Navigant Research: Commercial building automation systems to surpass $100 billion annually by 2021

by Shane Henson — January 31, 2014—Annual revenue from commercial building automation systems (BASs) worldwide is expected to grow from $56.9 billion in 2013 to $100.8 billion by 2021, according to a new report from Navigant Research titled Commercial Building Automation Systems.

As the report notes, BASs increasingly form the foundational infrastructure for advanced energy management products and services in the buildings sector. The automation of heating, ventilation and air-conditioning (HVAC), lighting, fire and life safety, and security and access controls, supported by integration with building management systems (BMSs), promises to improve energy efficiency and optimization, provide new levels of functionality, and enhance occupant comfort and health.

“BASs continue to evolve from point solutions built from proprietary products toward open and integrated systems converged with modern information technologies,” says Eric Bloom, a senior research analyst with Navigant Research. “The adoption of these new embedded computing, communications, sensing, and software technologies is fundamentally changing the commercial BAS market, presenting both risks and rewards for industry stakeholders.”

The report further notes that until recently, many BASs have been proprietary in nature, with single vendors providing and maintaining the systems for each customer. Given this high degree of fragmentation, the terms BAS, BMS, and energy management system lack clear industry definitions and standards, leading to some level of confusion among industry participants. Today, according to the report, many of these conditions are changing—and at a pace that is unusually fast for the buildings industry.

Navigant Research is a market research and consulting team that provides in-depth analysis of global clean technology markets.