| Study Period | 2019 - 2030 |
| 2024 Market Size | USD 101.3 Billion |
| 2025 Market Size | USD 115.3 Billion |
| 2030 Forecast | USD 220.7 Billion |
| Growth Rate (CAGR) | 13.9% |
| Largest Region | North America |
| Fastest Growing Region | Asia-Pacific |
| Nature of the Market | Consolidated |
| Largest End User Category | Commercial |
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The global building automation system market size accounts for USD 101.3 billion in 2024, and it is expected to garner USD 220.7 billion by 2030, advancing with a CAGR of 13.9% during 2025–2030. The growing demand for energy-efficient buildings, lower operating and maintenance costs, better indoor air quality, managed home automation services, and advancements in communications, sensors, analytics, and touch-screen technology drive the market forward.
Moreover, the growing security & access control needs and the rising importance of predictive analytics in optimizing building HVAC management are driving the market growth. The growing demand for these services in the hospitality, tourism, and construction sectors is driving the market globally. Furthermore, the government support and initiatives for the development of smart cities and business hubs would create a high requirement for facility management services, thus propelling the demand for building automation solutions.
In this regard, economic development, propelled by urbanization, is a key factor for the growth of the market, as infrastructure development in metropolitan cities would make facility management services important. Additionally, the development of special economic zones (SEZs) and mega food parks is likely to aid the growth of the industry during the forecast period.
The International Energy Agency implemented the General Code for Building Energy Efficiency and Renewable Energy Utilization in 2022. This code mandates energy efficiency practices in all new and renovated buildings. Its goal is to promote a reduction in carbon emissions from buildings by nearly 40% compared to 2016 standards and lessen release by over 7 kg of CO2e per square meter per year.
Security & access control systems are the largest category in the market. This is mainly because security access systems simplify handling employee credentials, entrance security, and tracking, thus securing industrial, commercial, and residential premises. Access control is a data security process that allows organizations to control who has access to corporate data and resources. Access control is a way to grant or deny permission to enter or exit a building, zone, or room, based on the presentation of a pre-defined credential to a reader.
An access control system typically includes locked gates, doors, or barriers that can be opened using identity authentication methods, such as radiofrequency identification (RFID) access cards, pin codes, face recognition, fingerprints, or smartphones, to allow entry to a building or certain area.
The facility management systems category is projected to witness the highest CAGR in the building automation system market, of 14.0%, during the forecast period. The major applications of energy in buildings are HVAC (around 35%), lighting (more than 10%), and other appliances (water heating, refrigerators, and freezers, dryers [around 18%]), with the remaining 36% of the electricity consumed in mixed areas, including electronics and security & access control. These energy expenses can be reduced by implementing facility management systems, which improve efficiency and overall control over various building systems. Furthermore, the growing number of corporate offices, shopping malls, and retail stores has led to an increase in the demand for these systems.
The offerings analyzed here are:
In 2024, the commercial category accounts for the largest revenue share, of around 70%. According to a government organization, around 30% of the energy used in commercial buildings is wasted, and it can be saved by the use of BAS, as these systems can regulate a building’s heating and cooling, lighting, appliances, and other energy needs, to maximize energy efficiency and worker productivity. Hence, commercial buildings, including shopping malls, supermarkets, warehouses, restaurants, office buildings, colleges, schools, libraries, museums, hospitals, and nursing homes, are adopting these solutions to cut the costs associated with building management.
This is why governments as well as private companies are focusing on integrating building automation systems to save costs and improve efficiency. Moreover, they are investing in the construction of sustainable green buildings, thus further propelling the category’s foothold in the industry.
The residential category is expected to grow with the highest growth rate during 2024–2030 owing to the increasing application of these solutions in residential spaces, the growing usage of smartphone applications for controlling BASs, and the surging need of consumers for the convenience of controlling building appliances and connectivity safety. Additionally, people are now more aware of their energy consumption and security and want to improve their lifestyles. Furthermore, the penetration of these systems in residential settings for security needs is gaining traction, as crime rates across the world are rising. Thus, people are deploying these solutions in place of conventional security systems, such as guards and physical body checks.
