Building Automation and Controls Market Analysis and Global Forecast 2021-2028

Building Automation and Controls Market Overview

The Building Automation and Controls Market Size is expected to reach USD 169.36 Billion by 2033. The Building Automation and Controls Market industry size accounted for USD 88.74 Billion in 2023 and is expected to expand at a compound annual growth rate (CAGR) of 12.04% from 2023 to 2033. The Building Automation and Controls Market refers to the industry involved in the development, production, and implementation of systems and technologies designed to control and automate various functions within buildings. These systems are intended to improve the efficiency, security, comfort, and sustainability of buildings by managing and optimizing different aspects such as heating, ventilation, air conditioning (HVAC), lighting, security, and energy management.

The market for building automation and controls is driven by several factors, including the increasing focus on energy efficiency, the growing demand for smart buildings, advancements in IoT (Internet of Things) technologies, and stringent government regulations regarding building energy performance.

Global Building Automation and Controls Market Synopsis

COVID-19 Impact Analysis

The COVID-19 pandemic had a significant impact on the Building Automation and Controls Market. The pandemic caused interruptions in the global supply chain, affecting the availability of components and raw materials needed for building automation systems. Many construction and renovation projects were delayed or halted due to lockdowns, labor shortages, and social distancing measures, impacting the demand for building automation and control systems. The pandemic highlighted the importance of indoor air quality, leading to increased demand for advanced HVAC controls that improve ventilation and filtration to reduce the risk of airborne virus transmission. The need for remote building management grew as building operators sought to minimize on-site staff. This accelerated the adoption of IoT-enabled systems that allow for remote monitoring and control of building functions. The pandemic underscored the importance of resilient and sustainable building practices. This has led to increased investment in building automation systems that enhance energy efficiency, reduce environmental impact, and improve overall building resilience.

Building Automation and Controls Market Dynamics

The major factors that have impacted the growth of Building Automation and Controls Market are as follows:

Drivers:

Ø  Technological Advancements

The integration of the Internet of Things (IoT) in building automation allows for more sophisticated monitoring and control, enabling real-time data collection and analytics for optimized performance. Advancements in sensor technology enhance the ability to monitor various parameters such as temperature, humidity, occupancy, and light levels, improving system responsiveness and efficiency. The push for smart cities incorporates intelligent building solutions as a key component, promoting the adoption of building automation technologies. Modern tenants and building occupants expect higher standards of convenience, comfort, and efficiency, which smart building technologies can deliver. Rapid urbanization and the development of new commercial and residential buildings drive the demand for modern, automated building systems.

Restraint:

• Perception of High Initial Investment Costs and Cybersecurity

The upfront costs associated with implementing building automation and control systems, including hardware, software, and installation, can be substantial. This initial investment may deter some building owners from adopting these technologies, especially in older or existing buildings where retrofitting can be complex and costly. As buildings become more connected through IoT and cloud-based technologies, cybersecurity vulnerabilities become a significant concern. Ensuring robust cybersecurity measures to protect sensitive data and building operations is crucial but can pose challenges, especially in environments with diverse and interconnected systems.

Opportunity:

⮚     Rising Demand for Energy Efficiency

Increasing awareness of environmental sustainability and rising energy costs are driving the demand for energy-efficient building solutions. Building automation systems play a crucial role in optimizing energy consumption through advanced controls, monitoring, and predictive analytics, presenting opportunities for market expansion. Rapid urbanization, particularly in emerging markets, is driving the construction of new buildings and infrastructure. This presents opportunities for the integration of modern building automation systems from the initial design phase, ensuring energy efficiency, sustainability, and long-term operational benefits.

Building Automation and Controls Market Segment Overview

By Product Type

Based on Product Type, the market is segmented based on HVAC Control, Lighting Control and Security & Access Control. the HVAC control segment dominated the market. There is no longer a need for wired controls for the control system. Instead, smart devices such as smartphones and tablets can be controlled from afar. Better sensors are now being added to the controls for the HVAC system. So, improvements in HVAC systems are one of the main things driving growth in the building automation and controls market.

By Offering

Based on Offering, the market segment has been divided into the Integration and Services. The integration dominated the market. The market for integrating building automation and control systems is driven by several things, such as the rise in demand for energy-efficient control systems and the increase in infrastructure building. Future market growth is also expected to be helped by more research and development on AI and the Internet of Things.

