Building Automation System Market

[220 Pages Report] The building automation system market is expected to reach USD 155.9 billion by 2028 from 88.4 billion in 2023, at a CAGR of 12.0% during the 2023- 2028 period.  Building automation systems, or BAS, are sophisticated computer network systems that serve to automate and oversee various building systems, including heating, ventilation, air-conditioning (HVAC), and lighting. These systems are designed with the primary goal of enhancing the comfort, safety, security, and convenience of building occupants while simultaneously improving energy efficiency. One of the key functions of a BAS is to facilitate seamless communication between diverse systems, transcending differences in platforms, software, and languages.

The central role of a BAS encompasses maintaining the indoor climate in alignment with occupancy schedules, continuous monitoring of system performance, and the prompt detection of device malfunctions, with the capability to issue alerts. By implementing automation, these systems effectively reduce both energy consumption and maintenance expenses. It is noteworthy that nearly all multi-story green buildings are purposefully designed to incorporate a BAS, which plays a pivotal role in conserving energy, managing air quality, and optimizing water usage.

Moreover, green buildings tend to utilize an array of low-power DC devices, often integrated with power over Ethernet wiring. Even in the case of ultra-efficient designs aimed at achieving net-zero energy consumption, a BAS is typically indispensable for efficiently managing heat capture, shading, venting, and scheduling device operation.

Building Automation System Market Forecast to 2028

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Building Automation System Market Dynamics

Driver: Revolutionizing wireless protocols and wireless sensor network technology for building automation systems

The ongoing development of wireless protocols and standards presents a remarkable opportunity for established industry leaders and newcomers to leverage these technologies and innovate within the building automation system ecosystem. This trend has spurred the emergence of numerous startups, offering an impressive and inventive array of feature-rich products and services. Within this landscape, notable wireless protocols like Z-Wave, ZigBee, and EnOcean have gained prominence. ZigBee, for instance, has evolved into a flourishing ecosystem boasting over 400 companies, collectively engaged in setting standards and producing a wide spectrum of products for diverse smart home applications. Similarly, the Z-Wave protocol encompasses a vast assortment of over 1,000 compact devices, delivering an extensive range of home automation solutions to end-users.

Introducing LoRa as a relative newcomer to the wireless protocol family, it addresses the demand for low-power solutions across wide area networks (WAN) for IoT products. Devices enabled with LoRa technology typically offer an impressive coverage range of up to 10 miles and boast an impressive battery life of 10 years. However, it's worth noting that LoRa may not be suitable for applications necessitating high data rates. Leading corporations such as IBM Corporation, Cisco Systems, Semtech Corporation, and Multi-Tech Systems are among the key manufacturers of LoRa-enabled hardware, further exemplifying the industry's commitment to embracing innovative wireless solutions

Restraint: Technical challenges and a shortage of qualified professionals

Building automation systems play a pivotal role in diminishing the need for human involvement in overseeing and upholding various building systems, encompassing lighting, HVAC (Heating, Ventilation, and Air Conditioning), and security and safety systems. Nonetheless, the installation of these systems necessitates adherence to precise specifications and technical standards, which may range from internal organizational requirements to operational protocols and external factors like software comprehension, networking proficiency, system design, and comprehensive testing. The absence of familiarity with these specifications and standards can pose considerable challenges during system deployment.

Internal barriers to effective deployment encompass insufficient technological acumen, a deficit in training for operating complex software and equipment, and the imperative need for proficient experts to monitor and rectify control system malfunctions, thus ensuring the optimal functionality of building automation systems. Similarly, the vigilance of trained professionals is vital to oversee and enhance the system's infrastructure within the building. Technical complexities that arise during the installation and maintenance phases of building automation systems can considerably impede the expansion of the building automation system market. This challenge is particularly pronounced in technologically advancing nations such as India and Brazil, where the pool of skilled experts is relatively limited

Opportunity: Integration of building automation system with renewable energy

In the ever-evolving landscape of building automation systems, integration with renewable energy sources will present a compelling opportunity for providers. As the global emphasis on sustainability and renewable energy solutions gains momentum, building automation system companies can position themselves as integral players in the transition to cleaner energy practices. By integrating their systems with renewable energy sources such as solar panels, wind turbines, and geothermal technologies, building automation system providers offer clients the means to not only monitor and manage energy consumption but also to harness the potential of clean, green power. This integration facilitates optimal energy utilization and storage, allowing buildings to draw from renewable sources when available and switch to conventional power when needed, ultimately reducing environmental impact and operating costs. In this era of heightened environmental consciousness, businesses and building owners seek building automation system providers capable of delivering comprehensive solutions that align with their sustainability goals and reduce their carbon footprint. As a result, the integration of renewable energy sources into building automation systems is poised to become a significant growth driver in the industry, catering to the dual imperatives of energy efficiency and environmental responsibility

Challenge: Lack of standardized communication protocols

The effectiveness of building automation systems hinges on the seamless synchronization and communication among the diverse equipment comprising the overall system. Communication protocols serve as pivotal facilitators in ensuring the harmonious integration of various devices and equipment, thus underpinning the efficient operation of building automation systems. Nevertheless, the absence of universal, open communication protocols can give rise to the utilization of different, sometimes incompatible, protocols by these devices. This divergence impedes communication among disparate components and obstructs the effortless functionality of building automation systems, as not all protocols exhibit direct compatibility with one another.

