Building Automation System Market Projected to Grow at a CAGR of 9.9% and Generate a Revenue of $142,257.3 Million by 2027Download Sample Reports Overview
The global building automation system market is predicted to be valued at $142,257.3 million by 2027, surging from $68,111.0 million in 2019 at a noteworthy CAGR of 9.9%.
Impact Analysis of COVID-19 on the Building Automation System Market
The global market for building automation systems is estimated to experience a decline in the growth rate amid the COVID-19 pandemic, compared to the previous years. It has been observed that the pandemic had impacted most of the sectors and markets. The building automation system market also the suffered adverse effects of the pandemic as these systems are used in construction activities, which came to a halt due to the pandemic guidelines. These aforementioned aspects are predicted to hinder the market growth.
Global Building Automation System Market Analysis
Rise in the demand for integrated security due to increasing security threats is predicted to be the major driving factor for the global building automation system market in the estimated period. Building automation systems use video monitoring and face recognition to automate a building's security. People's actions and movements are monitored and recorded by a video monitoring system and the surveillance devices are mounted in locations like airports, classrooms, and apartment buildings. Building automation systems are mostly used for security reasons. Moreover, the government rules and regulations for implementing building automation in government offices is predicted to drive the global market in the forecast period.
However, the lack of skilled operators to operate monitors and manage building automation systems is predicted to hinder the market in the projected timeframe. However, skilled labors also sometimes fail to retrieve all the services of BAS causing uncertainty regarding investment and installation of systems for users. This aspect is predicted to hinder the market in the estimated timeframe.
Global Building Automation System Market, Segmentation
The global Building Automation System market is segmented based on component, application, offerings, and region.
The component segment is further classified into hardware and software. Among these, the software sub-segment is anticipated to have the maximum growth rate in the forecast period. It has been estimated that the sub-segment will grow with a CAGR of 11.3% by generating a revenue of $ 73,966.6 million by 2027.
The building automation systems are interlinked with a software that helps to monitor and control the automation systems implemented in the building. Increasing use of software in the BAS is predicted to drive the sub-segment market in the estimated period.
The application segment is further divided into industrial, residential, and commercial sub-segments. The industrial sub-segment is anticipated to have the highest growth rate in the global market. It has been estimated that the market will grow with a CAGR of 8.9% by generating a revenue of $55,387.5 million by 2027.
Building automation systems are mostly used in industries for security reasons like monitoring, analyzing and collect evidence of movement and tracking of other details. Building automation is also helpful in enhancing the building production plan and track work status from anywhere, which is predicted to boost the sub-segment market in the forecast period.
The offerings segment is further categorized into facility management systems, security and access controls, fire protection systems, building energy management software, BAS services, and others. The building energy management software sub-segment is predicted to have a rapid growth and generate a revenue of $26,561.0 million by 2027 with a CAGR of 10.7% in the estimated period.
The building energy management software makes the operator’s work easy for monitoring and analyzing the amount of energy used by the building which is predicted to drive the sub-segment market in the estimated period.
The building automation system market for the Asia-Pacific region is projected to witness rapid growth. The Asia-Pacific market is predicted to generate a revenue of $32,064.8 million by 2027 with a CAGR of 10.9% in the estimated period.
Increase in construction activities across the region and rise in the economy of various nations in the region is predicted to boost the region market in the estimated period. Consumers in the region are mostly interested in achieving energy efficiency through the introduction of building automation systems, which is directly proportional to monetary savings. Smart cities are rapidly being built in countries like China and India, which is predicted to create more investment opportunities for the investors in the estimation period.
Key Players in the Global Building Automation System Market
- Honeywell International Inc.
- Robert Bosch GmbH
- Johnson Controls International PLC
- Mitsubishi Electric Corporation
- ABB Ltd.
- Schneider Electric SE
- Siemens AG
- General electrical
- Hubbell Inc.
- United Technologies Corporation.
Along with the company profiles of the key players in the market, the report includes the Porter’s five forces model that gives deep insights into the competitive environment of the market.
Porter’s Five Forces Analysis for the Global Building Automation System Market:
- Bargaining Power of Suppliers: Suppliers and manufacturers in the building automation system market are high in number.
Thus, the bargaining power suppliers is moderate.
- Bargaining Power of Buyers: There are moderate number of players operating in the building automation system market. Moreover, the end-users are restricted to construction and real estate owners.
Thus, buyer’s bargaining power will be moderate.
- Threat of New Entrants: Huge investment is required to adopt the technological advancements in building automation system.
Thus, the threat of the new entrants is low.
- Threat of Substitutes: There are very less numerous alternative products such as sensors and actuators in the building automation system market.
Thus, the threat of substitutes is low.
- Competitive Rivalry in the Market: Due to the presence of large number of manufacturers there is huge competitive rivalry among the suppliers and manufacturers.
Therefore, competitive rivalry in the market is high.