The building automation system industry of Korea is anticipated to witness a CAGR of 9.0% during 2025 to 2035. The Korean industry is on the verge of a robust growth, initiating with a valuation of USD 1,635.0 million in 2025 and is projected to reach USD 3,868.0 million by 2035. Key factors facilitating the segment’s growth include strategic partnerships among building automation companies and property automation companies, enabling customized solutions for Korea’s evolving real estate sector.
The Korea building automation system industry advanced progressively in 2024, driven by the country’s significant emphasis on integrated automation platforms, security, lighting, and HVAC systems to being able to effortlessly control them. The popularity of remote monitoring and mobile-based controls also revolutionized building management, making it more efficient and convenient.
The sector is poised for robust growth in 2025, propelled by stringent energy regulation, government subsidies, and increasing adoption of IoT-based automation. Sensor technology advances and AI analytics will make buildings smarter and self-sufficient with enhanced automation capacities.
As development of smart cities continues, companies will increasingly turn to advanced automation solutions to enhance security and reduce the complexity of managing infrastructure, solidifying Korea's market leadership in building automation technology.
| Metric | Value |
|---|---|
| Industry Value (2025E) | USD 1,635.0 million |
| Industry Value (2035F) | USD 3,868.0 million |
| CAGR (2025 to 2035) | 9.0% |
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| 2020 to 2024: Foundation Years | 2025 to 2035: Acceleration & Innovation |
|---|---|
| Fragmented Adoption: Automation was majorly related to high-end commercial environments, with less coordination between building systems. | Mainstream Integration: Integrated automation environments will take the charge, which easily combines security, lighting, and HVAC systems. |
| Security Loopholes Surfaced: With maximum interconnected systems, vulnerabilities in securing data and cyber security were exposed. | Cyber Security being the Top Priority: To mitigate rising data security concerns, high-level encryptions and AI-supported bug detection will be integrated into automation platforms. |
| Pilot Mode Smart Cities: Investments is the infrastructure projects of smart city were primarily experimental in nature, with only few adopting automation systems. | Large-Scale Smart City Implementation: Mass-automation will be implemented through state-sponsored initiatives, streamlining city planning, security, and energy. |
| Limited Use of AI: AI-driven automation was still in its beginning stage and was only implemented for basic energy management. | AI-Driven Autonomy: Sophisticated self-learning systems will anticipate maintenance requirements, improve the use of energy, and bolster decision-making through autonomous systems. |
| Regulations Were Encouraging, Not Enforcing: Policies encouraged automation, yet adoption was voluntary. | Tighter Compliance Requirements: Regulatory requirements will compel automation adoption, and smart building solutions will become a requirement instead of an option. |
The building automation system industry in Korea is closely associated with smart infrastructure, influenced by urbanization, energy reforms, and digital transformation as the main trends. The government’s zero-emissions push and stringent energy mandates are propelling adoption.
The sector is highly intertwined with investments in real estate and the development of urban smart cities, in which intelligent automation leads to improvements in energy efficiency and security. Developers are using automation to enhance the efficiency of the assets and sustainable long-term efficiency as property appreciation increases.
Economic stability and a robust tech ecosystem drive swift innovations in AI-powered autonomy, IoT integration, and cybersecurity-fortified automation, further solidifying Korea's smart infrastructure leadership. Nevertheless, exorbitant deployment costs and system interoperability are still hindrances, necessitating strategic investments in scalable solutions.
Additionally, the growth of the industry will be driven by policy-enforced regulation, company ESG objectives, and increased demand for predictive automation, cementing its place in Korea's future-proofed infrastructure.
Security and surveillance solution demand will increase as smart buildings emphasize AI-based threat detection, facial recognition, and real-time monitoring. With increased concerns about cybersecurity and physical security breaches, companies will implement advanced surveillance systems to provide uninterrupted protection. Smart analytics will strengthen automated threat response, making security the foundation of new infrastructure.
HVAC systems will lead the building automation trend, representing almost 31% of adoption. Commercial spaces such as offices, shopping centers, and hotels will propel demand as they seek energy-efficient climate control systems. AI-driven HVAC systems will maximize air quality, temperature control, and energy usage, lowering operating expenses while promoting occupant comfort.
Lighting automation will become more popular with smart controls that adapt to occupancy and daylight availability. IoT-based lighting solutions will enhance energy efficiency, blending well with larger automation systems.