For instance, BACnet and LonWorks may not exhibit seamless interoperability but function effectively with DALI. Building operators must therefore judiciously select products that align with protocols adopted by multiple vendors to mitigate complexities. For example, Clipsal C-Bus is widely adopted in the realm of building automation systems in Australia, while M-Bus enjoys popularity in Europe.

In their quest for a competitive edge, manufacturers are increasingly inclined toward proprietary protocols and standards, intensifying competition within the market. However, this intensified rivalry has, regrettably, impeded the development of products standardized on common communication protocols, ultimately hindering the growth of the building automation system market.

Building Automation System Market Ecosystem

The prominent players in the building automation system market are Johnson Controls (US), Schneider Electric (France), Siemens (Germany), Carrier (US), and Honeywell International Inc. (US). These companies not only boast a comprehensive product portfolio of building automation system market but also have a strong geographic footprin

Facility management system type HVAC control is expected to grow at the highest CAGR during the forecast period.

The main energy users in buildings, whether they are residential or commercial, are HVAC systems. Therefore, one of the most crucial elements in the implementation of building automation systems is the necessity of automating HVAC systems. Intelligent HVAC controls minimize the need for human intervention in the operation of heating, ventilation, and air conditioning systems. Through the effective regulation of HVAC systems in response to dynamic parameters like building occupancy, ambient temperature, and pressure, these controls save energy and save associated expenses. HVAC controls incorporate a variety of sensors and controllers and rely on wireless communication, Internet access, mobile devices, and cloud computing technologies to function well.

The booming global construction industry is driving up demand for HVAC equipment globally. Automation and smart systems are being proactively integrated into the architecture of newly built buildings. Building automation systems' capacity to regulate a building's temperature, ventilation, and air conditioning, in addition to growing concerns about environmental issues and air quality, are major factors driving the demand for these systems globally.

HVAC control systems in building automation typically consist of three main components viz. sensors, controllers, and actuators. Under HVAC control, sensors are used to collect data on the environment, such as temperature, humidity, and occupancy. This data is then used by the controller to make decisions about how to operate the HVAC system. Controllers are the brains of the HVAC control system. They use the data from the sensors to determine how to adjust the HVAC system to maintain the desired conditions. Actuators are the devices that actually make the changes to the HVAC system, such as turning on and off fans and compressors. These control systems can be beneficial in demand response, and predictive maintenance.  Siemens, a Germany based technology company offers a robust portfolio of HVAC control products that are useful in building automation system.

Biometric Systems oh building automation system is expected to grow at the highest CAGR during the forecast period.

Biometric systems are created to streamline access control procedures and reduce the need for manual verification and record-keeping when granting access to specific locations or devices. These systems rely on individuals' unique behavioral and biological traits for identification. There are various categories of biometric systems on the market. Physical biometric systems employ features like fingerprints, hand geometry, iris scans, DNA, and vascular patterns to identify individuals. Behavioral biometric systems assess traits such as voice, signature, and keystrokes to recognize individuals.

Biometric systems utilize biometric data, which is inherently immune to being forgotten, compromised, stolen, or lost. They offer a robust level of security for buildings and safeguard the confidentiality of personal information. In recent years, biometric technologies have found applications in various sectors: offices employ them for time tracking and attendance, the banking and finance industry relies on them for transaction authentication, law enforcement agencies use them in prison management and criminal database cross-referencing, and households employ them for physical and access control. The increasing adoption of biometric technologies is propelling the global growth of the biometric systems market.

Bosch offers a biometric access control system that provides accurate authentication, extra layer of security, and touchless access control. It includes fingerprint readers, touchless fingerprint readers, facial recognition readers, and an integrated solution that has a software

Fire Sprinklers of fire protection system is expected to have the highest market share of building automation system market in the forecast period from 2023-2028

Fire sprinkler systems are installed in buildings and can be activated either automatically or manually to manage fire outbreaks by releasing water. These systems initiate water discharge upon receiving alerts from fire detection systems. Various types of sprinklers, such as wet fire sprinklers, dry fire sprinklers, pre-action sprinklers, and deluge sprinklers, are employed in buildings depending on the specific requirements.

