software, hardware, networking devices, databases and others, which is quite a complex and resource consuming process. Hence, these factors are expected to restrain the global building automation market growth in the near future.

  1. Lack of skilled labors is expected to hinder the global automation system market growth during the forecast period

Installation, monitoring, and management of building automation system requires skilled professional, which are very rare to find. Moreover, there are uncertainties regarding long-term returns from system among users, which in turn, is expected to the demand for BAS. Moreover, challenges such as management of a number of devices and applications providing various functionalities have resulted in ambiguity about supervisions of different functions. Therefore, these factors are expected to hamper the market growth in the near future.

Market Opportunities

  1. Increasing adoption of building automation system hotels is expected to present significant growth opportunities

Hospitality sector has witness increasing adoption of building automation systems, especially those establishments that are seeking to differentiate themselves from competitors and focusing on building higher international, best-of-class hotels. Many vendors are offering wireless technologies to address vital issues of increasing energy costs in the hospitality sector. Although adoption of BAS in hospitality sector is in nascent stage, it is expected to gain traction with increasing awareness and regulations adopted by respective governments to mandate implementation of these solutions.

  1. Suitable government initiatives and incentives are expected to provide lucrative business opportunities

Governments of various countries are offering lucrative incentives to industries for adopting business automation systems. Since business automation system saves cost and reduces energy consumption, the government is encouraging various industries to adopt these system. Moreover, proactive initiatives by government agencies to promote the adoption of BAS solutions are expected to provide major growth opportunities for market players during the forecast period.

Building Automation Systems  | Coherent Market Insights

Source: Coherent Market Insights

Market Trends

  1. Integration of security monitoring solutions with other building automation modules to provide single-point control systems

Previously, security monitoring solutions used function independently on a separate network, which was not cost-effective and efficient model to operate a building. However, security monitoring solutions are now being integrated with traditional building automation systems. Furthermore, integration of security solutions will offer additional benefits such as sophisticated management, cost reduction, enhanced communication among building management modules, and reduction in incident response time. This trend is expected to continue during the forecast period.

  1. Technological advancements in HVAC segment expected to introduce advanced energy saving solutions for building automation systems

According to the U.S. Department of Energy, HVAC consumes 35% of the total building energy, which is why companies providing energy consumption solutions needs to focus on HVAC segment offering products including ACs, heat pumps, chilled water systems, heat pumps, building pressure systems etc. Furthermore, in the near future, companies offering HVAC are expected to focus on full open network communications between controllers, distributed high intelligence of all components, and technological advancement in energy optimization.

Segment information:

In global building automation systems market, by Application, the commercial, sub-segment dominated the global market in 2019, accounting for 46.5% share in terms of value, followed by residential, government and others respectively.

Building Automation Systems  | Coherent Market Insights

Value Chain Analysis

Building Automation Systems  | Coherent Market Insights

Competitive Section

Key players operating in the global building automation systems market are Johnson Controls, Inc., United Technologies Corporation, Cisco Systems Inc., Honeywell International Inc., Legrand SA, Siemens AG, Schneider Electric SE, Ingersoll-Rand plc, Bosch Security Systems, Philips Lighting Holding B.V., General Electric Company, Lennox International Inc., and Rheem Manufacturing Company.

Key Developments

  1. Key companies in the market are focused on product launches, in order to gain competitive edge in the market. For instance, in November 2017, Johnson Controls, Inc. introduced BCPro, the smart building automation system (BAS) designed for conventional commercial buildings.
  2. Major players in the market are involved in capacity expansion, in order to enhance their market presence. For instance, in April 2018, United Technologies Corporation inaugurated new UTC Center for Intelligent Buildings, which is a state-of-the-art innovation and technology experience center.

The building automation system (BAS) is an interlinked intelligent system of both software and hardware combined. This system is used to monitor and control heating arrangement, venting and air conditioning system (HVAC), lighting, security, and other systems. The single platform is used to communicate in between all these services. Generally, a building controlled by BAS is referred to as an intelligent building or smart building or a smart home. The primary aim to use to use BAS in buildings are energy savings, enhanced comfort, and reduced costs. The building automation system (BAS) are used in Commercial, Residential, Government and many other applications.

