The building automation system market is anticipated to be worth USD 47,800 million in 2023. The market is expected to progress at a promising rate over the 2023 to 2033 period, with a CAGR of 7.4%. At the end of the forecast period by 2033, the value of the market is expected to reach USD 96,264 million.
Building Automation System Market Analysis and Insights
| Attributes | Details |
|---|---|
| Building Automation System Market Value for 2023 | USD 47,800 million |
| Projected Market Value for 2033 | USD 96,264 million |
| Value-based CAGR of Market for 2023 to 2033 | 7.4% |
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The building automation system market was tipped to be USD 34,487 million in value in 2018. The market likely progressed at a sturdy CAGR of 6.4% over the historical period.
As technological advances continued to be integrated into residential and commercial spaces, building automation systems also found acceptance. The pandemic acted as an impediment to the progress, however, as many commercial spaces were shut down. The return to normalcy post-pandemic saw the market make a swift recovery. By 2022, the market had reached a valuation of USD 44,200 million.
| Attributes | Details |
|---|---|
| Market Value (2018) | USD 34,487 million |
| Historical CAGR (2018 to 2022) | 6.4% |
| Historical Market Valuation (2022) | USD 44,200 million |
The market's progress in the forecast period is set to outpace the growth in the historical period. Increasing adoption of the system in both commercial and residential sectors is set to drive market growth. Growing sustainable trends are also set to help the market in the forecast period as building automation systems aid buildings to be more sustainable.
Technological advances are seeing building automation systems improve in performance. Thus, there is even more scope for saving energy, and building automation systems is seen with a positive attitude. By 2033, the market value for building automation systems is expected to have shot up to USD 96,264 million.
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The building automation system market can be segregated into system and application segments. By looking at the segments, the purpose for which the system is most commonly used becomes clear.
Heating, ventilation, and air conditioning (HVAC) systems are the most popular of the building automation systems. In 2023, HVAC systems are expected to account for 30.9% of the market share by system.
HVAC systems are sought to control the air quality in buildings. Energy efficiency is another goal of HVAC systems, with energy conservation playing a big part in helping buildings become eco-friendly.
| Attributes | Details |
|---|---|
| Top System | HVAC |
| Market Share in 2023 | 30.9% |
Commercial sector is where building automation systems find overwhelming application. In 2023, commercial application is anticipated to contribute 65.8% of the market share.
Commercial buildings have enhanced needs regarding security, HVAC, and others. The number of commercial buildings in the form of office buildings, shopping malls, and the like is also increasing. Thus, commercial application of building automation systems is on the rise.
| Attributes | Details |
|---|---|
| Top Application | Commercial |
| Market Share in 2023 | 65.8% |
The market for building automation systems has potential all over the world. However, the Asia Pacific and Europe are regions for the most impressive growth.
The increasing population in Asia Pacific necessitates constructing an increased number of buildings. In Europe, technological advancements are becoming a part of most aspects of daily life. Buildings with smart networked electronic devices are also becoming technologically advanced and attracting a more extensive consumer base.
| Countries | CAGR |
|---|---|
| India | 9.7% |
| China | 9.4% |
| France | 7.7% |
| Italy | 8.1% |
| Japan | 7.8% |
India is one of the rapidly developing countries in the market, from 2023 to 2033, the country is estimated to record an impressive growth of 9.7%.
Security from intrusions is becoming a priority for many businesses and homeowners. Thus, consumers are turning to building automation systems to provide enhanced security.
According to a survey, significant demand for alarm management systems in commercial and residential buildings has been witnessed in 2022. For instance, Honeywell Building Technologies offers suits for occupants that can improve the indoor environment quality by meeting the goal of energy efficiency.
China is a promising country for the market. The CAGR for China over the forecast period is expected to be 9.4%.
The government in China is taking measures to reduce its carbon footprint. Green buildings that primarily focus on reducing energy consumption are one way through which the government is taking a step toward sustainability.
Japan is another Asian country with bright prospects for the market. For the forecast period, the CAGR of the market in Japan is expected to be a robust 7.8%.
The need for a healthier environment and real-time visibility through an interconnected ecosystem is speeding up the market in Japan. For instance, Events like the Tokyo Olympic Games held in 2021 necessitated increased security scrutiny in the country.
Italy is one of the leading countries in Europe for the building automation system market. For the forecast period, the CAGR for Italy is projected to be 8.1%.
Several local companies tussle for the market share in Italy that tracks and collects data 24/7 for energy usage. Duemmegi, Ave, and Galetti are local Italian companies in the building automation system market. Thus, Italy is fertile ground for the market.
France is another European country with potential for the market. During the 2023 to 2033 period, market growth is expected at a promising rate of 7.7% in France.
According to an official French decree, all non-residential service industry buildings are required to install automation systems before January 1, 2025. The French government has an eye on sustainability considerations with the passing of the decree. Thus, France is rapidly becoming a lucrative country for building automation systems.
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Technological innovation and reducing carbon footprint is a priority for market players. With rapid advances, market players are aware that the adoption of the newest technology is necessary to prevent products from becoming obsolete.
Several companies have earned reputable names in the market. However, there is scope for new entrants in the market. Entities that operate on a local scale are thriving in the market.
Recent Developments in the Building Automation System Market
The building automation system market is expected to be worth USD 47,800 million in 2023.
The market is estimated to get as big as USD 96,264 million by 2033.
The market is estimated to record a promising growth of 9.7% in India through 2033.
Smart homes and solar energy are some trends in the building automation system market.
Honeywell International, Beijer Electronics, and Siemens AG are some prominent companies.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Product Type 5.1. Hardware 5.2. Software 5.3. Services 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By System Type 6.1. Security & Surveillance 6.2. HVAC 6.3. Lighting Solutions 6.4. BEMS 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Application Type 7.1. Commercial 7.2. Residential 7.3. Government 8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 8.1. North America 8.2. Latin America 8.3. Western Europe 8.4. Eastern Europe 8.5. South Asia and Pacific 8.6. East Asia 8.7. Middle East and Africa 9. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 10. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11. Western Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. Eastern Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. South Asia and Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. East Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 15. Middle East and Africa Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 16. Key Countries Market Analysis 17. Market Structure Analysis 18. Competition Analysis 18.1. Honeywell International 18.2. Beijer Electronics 18.3. ABB 18.4. Siemens AG 18.5. Johnson Controls 18.6. Schneider Electric 18.7. General Electric 18.8. Legrand 18.9. Lutron Electronics Co 18.10. Control4 Corporation 19. Assumptions & Acronyms Used 20. Research Methodology
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