Published: September 2022 | Report Code: 12372 | Available Format: PDF | Pages: 139
The global building automation system market size was estimated to be $77.1 billion in 2021, and it is expected to garner $207.5 billion by 2030, advancing with a CAGR of 11.6% during 2021–2030. The growing demand for energy-efficient buildings, lower operating and maintenance costs, better indoor air quality, and managed home automation services and the 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 HVAC management in buildings are driving the market growth.
In 2021, the commercial category accounted for the largest revenue share, of around 40%. 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 2021–2030 owing to the increasing application of these solutions in residential spaces, growing usage of smartphone applications for controlling BASs, and surging need of consumers for 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 lifestyle. 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 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. Owing to such factors, the facility management systems category is projected to witness the highest building automation system market CAGR, more than 13%, during the forecast period. Furthermore, the growing number of corporate offices, shopping malls, and retail stores has led to an increase in the demand for these systems.
The wireless category is expected to advance at the higher CAGR, of around 14%, 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 wired technology dominated the market in 2021. 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 growing adoption of energy-efficient lighting solutions is a major driver of growth in the building automation system market. This is due to the increasing government emphasis in China, the U.S., India, and other countries on promoting energy savings through the use of energy-efficient lighting sources, primarily LEDs. Energy efficiency can help reduce greenhouse gas emissions and thermal pollution, thus adding another greater cause for the switch.
Report Attribute | Details |
Historical Years |
2017-2021 |
Forecast Years |
2022-2030 |
Market Size in 2021 |
$77.1 Billion |
Revenue Forecast in 2030 |
$207.5 Billion |
Growth Rate |
11.6% CAGR |
Report Scope |
Market Trends, Drivers, and Restraints; Revenue Estimation and Forecast; Segmentation Analysis; Impact of COVID-19; Companies’ Strategic Developments; Market Share Analysis of Key Players; Company Profiling |
Segments Covered |
By Offering, By Technology, By End User, By Region |
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The global market was dominated by North America, with an estimated revenue share of more than 30%, in 2021. 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. The government initiatives and support for smart and energy-efficient infrastructure is the key reason behind the high growth rate of the market in the region. The European Union had introduced the Energy Performance of Buildings Directive (EPBD) and Energy Efficiency Directive (EED) in 2010 and 2012, respectively, for making 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 have 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.
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. 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.
Key vendors are actively engaging in product and service launches in order to strengthen their product portfolios and achieve a larger market share. For instance,
The study offers a comprehensive market segmentation analysis along with market estimation for the period 2017-2030.
Based on Offering
Based on Technology
Based on End User
Geographical Analysis
APAC is the market for building automation systems with the greatest potential.
Residential end users will have the greatest positive influence on the building automation system industry growth forecast.
The market for building automation systems valued $77.1 billion in 2021.
Major players in the building automation system industry are Siemens AG, ABB Ltd., Schneider Electric SE, Robert Bosch GmbH, Mitsubishi Electric Corporation, and Rockwell Automation Inc.
The market for building automation systems is driven by the growing construction sector and implementation of initiatives to promote energy efficiency.
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