Product Code: 56997
The Building Automation Systems Market is expected to witness a CAGR of over 11% over the forecast period (2019-2024). Energy management needs and the desire for a reduction in utility costs continue to drive building automation projects. Majority of large buildings today are equipped with these solutions in the developed world.
- Initiatives taken by the government for the implementation of standards like ISO 50001 (energy-management-system standard) in the building sector have the potential to encourage the integration of building automation systems. Thus, more opportunities for automation can be found across small-to-medium buildings and all the buildings in the emerging regions of the world, majorly in the Asia-Pacific, where the number of households has grown exponentially over the last two decades.
- Rising need for installing social alarm systems and smart fire systems has further contributed towards the growth of the building automation systems market. Also, concerns regarding access control and security account for a major share of the building automation systems market. The market is witnessing an increasing demand for theft control alarm systems due to the rising number of crimes. For instance, in 2018, a number of crimes committed in Singapore for every 100,000 individuals were 588. Other factors augmenting the demand for these systems is the implementation of safety and security legislation that mandate the use of electronic security systems in commercial buildings. For instance, implementation of European standards, such as PD 6662 that sets standards for intruder and hold-up alarm system (I&HAS) in buildings.
- Companies are increasing building automation is because they save about 15% of the cost of annual energy consumption. Growing government initiatives regrading development of smart cities are also expected to offer significant opportunities to the market. According to the Consumer Technology Association, spending in smart cities is expected to reach USD 34.35 billion in 2020.
Scope of the Report
Building Automation Systems consists of a network of microprocessor-based wireless or wired controllers connected to various systems in a building to manage the equipment and optimize energy spend. It operates the controls of a building from a centralized point, which implies that these systems can be monitored from a small number of stations located throughout the building.
Key Market Trends
Environment Control (HVAC) and Lighting Management is Expected to Hold a Significant Share
- The smart HVAC (heating, ventilation, and air conditioning) systems are critical with respect to the depleting natural resources, primarily fossil fuels, which are expected to raise the cost of energy supply and distribution over the forecast period. Owing to increasing government regulations across developed and developing countries, most of the buildings need smarter heating and cooling in new buildings, which is aiding to the growth of the HVAC systems. Smart HVAC upgrades can save substantial amounts of money on utility bills, around 30-50%.
- Further, rising levels of electricity consumption have enabled consumers to opt for more energy-efficient solutions. According to the EIA, the end-use of electricity in the United States increased by 1.5% from 2010 to 2018. A sizeable section of end-user industries is shifting towards more energy conservation methods. One of the methods includes smart lighting systems, which can be controlled using a smartphone and provide very convenient ease of access. Smart lighting systems, not only enhance energy conservation through the use of smart meters but also can convert an office or home into a high-tech one, connected by the IoT.
North America is Expected To Hold the Major Share
- The building automation systems market in the region has been witnessing significant growth, as residential, commercial and industrial consumers are adopting tremendous energy-saving solutions with the deployment of building automation controls. Several key federal policy directives, rising energy costs, stringent regulations concerning greenhouse gas emissions, and growing awareness about the benefits of automation, are major factors driving the market in the region.
- Government initiatives to decrease energy emission from buildings is also impacting the market. For instance, the US General Services Administration installed smart building technology in 50 of the federal government's most energy-consuming buildings. Commercial buildings account for nearly 40% of the United States primary energy use. The significant rise in adoption of HVAC systems in these buildings, to reduce carbon emission, is also favoring the market's growth.
The building automation market is highly fragmented with many players involved. Companies are also increasing their market presence by introducing new products, expanding their operations, or by entering into strategic mergers and acquisitions.
- March 2019 - Mitsubishi Electric U.S. Inc. launched BEAM AX energy management system, a cloud-based solution for analyzing energy usage and costs in commercial buildings. The energy management system provides the tools to analyze energy use, track performance, forecast peak demand, detect usage abnormalities, with lower costs and monitor solar production performance and benefits.
- July 2018 - Taco Comfort Solutions launched a building automation system, Clarity3 for commercial buildings which reduces the operational expenses, enhance energy savings and increase efficiency.
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Table of Contents
- 1.1 Study Deliverables
- 1.2 Study Assumptions
- 1.3 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
- 4.1 Market Overview
- 4.2 Introduction to Market Drivers and Restraints
- 4.3 Market Drivers
- 4.3.1 Increasing Demand for Energy-efficient Systems
- 4.3.2 Growing Need For Automation of Security Systems In Buildings
- 4.4 Market Restraints
- 4.4.1 High Costs of Installation
- 4.5 Market Opportunities
- 4.5.1 Emergence of New Forms of Building Automation Technologies to Offset the Demand for Pre-fabricated Buildings
- 4.6 Indusrty Value Chain Analysis
- 4.7 Industry Attractiveness - Porter's Five Force Analysis
- 4.7.1 Threat of New Entrants
- 4.7.2 Bargaining Power of Buyers/Consumers
- 4.7.3 Bargaining Power of Suppliers
- 4.7.4 Threat of Substitute Products
- 4.7.5 Intensity of Competitive Rivalry
- 4.8 Evolution of Building Automation Systems
5 MARKET SEGMENTATION
- 5.1 By System Type
- 5.1.1 Building Management Software (BMS)
- 5.1.2 Environment Control (HVAC) and Lighting Management
- 5.1.3 Energy Management Systems
- 5.1.4 Facility Management Systems (FMS)
- 5.1.5 Security & Access Control Systems
- 5.1.6 Other System Types
- 5.2 By End User
- 5.2.1 Commercial
- 5.2.2 Residential
- 5.2.3 Other End Users
- 5.3 Geography
- 5.3.1 North America
- 184.108.40.206 United States
- 220.127.116.11 Canada
- 5.3.2 Europe
- 18.104.22.168 United Kingdom
- 22.214.171.124 Germany
- 126.96.36.199 France
- 188.8.131.52 Rest of Europe
- 5.3.3 Asia Pacific
- 184.108.40.206 China
- 220.127.116.11 India
- 18.104.22.168 Japan
- 22.214.171.124 Rest of Asia-Pacific
- 5.3.4 Rest of the World
6 COMPETITIVE LANDSCAPE
- 6.1 Company Profiles
- 6.1.1 Honeywell International Inc.
- 6.1.2 ABB Ltd.
- 6.1.3 Johnson Controls International PLC
- 6.1.4 Hubbell Inc.
- 6.1.5 United Technologies Corporation
- 6.1.6 Schneider Electric SE
- 6.1.7 Robert Bosch GmbH
- 6.1.8 Emerson Electric Co.
- 6.1.9 Mitsubishi Electric Corporation
- 6.1.10 Ingersoll-Rand PLC
7 MARKET OPPORTUNITIES AND FUTURE TRENDS
8 INVESTMENT ANALYSIS