Building Automation Software Market Size 2024-2028
The building automation software market size is forecast to increase by USD 37.2 billion, at a CAGR of 17.21% between 2023 and 2028.
- The market is experiencing significant growth due to the increasing demand for enhanced business outcomes in the construction industry. Customization is becoming a key trend in building automation software, as businesses seek solutions tailored to their unique needs. However, integrating these systems and ensuring interoperability remains a significant challenge. Building owners and operators must navigate these obstacles to effectively implement and reap the benefits of building automation software.
- By addressing these challenges and focusing on customized solutions, companies can capitalize on the market's potential for improved operational efficiency, energy savings, and enhanced occupant comfort.
What will be the Size of the Building Automation Software Market during the forecast period?
Explore in-depth regional segment analysis with market size data - historical 2018-2022 and forecasts 2024-2028 - in the full report.
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The market continues to evolve, driven by advancements in technology and the growing demand for energy efficiency and enhanced security in various sectors. Integral to this evolution are access control systems, real-time data acquisition, occupancy sensors, smart thermostats, and data security measures. Cloud-based platforms facilitate seamless integration of HVAC control, data storage, and system integration, enabling historical data analysis and third-party collaborations. IoT sensors, artificial intelligence (AI), and machine learning are increasingly incorporated, offering remote diagnostics, predictive analytics, and performance monitoring. Open protocols and integration APIs ensure compatibility, while user interfaces and mobile applications enhance user experience. Edge computing and data analytics further optimize cost and improve response times.
Environmental sensors, lighting control, and automated metering contribute to energy management systems, while data visualization tools facilitate efficient decision-making. Network infrastructure and fault detection systems ensure data security and system reliability. The market's continuous dynamism underscores the importance of staying informed and adaptable to evolving patterns and applications.
How is this Building Automation Software Industry segmented?
The building automation software industry research 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.
- Product
- BMS software
- Standalone building automation software
- End-user
- Commercial
- Industrial
- Others
- Geography
- North America
- US
- Europe
- Germany
- UK
- APAC
- China
- India
- Rest of World (ROW)
- North America
By Product Insights
The bms software segment is estimated to witness significant growth during the forecast period.
The markets witness significant growth, driven by the adoption of advanced technologies such as artificial intelligence (AI) and the Internet of Things (IoT) sensors. AI and machine learning enable predictive analytics and fault detection, leading to energy efficiency and cost optimization. Energy management systems are integral to this market, with real-time data monitoring and historical data analysis facilitating cost savings. Security systems are another critical component, ensuring data security through access control, user roles, and access permissions. Cloud-based platforms and edge computing enable remote monitoring and diagnostics, while open protocols and integration APIs ensure system compatibility. HVAC control, lighting control, and smart thermostats optimize energy usage, while occupancy sensors and smart lighting enhance user comfort.
Cost optimization is a significant factor, with performance monitoring and user interfaces streamlining operations. Building automation systems integrate various environmental sensors, providing data analytics for energy efficiency. Predictive analytics and network infrastructure enable preventive maintenance, reducing downtime. The market is expanding, with third-party integrations and mobile applications enhancing user experience. Neural networks and deep learning facilitate advanced analytics, while proprietary protocols ensure system reliability. Fault detection and energy efficiency are essential focus areas, with a shift towards data-driven decision-making. In summary, the market is evolving, driven by advanced technologies, energy efficiency, and cost optimization. The commercial buildings segment, particularly in North America and Europe, is leading the way, with retrofitting activities fueling growth.
Building automation software is transforming the way we manage and optimize energy usage in commercial and residential buildings.
The BMS software segment was valued at USD 11.90 billion in 2018 and showed a gradual increase during the forecast period.
Regional Analysis
APAC is estimated to contribute 42% to the growth of the global market during the forecast period.Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The market in the US has witnessed significant advancements in recent years, driven by the integration of artificial intelligence (AI) and the Internet of Things (IoT) sensors. Energy management systems have become more sophisticated with real-time data analysis, predictive analytics, and cost optimization features. Security systems have evolved to include access control, user roles, and data security, all crucial elements for cloud-based platforms. Open protocols and integration APIs have facilitated system integration, enabling seamless communication between various building systems, such as lighting control, HVAC, and environmental sensors. Deep learning and machine learning algorithms have been adopted for fault detection, energy efficiency, and performance monitoring.