Market Dynamics

The internet penetration among the peoples life is on rise, making human more dependable on technology for daily use. The ability of building automation system (BAS) to control the home devices on single platform using internet is fueling the growth of the global building automation technology. For instance, according to coherent market insights analysis, In India there was around 500 Millions of internet users in 2018 and it is expected to reach around 570 Million in 2020.

As building automation system (BAS) is new technology, to attract more customer builders and project developers are providing houses, offices equipped with building automation system (BAS). This way project developers are able remain comparative in the construction market.  For instance, according to coherent market insights analysis, In Japan, the building automation system (BAS) market is expected to reach around 5 Billion in 2027 from 2.7 in 2019. The BAS is  majority of the adoption is in new construction. The adoption of BAS in new construction is expected to drive the global building automation system (BAS) market in the forecast period.

Market Taxonomy

This report segments the global building automation systems market on the basis of system, application and region. On the basis of system, global building automation systems market is segmented into security & surveillance, HVAC, lighting solutions, building energy management and others. On the basis of application, the global building automation systems market is segmented into commercial, residential, government, others. On the basis of region, global building automation systems market is segmented into North America, Latin America, Europe, Asia pacific, Middle East and Africa.

Key features of the study:

  • This report provides an in-depth analysis of the global building automation systems market and provides market size (US$ Billion) and compound annual growth rate (CAGR %) for the forecast period (2019-2027), considering 2018 as the base year
  • It elucidates potential revenue opportunities across different segments and explains attractive investment proposition matrix for this market
  • This study also provides key insights about market drivers, restraints, opportunities, new product launches or approval, regional outlook, and competitive strategy adopted by leading players
  • It profiles leading players in the global building automation systems market based on the following parameters – regulatory landscape, company overview, financial performance, product portfolio, geographical presence, distribution strategies, key developments and strategies, and future plans
  • Key companies covered in the global building automation systems market includes Johnson Controls, Inc., United Technologies Corporation, Cisco Systems Inc., Honeywell International Inc., Legrand SA, Siemens AG, Schneider Electric SE, Ingersoll-Rand plc., Bosch Security Systems, Philips Lighting Holding B.V., General Electric Company, Lennox International Inc., and Rheem Manufacturing Company.
  • These key market players are focusing on collaboration strategy with other market leaders to innovate and launch new products to meet the increasing needs and requirements of consumers.
  • Insights from this report would allow marketers and management authorities of companies to make informed decision regarding future product launches, technology upgradation, market expansion, and marketing tactics
  • The global building automation systems market report caters to various stakeholders in this industry including investors, suppliers, distributors, new entrants, and financial analysts
  • Stakeholders would have ease in decision-making through the various strategy matrices used in analyzing the global building automation systems market.

Detailed Segmentation:

  • Global Building Automation Systems Market, By System:
    • Security & Surveillance
    • HVAC
    • Lighting Solutions
    • Building Energy Management
    • Others
  • Global Building Automation Systems Market, By Application:
    • Commercial
    • Residential
    • Government
    • Others
  • Global Building Automation Systems Market, By Region:
    • North America
    • Europe
    • Asia Pacific
    • Latin America
    • Middle East and Africa
  • Company Profiles
    • Johnson Controls, Inc.*
      • Company Overview
      • Product Portfolio
      • Financial Performance
      • Key Strategies
      • Recent Developments
      • Future Plans
    • United Technologies Corporation
    • Cisco Systems Inc.
    • Honeywell International Inc.
    • Legrand SA
    • Siemens AG
    • Schneider Electric SE.
    • Ingersoll-Rand plc.
    • Bosch Security Systems
    • Philips Lighting Holding B.V.
    • General Electric Company
    • Lennox International Inc.
    • Rheem Manufacturing Company

