Advancements in Machine Learning and Internet of Things (IoT) to Fuel Market Growth

Technological advancements continue to make a mark across a host on industries, including automotive, consumer electronics, oil & gas, and healthcare. The building & construction sector is no exception to this continual evolution of the technology. Government bodies across the world are increasingly encouraging the development of smart cities wherein smart buildings are expected to hit the mainstream. The building & construction sector is set to undergo a major overhaul over the forecast period, owing to significant advancements in technologies, novel technologies including the Internet of Things (IoT), Wi-fi, and Zigbee are being integrated in modern building automation and control systems.

While the construction sector has conventionally emerged as ‘slow’ adopter of new innovations and technologies, building automation and control systems are expected to gain a considerable amount of popularity in the coming years. Advancements in cloud computing, machine learning, and artificial intelligence, and connectivity technologies are expected to boost the growth of the global building automation and control system market during the assessment period. At present, a large number of small to medium-size residential as well as commercial buildings are adopting building automation and control systems worldwide– another factor that is anticipated to boost the growth of the building automation and control system market that is projected to surpass the market value of ~US$ 326 Mn by the end of 2027.

building automation control system market infographic

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Progress in Cloud Computing and Machine Learning to Drive Global Market

Technological advancements and innovations are expected to play a key role in shaping the growth of the building automation and control system market. Although cloud computing has remained an integral part of the consumer products sector, it is gradually making progress in the building automation and control system market. Front-end users’ interfaces are increasingly being moved to the cloud within the current market landscape and the trend is set to continue in the coming years. Cloud computing is likely to replace physical head-end computer systems that are typically used to access building automation and control systems in individual buildings with data hubs that transmit information to the cloud. The advent of the cloud computing technology is expected to provide facility operators access to building automation and control systems via a device that is connected to the Internet. The adoption of cloud computing in modern-day building automation and control systems is projected to grow at a rapid pace in the coming years, as it enables facility operators to maximize efficiency as far as operations of HVAC and lighting systems are concerned. Moreover, data collection and management offer participants of the building automation and control system market to leverage machine learning algorithms to conduct additional research.

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High Demand for Network Infrastructure and Safety Systems

At present, IoT-based surveillance systems are increasingly being used across multiple residential and commercial properties, as they enable property managers to manage security in an efficient manner. Abnormal activities around the building can be monitored and even alerted to security personnel. In addition, automated access to safety systems, alarm systems, etc., is projected to improve the overall safety of buildings in the coming years due to which, the building automation and control system market is expected to move in the upward trajectory. Network infrastructure is gaining significant popularity in the current scenario, as it streamlines communication between residents, networks, and connected devices. At present, building automation and control systems are primarily connected via Bluetooth or Wi-Fi instead of conventional building automation network technologies. One of the major factors that has increased the adoption of IoT over the past few years is the dwindling cost of sensors. Sensor technologies have advanced at an impressive pace due to which, they are increasingly being used in various applications, including data collection, security, and surveillance. Some of the most widely used sensors include occupancy sensors, temperature sensors, motion sensors, and light sensors to name a few. It is safe to say that smart buildings of the future are expected to be largely driven by IoT-based building automation systems.

building automation control system market segmentation

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Analysts’ Viewpoint

The global building automation and control system market is expected to grow at an impressive CAGR of ~9% during the assessment period. The market growth can be primarily attributed to a host of factors of which, progress in cloud computing, network infrastructure, and soaring adoption of IoT is expected to be key factors. Moreover, as novel technologies, including machine learning and artificial intelligence continue to improve the efficacy of various building automation and control systems, the road ahead for the building automation and control system market offers immense growth potential.  