Data visualization tools have become essential for building operators, providing insights into historical data and enabling predictive analytics. Mobile applications and remote monitoring have made building automation more accessible, while edge computing and network infrastructure have ensured reliable and efficient data processing. Smart lighting and automated metering have emerged as key trends, offering significant energy savings. Access permissions and neural networks have enhanced security and user experience. Proprietary protocols have given way to open standards, enabling third-party integrations and improving interoperability. The market's evolution has been influenced by the increasing importance of energy efficiency, cost optimization, and sustainability.
Building automation systems have become indispensable tools for managing and optimizing energy consumption, ensuring occupant comfort, and maintaining building health.
Market Dynamics
Our researchers analyzed the data with 2023 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.
What are the key market drivers leading to the rise in the adoption of Building Automation Software Industry?
- The increasing demand for building automation is a primary factor propelling market growth, as businesses seek to enhance operational efficiency and productivity.
- Building automation software plays a crucial role in managing and controlling various sub-systems in industrial, residential, and commercial buildings. This software acts as a control system, ensuring the automatic regulation and maintenance of predefined parameters for different systems within a building. By integrating security systems, energy management systems, and IoT sensors, building automation software enables remote diagnostics, data visualization, and cost optimization. The implementation of open protocols and integration APIs facilitates seamless communication between various systems. Artificial intelligence and deep learning technologies are increasingly being integrated into building automation software to enhance functionality. For instance, these technologies enable lighting control based on occupancy and natural light, optimizing energy usage and reducing costs.
- Furthermore, the use of AI and deep learning algorithms for predictive maintenance and anomaly detection can help prevent potential issues before they escalate. Building automation software's ability to optimize energy usage is a significant advantage for organizations, leading to substantial cost savings. For example, HVAC systems' components are connected to the Building Management System (BMS), and alarms are generated when any sub-system's value exceeds predefined limits. By addressing these issues promptly, organizations can prevent energy wastage and reduce operational expenses. Overall, building automation software is an essential tool for businesses seeking to enhance operational efficiency, improve energy management, and optimize costs.
What are the market trends shaping the Building Automation Software Industry?
- Customized building automation software is gaining prominence as the newest market trend. The demand for tailored solutions to manage and optimize building systems is driving this trend.
- Building automation software is a vital tool for organizations seeking to optimize safety and security controls with a user-friendly interface. Amidst increasing competition in the market, companies are integrating advanced features such as real-time data access, occupancy sensors, smart thermostats, and HVAC control into their offerings. These solutions enable system integration, historical data analysis, and third-party integrations, enhancing the overall efficiency of facility management. Additionally, cloud-based platforms ensure data security and storage, making it easier for businesses to access critical information anytime, anywhere.
- The emphasis on application-specific software allows users to fine-tune building automation systems to their unique requirements, leading to significant improvements in operational performance. Consequently, The market is poised for significant growth during the forecast period, driven by the continuous evolution of technology and the demand for more immersive, harmonious, and strike-the-right-note building management solutions.
What challenges does the Building Automation Software Industry face during its growth?
- The integration of building automation software and the interoperability issues associated with it represent significant challenges that hinder industry growth. These complexities necessitate the need for advanced solutions and industry-wide collaboration to ensure seamless communication and data exchange between different systems.
- Building automation software plays a crucial role in managing and optimizing various building systems, including environmental sensors, automated metering, and performance monitoring. With the increasing adoption of cloud computing and edge computing, remote monitoring and mobile applications have become essential components of these systems. The user interfaces for building automation software must be intuitive and harmonious to ensure efficient operation. Effective communication between different hardware systems is vital for building automation. The interfacing software must ensure compatibility between these devices while configuring them on the same platform. Integrating existing legacy systems with new software can pose challenges, potentially leading to integration issues and security breaches.
- Performance monitoring is a critical aspect of building automation software. Predictive analytics helps identify potential issues before they escalate, reducing downtime and maintenance costs. Network infrastructure plays a significant role in ensuring seamless communication between various sub-systems. Cloud computing enables remote access to building automation data, allowing for real-time monitoring and control. Mobile applications offer the convenience of managing building systems from anywhere, while edge computing ensures data processing at the source, reducing latency and bandwidth requirements. In summary, building automation software is essential for managing and optimizing building systems. Its integration requires technical expertise and compatibility between various hardware systems.
- Performance monitoring, user interfaces, and network infrastructure are crucial components of effective building automation software. Cloud computing, edge computing, mobile applications, and predictive analytics enhance the functionality and efficiency of these systems.
Exclusive Customer Landscape
The building automation software 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 building automation software market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Key Companies & Market Insights
Companies are implementing various strategies, such as strategic alliances, building automation software market forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the industry.