Global Building Automation and Controls Market Regional Analysis

Based on region, the global Building Automation and Controls Market has been divided into North America, Europe, Asia-Pacific, the Middle East & Africa, and Latin America. North America is projected to dominate the use of the Building Automation and Controls Market followed by the Asia-Pacific and Europe regions.

Building Automation and Controls North America Market

North America holds a dominant position in the Building Automation and Controls Market. North America is one of the mature markets for building automation and controls, driven by stringent energy efficiency regulations, high adoption of smart building technologies, and a robust infrastructure sector. The region leads in the adoption of advanced IoT, AI, and cloud computing technologies, enhancing the capabilities of building automation systems. Strong emphasis on sustainability initiatives and green building certifications (LEED) drives demand for energy-efficient solutions.

Building Automation and Controls Asia-Pacific Market

The Asia-Pacific region has indeed emerged as the fastest-growing market for the Building Automation and Controls Market industry. Asia Pacific experiences rapid urbanization, driving demand for new construction and retrofitting of existing buildings with modern automation technologies. Countries like China and India are significant growth markets due to increasing investments in infrastructure, rising middle-class population, and adoption of IoT-enabled solutions.

Competitive Landscape

The global Building Automation and Controls Market is highly competitive, with numerous players offering a wide range of software solutions. The competitive landscape is characterized by the presence of established companies, as well as emerging startups and niche players. To increase their market position and attract a wide consumer base, the businesses are employing various strategies, such as product launches, and strategic alliances.

Prominent Players:

• Honeywell International
• Beijer Electronics
• ABB
• Siemens
• Johnson Controls
• Schneider Electric
• General Electric
• Legrand
• Lutron Electronics Co.
• Control4 Corporation

Key Development

In June 2022, Siemens AG announced that Siemens Xcelerator, an open digital business platform, would be released. Siemens Xcelerator was made to speed up digital transformation and value creation for clients of all sizes in various industries, such as buildings, grids, and mobility. The business platform makes it possible to do the digital transformation quickly and in a way that can be scaled up.

Scope of the Report

Global Building Automation and Controls Market, by Product Type

• HVAC Control
• Lighting Control
• Security & Access Control

Global Building Automation and Controls Market, by Offering

• Integration
• Services

Global Building Automation and Controls Market, by Region

• North America
  • US
  • Canada
  • Mexico
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Benelux
  • Nordic
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • South Korea
  • Indonesia
  • Austalia
  • Malaysia
  • India
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • South Africa
  • Rest of Middle East & Africa

 

Parameters	Indicators
Market Size	2033: USD 169.36 Billion
CAGR (2023-2033)	12.04%
Base year	2022
Forecast Period	2023-2033
Historical Data	2021 (2017 to 2020 On Demand)
Report Coverage	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Key Segmentations	Product Type, Offering
Geographies Covered	North America, Europe, Asia-Pacific, South America, Middle East, Africa
Key Vendors	Honeywell International, Beijer Electronics, ABB, Siemens, Johnson Controls, Schneider Electric, General Electric, Legrand, Lutron Electronics Co. and Control4 Corporation.
Key Market Opportunities	·       Rising Demand for Energy Efficiency ·       Urbanization and Infrastructure Development
Key Market Drivers	·       Technological Advancements ·       Growing Demand for Smart Buildings

 

REPORT CONTENT BRIEF:

• High-level analysis of the current and future Building Automation and Controls Market trends and opportunities
• Detailed analysis of current market drivers, restraining factors, and opportunities in the future
• Building Automation and Controls Market historical market size for the year 2021, and forecast from 2023 to 2033
• Building Automation and Controls Market share analysis at each product level
• Competitor analysis with detailed insight into its product segment, Government & Defense strength, and strategies adopted.
• Identifies key strategies adopted including product launches and developments, mergers and acquisitions, joint ventures, collaborations, and partnerships as well as funding taken and investment done, among others.
• To identify and understand the various factors involved in the global Building Automation and Controls Market affected by the pandemic
• To provide a detailed insight into the major companies operating in the market. The profiling will include the Government & Defense health of the company’s past 2-3 years with segmental and regional revenue breakup, product offering, recent developments, SWOT analysis, and key strategies.