Building Automation Systems Market size was valued at USD 89.14 billion in 2023 and is expected to exceed USD 315.09 billion by 2036, expanding at over 10.2% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of building automation systems is assessed at USD 96.41 billion. The growth of the market can be attributed to the increasing need for proper energy management, and rising emphasis on overcoming utility costs across the globe. Along with these, growing technological advancements in wireless communication technologies, and escalating number of government and private projects associated with building automation are also expected to drive market growth in the upcoming years. Furthermore, rapid growth of IoT technology, and initiatives associated with reducing carbon emissions is projected to offer profitable opportunities to the market in the near future. It was calculated that the automotive and enterprise internet of things industry grew by more than 20 percent in 2020, since the last year. Moreover, by the end of 2019, more than 4.5 billion IoT endpoints were evaluated to be in use.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
10.2% |
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Base Year Market Size (2023) |
USD 89.14 billion |
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Forecast Year Market Size (2036) |
USD 315.09 billion |
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Regional Scope |
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The market is segmented by offering into facility management systems, security and access controls, and fire protection systems, out of which, the security and access controls segment is anticipated to hold the largest share in the global building automation systems market. This can be accounted to their ability to increase security level, monitor activities and movements of people, and keep a record of people entering and exiting buildings. Apart from these, these systems have revolutionized building security by completely eliminating human intervention, which is another factor predicted to boost market segment growth in the future. Additionally, on the basis of application, the industrial segment is assessed to observe the highest growth during the forecast period, which can be ascribed to the growing adoption of smart building solutions for achieving energy and cost savings, and optimizing surveillance activities.
Our in-depth analysis of the market includes the following segments:
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By Component |
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By Offering |
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By Application
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On the basis of geographical analysis, the global building automation systems industry is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and the Middle East & Africa region. The market in Asia Pacific is estimated to witness noteworthy growth over the forecast period on the back of the surging industrial and construction activities, and high economic growth in the region. In addition, government initiatives regarding energy conservation is also a crucial factor expected to accelerate the region’s market growth in the coming years. Moreover, the market in North America is predicted to acquire the largest share during the forecast period owing to the ongoing technological developments, high adoption of building automation systems, and presence of prominent market players in the region. Moreover, the increasing demand for commercial building automation in the United States, backed by the surge in awareness for the numerous benefits associated with the adoption of automation systems, and the surge in the number of commercial buildings in the country, is also predicted to remarkably drive the market growth in the region. According to the data by the U.S. Energy Information Administration (EIA), in the year 2018, the number of commercial buildings crossed 6 million, registering an annual growth of 6% across the country.
October 2021- Siemens announced the acquisition of Wattsense to boost IoT systems for small and medium buildings, expanding the former’s building products portfolio.
July 2019- Bosch Building Technologies planned to acquire GFR – Gesellschaft für Regelungstechnik und Energieeinsparung mbH headquartered in Verl, Germany. The aim is to improve its portfolio of building automation solutions for more security, comfort, and efficiency in commercial buildings.
Author Credits: Abhishek Verma
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