CHICAGO, Nov. 15, 2023 /PRNewswire/ -- The building automation system market is expected to reach USD 155.9 billion by 2028 from USD 88.4 billion in 2023, at a CAGR of 12.0% during the 2023- 2028 period according to a new report by MarketsandMarkets™. Many companies are investing in building automation system which gives an opportunity for growth in the building automation system market. The building automation system market is in the development phase at present, with the presence of multiple players offering building automation system technology. Asia Pacific is likely to contribute significantly to the growth of the building automation system market. Similarly, the North America, Europe and RoW regions are expected to be the growing market for the forecasted period.

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Building Automation System Market Report Scope:

Wireless Technology hold the largest market share of communication technology of building automation system market during the forecast period.

The wireless technology segment will exhibit a higher compound annual growth rate (CAGR) than the wired technology segment. This growth can be attributed to the advantages offered by wireless technology, including enhanced mobility and cost savings in building automation systems. Additionally, wireless technology simplifies installation, especially in existing buildings, and provides reliable network connectivity through various security algorithms. It offers scalability, link reliability, real-time capabilities, and energy independence when used in conjunction with energy-harvesting devices, particularly in building management systems. Furthermore, wireless technology networks find wide-scale applications in healthcare, surveillance, agriculture, and industrial sectors. Notable wireless technologies used in building automation systems include ZigBee, EnOcean, Z-Wave, and Wi-Fi.

Building Energy Management Software to register the highest CAGR between 2023 and 2028 forecast.

The rising costs of energy and the introduction of stringent energy efficiency regulations have underscored the importance of monitoring energy consumption within buildings. Building energy management software plays a pivotal role in enabling building operators and homeowners to continually oversee and assess the energy usage in structures. These systems not only alert building operators and owners about deviations in energy consumption but also furnish actionable insights for achieving energy savings. Companies like Schneider Electric (France), Siemens AG (Germany), and International Business Machines Corporation (US) are among those offering building energy management software. Furthermore, with advancements in technology, manufacturers of building automation systems are placing emphasis on creating user-friendly software for efficiently managing energy consumption within buildings. This development is subsequently spurring global demand for building energy management software.

High emphasis on constructing energy efficient and ecofriendly buildings leads to increase in the building automation system market.

The building sector stands out as a significant global energy consumer, consistently accounting for over one-third of the world's total energy consumption. Additionally, it constitutes a substantial contributor to carbon dioxide (CO2) emissions. As noted by the International Energy Agency (IEA), in regions highly reliant on traditional biomass, energy consumption in buildings can represent an astonishing 80% of the entire regional energy use. The proliferation of electrical systems within buildings is further exacerbating energy consumption and carbon emissions. Consequently, the effective and sustainable utilization of energy resources is paramount.

In light of this imperative, there is a growing demand for building automation systems. These systems are gaining prominence due to their ability to reduce energy consumption and maintenance costs in buildings. Notably, building automation systems play a pivotal role in optimizing energy utilization, with a particular focus on HVAC and lighting control systems, known for their energy-intensive operations. According to IEA statistics, air heating, cooling, and water heating jointly constitute approximately 60% of global energy consumption within buildings, presenting a significant opportunity for energy reduction. Building automation systems offer the added benefit of automating HVAC and lighting systems, resulting in potential energy savings ranging from 5% to 30% of a building's overall energy consumption.

Moreover, building automation systems provide a proactive approach to building maintenance by enabling early detection of operational issues within equipment. This proactive approach not only prevents unexpected breakdowns but also contributes to reduced building maintenance costs.

Building automation system market for the Asia Pacific region to register the highest CAGR between 2023 and 2028 forecast.

The Asia Pacific building automation system market has been analyzed, focusing on China, Japan, India, South Korea, and the rest of the Asia Pacific region. During the forecast period, this market is expected to exhibit the highest Compound Annual Growth Rate (CAGR) in the region. The growth of the building automation system market in Asia Pacific can be attributed to the economic expansion in the area, coupled with a significant increase in construction and industrial activities observed in key Asian Pacific countries. Consumers in this region primarily aim to achieve energy and cost savings through the implementation of building automation systems. Notably, countries like China and India are increasingly embracing the development of smart cities, with building automation systems playing a pivotal role in helping them achieve their energy-saving goals.

Key Players

The report profiles major players in the building automation system market Honeywell International Inc. (US), Siemens (Germany), Johnson Controls (US), Schneider Electric (France), Carrier (US), Robert Bosch GmbH (Germany), Legrand (France), Hubbell (US), ABB (Switzerland), Trane Technologies plc (Ireland), Lutron Electronics Co., Inc (US), Crestron Electronics, Inc. (US), Hitachi, Ltd. (Japan), Delta Controls (Canada), Beckhoff Automation (Germany),  Lennox International Inc. (US), Current Lighting Solutions, LLC. (US), ACUITY BRANDS, INC, (Canada), Dialight (UK), Cisco Systems, Inc. (US), Rockwell Automation (US), Snap One, LLC (US), Signify Holding (Netherlands), Emerson Electric Co. (US), Leviton Manufacturing Co., Inc. (US), Mitsubishi Electric Corporation (Japan), Huawei Technologies Co., Ltd. (China), Bajaj Electricals Ltd (India), and Beijer Electronics, Inc. (Sweden).

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