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The commercial building automation systems market size is forecast to increase by USD 17.9 billion, at a CAGR of 8.55% between 2023 and 2028. Market growth depends on various factors, including the rising demand for comfort and foolproof security systems, driving innovation in smart home technologies, and integrated security solutions. Simultaneously, there is a growing emphasis on energy efficiency, spurred by consumer awareness and regulatory mandates aimed at reducing carbon footprints. Government regulations play a crucial role in shaping the market landscape, particularly in incentivizing energy-efficient products and technologies. These measures not only encourage adoption but also stimulate innovation in energy-saving solutions across residential and commercial sectors. As consumers prioritize convenience, safety, and sustainability, the market for comfort and security systems continues to evolve, supported by technological advancements and proactive regulatory frameworks that promote environmental stewardship and energy conservation.
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The market is witnessing significant growth due to the increasing adoption of smart buildings and the IoT in both new constructions and retrofits. Indoor climate control, multi-story green buildings, and HVAC systems are major applications driving the market's growth. Multi-tech systems, including wireless protocols, are increasingly being used to enable seamless communication between various building automation solutions. Smart cities mission and initiatives are also propelling the market forward, with building control systems and management systems becoming essential components of network-connected devices in urban environments.
Moreover, HVAC controls, lighting controls, fire detection, security systems, and biometric systems are some of the key building automation solutions gaining traction. Climate change concerns are further accelerating the demand for energy-efficient and sustainable building automation systems. Hardware and software components are integral to the market, with IoT technologies and the Internet of Things playing a pivotal role in enabling advanced functionality and connectivity. The market is expected to continue its growth trajectory, with smart building solutions becoming increasingly integrated into commercial buildings and smart cities. A wireless intercom device is just one example of the many networked devices enhancing the functionality and convenience of building automation systems.
Demand for comfort and foolproof security systems is notably driving market growth. The commercial building automation systems market is experiencing significant growth due to the increasing number of multi-story green buildings and the Smart Cities Mission. These structures prioritize Indoor Climate control, energy efficiency, and safety features such as HVAC Systems, Biometric Systems, Fire detection, and Security systems. Multi-tech systems, including hardware and software, are integral to Building control systems and Building management systems. Building automation solutions and management systems enable the integration of Lighting controls, HVAC controls, and IoT technologies.
Additionally, network-connected devices, including Wireless Protocols and Wireless intercom devices, are crucial for effective facility management. Climate change necessitates the adoption of smart building solutions and IoT technologies to minimize energy consumption and prevent Fire accidents. Hikvision's recent advancement in professional video surveillance cameras with ColorVu imaging technology underscores the importance of security and access control in commercial buildings. Thus, such factors are driving the growth of the market during the forecast period.
Rise in adoption of AI and IoT-based solutions is the key trend in the market. The Internet of Things (IoT) is revolutionizing the commercial building automation systems market by integrating network-connected devices, hardware, and software to enhance energy efficiency, climate control, and building security. Multi-story green buildings are increasingly adopting IoT technologies, such as multi-tech systems, wireless protocols, and smart building solutions, to optimize Indoor Climate and reduce energy consumption.
Moreover, HVAC systems, lighting controls, fire detection, and security systems are key components of building automation solutions, which are now being networked and controlled remotely. The Smart Cities Mission is a significant driver of this trend, as urban environments prioritize energy efficiency, climate change mitigation, and public safety. IoT technologies enable real-time monitoring and control of these systems, ensuring optimal performance and reducing the risk of fire accidents. Building control systems and building management systems are being upgraded with IoT capabilities, providing facility management systems with valuable insights and data for improved operational efficiency. Thus, such trends will shape the growth of the market during the forecast period.
Challenges in integrating building automation software coupled with interoperability issues is the major challenge that affects the growth of the market. Commercial building automation systems have gained significant traction in the construction industry, particularly in the development of multi-story green buildings. These systems integrate various sub-systems, including HVAC systems, lighting controls, fire detection, security systems, and biometric access, to enhance energy efficiency and climate control. The use of wireless protocols and multi-tech systems facilitates seamless communication between network-connected devices, enabling real-time monitoring and control. The Smart Cities Mission and IoT technologies have further fueled the adoption of building automation solutions, transforming buildings into smart structures. Building control systems and management systems enable facility managers to monitor and optimize the performance of various sub-systems, ensuring optimal indoor climate and reducing energy consumption.
However, the integration and running of complex building automation software require specialized technical skills and expertise. The complexity of the system increases with the size of the building, necessitating effective communication between different hardware systems. The interfacing software must ensure compatibility between these devices while configuring them together on the same platform. Integrating existing legacy systems with a new, more complicated software may lead to various integration issues, which may result in faulty installations and potential security breaches. In summary, building automation systems play a crucial role in enhancing energy efficiency, improving indoor climate, and ensuring safety and security in commercial buildings. However, their implementation requires careful planning, technical expertise, and effective communication between various hardware systems to ensure seamless integration and optimal performance. Hence, the above factors will impede 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.
ABB Ltd. - The company offers commercial building automation systems that includes innovative technology used to integrate, disseminate and visualize information from the entire building, heating and cooling systems, ventilation and air conditioning systems, lighting, and sun shading systems.
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 wired segment is estimated to witness significant growth during the forecast period. Commercial Building Automation Systems have gained significant traction in the construction industry, particularly in the development of multi-story green buildings. These systems enable effective management and control of Indoor Climate, HVAC Systems, Lighting controls, Fire detection, and Security systems. Multi-tech systems employ Wireless Protocols to facilitate seamless communication between Network-connected devices, contributing to Energy efficiency and reducing the carbon footprint.
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The wired segment was the largest and was valued at USD 23.20 billion in 2018. The Smart Cities Mission has accelerated the adoption of Building automation solutions and Building management systems, integrating IoT technologies and Biometric Systems for enhanced security and convenience. IoT, Smart buildings, and Smart city initiatives prioritize Climate change mitigation and disaster management, making Fire detection and HVAC controls crucial components. Hardware and Software solutions collaborate to optimize Facility management systems, ensuring optimal performance and minimizing the risk of Fire accidents.
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APAC is estimated to contribute 41% 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. Commercial Building Automation Systems are integral to managing Indoor Climate in Multi-story Green Buildings, ensuring energy efficiency and reducing carbon footprint. These systems employ Wireless Protocols and Multi-Tech Systems for seamless communication between Network-connected devices, including HVAC Systems, Biometric Systems, Lighting Controls, Fire Detection, and Security Systems. The Internet of Things (IoT) plays a pivotal role in enhancing Building control systems and Building management systems, offering Smart Building solutions that optimize resource usage and prevent Fire accidents.
Additionally, smart Cities Mission integrates these solutions into urban environments, creating Smart cities and Smart urban environments. Hardware and Software solutions enable Facility management systems to monitor and manage various building functions efficiently. HVAC controls, Fire detection, and Security systems ensure occupant safety and comfort. IoT technologies and Smart building solutions are transforming the commercial and residential sectors, offering advanced Climate change mitigation strategies and enhancing overall sustainability.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
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Commercial Building Automation Systems: Enhancing Indoor Climate and Energy Efficiency in Multi-Story Buildings Commercial Building Automation Systems (BAS) are advanced solutions designed to optimize the performance of HVAC systems, lighting controls, fire detection, security systems, and other building services. These systems enable the integration of various building technologies, including Wireless Protocols and IoT technologies, to create smart buildings that respond to occupant needs and environmental conditions. Multi-story green buildings are increasingly adopting BAS to improve indoor climate, reduce energy consumption, and enhance overall building performance. HVAC controls, fire detection, and security systems are key components of BAS, ensuring optimal temperature, humidity, and air quality levels while minimizing energy waste. Smart Cities Mission and IoT technologies are driving the adoption of BAS in commercial buildings. Further, network-connected devices, such as wireless intercom devices and hardware, enable real-time monitoring and remote control of building systems. Building control systems and management systems facilitate efficient facility management and optimize energy usage. Biometric systems and other advanced technologies, such as lighting controls and HVAC controls, further enhance the capabilities of BAS. Energy efficiency, climate change mitigation, and safety are primary concerns for building owners and managers.
Further, BAS provides solutions to these challenges by optimizing energy usage, preventing fire accidents, and ensuring occupant comfort and security. In addition, Commercial Building Automation Systems offer significant benefits for commercial buildings, including improved indoor climate, energy efficiency, and enhanced safety and security features. The integration of IoT technologies and smart city initiatives is expected to further propel the growth of the BAS market. The market is expanding rapidly, driven by the implementation of stringent regulations like the Energy Conservation Building Code (ECBC). BAS (Building Automation Systems) play a pivotal role in optimizing energy usage and operational efficiency. These systems encompass building control system and building management system, which integrate functions such as HVAC, lighting, and security. The integration of the Building automation system (BAS) facilitates comprehensive control over security and access controls, ensuring heightened safety and operational oversight. This market growth is propelled by the increasing demand for sustainable and secure building operations across diverse industries.
Market Scope |
|
Report Coverage |
Details |
Page number |
145 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
accelerate at a CAGR of 8.55% |
Market growth 2024-2028 |
USD 17.9 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
7.65 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 41% |
Key countries |
US, China, Germany, India, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ABB Ltd., Beckhoff Automation, Carrier Global Corp., Cisco Systems Inc., Crestron Electronics Inc., Emerson Electric Co., Endress Hauser Group Services AG, General Electric Co., Honeywell International Inc., Hubbell Inc., Johnson Controls International Plc., Legrand North America LLC, Lutron Electronics Co. Inc., Mitsubishi Electric Corp., OMRON Corp., Phoenix Contact GmbH and Co. KG, Robert Bosch GmbH, Schneider Electric SE, Siemens AG, and Trane Technologies Plc |
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 the market forecast period |
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. |
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Technology
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
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