Building Automation and Control System Market: Overview

  • According to Transparency Market Research’s latest report on the global building automation and control system market for the base year 2018 and the forecast period of 2019–2027, the global market is expected to expand at a moderate rate during the forecast period, owing to the large number of applications of building automation and control systems in industrial, commercial, and residential sectors 
  • In terms of revenue, the global building automation and control system market is estimated to reach value of ~US$ 326 Bn by 2027, expanding at a CAGR of ~9% during the forecast period

Increase in Building Automation Applications: A Key Driver

  • Different applications of building automation and control systems include the following: lighting, safety a-nd security, entertainment (audio and video), and HVAC (heating, ventilation, and air-conditioning)
  • In addition to these, several new applications of building automation and control systems are being developed and offered by players from different sectors. These include home healthcare, remote monitoring (as a specialized part of safety and security), home robotics, and pet care.
  • The home healthcare segment holds high growth potential, due to increase in elderly population and rise in the need for elderly care homes. As for home healthcare, use of automation systems helps save on expenses incurred for visits to the doctor or for deputing a nurse at home. It also saves efforts to dedicatedly monitor people at home.
  • The market is also witnessing growth in a single or specific application segment. This growth potential of individual application segments offer scope for players specializing in an individual segment to enter the market.
  • This has promoted growth of the global building automation and control system market, as consumers have more solutions to choose from and they enjoy their discretion in terms of price and features. Moreover, the development and adoption in applications, such as facility management, fire control system, safety & security system, is anticipated to increase during the forecast period, thereby fueling the global building automation and control system market.

Introduction and Development of Managed Building Automation and Control System Services: Latest Trend in Building Automation and Control System Market

  • A recent and prominent market trend is the introduction and development of managed building automation and control system services. Demand for these services is driven by increased involvement in managed services by companies from sectors such as information technology (IT), telecommunications, cable, energy, and security. For instance, Siemens, ABB, and Johnson Controls have included home automation services to their list of monthly billed services so as to leverage their existing assets and expand in a new and evolving market. These companies have collaborated with new as well as existing home automation service providers, such as BuildingIQ, to provide their existing consumers with building energy and operational intelligence solutions.
  • This strategy not only offers low-cost building automation and control system services, but also helps increase awareness about and adoption of such services. Thus, it enhances growth potential of the market in the mid and long terms.
  • Moreover, managed home automation services are primarily preferred by low- and middle-income groups, as these services allow them to enjoy benefits of home automation services at a reasonable price and enjoy extended support offered by service providers for building automation services
  • Thus, introduction and development of managed home automation services is anticipated to be a key driving factor for the global market during the forecast period

Low Consumer Awareness and Costlier Solutions: Major Challenge for Building Automation and Control System Market

  • The global building automation and control system market is largely driven by custom (luxury) solutions, which are costlier than mainstream or managed services. At the same time, consumers opting for a DIY model to save on costs have to face challenges in terms of technical knowhow required to install and integrate different applications. As a result, they have to rely on electricians or other service providers, which again increases the cost.
  • As a result of increased costs, low- and middle-income groups are less inclined toward adoption of the home automation technology, thereby lowering the rate of penetration of this technology in emerging markets. For instance, the rate of penetration of the home automation technology in India is approximately 2%, which is lower than that in countries of Europe and the U.S.
  • However, the deterring impact of this factor is expected to weaken during the forecast period, as the adoption of managed building automation services is expected to rise and awareness among end-users is expected to grow

Building Automation and Control System Market: Competition Landscape

  • Detailed profiles of manufacturers of building automation and control systems have been provided in the report to evaluate their financials, key product offerings, recent developments, and strategies
  • Key players operating in the global building automation and control system market are 
    • Honeywell International Inc.
    • ABB Ltd.
    • Crestron Electronics, Inc
    • BuildingIQ
    • 75F, LLC 
    • Siemens AG
    • Johnson Controls International Plc
    • Hubbell
    • Legrand
    • Schneider Electric SE
    • United Technologies Corporation

