Building Automation System: Global Market Scenario, Trends, Opportunity, Growth and Forecast, 2020-2030

Market Definition

The automatic central control of a building’s HVAC, electrical, lighting, shading, access control, security, and other associated systems is known as building automation, sometimes known as building management system or building energy management system.

Market Insights

The BAS market is expanding, with revenues of $5,512.5 million expected in 2022. This was a sharp increase from 2021, when several markets were still suffering from the pandemic’s effects, which caused the building sector to slow down and cause cancellations and postponements of installments. The post-pandemic era offers BASs great potential. The global BAS industry will benefit from the faster implementation of digital technology in buildings encouraged by the new normal. The market for BASs will be driven by the rising importance of healthy buildings that put occupant comfort first.

As long as BASs are sold anywhere in the world, distributors and system integrators will continue to rule the sales distribution landscape. Direct sales from manufacturers are becoming more significant, especially for big projects as systems become more specialized and technologically advanced. The expansion of business models based on services increases the demand for suppliers to interact directly with customers, which will boost direct sales.

The BAS market is most developed and has a high penetration of BAS installations in Europe. The Russo-Ukrainian War, supply chain disruptions, inflation, labour and material shortages, and rising building material prices, among other issues, have been plaguing the market since 2020. These elements will cause another downturn in European construction output. However, it is anticipated that the present European energy crisis would increase demand for BASs. As a result, a CAGR of 5.8% is anticipated for the BAS market in Europe between 2023 and 2030.

A slowdown in construction activity was one of the main effects of COVID-19 on the BAS market, particularly in 2020 and 2021, as lockdowns and other measures had an influence on work sites and interrupted the supply of supplies and equipment. The labour movement was impacted by the immediate danger of additional lockdowns, which exacerbated the labour shortage that existed even before the pandemic. Delays and cost hikes resulted from this, which decreased demand for BASs in the short term.

Market Dynamics: Drivers

Increasing Need for Energy-Efficient and Intelligent Buildings

One of the biggest energy consumers are buildings. The International Energy Agency projects that by 2050, building emissions will have doubled from what they are today because to high floor area growth and population growth. Thirty percent of the energy used in commercial buildings is lost due to inefficient energy management and processes. The erratic nature of oil prices has raised the focus on energy security. Thus, one of the most important criteria for modern buildings is energy efficiency, which also serves as a major impetus for the use of BASs. By improving the efficiency of lighting, HVAC, and other building systems, BASs significantly aid in lowering energy consumption and operational expenses. Based on occupancy, daylight, and weather conditions, they regulate lighting, temperature, and ventilation. By eliminating the need to manually alter systems and stopping unnecessary device use, this can lead to significant energy and cost savings.

Market Dynamics: Challenges

High Capital Expenditure (CapEx) Requirement

BASs require the integration of cutting-edge technology that can be costly to buy, install, and maintain, such as sensors, controllers, and network systems. A lack of clarity in the maintenance process and significant unplanned costs for recurring system updates are additional risks. These systems may need a sizable upfront financial investment from building owners or managers, which for some may be a deterrent to adoption. Developers continue to have doubts about the ability of BASs to generate a sizable ROI for the significant initial CapEx. Commercial property owners might not be interested in the non-core investment, which has a minimum payback period of five years.

Market Segmentation

• Based on Product Type, the Global Building Automation Systems market is segmented into
  • Hardware
  • Software
  • Services
• Based on System Type, the Global Building Automation Systems market is segmented into
  • Security & Surveillance
  • HVAC
  • Lighting Solutions
  • BEMS
  • Others
• Based on Vertical, the Global Building Automation Systems market is segmented into
  • Data Centre
  • Education
  • Hospitality and Leisure
  • Healthcare
  • Industry
  • Office
  • Public
  • Retail
• Based on Geography, the Global Building Automation Systems market is segmented into
  • Asia-Pacific
  • North America
  • Europe
  • Latin America
  • Middle East & Africa
• All market revenue has been given in US Dollar.

Historical Year: 2020-2021

Base Year: 2022

Estimated: 2023

Forecast- 2024-2030

Key Questions this Study will Answer

• What are the key overall market statistics or market estimates (Market Overview, Market Size- By Value, Market Size-By Volume, Forecast Numbers, Market Segmentation, Market Shares) of Global Building Automation Systems Market?
• What is the region wise industry size, growth drivers and challenges key market trends?
• What are the key innovations, opportunities, current and future trends and regulations in the Global Building Automation Systems Market?
• Who are the key competitors, what are their key strength and weakness and how they perform in Global Building Automation Systems Market based on competitive benchmarking matrix?
• What are the key results derived from the market surveys conducted during Global Building Automation Systems Market study?