by Brianna Crandall — May 15, 2017 — The rapid adoption of newly set regulations among several countries of the world by building automation systems (BAS) manufacturers is fueling the demand for building automation systems, according to a new report by Transparency Market Research. The introduction of new products is said to be fulfilling these rising demands.
The global market for building automation systems was worth USD43 billion in 2015 and $48 billion in 2016, in terms of revenue, and is expected to reach $141.1 billion by the end of 2026. The global market for building automation systems is expected to grow at 11.1% compound annual growth rate (CAGR) over the forecast period, 2016 to 2026.
Security and surveillance segment to dominate global BAS market
The global BAS market is categorized into security and surveillance, commercial, residential and government segments. In terms of revenue, the security and surveillance segment is estimated to witness robust growth and dominate the market during the forecast period. An increasing number of security violation incidences is expected to fuel the growth of the security and surveillance segment. This segment is estimated to witness significant incremental revenue opportunity surpassing $28 billion by 2026 end. It is expected to account for a market value of $45 billion and witness 10.4% CAGR during the forecast period.
The commercial segment is predicted to provide significant contribution to the global BAS market as well, accounting for a market value of $63 billion and witnessing 10.9% CAGR by 2026 end. The residential and government segments are also expected to exhibit increase in growth rate during the forecast period.
North America to account for $55 billion by end of 2026
North America is estimated to surpass a $55 billion market value by 2026, registering a boost in growth of the BAS market and luring most of the investors to peak interest in this region.
Top leading players in the global market for building automation systems are focusing on smart information technology (IT)-backed platforms establishment for provision of innovative building automation systems for customers. These market players include The Rheem Manufacturing Company, General Electric, Philips Lighting Holding B.V., Honeywell International Inc., United Technologies, Lennox International, Ingersoll-Rand Plc. and Johnson Controls.
Factors driving growth
Factors influencing the growth of the global building automation systems market are:
- Developed economies such as USA, Japan and Europe have come up with restrictive methods for the revision of prior trends;
- Adoption of various new regulatory methods for the reduction of energy consumption;
- Introduction to various precautionary measures by different governments from the world for elimination of energy wastage;
- Better advanced technologies enhancing end user experience and increasing market outreach;
- Introduction of intelligent cloud-based and Web-based control networks backed by IOT (internet of things), facilities management solutions, mobile technologies, and integrated building systems; and
- Increasing necessity of consolidated security solutions
Factors hindering growth
High capital investments and huge costs of building automation systems are expected to hamper the growth of the global market for building automation systems. Moreover, the growth of this market is expected to be impeded by the lack of skilled manpower for the operation of building automation systems.
For more information, a sample, or to purchase the report, Global Market Study on Building Automation Systems: Security & Surveillance System Segment Projected to Increase 2.6X Between 2016 and 2026, visit the Persistence Market Research Web site.