The end users analyzed here are:
Wired technology dominated the market in 2024. Because wired systems are dedicated to specific tasks, their performance is generally better than wireless systems. Further, system latency is significantly reduced, thus allowing for the seamless operation of many circuits, particularly while executing complex processes involving multiple circuits or devices.
The wireless category is expected to advance at a higher CAGR, of around 15.0%, during the forecast period, as wireless systems are easy to install and use and provide greater flexibility and control compared to wired ones. Furthermore, major companies are involved in the development of wireless sensors, controllers, and devices to remotely operate these systems.
The technology analyzed here are:
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The global market is dominated by North America, with an estimated revenue share of more than 40%, in 2024. This is primarily attributed to technological advancements, stringent energy efficiency policies and regulations, and quick adoption of building automation. In addition, the rising expenditure for facility management in government buildings is contributing to the adoption of these solutions in the region.
Europe is also expected to witness a significant demand for building automation systems in the coming years. Government initiatives and support for smart and energy-efficient infrastructure are the key reasons behind the high growth rate of the market in the region. The European Union introduced the Energy Performance of Buildings Directive (EPBD) and Energy Efficiency Directive (EED), to make mandatory changes to country-level building codes. These laws were primarily made to reduce the energy consumption of buildings, promote the use of smart technologies in buildings, and streamline the existing regulations regarding these buildings.
APAC is expected to witness the fastest growth in the building automation system market during the forecast period. The rising concerns for security and the growing need for integrated security systems are the key drivers for the regional market. As the number of smart building solution providers has increased substantially and smart building technologies have become cheaper, the operational costs for the proper functioning of a smart building project have seen a continual decline in the recent past.
In India, the Energy Conservation Building Code implemented by the Ministry of Power sets certain energy parameters, such as the integration of renewable energy sources and sustainable practices in new commercial buildings, to promote low-carbon practices, enhance environmental stewardship, and ensure alignment with Corporate Social Responsibility (CSR) model.
Similarly, the UNDP, along with stakeholders in China, including the government and the public, is working to mitigate environmental issues and successfully implement national SDGs. The Energy Efficiency Improvement in Public Sector Buildings in China program involves measures to increase energy conservation and energy efficiency in buildings via suitable technologies. Successful demonstrations have been carried out in Beijing, Qingdao, and Shanghai.
The geographical breakdown of the market is as follows:
The building automation systems market is consolidated in nature. This is due to increasing demand for integrated solutions that improve energy efficiency and operational performance. Leading firms are acquiring smaller entities to broaden their technology offerings, product portfolio, and extend market reach. Such integration also enables the creation of highly inclusive systems offering safety and security, HVAC, and energy management in an integrative platform that provides many functionalities.
In addition, the sustainability and energy-saving pressure compels organizations to implement advanced building automation solutions, which, in turn, promotes collaborations and mergers. Thus, the market is moving toward a few dominant providers who can deliver end-to-end solutions in this evolving market.
In September 2024, Johnson Controls International plc unveiled its Visual Alarm Verification solution at GSX 2024. It allows for the fast verification of threats via video verification to improve security monitoring. This technology minimizes false alarms and associated fines, which helps enhance compliance and the efficiency of the response of security teams.
In June 2024, Honeywell International Inc. acquired the global access solutions business of Carrier Global Corporation to enhance its portfolio of digital security services. The acquisition was of three companies—LenelS2, Onity, and Supra—assisting Honeywell in offering cloud-based building automation services and solutions.
In April 2024, Schneider Electric SE entered into a partnership with IPConfigure to equip the EcoStruxureTM Buildings platform with advanced video surveillance solutions. It integrated IPConfigure's Orchid video management system with its Access Expert and Security Expert products, creating a secure landscape for the people, assets, and data in buildings.
In September 2023, Johnson Controls International plc introduced OpenBlue Service: Securing Safety Device Performance. It integrates its digital platform with expert monitoring, enhances the safety of buildings, and maximizes the effectiveness of security technology through constant monitoring and remote assistance.
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