Market Insights

Government initiatives to implement standards such as ISO 50001 in the construction industry (energy-management-system standard) have the potential to promote the introduction of building automation systems. In the developing regions of the world, especially in the Asia Pacific where the number of houses has increased exponentially in the last two decade, more possibilities for automation can be found among small / mediated buildings and any building. The growing need for social warning systems and intelligent fire systems contributed to the growth of the market for construction automation systems. Concerns over access control and safety still reflect a large part of the building automation system business. Thanks to the growing number of robberies, the industry is seeing the increased demand for theft safety systems. For instance, in 2018, a number of crimes committed in Singapore for every 100,000 individuals were 588. The application of protection and safety laws mandating the use of electronic safety systems in commercial buildings are also factors which increase demand for such systems. For instance, the implementation of EU standards like PD 6662, which sets requirements on the IHAS in buildings. Since businesses save nearly 15% of the cost of annual energy use, building automation is growing. Increasing government initiatives to upgrade intelligent cities development should also provide significant market opportunities. In 2020, spending in clever towns is expected to amount to USD 34,35 billion, according to the Consumer Technology Association.

Challenges: Presence of different communication protocols

The power of BAS is to synchronize and coordinate between various equipment in the overall network. In ensuring that different instruments and facilities are adequately configured for the smooth running of BAS, communications protocols are of critical importance. The absence of open communication protocols will however contribute to the use of these devices by various protocols. This restricts the correspondence between various devices and impedes the fast operation of BAS because all protocols cannot be explicitly compatible. BACnet and LonWorks for example do not work well together, they do work well with DALI, for example. In order to prevent complications, the building builder must choose the goods based on protocols used by many different vendors. For instance, Clipsal C-Bus is Australia's most used BAS and Europe's most popular M-Bus system. Manufacturers expect proprietary protocols and standards to have a competitive edge on the market. This intensive market competition leads to a lack of product development with common standards and communication protocols, which presently hampers the growth of the BAS market.

North America holds the significant market share in the global Building Automation Systems market and is expected to grow during forecast period 2020-27. The technical advances that have arisen in recent years in the building automation field by US companies. In January 2020, Legrand North America, LLC added two additional switches for power usage control and oversight from every remote position. The switches in residential buildings are mainly used. During the projected market, Asia-Pacific is expected to rise at the fastest rate. Increasing demand for healthy, efficient housing, expanded disposable income and favorable policy policies linked to smart cities are the key contributing factors to the region's business growth. In Asia-Pacific construction automation systems, China, Japan and India represented a majority stake.

Key Players

Major players included in this report are Johnson Controls, Inc., Rheem Manufacturing Company, Lennox International Inc., General Electric Company, United Technologies Corporation, Cisco Systems Inc., Honeywell International Inc., Philips Lighting Holding B.V., Bosch Security Systems, Legrand SA, Schneider Electric SE, Ingersoll-Rand plc, Siemens AG, and others.

The global building automation system market is segmented as below:

Market Segmentation

Building Automation System Market By System Type

Building Management Software (BMS)

Environment Control (HVAC) and Lighting Management

Energy Management Systems

Facility Management Systems (FMS)

Security & Access Control Systems

Other System Types

Building Automation System Market By End User

Commercial

Residential

Other End Users

Building Automation System Market By Geography

North America

• U.S.
• Canada

Europe

• U.K.
• Germany
• France
• Spain
• Rest of Europe

Asia-Pacific

• China
• Japan
• India
• Australia
• South Korea
• Rest of Asia-Pacific

Latin America

• Brazil
• Mexico
• Rest of Latin America

Middle East & Africa

• GCC
• South Africa
• Rest of Middle East & Africa