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The building automation software market size is projected to increase by USD 37.2 billion with growth at a CAGR of 17.21% between between 2023 and 2028. The market's expansion hinges on various factors, notably the increasing demand for building automation to optimize business performance. With businesses seeking greater operational efficiency, automation solutions offer streamlined processes and enhanced control over building systems. Additionally, stringent government regulations aimed at reducing energy consumption in buildings drive the adoption of energy-efficient technologies. These regulations compel businesses to implement sustainable practices, spurring the demand for energy-efficient solutions. Moreover, there's a growing awareness and preference for sustainable and environmentally friendly facilities among consumers, further boosting the market for energy-efficient and sustainable construction solutions. By addressing these evolving needs and regulatory requirements, the market is poised for significant growth as businesses and consumers alike prioritize energy efficiency and sustainability in making construction and management.
The market growth and forecasting report includes key player's 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, and Siemens AG
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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.
Market analysis and report of 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 is rapidly evolving with the integration of IoT integrated systems and cloud-based BAS applications. Leveraging IoT technologies, urban centers are adopting sophisticated building automation system encompassing building control system and building management system. These solutions optimize electric systems and electronic systems, offering advanced lighting controls and fire detection capabilities for enhanced efficiency and safety in modern buildings.
The market share growth by the BMS software segment will be significant during the forecast period. BMS software system majorly dominates the overall market share for building automation software, as BMS software provides comprehensive solutions for constructing automation, along with powerful analytics tools. Furthermore, in North America and Europe, business structures are the main drivers of this market.
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The BMS software segment showed a gradual increase in the market share of USD 11.90 billion in 2018. BMS software is largely used in retail and office buildings. In view of the growing demand for safe, secure, and comfortable working environments, office buildings are expected to make up a significant part of this segment. Similarly, in manufacturing units, there is an increased demand for automated facility management to achieve efficient energy management. Therefore, building automation software enables industries to record, monitor, and control their energy usage in real time.
The market in commercial buildings will exhibit appreciated growth during the forecast period, owing to multiple building owners adopting building automation systems in their facilities. Investing in more effective solutions and technologies has always been a priority for the owners of facilities, who seek to minimize energy consumption, operational costs, and maintenance costs. The growing use of technologies, such as sensor-enabled building management systems, also increases the risk of cyberattacks. Any unauthorized access to any sensitive data that is stored in a commercial establishment, such as a bank, can cause financial, legal, and reputational damage to vendors as well as end-users. These factors will drive the growth of the commercial segment of the global market during the forecast period.
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APAC is estimated to contribute 42% to the growth of the global market during the forecast period. Technavio's analysts have provided an extensive insight into the market forecast, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. The APAC market experienced the least adoption of building automation software in the last decade due to a lack of supporting infrastructure and low spending capabilities among people. Moreover, building automation software being new to the region, faced intense challenges due to its high price. Countries such as Japan, China, and Australia experienced relatively higher growth in APAC due to a high level of awareness and a flourishing economy.
In addition, the regulatory framework in the region is also becoming more stringent as various countries are taking steps to make the relevant legislation more stringent. These regulations are compelling building operators and owners to install building automation software in order to meet their energy and sustainability targets. Thus, the above factors will increase the market growth in this region during the forecast period.
The market is experiencing significant growth driven by the increasing adoption of HVAC and renewable energy sources like solar panels. Integration with IoT enables predictive maintenance and facilitates centralized control systems. Energy efficiency measures are being implemented through cloud based BAS applications and smart cities initiatives, despite interoperability challenges. From intelligent street lighting to waste management and healthcare, building automation solutions offer comprehensive control over heating, ventilation, and other mechanical systems.
The growing need for building automation to enhance business outcomes is driving growth in the market. The development of automation software has several advantages. This software allows industrial, residential, and commercial buildings to manage, control, and operate the functioning of their buildings easily and more efficiently.
However, in light of these benefits, building automation has become an integral aspect of businesses these days. By making it easier to manage energy efficiently, the adoption of software for building automation has a major impact on organizations' cost savings. In addition, being an inevitable component of building automation, building automation software will experience a surge in demand from business enterprises during the forecast period, thereby driving the growth of the market during the forecast period.
Centralized remote control through mobile devices is a key trend in the market. The rapid development of the centralized remote control system via a mobile device has benefited most commercial and residential users. Companies are also trying to develop wireless hubs that can transmit and receive signals using the remote control to another system.
Moreover, the rising adoption of smart devices provides a growth indication for mobile application-based home or office automation systems at remote locations. For providing software on both Web and mobile applications, a lot of companies are charging different rates, creating additional revenue for the market and thereby driving the growth of the market during the forecast period.
The vulnerability and cybersecurity threat issues a major challenges in the market. It is much more difficult to implement compared with conventional systems in a building, such as lighting, safety, and security. As the infrastructure in a building increases, the precise integration of software that performs different functions poses a challenge. If this integration is not completed, then software could be exposed to a wide range of physical and cyber threats.
Moreover, the provides an interface for all the hardware within a building, and if hackers attempt to break one system of the network, they can have an impact on others and cause a disastrous crash in the entire network. The growing adoption of building automation software poses the risk of security breaches, which may hinder the market growth analysis during the forecast period.
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The market forecasting report includes the adoption lifecycle of the market research and growth, 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 and trends strategies.
Global Market Customer Landscape
The market 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.
The market is witnessing significant growth driven by the increasing adoption of smart technologies in various sectors such as education, offices, retail spaces, and hotels. These systems incorporate sensors, actuators, and communication modules to enable efficient control and management of building operations. Cloud-based platforms and artificial intelligence play pivotal roles in optimizing energy usage and enhancing security measures. With rising concerns over climate change and energy consumption, demand for solutions like facility management systems, HVAC controls, and security systems is on the rise, driving the expansion of the market.
Further, the market is experiencing rapid growth driven by the increasing adoption of cloud based platforms and the rising demand for smart buildings across various sectors including non-residential buildings and the residential segment. These solutions integrate access control systems, video surveillance, and intrusion detection to enhance security measures. HVAC control and lighting systems are optimized for energy efficiency and comfort, while Internet of Things (IoT) devices enable real-time monitoring and management of electricity use. With a focus on sustainability, there's a push towards zero-carbon buildings to combat rapid temperature rise and reduce environmental impact. Additionally, government policies drive the adoption of fire protection systems and access control measures to mitigate security concerns such as theft and burglary.
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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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Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 42% |
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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 |
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Key companies profiled |
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, 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 market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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