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The Global Building Automation Systems Market, by System (Security & Surveillance, HVAC, Lighting Solutions, Building Energy Management and Others), by Application (Commercial, Residential, Government and Others) and by Region (North America, Europe, Asia Pacific, Latin America, Middle East and Africa) - Global Forecast to 2027”, is expected to be valued at US$ 153.43 billion by 2027, exhibiting a CAGR of 10.0 % during the forecast period (2019-2027), as highlighted in a report published by Coherent Market Insights.

Overview

The building automation system (BAS) is an interlinked, centralized network of software and hardware that monitor and control the environment in commercial, industrial, and institutional facilities. The BAS solutions ensure the operational performance of the building and also the safety and comfort of the occupants. The primary objective is to create an intelligent and efficient building and minimize maintenance cost and energy consumption of the building.  The primary advantages offered by BAS are energy savings, enhanced comfort, and reduced costs. Major applications included in BAS are lighting solutions, HVAC, security & surveillance, building energy management, and others.  

The global building automation systems market was valued US$ 69.64 Bn in 2019 and expected to reach US$ 153.43 Bn by 2027 with CAGR 10.0%.

Market Driver

Building regulatory compliance adoption by increasing number of countries driving the demand for Building Automation Systems is expected to drive growth of the global building automation systems market during the forecast period

Governments of various countries are focused on adopting regulatory policies to reduce wastage energy. Buildings such as residential, commercial, and government account for major energy and resource consumption, which is why strict regulatory policies are expected to by governments of various countries in the near future. Moreover, European countries and Japan already have strict regulatory policies to comply with and this is a growing trend in the U.S. Hence, such regulations are expected to boost the global building automation systems market growth over the forecast period. According to the General Services Administration (GSA) guidelines in the U.S., Building Automation Systems (BAS) are not mandatory for every project, though it is required and considered part of the system of large facilities (above 9,300 gross square meters [100,000 gross square feet]), both in new facilities and major modernization projects.

Market Opportunity

Providing services related to building automation systems offer major growth opportunities for the companies in the same sector

There are major services related to building automation system, which can offer excellent growth opportunity for BAS providers. There are a number of devices connected with each other in building automation systems via Bluetooth, IoT, etc. Moreover, interoperability and compatibility issues are expected to rise, which in turn, is expected to present lucrative growth opportunities for services providers over the forecast period.   

Market Restraint

False perceptions regarding installation costs of BAS are expected to hinder the global building automation systems market growth over the forecast period

There are certain false notions regarding installation costs of building automation systems among end users. Similarly, there is lack of awareness regarding the fact the cost is primarily dependent upon the cost complexity of integrations related to a specific application. Lighting control can save up 30-60% energy while enhancing the lighting quality and minimizing the environmental impact. However, false notion of high installation cost of BAS and low awareness regarding benefits in long-terms are expected to hamper the global building automation systems market growth over the forecast period.  

Market Trends

  1. Federal sector in the U.S. provides lucrative opportunities for building automation solution providers

Previously, in the U.S., BAS providers were focused on universities, schools, municipalities, and hospitals verticals, which offered a steady source of revenue in the recent past. However, building automation system providers are now focused on providing solutions to the federal or government sector. For instance, in 2011, the U.S. President Mr. Barack Obama initiated federal government’s Better Buildings Initiative, in which US$ 2 billion was allocated for energy efficiency for the period 2011–2016, and the energy performance contracting model was largely used.

  1. Numerous European countries are focused on removing obstacles for energy service companies to work for energy saving projects

Earlier, energy service companies (ESCO) were facing major obstacles to invest in the public sector from public department rules and evaluation criteria. However, according to the European Commission’s report published in 2010, significant achievements have been achieved in some countries from 2005 onwards, with regard to removing the barriers to invest in public sector. In many European countries, local authorities can retain profits generated from energy savings projects, which has a significant impact on their ability to enter into contractual arrangements with energy saving companies. For instance, in Spain, procedures were not adapted for long-term service contracts, though with the advent of new laws in October 2007, public contracts for ESCO companies are limited to 20 years. Moreover, in August 2007, new Energy Efficiency Agreement was implemented in Finland. As a result of this, municipalities started using ESCO services while making the investment for the purchase of energy-efficient systems and devices.

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 players in the market are focused on mergers and acquisitions, in order to gain competitive edge in the market. For instance, in November 2019, Johnson Controls acquired EasyIO Building and Energy Management System (BEMS) product line.
  2. Major market players are involved in collaborations and partnerships, in order to enhance their market presence. For instance, in April 2019, Cisco Digital Building Solutions, a subsidiary of Cisco Systems Inc., collaborated with Wipro Lighting to provide sophisticated services with cost saving and environmental benefits, which will include smart lighting solutions for modern workplaces.

Segmentation

Market Taxonomy:

  1. By System
  • Security & Surveillance
  • HVAC
  • Lighting Solutions
  • Building Energy Management
  • Others
  1. By Application
  • Commercial
  • Residential
  • Government
  • Others
  1. By Region
  • North America
  • Latin America
  • Asia Pacific
  • Europe
  • Middle East & Africa
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