The growing demand for fire sprinklers is primarily driven by the expansion of the commercial and industrial sectors, where the risk of fire incidents is higher compared to residential areas. Fire sprinklers, featuring hydraulic, pneumatic, or electric triggers, can swiftly suppress fires due to their open nozzles. Johnson Controls offers fire sprinklers such as TYCO LFII Pendent Sprinklers, LFII Concealed Sprinklers, and LFII HSW Sprinklers.

India is expected to be the fastest-growing market in the Asia Pacific region for the building automation system market

Though the building automation system market in India is smaller than that in Japan and China, it is expected to witness significant growth in the future. Niti Aayog, the policy agency of the Government of India, estimated that energy demand from buildings in the country is expected to increase by more than 800% in 2047 as compared with 2012. Under the current standards, India is anticipated to face high energy costs and consumption for decades. At the same time, the worsening air pollution problem in the country is adding to the impact of climate change. The Government of India took an important step forward in 2017 by launching the revised Energy Conservation Building Code (ECBC) 2017, which was developed by the Ministry of Power and the Bureau of Energy Efficiency. The code prescribes energy performance standards for new commercial buildings to reduce energy consumption and promote low-carbon growth. It sets parameters for builders, designers, and architects to integrate renewable energy sources with building designs to achieve a 50% reduction in the energy consumption of buildings by 2030.

Along with the government of the country, several enterprises and residential buildings are also implementing building automation systems to manage their buildings more efficiently and enhance the security level in the country. The Bureau of Energy Efficiency (BEE) in India has taken up various policy and regulatory initiatives, such as the Energy Conservation Building Code (ECBC), to enhance the energy efficiency of the building sector, provide support for energy assessment and retrofitting processes, and back voluntary star rating program for the commercial buildings.

Moreover, the Energy Conservation Act (EC Act), implemented in 2001 with the objective of diminishing the energy intensity of the Indian economy, establishes regulatory imperatives encompassing the following areas: the establishment of standards and labeling criteria for equipment and appliances, the formulation of energy conservation building codes applicable to commercial structures, and the definition of energy consumption standards for industries with high energy requirements. Furthermore, the act mandates the Central Government and the Bureau to undertake initiatives that encourage and facilitate enhanced energy efficiency across all economic sectors. The EC Act also instructs individual states to nominate agencies responsible for enforcing the act and advancing energy efficiency within their respective territories.

The Smart Cities Mission for developing 100 smart cities launched by the central government is creating avenues by making massive investments in city infrastructure and making Indian cities smarter. These smart cities would be a combination of converting existing cities into smart cities by a considerable amount of redevelopment, retrofiting, as well as through the creation of satellite towns around those major cities.

Building Automation System Market by Region

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Key Market Players

The major players in the building automation system companies with a significant global presence include Honeywell International Inc. (US), Siemens (Germany), Johnson Controls (US), Schneider Electric (France), Carrier (US), Robert Bosch GmbH (Germany), Legrand (France), Hubbell (US), ABB (Switzerland), Trane Technologies plc (Ireland), Lutron Electronics Co., Inc (US), Crestron Electronics, Inc. (US), Hitachi, Ltd. (Japan), Delta Controls (Canada), Beckhoff Automation (Germany),  Lennox International Inc. (US), Current Lighting Solutions, LLC. (US), ACUITY BRANDS, INC, (Canada), Dialight (UK), Cisco Systems, Inc. (US), Rockwell Automation (US), Snap One, LLC (US), Signify Holding (Netherlands), Emerson Electric Co. (US), Leviton Manufacturing Co., Inc. (US), Mitsubishi Electric Corporation (Japan), Huawei Technologies Co., Ltd. (China), Bajaj Electricals Ltd (India), and Beijer Electronics, Inc. (Sweden).

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Scope of the Report

Building Automation System Market Highlights

The study segments the building automation system market based on offering, communication technology, application and region.

