Building Automation System Market Size, Share, Growth Analysis, By Component(Hardware and software), By Application(Industrial, residential) - Industry Forecast 2024-2031

Building Automation System Market size was valued at USD 83.61 billion in 2022 and is poised to grow from USD 92.22 billion in 2023 to USD 202.04 billion by 2031, growing at a CAGR of 10.3% in the forecast period (2024-2031).

The building automation system market is experiencing healthy growth, driven by growing demand for energy-efficient solutions, enhanced occupant comfort, and a rising focus on smart and sustainable buildings. Key players in the market are actively engaged in strategic initiatives such as mergers and acquisitions, partnerships, and product innovations to strengthen their market presence. Additionally, the market is characterized by the emergence of new entrants and technology startups offering specialized solutions, contributing to a competitive landscape marked by continuous advancements in automation technologies, integration of IoT (Internet of Things), and a heightened emphasis on data analytics to optimize building performance. As the industry evolves, competition intensifies, fostering innovation and pushing companies to deliver comprehensive, intelligent building automation solutions tailored to the evolving needs of the market. 'Siemens AG', 'Johnson Controls International plc', 'Schneider Electric SE', 'Honeywell International Inc.', 'United Technologies Corporation (now part of Raytheon Technologies Corporation)', 'ABB Ltd', 'Delta Controls', 'Crestron Electronics, Inc.', 'Legrand', 'Trane Technologies plc', 'Emerson Electric Co.', 'Beckhoff Automation GmbH & Co. KG', 'Lutron Electronics Co., Inc.', 'Ingersoll Rand Inc. (now part of Trane Technologies plc)', 'Carrier Corporation', 'Distech Controls Inc. (Acuity Brands)', 'Automated Logic Corporation (UTC Climate, Controls & Security)', 'Control4 Corporation (SnapAV)', 'Iconics Inc.', 'BuildingIQ Inc.'

The continuous evolution of wireless protocols and standards presents incredible opportunities for established industry leaders and innovators to leverage this technology and innovate within the construction automation systems ecosystem. This trend has spurred the emergence of many start-ups, offering products and services with many sophisticated and innovative features. Notable wireless protocols such as Z-Wave, ZigBee, and EnOcean have come to the fore in this context. ZigBee for example has turned into a growing ecosystem boasting more than 400 companies, collectively involved in setting standards and developing a broad range of products for smart home applications. Similarly, Z -The Wave protocol covers a minimum of over 1,000 devices. Introducing LoRa as the newest addition to the wireless protocol family, it addresses the demand for low-power solutions in wide area networks (WANs) for IoT products. LoRa technology-driven devices often deliver distances Offers an impressive 10 batteries and boasts impressive battery life with 10 years of production. However, it is important to note that LoRa may not be suitable for applications that require high data rates. Large companies such as IBM Corporation, Cisco Systems, Semtech Corporation, and Multi-Tech Systems are among the manufacturers of LoRa-enabled hardware, further exemplifying the industry’s commitment to adopting innovative wireless solutions.

The Internet is transforming the construction automation industry by reducing energy consumption, providing real-time diagnostics and support systems, and improving security systems based on IoT for construction projects to provide automation, supporting remote construction projects, and reducing operating costs. Internet of Things (IoT)-based building automation systems help maintain equipment such as HVAC, lighting, and other energy systems based on conditions. The automation system provides controlled household appliances, improved safety and security, and continuous monitoring of the electrical equipment connected to the system. According to the International Energy Agency, more than 1 billion homes and 11 billion smart devices will be connected to connected systems by 2040, creating lucrative opportunities for the systems market, and contributing to the market growth of the system.

The North America market accounted for the highest revenue in the construction systems automation market by 2022. Furthermore, the key players in the region as well as the rising systems are expected to boost the market revenue in this region during the forecast period. For example, in May 2023, Honeywell and Arcadis announced their partnership to provide equipment and services to help address energy efficiency and carbon emissions in commercial buildings around the world, helping companies to jointly accelerate progress towards carbon reduction targets. A range will be delivered, with an initial focus on five projects in different locations around the world.