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The building automation and control systems market size is estimated to grow by USD 31.12 billion at a CAGR of 8.71% between 2023 and 2028. The market experiences growth driven by critical factors reshaping modern building management. As energy efficiency becomes paramount, there's a heightened demand for automation systems to optimize resource usage. Moreover, the increasing focus on comfort and security drives the adoption of advanced control systems, enhancing occupant experience and safety. Additionally, the trend towards customization in automation and building control systems addresses diverse user needs, fostering market expansion. This dynamic market landscape underscores the essential role of building automation and control systems in creating smarter and more efficient buildings worldwide. This market research and growth report also includes an in-depth analysis of drivers, trends, and challenges.
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The market leverages core competencies in technology growth and integrated systems, employing BAS and IoT solutions to optimize energy consumption and operating costs in the construction industry. With a focus on security and access control, it integrates real estate assets across commercial and residential sectors, utilizing electronic devices, software, and hardware for lighting, safety systems, and HVAC control. Embracing 5G technology, it promotes energy-efficient buildings and sustainability, driven by public and private investment towards de-carbonization and enhanced air conditioning, while catering to diverse industry verticals such as residential and hospitality. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The demand for the customization of automation and building control systems is notably driving market growth. Many companies offer a diverse range of Building Automation Systems (BAS) software, allowing customization to meet specific end-user needs. In residential settings, there's a primary focus on monitoring and controlling HVAC, security, and lighting systems. On the other hand, commercial office buildings require more comprehensive control over various systems, including lighting, HVAC, access controls, security, and safety.
Despite the initial installation costs, these systems are renowned for their user-friendliness and ease of maintenance. Some controllers provided by companies are wireless, simplifying both usage and installation processes. This flexibility and customization capability offered by companies are poised to fuel the demand in the foreseeable future.
An increase in the use of personnel assistants in residential buildings is a significant trend enhancing the growth of the market. Amazon and Google have introduced personnel assistant devices, which support smart home applications, thus facilitating the connection of these smart electronic devices to various appliances within the house. The devices can be accessed through the Internet and receive voice commands, making them user-friendly. These devices act as controllers for lighting systems and thermostats and also work as personal assistants by helping users maintain schedules. The BACS market in the residential sector is expected to grow at a CAGR of 11.61% during the forecast period due to trends such as smart homes.
The lack of product differentiation will hinder the market growth. Many Companies are offering a variety of products with customizable options. All these products offered by the Companies have a very similar pricing strategy with very less commoditization. The customization option provided by the company is limited to the building management system software alone. Such factors are expected to hinder the growth of the market during the forecast period.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
BuildingLogiX - The company offers automation solutions for the integration of building facilities. They offer services such as master systems integrator, building automation systems, hardware distribution, and enterprise system integration.
ABB Ltd - The company offers energy-efficient, security, and control systems for homes and buildings. They manufacture and sell electrical products and solutions that are designed to provide safe, smart, and sustainable electrical flow from the substation to the socket.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market share growth by the commercial buildings segment will be significant during the forecast period. The commercial buildings segment showed a gradual increase in the market share of USD 18.43 billion in 2018. The need to increase energy efficiency in emerging economies is expected to encourage many commercial buildings in the region to implement BACS. Government regulations and growing awareness about the importance of energy efficiency are other reasons for the growth in this segment. Stage-1 automation solutions are being implemented in commercial buildings in most countries to address compliance with government regulations. These automation solutions increase the overall operational efficiency of the buildings.
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In addition to the traditional control systems, other technological advances in touchscreen user interfaces and wireless connectivity have helped make these solutions operate more effectively. Many Companies offer customized solutions to commercial end-users at very competitive prices to increase their market shares and expand their customer base. As commercial buildings and offices are the major energy consumers in comparison to other types of buildings, it will lead to an increased demand for the deployment of automation solutions during the forecast period.
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North America is estimated to contribute 30% to the growth of the global market during the market forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The revised Energy Performance of Buildings Directive (Directive (EU) 2018/844) directed that all EU member states would be allowed time until March 10, 2020, to transpose the directive into national legislation. This includes innovative approaches, which could potentially address market failures that are currently preventing the benefits of BACS from being fully realized. This would also help achieve huge energy and CO2 savings while also enhancing the comfort and health of users. All non-residential buildings will need to be equipped with BACS, and each member state is expected to comply with the requirements. These developments are expected to drive the growth of the BACS market in Europe during the forecast period.
The market report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion " for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
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The market is witnessing significant growth driven by the expanding construction industry and the rising adoption of BAS (Building Automation Systems). With the proliferation of the IoT (Internet of Things), there's a heightened focus on optimizing energy consumption and reducing operating costs in buildings. The market thrives on advancements in integrated systems, catering to the needs of the commercial sector for energy-efficient buildings. Both public and private investment is channeled into enhancing building sustainability and achieving de-carbonization goals. Solutions encompass air conditioning, security and access control systems, HVAC Control, and Lighting Control to meet diverse needs across industry verticals such as hospitality.
The market is propelled by rapid technology growth and the increasing demand for efficient management of real estate assets. With the integration of semiconductor chips and advancements in the construction sector, buildings are now equipped with remote monitoring and interconnected systems for enhanced functionality. Initiatives by organizations like the International Energy Agency drive the adoption of energy management systems to address challenges posed by urbanization and infrastructure development. However, the market faces threats from cyberattacks and malware attacks, emphasizing the importance of robust safety and security systems, including sanitization systems and HVAC systems. This market serves various segments, including residential, commercial, and industrial, offering solutions for facility management and contributing to the green building concept and carbon-neutral goals.
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Market Scope |
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Report Coverage |
Details |
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Page number |
171 |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 8.71% |
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Market growth 2024-2028 |
USD 31.12 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
7.82 |
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Regional analysis |
Europe, North America, APAC, Middle East and Africa, and South America |
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Performing market contribution |
North America at 30% |
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Key countries |
US, UK, China, Germany, and Canada |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
ABB Ltd., Bajaj Electricals Ltd., BuildingLogiX, Emerson Electric Co., Evon Technologies Pvt. Ltd., FORESCOUT, Honeywell International Inc., IoEnergy Inc., Itron Inc., Johnson Controls International Plc., KMC Controls Inc., Legrand, Lutron Electronics Co. Inc., Mode Green Integrated Building Technology, OptergyA, PointGrab Inc., Robert Bosch GmbH, Rockwell Automation Inc., Schneider Electric SE, and Siemens AG |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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