Recent Developments

• In September 2023, Johnson Controls, a global authority in creating intelligent, health-conscious, and eco-friendly buildings, has unveiled its latest service, OpenBlue Service: Ensuring Security Device Performance. This service is developed to assist customers in improving building safety, mitigating risks, and optimizing the value of their security technology investments. It brings together Johnson Controls' OpenBlue suite of interconnected solutions, the capability to oversee and control security devices from various manufacturers, remote support services, valuable insights from expert engineers, and an integrated zero-trust cybersecurity protection system for a comprehensive offering.
• In May 2023, Carrier has announced its latest software, i-Vu Pro v8.5, designed for the i-Vu building automation system. This software introduces an effective staged download approach for controller firmware upgrades, enhancing the serviceability for customers. Unlike conventional downloads that interrupt the operation of HVAC equipment during the entire process, the new staged method divides the download into distinct stages, thereby minimizing the downtime of connected HVAC equipment.
• In March 2023, Honeywell has introduced a groundbreaking fire alarm system featuring UL-approved self-testing smoke detectors that can undergo automatic testing, revolutionizing the installation, testing, and maintenance procedures for fire and life safety systems.
• In March 2023, Siemens has introduced the Connect Box, an accessible and open IoT solution tailored for the management of small to medium-sized buildings. This new addition to the Siemens Xcelerator portfolio offers a user-friendly method for tracking building performance, potentially leading to a remarkable 30 percent improvement in energy efficiency and a significant enhancement in indoor air quality for establishments like schools, retail shops, apartments, and small offices.
• In March 2023, Schneider Electric introduced improved solutions aimed at promoting building sustainability. These enhancements include advanced integration features within Eco Struxure Building Operation, streamlining and expediting access to critical data necessary for efficient energy management, carbon emission reduction, and the overall enhancement of building value.
• In February 2023, Honeywell has broadened its Building Management Solution Portfolio with the introduction of the Honeywell Optimizer Suite. This is a robust Building Management System Solution that not only offers enhanced cybersecurity protection but is also known for its ease of installation and maintenance.
• In February 2023, ABB has introduced an innovative wireless solution that empowers customers to easily install, monitor, and upkeep their complete emergency lighting systems through a swift and user-friendly mobile application. This system, tailored for use in commercial and industrial buildings like hospitals and universities, offers full automation and delivers real-time status updates for all monitored buildings via a digital floorplan display. Its aim is to bolster building safety and streamline maintenance planning efforts.
• In Septembe 2022, Siemens has introduced the newest updated version of Desigo CC, their integrated building management platform designed to digitize buildings of various sizes. This software update, Desigo CC V6, brings native cloud connectivity, enhances the user interface, and ranks among the first global building management platforms to meet the BACnet B-XAWS profile for cross-domain advanced workstations and BACnet Secure Connect.
• In May 2022, Schneider Electric introduced a new electric vehicle (EV) charging solution designed to promote efficient, resilient, and sustainable electric mobility within net-zero buildings. This new offering, known as EcoStruxure for eMobility in buildings, extends its solution portfolio with the third-generation connected charger, EVlink Pro AC. This launch marks Schneider Electric's ongoing commitment to advancing smart and sustainable buildings by integrating electric vehicle (EV) charging infrastructure into their facilities.
• In May 2022, Automated Logic, a part of Carrier has introduced new BACnet Secure Connect (BACnet/SC) solutions for the WebCTRL building automation system. This offering simplifies the adoption of the latest BACnet security model for both new and pre-existing WebCTRL systems, effectively safeguarding building automation and control networks from potential threats through IT community-accepted standards.
• In April 2022, Carrier has introduced the TruVu zone HVAC controllers to enhance the capabilities of the i-Vu building automation system. These controllers are specifically designed for pressure-independent variable air volume (VAV) and pressure-dependent variable volume and temperature (VVT) applications. They come equipped with built-in control programs that are optimized for efficiency, energy conservation, and optimal equipment performance. Additionally, they feature dual IP ports to facilitate high-speed BACnet/IP communication.
• In February 2022, Sensitech, a subsidiary of Carrier, launched the TempTale Ultra BLE, the newest wireless addition to its industry-leading line of digital temperature monitoring solutions. The TempTale Ultra BLE is a validated Bluetooth temperature monitoring solution capable of reading data without opening cargo packages, providing delivery drivers and receivers proof of condition at destination.
• In January 2022, Automated Logic, a part of Carrier brings WebCTRL Cloud, a new hosted and managed software-as-a-service (SaaS) offering, to provide customers with dependable and adaptable building automation solutions. This innovative solution is designed for the WebCTRL building automation system (BAS) and offers customers deployment flexibility, enabling scalability for growth and a reduction in support-related challenges.
• In January 2022, Carrier launched the certified Healthy Air Systems program—verifying building systems to drive healthy indoor air quality. Healthy Air Systems employs proprietary software to complete an independent assessment of ventilation, filtration, thermal comfort, and airborne pathogen transmission risk in a building to determine if indoor air quality (IAQ) meets or exceeds recommended standards.
• In January 2022, Johnson controls unveiled industry-first OpenBlue Indoor Air Quality as a Service solution to help organizations keep occupants safe and healthy. OpenBlue Indoor Air Quality as a Service offering combines Johnson Controls technology and science-backed expertise to help customers meet complex health and safety compliance, while improving occupants' comfort and productivity.

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