Building Automation and Control System Market: Key Developments

  • Key manufacturers operating in the global building automation and control system market, such as 
  • Honeywell International Inc. ABB Ltd., BuildingIQ, and Johnson Controls International Plc, are increasing their sales by engaging in merger & acquisition (M&A) and research & development (R&D) activities. Some of the key developments in the global market are as follows: 
    • In August 2018, ABB Ltd. acquired Buildingsense Australia Pty Ltd., an Australia-based company. The latter offers building management systems, energy management systems, and hotel room automation systems.
    • In May 2018, Honeywell International, Inc. launched a new mobile app called ‘Honeywell Home’ in place of Lyric app. This app is intended to list all smart devices provided by Honeywell installed in premise and improve the user experience. The app offers membership plans for upcoming smart security systems and C1 and C2 Wi-Fi security cameras.
    • In April 2018, ABB launched a new building systems control device called i-bus KNX PEONIA sensor in the China market. This smart control panel automatically adjusts lighting; closes or opens blinds or shutters; and regulates air conditioning. The user can monitor changes in light, temperature, and air control.
    • In November 2017, Johnson Controls, Inc. launched an enhanced version of their smart building automation system called BCPro, which provides simple yet powerful tools for rapid and easy setup, reducing the system configuration time by 50% and workload of the user interface configuration by 90%
  • In the report on the global building automation and control system market, we have discussed individual strategies, followed by company profiles of manufacturers of building automation and control systems. The ‘Competition Landscape’ section has been included in the report to provide readers with a dashboard view and company market share analysis of key players operating in the global building automation and control system market.

Building Automation and Control System Market –Scope of the Report

A new study of the global building automation and control system market is published by Transparency Market Research (TMR). It presents detailed information of key market dynamics, including market drivers, trends, and challenges for the global building automation and control system market as well as its structure. TMR’s study offers valuable information on the global building automation and control system market in order to illustrate how the market is expected to expand during the forecast period i.e. 2019–2027.

It also focuses on market drivers, restraining factors, and opportunities for the building automation and control system market during the forecast period. The study provides a complete perspective on the market, in terms of revenue (US$ Bn), across various geographies including Asia Pacific, South America, North America, Europe, and Middle East & Africa (MEA).

The report includes detailed market value chain analysis, which is focused on providing an extensive view of the global building automation and control system market. Porter’s Five Forces analysis has also been provided in the report to help understand the competition scenario of the market. The study includes market attractiveness analysis, wherein market segments have been benchmarked based on their market size, growth rate, and attractiveness in terms of opportunity. In order to offer complete analysis of the competition scenario in the global building automation and control system market, every geographical region mentioned in the report is provided with attractiveness analysis.

Key Questions Answered in TMR’s Study on Building Automation and Control System Market

  • What would be the Y-o-Y growth trend of the global building automation and control system market between 2019 and 2027?
  • What is the influence of the changing trend in technologies on the global building automation and control system market?
  • Would Asia Pacific continue to remain the most profitable regional market for providers of building automation and control systems in the next few years?
  • Which factors would hinder the global building automation and control system market during the forecast period?
  • Which are the leading companies operating in the global building automation and control system market?

Research Methodology

A unique research methodology is utilized by TMR to conduct comprehensive research on the global building automation and control system market and arrive at conclusions on future growth prospects for the market. This research methodology is a combination of primary and secondary research, which helps analysts warrant the accuracy and reliability of the conclusions drawn. Secondary research sources referred to by analysts during production of the report on the global building automation and control system market include statistics from company annual reports, SEC filings, company websites, World Bank database, investor presentations, regulatory databases, government publications, and market white papers. Analysts have also interviewed senior managers, product portfolio managers, CEOs, VPs, and market intelligence managers, who have contributed to the production of TMR’s study on the global building automation and control system market as a primary research source. These primary and secondary sources provided exclusive information during interviews, which served as a validation from leading players operating in the global building automation and control system market. Access to an extensive internal repository as well as external proprietary databases allowed this report to address specific details and questions about the global building automation and control system market with accuracy. The study also uses a top-down approach to assess the numbers for each segment and a bottom-up approach to counter-validate them. This has helped in making TMR’s estimates on future prospects for the global building automation and control system market more reliable and accurate.

Building Automation and Control System Market – Segmentation

TMR’s study on the global building automation and control system market segments the market based on technology, application, end user, and region. Changing market trends and other crucial market dynamics associated with these segments of the global building automation and control system market have been discussed in detail in the report.

Technology

Wired

Wireless

ZigBee

Wi-Fi

Bluetooth

Others

Application

Facility Management

Lighting Control System

Heating, Ventilation & Air-conditioning

Fire Control System

Safety & Security System

Video Surveillance

Access Control

Energy Management System

Others (Smart Locks and Plugs)

End User

Residential

Commercial

Industrial

Region

North America

Europe

Asia Pacific

Middle East & Africa

South America

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