Global building automation systems market is likely to exhibit a promising growth curve as far as the short-term outlook is considered. The report will uncover the insights into how the building automation systems market growth will unfold in the next few years.
Rising Need for Energy-efficient Buildings Favours Building Automation Systems Market
Construction and building industry is one of the prime sectors contributing towards a nation’s economy as well as one of the biggest energy consuming industries. According to the International Energy Agency (IEA), the use of energy in buildings is around 80% of the overall use of energy in regions that are largely dependent on biomass. Moreover, the number of electric systems in buildings is increasing, thus resulting in a rise in energy consumption along with carbon emissions. This has triggered the need for energy efficient buildings that are eco-friendly and offer sustainability. By using building automation systems, reduction in consumption of energy along with maintenance costs is possible as they play a vital role in energy optimization. In addition, they also automate lighting and HVAC systems thus saving significant percentage of energy. In this backdrop, the rising demand for eco-friendly and energy efficient buildings is expected to complement the growth of the building automation systems market.
Smart Cities to Provide Ample Opportunities for Building Automation Systems Market Growth
The trend of smart cities has prevailed since past several years and is witnessing an upswing with the growing integration of technology. Smart city success largely relies on the efficacy of connected technologies which facilitates streamlining of operations, addressing urban challenges, and maintaining data driven smart environment. With rapid urbanization across economies, the need for intelligent systems and building automation has increased thus providing tailwinds to the implementation of building management systems. This will remain a strong growth influencer for building automation systems market. Smart cities utilized various technologies to establish a robust and interconnected infrastructure that provides convenience and leisure to its occupants. Various features such as traffic management, and structural health management, and equipment like enhanced energy management systems, effective emergency alarm systems among others form the core of smart cities. By deploying building automation systems, a continuous evaluation and monitoring of asset lifecycle is possible thus reducing further possibilities of loses and unprecedented shutdowns. In this backdrop, growing smart city projects is expected to offer potential avenues of growth for the building automation systems market in the near future.
Europe Likely to Account for a Significant Revenue Share in Building Automation Systems Market, Asia Pacific to Portray High Growth Potential
Geographically, European countries are expected to reflect high growth potential in the building automation systems market. This can be attributed towards growing traction for security systems on the back of rising cases of burglary and theft. For instance, according to Federal Criminal Police Office of Germany, more than 1,483,000 thefts were recorded in 2021. This aspect further points towards significant untapped potential for building automation and management in the region, consequently aiding the growth of the building automation systems market in Europe. In addition, rising concerns regarding security has been driving manufacturers to offer new security systems in the building automation sector by carrying out acquisitions and product innovations. For instance, in October 2022, German manufacturer Bird Home Automation GmbH was acquired by ASSA ABLOY. This acquisition will help ASSA to widen its customer base in the residential segment by offering high quality door intercoms for multi-family and single buildings.
In addition, unprecedented demand for smart door locking systems from the residential sector has been witnessed in the region. Manufacturers are capitalizing on this scenario and are offering advanced smart door locking systems that include numerous additional features. For instance, in September 2022, development of a new intercom device was announced by Ring. This new intercom device is mainly for apartment dwellers that facilitates auto verification for approved guests and allows vetting of visitors thus providing additional safety. These aspects continue to influence the growth of the building automation systems market in the region making it an attractive regional revenue pocket.
On the other side of the spectrum, the building automation systems market in Asia Pacific is projected to gain high momentum. This is mainly owing to proliferation and adoption of technology in the building sector coupled with significant growth in the building and construction industry. Furthermore, macroeconomic factors such as rising population and growth in urbanization coupled with stable increase in the GDP has resulted in the initiation of building automation projects and building management systems. Furthermore, mounting concerns apropos to energy conservation along with increasing energy costs have been fuelling the need for energy efficient buildings thus giving an impetus to the building automation industry. This aspect remains instrumental in bolstering the growth of the building automation systems market in Asia Pacific.
Building Automation Systems Market: Competitive Landscape
New product launches, collaborations, capacity expansion and alliances are being witnessed in the building automation systems market. Key players have been leveraging these strategies to strengthen their position in the market and gain competitive advantage. For instance, in March 2022, Hitachi Elevator Co. Ltd. announced the start of a smart building solution business in Southeast Asia and Thailand. Through this business, the company aims to provide physical security systems along with other digital services by leveraging Lumada IoT platform. Same month, Trane Technologies made announcements regarding its plant to expand operations with an investment of around US$ 30 million in Greenville country. With this expansion, the company aims to add approximately 300,000 square feet of manufacturing capacity to achieve growth sustainability. Same year in May, Mitsubishi Electric Trane HVAC US introduced Building Connect+. This platform helps in managing and controlling BACnet-enabled devices and CITY MULTI systems.
A few of the major players in the building automation systems market include Honeywell International Inc., Hubbell Inc., Cisco Systems Inc., Lutron Electronics Co. Ltd., Trane Technologies, ABB, Johnson Control, and Schneider Electric.
Regional Classification of the Global Building Automation Systems Market is Listed Below:
Middle East and Africa
*Regions and countries are subject to change based on data availability.
Key Elements Included In The Study: Global Building Automation Systems Market
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