Building Automation System Market To Generate $207.5 Billion Revenue by 2030
- Published: June 2022
The building automation system market is projected to generate $207.5 billion revenue in 2030, advancing at a CAGR of 11.6% during 2021–2030. The growing demand for energy-efficient systems, facility management systems, and security & access control systems, along with the large-scale construction activities, is propelling the market growth.
Further, the growing integration of IoT with BMSs and the launch of advanced building automation components, including sensors, controllers, and displays, will add to the market growth during the forecast period.
Security & Access Control Systems Hold Dominating Share of Market
The global building automation system market, by offering, is categorized into facility management systems, security & access control systems, fire protection systems, BEM software, BAS services, and others. Among these, the security & access control systems category held a revenue share of around 25% in the market in 2021. Access control systems cater to all necessary automated security requirements, such as improved security of employees, protection from intruders to restricted buildings, and authorized access to confidential assets. Some of the important components of an electronic access control system are tokens, codes, biometric code readers, power supply units, computers, and software programs.
The increasing number of thefts and growing public aggression have made security an area of prime importance for government agencies, private organizations, and even individuals, thus propelling the need for security and surveillance solutions.
Furthermore, the global building automation system market, by technology, is categorized into wireless and wired. In 2021, the wired category accounted for the larger share in the market, as the wired technology provides cost-effectiveness and a secure automated solution. During the projected period, wireless systems are expected to have the higher sales growth rate, as they are compact, convenient, and easy to install and maintain.
APAC is set to witness the highest growth rate during the forecast period (2022–2030) because of the increasing need for facility management and security & access control solutions. Countries in this region actively deploying such solutions include China, Japan, Australia, India, and South Korea. The growing investment of government and private organizations in smart building solutions and heightening of the awareness on this technology are all driving the region's market growth.
Acquisitions and Product Launches Are Most-Effective Strategic Measures
Key vendors in the building automation system market have been extensively involved in acquisitions and product launches to gain competitive advantages.
For instance, in January 2022, Johnson Controls International plc announced the launch of OpenBlue Indoor Air Quality as a Service. The offering includes five key components, namely IAQ assessments, solution application, remote monitoring & advisory, annual IAQ reassessment, and financing.
Similarly, in January 2022, Johnson Controls International plc announced the acquisition of FogHorn a developer of edge AI software for industrial and commercial IoT solutions. The acquisition brings Foghorn’s team and edge AI capabilities to Johnson Controls’ OpenBlue platform.
Key vendors in the building automation system market include Siemens AG, Honeywell International Inc., Johnson Controls International plc, ABB Group, Schneider Electric SE, Mitsubishi Electric Corporation, Robert Bosch GmbH, Trane Technologies plc, Rockwell Automation Inc.