Building Automation Systems Market Size, Share, Analysis, Growth, Forecasts, 2032

Building Automation Systems Industry Prospective:

The global building automation systems market size was worth around USD 87.65 billion in 2023 and is predicted to grow to around USD 211.53 billion by 2032, with a compound annual growth rate (CAGR) of roughly 10.28% between 2024 and 2032.

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Building Automation Systems Market: Overview

Building automation systems (BAS) refers to the set of technologies used to automate and control commonly used modern solutions in buildings. BAS is used for the management of technologies such as lighting, heating, ventilation, and air conditioning (HVAC), security access & cameras, and alarms. BAS assists in the development of a smart building, which is facilitated by converting all essential systems into a single information technology (IT)-managed infrastructure. Building automation systems rely on controls and sensors for monitoring and adjusting the three main utilities of a building: water & sewer, HVAC, and electricity.

Some common examples of widely used building automation systems include humidity sensors, occupancy sensors for controlling lighting, thermostats for controlling room temperature, and fire or smoke detectors. The evolving characteristics of building utility automation have created a demand for building automation systems. These solutions are designed to help manage issues of soiled operations in the building setup. The growing demand for technologies promoting energy efficiency in commercial and residential buildings is expected to fuel the demand for BAS in the coming years.

In addition to this, favorable government policies may help the market thrive during the forecast period. The high cost and limited awareness associated with BAS will inhibit the building automation systems industry’s overall growth trajectory.

Key Insights:

• As per the analysis shared by our research analyst, the global building automation systems market is estimated to grow annually at a CAGR of around 10.28% over the forecast period (2024-2032)
• In terms of revenue, the global building automation systems market size was valued at around USD 87.65 billion in 2023 and is projected to reach USD 211.53 billion by 2032.
• The building automation systems market is projected to grow at a significant rate due to the urgent need to improve energy efficiency in buildings worldwide.
• Based on application, the commercial segment is growing at a high rate and will continue to dominate the global market, as per industry projections.
• Based on system, the building energy management segment is anticipated to command the largest market share.
• Based on region, North America is projected to dominate the global market during the forecast period.

Building Automation Systems Market: Growth Drivers

Urgent need to improve energy efficiency in buildings worldwide will drive the market demand rate

The global building automation systems market is expected to be driven by the growing need to improve energy efficiency in commercial and residential buildings worldwide. The main benefits of ensuring the optimal use of energy in buildings are reduced environmental impact and lower emissions of harmful gasses or elements.

Since energy-efficient buildings use limited fossil fuels to power several utilities of a building, they contribute to reduced levels of greenhouse gas emissions. The surging construction rate of new buildings, including commercial, residential, and industrial, has also led to an increased demand for consistent energy. This, in turn, has amplified the pressure on the players in the power & energy sector to generate more energy, subsequently exploiting natural reserves and fossil fuels. In addition to this, the growing rate of urbanization, increased demand for high-rise residential spaces, and state-of-the-art commercial facilities have equally contributed to increased energy consumption values.

According to market research, building management can significantly reduce costs related to water, electricity, and maintenance with the use of building automation systems. Governments across the globe are working on deploying new measures that promote the adoption of technologies that facilitate achieving energy efficiency.

Increased investments in smart city projects to create higher revenue in the future

Smart cities are widely dependent on building automation systems for functioning. Smart cities leverage several aspects of BAS to ensure optimal management of building utilities. For instance, the solutions available in the global building automation systems market assist smart cities and smart buildings in following sustainable practices such as waste management, water management, and electricity utilization.

Furthermore, BAS can be integrated with surveillance systems within smart cities or spaces to improve the overall safety of the residents. The surge in the number of smart city projects worldwide will be crucial to the market’s growth rate in the future. For instance, in October 2023, the New York City Office of Technology and Innovation (OTI) in the US announced the launch of the NYC Smart City Testbed Program, focusing on improving the operations of smart city projects in the region.

Building Automation Systems Market: Restraints

Cost constraints and limited awareness affect the overall revenue in the industry

The global building automation systems industry is projected to be restricted due to the existence of several cost constraints. Advanced building automation systems can cost between USD 15 and USD 30 per square foot, which can be expensive for a large number of end-users. In addition to this, awareness of the benefits of building automation systems is largely limited to countries actively seeking energy efficiency-promoting technologies. Furthermore, the absence of a supportive infrastructure facilitating the smooth integration of BAS into existing systems can further impact the final revenue in the industry.