Building energy management systems (BEMS) will become highly predictive systems, using AI and IoT to maximize energy distribution. Real-time analysis and automatic energy adjustments will be the standard, allowing companies to comply with regulatory needs and sustainability objectives while minimizing operational costs.
The business sector will continue to hold a dominancy in the building automation sector, capturing a nearly 65% of share. With ongoing urbanization, smart office buildings, shopping malls, and hotels will adopt automation for enhanced operational effectiveness and energy efficiency. More stringent building regulations will further accelerate adoption, and automation will become an critical element of commercial real estate strategy.
Residential automation will experience explosive growth, driven by increasing consumer demand for smart homes. Home security, temperature control, and smart lighting through AI-driven systems will become main-stream, as convenience and energy efficiency are key drivers for homeowners. Smart apartment development and automated property management systems will also fuel adoption.
Furthermore, government-led initiatives will accelerate the adoption of automation in public infrastructure including schools, hospitals, and government buildings. Energy efficiency and sustainability subsidies will facilitate mass-deployment of automation technology. Smart city initiatives will adopt advanced BAS to enhance urban planning, resource allocation, security, defining automation an integral tool for infrastructure projects.
South Gyeongsang will see a high growth in the adoption of building automation due to its increasing industrial base and urbanization. The province comprises significant manufacturing and logistics centers, which raise the need for automated facility management. Companies are making AI-based HVAC systems and advanced security solutions their top priority in order to drive efficiency and security in industrial parks and commercial areas.
Smart lighting and energy management systems are on the rise, backed by government support in the form of green building incentives. The growth in mixed-use development that includes intelligent automation will further boost uptake. With increasing energy prices, companies across the region are likely to invest significantly in predictive automation for optimized energy usage and operations sustainability. Large-scale infrastructure developments will include IoT-based BAS, cementing the province's focus on smart urban development.
FMI analysis found that the CAGR of South Gyeongsang is projected to align closely with the global growth rate, at approximately 9.1%.
North Jeolla's building automation industry is poised to grow steadily, boosted by progress in agricultural automation and government-sponsored smart infrastructure initiatives. The province's robust agri-tech sector is fueling interest in smart climate control and automated resource allocation in agro-crop facilities.
The use of energy-efficient lighting and HVAC systems will increase as commercial property developers aim to meet national energy requirements. Smart residential developments will also see growth, with automation improving security and energy management in high-rise apartments. Municipal buildings and healthcare facilities will incorporate automation as continued investments are made in public infrastructure, with a view to enhancing operational efficiency and energy savings.
FMI opines that the CAGR of North Jeolla will remain strong, reaching approximately 8.9% from 2025 to 2035.
South Jeolla is set to make major strides in building automation, led by its growing port facilities and smart city development. As one of Korea's major maritime and logistics centers, the province is witnessing growing investment in automated building security and energy-efficient facility management.
The hotel industry, especially in coastal areas, will embrace smart automation to enhance guest experiences and reduce operating expenses. Public buildings such as schools and government offices will automate energy-saving measures and security upgrade. Increased adoption of smart grid technology across the region will further drive the shift towards AI-based automation.
FMI analysis found that the CAGR of South Jeolla is expected to be around 9.2%, reflecting steady adoption across industrial and commercial sectors.
Jeju's building automation sector will witness vigorous growth, as it promotes integration of renewable energy and smart tourism infrastructure. Automation will have a key role to play as it optimizes energy consumption and minimizes carbon footprints in light of its high focus on green buildings.
The province's expanding smart tourism industry will propel the adoption of automated lighting, security, and HVAC systems to improve visitor experiences. Government-sponsored green programs and incentives for energy-efficient infrastructure will further facilitate industry penetration. The integration of BAS with renewable energy sources such as solar and wind will make Jeju a leader in sustainable automation.
FMI opines that the CAGR of Jeju will exceed the national average, reaching approximately 9.3% during the forecast period.
(Survey Conducted: Q4 2024, n=500 industry stakeholders, including building automation manufacturers, smart infrastructure developers, real estate firms, government officials, and technology integrators across South Korea.)
Priorities of Importance to Stakeholders
Regional Variance
High Adoption Areas
Challenges in Adoption
Consensus
Regional Variance
Industry-Wide Challenges
Regional Differences
Manufacturers
End-Users
Industry Alignment
Divergence in Strategy
Regulatory & Policy Impact
High Consensus: Energy cost savings, AI integration, and energy efficiency are main industry concerns.
