Building Automation and Controls Market Outlook-2027
The global building automation and controls market size was valued at $101.91 billion in 2019, and is expected to reach $215.59 billion by 2027 growing at a CAGR of 11.10% from 2020 to 2027. Building automation and controls system is the automatic centralized control for heating, ventilation, & air conditioning; lighting; and security & access control systems.
The building automation and controls system uses sensors, detectors, relays, and other smart components integrated with intelligent electronics, which give access to central computing system to operate. They are used in various industry verticals such as industrial, enterprises, retail, hospitality, residential, and others. Some of the companies operating in the building automation and controls market are Siemensand Honeywell.
The growing deployment of building automation systems in large office buildings, shopping complexes, and public transport areas, such as railway stations and airports, is expected to drive the market growth for building automation and controls system. In addition, lighting controls, HVAC control, and security & access control systems are the major products used in residential, enterprise, and commercial sectors.
However, security & access control systems have become the essential part of several industry verticals, owing to rising security concerns in every sector. Furthermore, surging need for HVAC control, energy-efficient lighting control, and improved standard of living are expected to boost the growthof the building automation and controls market globally.
The global building automation and controls market size is expected to witness significant growth during the forecast period, owing to the rising need for advanced energy-efficient interventions. Smart building solutions help engineers optimize the base load of the building to monitor power consumption by the major building systems, such as HVAC or lighting and others, which improve the energy efficiency of buildings.
Some of the leading countries have witnessed increase in adoption of IoT and AI integrated electronics and computing systems. IoT technology when integrated in an electronic system provides remote access to the user. The integration of AI provides the device with intelligence, giving it the ability to create an automated environment. These technologies when integrated in building management and controls systems provide users with the convenience of hassle-free and worry-less experience.
Moreover,constant development of a supportive regulatory structure and legislative requirements fuel the demand for intelligent building solutions. In addition, development of smart cities in emerging countries and government initiatives are expected to boost the building automation and controls market growth in the coming years. However, lack of interoperability between devices hampers the growth of the market.
By Product Type
HVAC Control segment is projected to be the most lucrative segment
Key Takeaways
The global market study covers 20 countries. The research includes a segment analysis of each country in terms of value for the projected period.
More than 1,500 product literatures, industry releases, annual reports, and other such documents of major building automation and controls market industry participants along with authentic industry journals, trade associations' releases, and government websites have been reviewed for generating high-value industry insights.
The study integrated high-quality data, professional opinions and analysis, and critical independent perspectives. The research approach is intended to provide a balanced view of global markets and to assist stakeholders in making educated decisions to achieve their most ambitious growth objectives.
Key Market Dynamics
The Building Automation and Controls Market is driven by the increasing demand for energy efficiency, advancements in IoT technology for smart buildings, and the growing focus on sustainability and green building initiatives. A key restraint is the high initial investment cost associated with implementing advanced automation systems. However, there is a significant opportunity in the rising trend of smart city developments, which can further propel building automation and controls market growth.
Segment Overview:
The global building automation and controls market is segmented on the basis of product type, offering, industrial vertical, and region. On the basis of product type, the market is divided into HVAC control, lighting control, and security & access control. Based on offering, it is bifurcated into integration and services. Depending on industry vertical, it is classified into residential, enterprise, industrial, hospitality, retail, and others.
By Offering
Integration segment will maintain the lead throughout the forecast period
Region-wise, the building automation and controls markettrends are analyzed across North America (the U.S., Canada, and Mexico), Europe (Germany, the UK, France, Italy, and Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, and Rest of Asia-Pacific), and LAMEA (Latin America, the Middle East, and Africa).Europe accounted for the highest share, owing to the development of wireless technology and increase in construction of smart cities.
By Industry Vertical
Industrial segment will dominate the market during 2020 - 2027
Top Impacting Factors
The prominent factors that drive the growth of the building automation and controls market include rising need for advanced energy-efficient interventions, growing deployment of building automation systems, and rise in demand for convenient user experience. However, lack of interoperability between devices hampers the growth of the market.Conversely, development of smart cities in emerging countries and government initiatives are expected to create lucrative opportunities for the building automation and controls industry.
By Region
Asia-Pacific region would exhibit the highest CAGR of 13.20% during 2020 - 2027
Regional/Country Market Outlook
North America (NA): The North American building automation and controls market is expanding rapidly, driven by strong demand for energy-efficient solutions and smart building technologies. Major investments in infrastructure upgrades and government initiatives aimed at enhancing sustainability further contribute to market growth.
Europe: In Europe, the building automation and controls market is influenced by stringent energy efficiency regulations and a growing emphasis on sustainable construction practices. The region is seeing increased adoption of smart technologies in both residential and commercial buildings, supported by government incentives and funding.
Asia-Pacific (APAC): The APAC region is experiencing significant growth in the building automation and controls market, fueled by rapid urbanization and increasing construction activities. Countries like China and India are leading the charge, with investments in smart cities and energy-efficient building solutions driving demand.
Latin America, Middle East, and Africa (LAMEA): In LAMEA, the building automation and controls market is gradually evolving, with rising urbanization and infrastructure development initiatives. Increased focus on energy efficiency and sustainability, particularly in the Middle East and parts of Africa, presents opportunities for growth in building automation solutions.