Building Automation Systems Market: Opportunities

Increasing the launch of new solutions with advanced technologies will generate growth opportunities

The global building automation systems market is projected to generate growth opportunities due to the increasing launch of new solutions offering comprehensive features. In September 2024, Johnson Controls, a leading player in the industry for BAS, announced the launch of a new update to its existing solution meant for managing automation systems in institutional, commercial, and residential buildings. The new update Metasys 14.0 is equipped with next-generation analytics tools.

Furthermore, it boasts highly enhanced security features, including a single sign-on capability and a simplified user interface. The system is expected to allow users to multisite and enterprise portfolios to connect to the existing commercial fire & security, lighting, and HVAC systems.

In January 2024, Honeywell, a globally dominant technology firm, announced the launch of Advance Control for Buildings. The cutting-edge platform is expected to emerge as the most prominent solution offered by the company in the building controls innovation segment. The growing demand for Internet of Things-enabled devices, scalable solutions, and edge computing-powered technologies will facilitate long-term growth for the BAS industry.

Building Automation Systems Market: Challenges

Concerns over cybersecurity will challenge the market expansion rate in the future

The global industry for building automation systems is projected to be challenged by concerns over cybersecurity threats. BAS technologies are connected to IoT devices and share information primarily using cloud-based solutions. These aspects make business automation systems highly vulnerable to cyber-crimes that can lead to a serious impact on the safety of building residents and neighboring areas.

Building Automation Systems Market: Report Scope

Building Automation Systems Market: Segmentation

The global building automation systems market is segmented based on application, system, and region.

Based on the application, the global market divisions are government, residential, commercial, and others. In 2023, the highest growth was listed in the commercial segment. In 2023, it dominated nearly 32.02% of the final market share due to the increasing consumption of energy across major commercial centers. For instance, government organizations, entertainment facilities, and supermarkets consume energy on an extremely large scale and, hence, are encouraged by regulatory bodies to deploy technologies that improve energy consumption patterns.

Based on system, the global building automation systems industry segments are building energy management, lighting solutions, HVAC, security & surveillance, and others. In 2023, the highest growth was observed in the building energy management segment. It accounted for nearly 30% of the final revenue. Building energy management systems aim to provide a centralized point of contact for managing energy use in a building. Systems, including occupancy monitoring, temperature management, and weighing tools, are managed by building energy management systems.

Building Automation Systems Market: Regional Analysis

North America is to continue witnessing a higher growth rate during the projection period

The global building automation systems market will be led by North America during the forecast period. Growth in North America is driven by several favorable factors. For instance, the presence of a strict regulatory environment concerning the consumption patterns of energy across building types has been at the forefront of increased regional revenue.

In addition, the majority of residential and commercial buildings across the US and Canada are equipped with HVAC systems controlled by automation tools that ensure the proper functioning of the facilities. The increasing construction of non-residential buildings in the US will further help the regional market in the coming years.

Europe is another prominent market for building automation systems. European countries aim to achieve net zero by 2050, and using BAS can help Europe achieve its vision. According to official records and a regulatory decree in Europe, tertiary buildings in the region are required to use BAS by January 2025 to reduce carbon emissions and improve energy efficiency. Additionally, the presence of major companies delivering exceptionally well-performing BAS can further instigate regional market expansion.

Building Automation Systems Market: Competitive Analysis

The global building automation systems market is led by players like:

• Bosch Building Technologies
• Kieback&Peter GmbH & Co. KG
• Johnson Controls International PLC
• Legrand SA
• Siemens AG
• Carrier Global Corporation
• Honeywell International Inc.
• Delta Controls Inc.
• Trane Technologies plc
• Schneider Electric SE
• Crestron Electronics Inc.
• Emerson Electric Co.
• Tridium Inc.
• ABB Ltd.
• Lutron Electronics Co. Inc.

The global building automation systems market is segmented as follows:

By Application

• Government
• Residential
• Commercial
• Others

By System

• Building Energy Management
• Lighting Solutions
• HVAC
• Security & Surveillance
• Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa