Integrated Building Management Systems Market Analysis Europe, North America, APAC, South America, Middle East and Africa - US, China, India, UK, Germany - Size and Forecast 2024-2028

Integrated Building Management Systems Market Forecast 2024-2028 

The integrated building management systems market size is forecast to increase by USD 13.20 billion at a CAGR of 12.01% between 2023 and 2028. The market's growth rate is influenced by several factors, including enhanced monitoring and control of building operations, rising demand for energy-efficient and sustainable buildings, and increasing government regulations concerning construction. These factors collectively shape the market's trajectory, reflecting a strong potential for expansion. The emphasis on efficient building operations, coupled with a growing awareness of environmental sustainability, drives the adoption of advanced technologies and practices in the construction sector. Moreover, government regulations mandating sustainable construction practices further propel market growth, creating a conducive environment for industry advancement.

The market growth and forecasting report includes key player's detailed analyses of the competitive landscape of the market and information about 20 market companies, including Azbil Corp., Beijer Electronics Group AB, Carrier Global Corp., Cisco Systems Inc., Delta Electronics Inc., Emerson Electric Co., Honeywell International Inc., Johnson Controls International Plc, Kieback and Peter GmbH and Co. KG, Lutron Electronics Co. Inc., Messung Group of Companies, OBERIX GROUP, Prism Enterprise Electrical Trading LLC, Schneider Electric SE, Siemens AG, Snap One LLC, Vitrex, and Convergint Technologies LLC. Additionally, ABB Ltd offers integrated building management systems such as ABB i-bus KNX, ABB i-bus EIB, and ABB Ability for building automation.

What will be the Size of the Market During the Forecast Period?

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Market Overview

The market encompasses a range of BMS technologies catering to industrial users, commercial users, and residential users alike. With a focus on energy-efficient and eco-friendly buildings, integration of IoT is a common trend. These systems manage various equipment and systems, offering building automation features, including automated security systems. However, security issues are a concern with IoT-based Building Automation Systems (BASs). Nevertheless, these computer-based systems efficiently handle functions like heating, ventilation, air conditioning, lighting, and security, ensuring optimal building operations.

Key Market Growth Analysis Driver

Growing demand for energy efficiency and sustainability in buildings is notably driving the market.  Increasing awareness about environmental sustainability across industries and verticals has spurred a growing demand for energy efficiency across buildings and facilities, driven by both property owners and other stakeholders, including the government. Additionally, the growth in urbanization levels globally has led to a corresponding rise in global energy demand. Moreover, while developed countries have urbanization rates exceeding 75%, the rate is comparatively lower in developing countries like Brazil, India, and China.

Additionally, as urbanization continues to accelerate, urban areas are expected to experience a substantial increase in energy consumption levels due to the heating, ventilation, air conditioning, and lighting. For instance, in the US, the building automation sector stands as the largest consumer of energy. Estimates from the US Government suggest that the implementation of energy-efficient technologies and solutions, such as IoT-based building automation systems (BASs) in existing buildings, could lead to a significant reduction of up to 50% in energy consumption in the residential users and up to 46% in the commercial users. Hence, such factors are propelling the market during the forecast period.

Significant Market Growth and Trends

The advent of robotic and cognitive automation in the real estate sector is an emerging trend in the market. Align with market trends and analysis, in the majority of real estate companies, key functions, including finance, property management, and portfolio management, are manual or semi-automated. For example, companies still use spreadsheets to collate and analyze data from different processes, such as lease management, property valuation, and forecasting.

Moreover, this eventually results in the sub-optimal use of data and workers, as different departments work in silos. Therefore, the real estate sector is increasingly leveraging technologies, such as RCA, which can deliver operational efficiency and augment productivity across the sector. Hence, such factors are driving the market during the forecast period.

Major Market Restrain

Vulnerability issues and cyber security threats in IBMS is a major challenge hindering the market. The implementation of IBMS is extremely complex when compared with operating traditional, disparate systems in a building, including HVAC, lighting, and safety. However, as the infrastructure in a building increases, the precise integration of different units that perform different functions poses a challenge.

Moreover, any loophole in this integration process exposes the IBMS to various physical as well as cyber threats. In addition, the traditional IBMS was created without a focus on future integration and was not hyperconnected. Therefore, these systems were not designed with logical security and safety features, and they remain vulnerable to breaches of confidential data. Furthermore, any access to IBMS through an external network remains a concern, especially when the facility has a large information technology infrastructure connected to different business systems. Hence, such factors are hindering the market during the forecast period.

Market Segmentation By Component

The hardware segment is estimated to witness significant growth during the forecast period. The hardware component segment of IBMS comprises components including controllers, sensors, switches, cameras, storage devices, and gauges. In addition, controllers are available in various types and are used to manage various types of equipment and devices and different sections of the network. Furthermore, sensors provide the input data to the controllers. Most of these hardware devices are either mounted on the equipment or hidden under the floor of a building or inside the ceiling.

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The hardware segment was the largest segment and was valued at USD 6.24 billion in 2018. Moreover, the hardware segment accounts for the highest share of the overall cost of IBMS installation. In addition, this is mainly because the successful implementation of IBMS requires the installation of a high volume of hardware components, such as sensors, on building premises. Furthermore, as more buildings adopt these systems, the need for greater control and connectivity will spur the demand for these sensors and controllers. In addition, the hardware segment is expected to register a healthy growth rate with the increasing installation of various IBMS, BAS, and EMS. Hence, such factors are fuelling the growth of this segment which in turn drives the market during the forecast period.

Market Segmentation By End-user

The consistent rise in economic growth will fuel the commercial segment, which in turn will increase the market. The commercial segment is extremely diverse, as consumer needs are always evolving. In addition, the rapid adoption of advanced technology in commercial buildings due to the growing functionality and efficiency requirements of modern consumers is leading to major changes in the CRE industry and driving the increasing adoption of IBMS in this segment. Moreover, on average, the hospitality, education, and healthcare sectors are the largest end-users of commercial buildings. Furthermore, the pressure exerted by evolving regulations pertaining to environmental sustainability and the increasing adoption of technology in these sectors is expected to drive the adoption of IBMS during the forecast period.

Regional Overview

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Europe is estimated to contribute 34% to the growth of the global market during the forecast period. Technavio's analysts have provided extensive insight into the market forecast, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. Europe has a significant rate of technology adoption than MEA and APAC. In addition, the growing trend of smart buildings, along with the increasing focus on reducing carbon emissions, are the main factors increasing the demand for efficient and energy-saving solutions, such as IBMS. Moreover, the leading countries in terms of the Smart Readiness indicator are Sweden, Finland, Denmark, and the Netherlands, all of which have implemented policies that promote smart homes and buildings. Furthermore, Germany also supports the EU directive on smart buildings, with smart home systems being installed in around three-fourths of all light commercial buildings. Hence, such factors are driving the market in Europe during the forecast period.

Market Customer Landscape

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 rising 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

Market Players

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.

• Advantech Co. Ltd: The company offers an integrated building management system, namely ECOWatch, that monitors and manages public resources such as water, electricity, gas, and heat in buildings.

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.

Segment Overview

The market research report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.

• Component Outlook
  • Hardware
  • Software
  • Services
• End-user Outlook
  • Commercial
  • Residential
  • Government
• Region Outlook
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Argentina
    • Brazil
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview:

The market is witnessing significant growth due to the increasing demand for energy-efficient buildings. Integrated solutions encompassing automated security systems and IoT-based Building Automation Systems (BASs) are gaining traction, although concerns about security issues and high maintenance costs persist. Manufacturers are focusing on developing innovative products such as computer-based systems that control heating, ventilation, air conditioning, fire prevention, and energy supply to minimize maintenance costs and reduce environmental impact. Real-time information and alerts provide building operators and managers with actionable insights for energy conservation in green building construction, leveraging renewable energy technologies and efficient equipment. 

Additionally, sustainable automation systems are increasingly integrated into construction methods, catering to various sectors, including industrial enterprises, financial institutions, governmental institutions, schools, medical facilities, and oil and gas companies. Enhanced security measures, including perimeter security through CCTV, commercial access control, detectors, and advanced video surveillance, are becoming imperative, driven by government initiatives and emerging smart cities. Building automation, building techniques, and management technology optimize heating systems, cooling systems, and other mechanical and electrical systems to mitigate inefficiencies and reduce energy costs and greenhouse gas emissions.

Furthermore, despite the advantages, challenges such as cyberattacks, cybersecurity vulnerabilities and technical issues persist, necessitating robust cybersecurity measures and technical expertise. However, the BMS (building management system) technologies offer significant cost benefits and operational efficiencies, infrared microwave laser sensors, catering to industrial users, commercial users, and residential users alike. With a focus on simplified building operation and maintenance, these systems aim to create an optimal working environment while optimizing energy usage and facilitating preventive maintenance to ensure a favorable return on investment (ROI). In the realm of IBMS, optimizing energy spending while promoting power saving and enhancing system efficiency is paramount.

Consequently, such systems aim to mitigate equipment failure through proactive energy management plans and real-time insights into building information. Facilitated by a building manager, IBMS swiftly rectify issues with tailored engineering solutions, prolonging operational life and maximizing operating hours. With a focus on reducing embedded energy within HVAC (heating, ventilation, and air conditioning) systems, lighting systems, and data centers, IBMS ensures substantial savings and a favorable payback period.

Market Scope
Report Coverage	Details
Page number	186
Base year	2023
Historic period	2018-2022
Forecast period	2024-2028
Growth momentum & CAGR	Accelerate at a CAGR of 12.01%
Market Growth 2024-2028	USD 13.20 billion
Market structure	Fragmented
YoY growth 2023-2024(%)	11.35
Regional analysis	Europe, North America, APAC, South America, and Middle East and Africa
Performing market contribution	Europe at 34%
Key countries	US, China, India, UK, and Germany
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	ABB Ltd., Advantech Co. Ltd., Azbil Corp., Beijer Electronics Group AB, Carrier Global Corp., Cisco Systems Inc., Delta Electronics Inc., Emerson Electric Co., Honeywell International Inc., Johnson Controls International Plc, Kieback and Peter GmbH and Co. KG, Lutron Electronics Co. Inc., Messung Group of Companies, OBERIX GROUP, Prism Enterprise Electrical Trading LLC, Schneider Electric SE, Siemens AG, Snap One LLC, Vitrex, and Convergint Technologies LLC
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.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market report forecast during the forecast period
• Detailed information on factors that will drive the growth of the market  between 2023 and 2028
• Precise estimation of the market size and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming market trends and changes in consumer behavior
• Growth of the market across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market analysis and report of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of Industry companies

 

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