Key Variances
Strategic Insight
| Province | Government Regulations |
|---|---|
| South Gyeongsang | Certifications like KEEC ensure compliance for smart energy systems, while amendments to data privacy laws under PIPA affect the installation of advanced surveillance technologies. |
| North Jeolla | As the province encourages greener infrastructure, commercial buildings must be G-SEED compliant to qualify for sustainability incentives. Public sector projects, including government buildings, are incorporating automation to meet BEER requirements, which emphasize optimized energy use and environmental impact. |
| South Jeolla | Organizations embarking on large-scale automation projects are paying the highest priority to ISO 50001 certification to enhance energy efficiency, and the Korean Smart City Act encourages AI-driven city infrastructure. |
| Jeju | The Net-Zero Building Policies cause AI-based energy optimization adoption, while REC certification is being made obligatory for renewable-integrated automation. The region's growing smart tourism industry must also comply with the Cybersecurity Act for Smart Buildings to protect information. |
South Gyeongsang sees the manufacturing sector as the largest driver of adopting automation. While industries pursue energy efficiency, industry players should target AI-powered HVAC and lighting management systems designed specifically for industry. Tax benefits for smart energy solutions provide a window of opportunity to develop energy monitoring platforms as per Korean Building Energy Efficiency Certification (BEE) and G-SEED standards.
In North Jeolla, K-Smart required smart city initiatives are fueling the need for sophisticated building automation. Companies need to create integrated BAS solutions for public transportation hubs, business districts, and city government facilities.
In South Jeolla, pressure on ZEB compliance is building, and grid-reactive BAS solutions are becoming necessary. Automated demand response (ADR) systems have to be accorded a greater priority by stakeholders to allow factories and commercial facilities to optimize energy usage.
Jeju's Carbon-Free 2030 Initiative is revolutionizing the tourism and hotel industry, requiring smart solutions to maximize energy. Businesses need to focus on cloud-based smart room controls, occupancy sensors, and remote energy management systems for resorts and hotels.
The South Korean Building Automation System (BAS) industry is fairly fragmented with both global industry giants as well as domestic companies vying for market share. While multinational companies dominate high-end smart building solutions, local players are focusing on low-cost automation technologies that are applicable locally due to local regulations as well as local industry requirements.
Top competitors in the BAS industry engage in pricing strategies, innovation, strategic collaborations, and geography expansion. Some companies make huge R&D investments in order to utilize AI-based analytics, IoT connectivity, and cybersecurity capabilities to enhance their automation platforms. To compete in industry consolidation, top companies are collaborating with real estate developers and government smart city initiatives.
In June 2024, Samsung SDS partnered with a global intelligent infrastructure firm to co-create innovative automation solutions for intelligent factories and cities with higher connectivity and data-driven intelligence. In August 2024, LG Electronics acquired a South Korean energy management startup based on IoT and integrated its technology into BAS solutions to enhance real-time monitoring.
Siemens: ~20-25%
Global leader in BAS, providing integrated solutions for energy efficiency and smart building management.
Honeywell: ~15-20%
Known for sophisticated automation and control systems with a focus on sustainability and safety.
Schneider Electric: ~10-15%
Deivers green and IoT-based building automation solutions for smart infrastructure.
Johnson Controls: ~10-15%
Focused on HVAC and building management systems with a sustainability orientation.
LG CNS: ~10-12%
A top Korean IT services company, providing smart building solutions and digital transformation.
Samsung SDS: ~8-10%
Provides innovative BAS and smart city solutions based on advanced technology.
The industry is progressing with AI, IoT, and cloud technology, advancing energy efficiency, security, and smart infrastructure.
Regulations such as G-SEED and KEEC are encouraging adoption, making it compliant with sustainability and energy efficiency requirements.
Commercial properties, industrial areas, and public infrastructure are quickly embracing AI-based HVAC, security, and energy management systems.
Predictive analytics, remote monitoring, and intelligent sensors are maximizing energy consumption, enhancing security, and driving operational efficiency.
Net-zero projects and green building codes are fueling demand for smart energy solutions, cutting costs and carbon emissions.
Security & Surveillance, HVAC, Lighting Solutions, BEMS (Building Energy Management)
Commercial, Residential, Government
South Gyeongsang, North Jeolla, South Jeolla, Jeju, Rest of Korea
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Korea Building Automation System Market
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