Competitive Analysis
Competitive analysis and profiles of the major building automation and controls market leaders, such as Honeywell International, Beijer Electronics, ABB, Siemens AG, Johnson Controls, Schneider Electric, General Electric, Legrand, Lutron Electronics Co., and Control4 Corporation,are provided in this report. These key players have adopted various strategies, such as product portfolio expansion, mergers & acquisitions, agreements, geographical expansion, and collaborations, to increase their market penetration and strengthen their foothold in the industry.
Report Coverage & Deliverables
This report delivers in-depth insights into the building automation and controls market, by product type, offering, industry vertical, and key strategies employed by major players. It offers detailed market forecasts and emerging trends.
Product Type Insights
The building automation and controls market is segmented into HVAC controls, lighting controls, and security & access controls. HVAC controls dominate due to rising energy efficiency demands, while lighting controls gain traction for optimizing energy use. Security & access controls are increasingly adopted in commercial and residential buildings for enhanced safety.
Offering Insights
The market is divided into integration and services. Integration services are in high demand as businesses seek to unify various building systems for seamless automation, while service offerings, including maintenance and upgrades, are essential for ensuring long-term efficiency and functionality of automated systems.
Industry Vertical Insights
Building automation caters to various industries, including residential, enterprise, industrial, hospitality, and retail. The residential segment is growing with smart home trends, while enterprises and industrial sectors are driving demand for energy management and security solutions. The hospitality and retail sectors also benefit from automation to enhance customer experience and operational efficiency.
Key Strategies and Developments
In September 2024, Johnson Controls introduced Metasys 14.0, an upgraded version of its renowned building automation system, aimed at enhancing energy management, network efficiency, and security features. This update is designed to boost commercial building performance and sustainability, while improving occupant comfort, health, and safety.
In March 2023, Schneider Electric unveiled EcoStruxure Building Operation in India, a solution designed to improve occupant comfort and optimize building value through advanced automation and control technologies.
Key BenefitsFor Stakeholders:
- This study comprises analytical depiction of the global market along with the current trends and future estimations to depict the imminent investment pockets.
- The overall building automation and controls market analysis is determined to understand the profitable trends to gain a stronger foothold.
- The report presents information related to key drivers, restraints, and market opportunities with a detailed impact analysis.
- The current building automation and controls market forecast is quantitatively analyzed from 2019 to 2027 to benchmark the financial competency.
- Porter’s five forces analysis illustrates the potency of the buyers and the building automation and controls market share of key vendors.
- The report includes the market trends and the market share of key vendors.
Building Automation and Controls Market Report Highlights
| Aspects | Details |
 By Product Type |
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 By Offering |
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 By Industry Vertical |
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 By Region |
|
 Key Market Players | Control4, SCHNEIDER ELECTRIC, GENERAL ELECTRIC, Johnson Controls, Legrand, HONEYWELL INTERNATIONAL INC., Lutron Electronics Co., Inc, SIEMENS AG, BEIJER ELECTRONICS, ABB, Ltd. |
Analyst Review
The global building automation and controls market is expected to grow at a promising rate during the forecast period, owing to implementation of government policies, rise in need for responsive, smart, safe, commercial, and residential spaces. The building automation and controls market delivers integrated lighting, improved comfort, greater security, and better sanitation in an energy-efficient and smart way while saving the operational costs for long term.
The major factors that drive the building automation and controls market areincreasing need for advanced energy-efficient interventions, growing deployment of building automation systems, and rise in demand for convenient user experience. Moreover, constant development of the supportive regulatory structure and legislative requirements fuel the demand for intelligent building solutions.
In addition, increase in development of smart cities in emerging countries and government initiatives are expected to boost the growth of the building automation and controls market in the coming years. However, lack of interoperability between devices hampers the growth of the building automation and controls market.
By region, the building automation and controls market trends have been analyzed across North America, Europe, Asia-Pacific, and LAMEA. The analysis had identified that Europe contributed maximum revenue in 2019 and is expected to follow the same trend during the forecast period. Factors, such as increase in penetration of digital electronic devices and high adoption of advanced technologies, have provided several growth opportunities for the building automation and controls market in Europe.
The report focuses on the growth prospects, restraints, and trends of the building automation and controls market analysis. The study provides Porter’s five forces analysis to understand the impact of various factors, such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers, in the building automation and controls market.
The Building Automation and Controls Market is estimated to grow at a CAGR of 11.10% from 2020 to 2027.
The Building Automation and Controls Market is projected to reach $215.59 billion by 2027.
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Rising need for advanced energy-efficient interventions, and growing deployment of building automation systems etc. drives the growth of Building Automation and Controls Market.
The key players profiled in the report include Honeywell International, Beijer Electronics, ABB, Siemens AG, Johnson Controls, Schneider Electric, Legrand, and many more.
On the basis of top growing big corporations, we select top 10 players.
The Building Automation and Controls Market is segmented on the basis of product type, offering, industrial vertical, and region.
The key growth strategies of Building Automation and Controls market players include product portfolio expansion, mergers & acquisitions, agreements, geographical expansion, and collaborations.
Industrial segment holds a dominant position throughout the forecast period.
Asia-Pacific region will grow at a highest CAGR of 13.20% during 2020 - 2027.
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