Building Automation System Market Analysis

Building Automation System Industry Insights

Offering Analysis

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:

• Facility Management Systems (Fastest-Growing Category)
• Security & Access Control Systems (Largest Growing Category)
• Fire Protection Systems
• BEM Software
• BAS Services

End User Analysis

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:

• Residential (Fastest-Growing Category)
• Commercial (Largest Category)
• Industrial

Technology Analysis

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:

• Wireless (Fastest-Growing Category)
• Wired (Largest Category)