ABB Ltd. - This company provides advanced building automation software, including the ABB-free home Next app with remote access feature. Users can connect the app to the ABB-free@home system via the Internet, enabling convenient control of their homes from anywhere. The software streamlines home management and energy efficiency.
The industry research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
- ABB Ltd.
- Advantech Co. Ltd.
- Beckhoff Automation
- BuildingLogiX
- Cisco Systems Inc.
- Delta Electronics Inc.
- Emerson Electric Co.
- EUROICC
- General Electric Co.
- Hitachi Ltd.
- Honeywell International Inc.
- Ingersoll Rand Inc.
- Johnson Controls International Plc.
- Lennox International Inc.
- Lutron Electronics Co. Inc.
- RTX Corp.
- Robert Bosch GmbH
- Rockwell Automation Inc.
- Schneider Electric SE
- Siemens AG
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 industry 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.
Recent Development and News in Building Automation Software Market
- In January 2024, Honeywell International Inc. Announced the launch of its new Enterprise Buildings Business (EBB) software, known as "Honeywell Forge," which integrates building automation, energy management, and enterprise performance software into a single platform (Honeywell Press Release, 2024). This innovation aims to streamline operations for large-scale commercial buildings, enabling energy savings and improved occupant comfort.
- In March 2024, Schneider Electric, a leading energy management and automation company, entered into a strategic partnership with Microsoft to integrate Schneider Electric's EcoStruxure Building platform with Microsoft Azure IoT and Azure AI services (Schneider Electric Press Release, 2024). This collaboration allows for advanced data analytics and AI capabilities to optimize building performance and energy efficiency.
- In May 2024, Siemens announced the acquisition of Enlighted, a provider of AI-driven smart building solutions, for approximately USD300 million (Siemens Press Release, 2024). This acquisition strengthens Siemens' building automation portfolio, enabling them to offer more advanced occupancy sensing, energy management, and data analytics services to their clients.
- In April 2025, Johnson Controls International plc and Google announced a collaboration to integrate Johnson Controls' OpenBlue digital platform with Google Workspace, allowing for seamless data exchange between building management systems and Google's productivity and collaboration tools (Johnson Controls Press Release, 2025). This partnership aims to enhance workplace efficiency and improve occupant experience by integrating building automation with productivity tools.
Research Analyst Overview
- The market is experiencing significant growth, driven by the increasing adoption of green building practices and the integration of advanced technologies. BACnet IP and Ethernet/IP protocols facilitate communication between various building systems, enabling centralized management and improved system architecture. Life cycle costing and compliance with energy Star, LEED certification, and building codes are essential considerations for businesses seeking to optimize energy usage and reduce operational expenses. Cloud security and data encryption are crucial for safeguarding sensitive information transmitted over IP networks. Wireless communication and mobile app development enhance user experience (UX) by providing real-time access to building data from anywhere.
- SCADA systems and distributed control systems ensure efficient operation of field devices and maintain audit trails for regulatory compliance. Data historians and user interfaces (UI) play a vital role in analyzing trends and optimizing building performance. Compliance with various standards, such as BACnet, Energy Star, and LEED certification, is essential for ensuring system interoperability and sustainability. Network switches and system architecture must be designed with data security and reliability in mind to protect against cyber threats. Incorporating wireless communication, cloud security, and mobile app development into building automation systems can significantly enhance user experience while reducing operational costs and improving energy efficiency.
- With the growing importance of green building and regulatory compliance, businesses must invest in advanced building automation software solutions to remain competitive.
Dive into Technavio’s robust research methodology, blending expert interviews, extensive data synthesis, and validated models for unparalleled Building Automation Software Market insights. See full methodology.
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Market Scope |
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Report Coverage |
Details |
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Page number |
185 |
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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 17.21% |
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Market growth 2024-2028 |
USD 37.2 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
14.98 |
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Key countries |
US, China, India, Germany, and UK |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
What are the Key Data Covered in this Building Automation Software Market Research and Growth Report?
- CAGR of the Building Automation Software industry during the forecast period
- Detailed information on factors that will drive the growth and forecasting between 2024 and 2028
- Precise estimation of the size of the market and its contribution of the industry in focus to the parent market
- Accurate predictions about upcoming growth and trends and changes in consumer behaviour
- Growth of the market across APAC, Europe, North America, South America, and Middle East and Africa
- Thorough analysis of the market’s competitive landscape and detailed information about companies
- Comprehensive analysis of factors that will challenge the building automation software market growth of industry companies
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