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The building automation software market size is estimated to grow at a CAGR of 14.22% between 2022 and 2027. The market size is forecast to increase by USD 25.46 billion. The growth of the market depends on several factors, including the growing need for building automation to enhance business outcomes, the stringent government regulations on energy consumption in buildings, and the growing demand for energy efficiency and sustainability in buildings. Building automation software enables all systems in a building, including HVAC, lighting, electricity, security, and protection systems, to communicate on a single platform and deliver relevant information to the control system, allowing buildings to operate smartly while enhancing the overall comfort, safety, and productivity levels of occupants.
This building automation software market report extensively covers market segmentation by product (BMS software and standalone building automation software), end-user (commercial, industrial, and others), and geography (APAC, Europe, North America, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The growing need for building automation to enhance business outcomes is driving growth in the building automotive software 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 global building automation software market during the forecast period.
The centralized remote control of building automation software through mobile devices is a key trend in the building automotive software market. The rapid development of the centralized remote control system via a mobile device has benefited most commercial and residential users. Vendors 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 vendors are charging different rates, creating additional revenue for the global building automation software market and thereby driving the growth of the global building automation software market during the forecast period.
The vulnerability and cybersecurity threat issues a major challenges in the building automotive software market. It is much more difficult to implement building automation software, 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 building automation software 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 growth of the global building automation software market during the forecast period.
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 building automation, along with powerful analytics tools. Furthermore, in North America and Europe, business buildings 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 10.48 billion in 2017 and continued to grow by 2021. 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 global building automation software 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 buildings, 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 building, 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 global building automation software during the forecast period.
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APAC is estimated to contribute 37% 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 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 he forecast period.
The outbreak of COVID-19 in 2020 led to a decline in the demand for building automation software in APAC. However, investments in smart city projects steadily declined during H1 2020. This disrupted the regional market's growth. Employees of many companies have started working from home permanently due to the COVID-19 pandemic. Demand for software to manage buildings will increase as construction projects are developed, which, in turn, will boost the growth of the regional building automation software market during the forecast period.
The Building Automation Software Market 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 growth strategies.
Global Building Automation Software Market 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.
ABB Ltd. - The company offers building automation software such as the ABB-free Home Next app with my Buildings remote access, connects the app to the ABB-free@home system via the Internet, and conveniently controls the house from anywhere.
Advantech Co. Ltd. - The company offers building automation software such as webAccess HMI SCADA software this helps intelligent buildings to enhance energy efficiency and cost saving.
Beckhoff Automation GmbH and Co. KG - The company offers various products such as industrial PCs, I and O and fieldbus components, drive technology, and automation software.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market 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 building automation software market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Building Automation Software Market Scope |
|
Report Coverage |
Details |
Page number |
179 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 14.22% |
Market growth 2023-2027 |
USD 25.46 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
14.02 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 37% |
Key countries |
US, China, India, Germany, and the UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ABB Ltd., Advantech Co. Ltd., Beckhoff Automation GmbH and Co. KG, 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., Raytheon Technologies Corp., Robert Bosch GmbH, Rockwell Automation Inc., Schneider Electric SE, and Siemens AG |
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, and Market condition analysis for the forecast period. |
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. |
We can help! Our analysts can customize this market research report to meet your requirements.
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 Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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