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Table of Contents

  1. Research Objectives and Assumptions
    • Research Objectives
    • Assumptions
    • Abbreviations
  2. Market Purview
    • Report Description
      • Market Definition and Scope
    • Executive Summary
      • Market Snippet, By System
      • Market Snippet, By Application
      • Market Snippet, By Region
    • Coherent Opportunity Map (COM)
  3. Market Dynamics, Regulations, and Trends Analysis
    • Market Dynamics
      • Drivers
      • Restraints
      • Market Opportunities
    • Regulatory Scenario
    • Industry Trend
    • Merger and Acquisitions
    • New system Launch/Approvals
  4. Global Building Automation Systems Market, By System, 2017-2027 (US$ Billion)
    • Introduction
      • Market Share Analysis, 2017 and 2027 (%)
      • Segment Trends
    • Security & Surveillance
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Billion)
    • HVAC
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Billion)
    • Lighting Solutions
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Billion)
    • Building Energy Management
      • Introduction
      • Market Size and Forecast, 2019–2027
    • Others
      • Introduction
      • Market Size and Forecast, 2019–2027
  5. Global Building Automation Systems Market, By Application, 2017-2027 (US$ Billion)
    • Introduction
      • Market Share Analysis, 2017 and 2027 (%)
      • Segment Trends
    • Commercial
      • Market Share Analysis, 2017 and 2027 (%)
      • Segment Trends
    • Residential
      • Market Share Analysis, 2017 and 2027 (%)
      • Segment Trends
    • Government
      • Market Share Analysis, 2017 and 2027 (%)
      • Segment Trends
    • Others
      • Market Share Analysis, 2017 and 2027 (%)
      • Segment Trends
  6. Global Building Automation Systems Market, By Region, 2017-2027  (US$ Billion)
    • Introduction
      • Market Share Analysis, By Region, 2017 and 2027 (%)
    • North America
      • Regional Trends
      • Market Size and Forecast, By System, 2019–2027 (US$ Billion)
      • Market Size and Forecast, By Application, 2019–2027 (US$ Billion)
      • Market Share Analysis, By Country, 2019 and 2027 (%)
        • U.S.
        • Canada
    • Europe
      • Regional Trends
      • Market Size and Forecast, By System, 2019–2027 (US$ Billion)
      • Market Size and Forecast, By Application, 2019–2027 (US$ Billion)
      • Market Share Analysis, By Country, 2019 and 2027 (%)
        • U.K.
        • Germany
        • Italy
        • France
        • Russia
        • Rest of Europe
    • Asia Pacific
      • Regional Trends
      • Market Size and Forecast, By System, 2019–2027 (US$ Billion)
      • Market Size and Forecast, By Application, 2019–2027 (US$ Billion)
      • Market Share Analysis, By Country, 2019 and 2027 (%)
        • China
        • India
        • Japan
        • ASEAN
        • Australia
        • South Korea
        • Rest of Asia Pacific
    • Latin America
      • Regional Trends
      • Market Size and Forecast, By System, 2019–2027 (US$ Billion)
      • Market Size and Forecast, By Application, 2019–2027 (US$ Billion)
      • Market Share Analysis, By Country, 2019 and 2027 (%)
        • Brazil
        • Argentina
        • Mexico
        • Rest of Latin America
    • Middle East and Africa
      • Regional Trends
      • Market Size and Forecast, By System, 2019–2027 (US$ Billion)
      • Market Size and Forecast, By Application, 2019–2027 (US$ Billion)
      • Market Share Analysis, By Country, 2019 and 2027 (%)
        • GCC Countries
        • South Africa
        • Rest of the Middle East and Africa
  7. Competitive Landscape
    • Company Profiles
      • Johnson Controls, Inc.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • United Technologies Corporation
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Cisco Systems Inc.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Honeywell International Inc.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Legrand SA
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Siemens AG
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Schneider Electric SE, Ingersoll-Rand plc.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Bosch Security Systems
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Philips Lighting Holding B.V.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • General Electric Company
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Lennox International Inc.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Rheem Manufacturing Company.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
  8. Section
    • References
    • Research Methodology
    • About us and Sales Contact

*Browse XX market data tables and XX figures on “Global Building Automation Systems Market-forecast to 2027”.

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