by Brianna Crandall — September 3, 2014—Building owners and facilities managers across the globe are increasingly adopting building automation (BA) systems to tackle rising energy costs, according to a new report from Frost & Sullivan, the Growth Partnership Company. As buildings account for nearly one-third of the global energy use, and are the leading contributors to greenhouse gas emissions, the need for BA systems is only expected to grow.
The new analysis from Frost & Sullivan finds that the market earned revenues of $5.78 billion in 2013 and estimates this will reach $7.28 billion in 2018. The data center and hospitality application segments are expected to experience rapid growth owing to growing Internet penetration in emerging nations and the expansion of the tourism market. The market is particularly promising in the stabilizing economies of Brazil, Russia, India, China, Germany and the United States due to high infrastructure spending.
“Government regulations and policies designed to improve energy efficiency in buildings are driving the market for BA systems especially in North America, Europe and parts of Asia-Pacific,” said Frost & Sullivan Energy and Environmental Research Analyst Balaji Anand Sagar. “Market participants realize that BA systems are essential to achieve energy efficiency targets dictated by government regulations and are offering reliable solutions at competitive prices.”
However, insufficient clarity on the benefits of BA systems is discouraging building owners from considering these solutions during the budgeting and bidding stages, the report found. Further, the lack of standardization of BA products across regions is lowering customers’ confidence. The report advises BA companies to provide turnkey solutions with robust ICT and engineering capabilities to help boost their visibility in specific application markets, and to roll out open BA systems that use standard protocols.
“Intelligent building control systems, fault detection, predictive diagnostics, big data analytics, and remote correction on the cloud will shape the market over the next few years,” noted Sagar. “Further, open connectivity and interoperability of BA systems will enable the automation of a much broader ‘Internet’ of devices and take the global BA market to greater heights.”
Global Building Automation Market is part of Frost & Sullivan’s Building Management Technologies Growth Partnership Service program. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.
