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Intelligent Building Automation Technologies Market Report, 2025

Intelligent Building Automation Technologies Market Analysis Report By Component, By Product, By Application And Segment Forecasts From 2019 To 2025

Report ID: MN17620021  |  Published: August 2020  |  No of Pages: 120
Format: Electronic (PDF)  |  Industry: Computing & Technology  |  Publisher: Grand View Research

Industry Insights

The global intelligent building automation technologies market size was accounted for USD 64.7 billion in 2018 and projected to grow with a CAGR of 7.0% over the forecast period, from 2019 to 2025. Factors like increasing concern about global warming, growing awareness of energy consumption, and increasing energy prices have majorly driven the market growth. In addition, growing awareness for environmental protection and increasing usage of renewable energy resources are anticipated to propel the growth of the intelligent building automation technologies (IBAT) market.

U.S. intelligent building automation technologies market

Building automation systems integrate energy, security systems, energy, and lighting into a single intuitive system that maintains optimum efficiency with occupant comfort and high productivity. Increasing concern regarding security and safety among people is expected to witness a positive impact on the market growth. People are getting aware of financial losses occurred owing to man-made or natural disasters such as terrorist attacks, construction fires, earthquakes, and floods. For example, in 2018, as per U.S. Fire Administration, there were around 5,610,000 fire incidents that resulted in damages up to USD 23 billion.

Several organizations are adopting IBAT services, as this technology offers management of various applications like managing heat ventilation and air conditioning, analyze building data and lighting management. Organizations are concentrating on reducing energy consumption by managing light’s power, HVAC systems, and other appliances. As per elektormagazine.com, the integration of IBAT services in 10,000 sq. meters area can save over 1,000,000 euros per year. The above-mentioned factors are expected to drive market growth.

Rising need for safety and security in intelligent buildings is projected to contribute to market growth. Increasing adoption of various building automation protocols, improvement in open-ended architecture, implementation of BAS, and easy adoption of technological development are expected to have a strong growth of the market. IBAT monitor and analyze the efficiency of buildings in terms of productivity, safety, comfort, security, and sustainability. 

However, high initial investment and low awareness are anticipated to hamper the market growth to some extent. Technical complexity may restraint the market growth during the forecast period. Technological advancement and commoditization of the systems will create new avenues for market growth during the forecast period.

Component Insights

Based on components, the market is bifurcated into software, hardware, and services. IBAT is an interconnected network between hardware and software which helps to monitor and control the internal environment of buildings. Hardware equipment involves controllers, sensors, and actuators. These devices ensure proper management of HVAC systems through automated control.

Intelligent building automation technologies services include engineering services that help in offering safe, and energy-efficient building control systems. The smart building services implementations help to reduce power consumption, operational cost, and increased efficiency, thereby, expected to propel the segment growth in the next few years.

Product Insights

Based on products, the IBAT market is fragmented into life safety systems, security systems, building energy management systems (BEMS), facility management systems. In 2018, the security systems held a significant market share and expected to witness steady growth over the forecast period. These systems include elevator access control, CCTV, and building access control which helps to reduce the risk of damages to property.  Facilities management system is expected to account for the largest market share, wherein the demand for BEMS is projected to exhibit a significant growth rate.

Growing concerns of losses in an emergency situation and increasing need for security through video surveillance are expected to propel the market growth. BEMS majorly focuses on optimizing, monitoring, controlling, and measuring technical services of buildings. These systems comprise several advantages such as easy identification of power issues, helps to reduce harmful gas emissions, and reduce energy consumption. They also examine energy saved by electrical and mechanical equipment like ventilators, heaters, and air conditioners to reduce equipment efficiency and reduce cost.

Application Insights

By applications, the market is classified into commercial, industrial, and residential. In 2018, the commercial segment accounted for the largest market share and held USD 27.8 billion. In huge commercial sites like office sites, airports, shopping malls, seaports, and industrial zones, this technology helps to reduce energy cost, maintenance, and spatial management. This segment is projected to retain its dominance throughout the forecast period due to the rising need for enhancing the efficiency of commercial buildings and strict regulations by the government for energy consumption.

Europe intelligent building automation technologies market

The residential segment is projected to grow with the highest CAGR from 2019 to 2025. Increasing concern regarding security and safety among homeowners due to rising number of thefts and burglaries worldwide is expected to drive the segment growth. Rising need for energy efficiency and reduced operational cost are also important factors anticipated to boost the adoption of IBAT. Moreover, property owners are using data gathered by occupancy and motion sensors in buildings to regulate lightning and air-conditioning in real-time, thereby, IBAT helps to analyze the internal environment.

Regional Insights

In 2018, Europe has accounted for revenue of USD 16.0 billion. This growth is attributed to the implementation of directives like the Energy Performance of Buildings Directive to improve the energy performance of a building. In addition, growing demand for smart grid services and energy-efficient products in Germany and France is expected to propel the regional market growth during the forecast period.

The Asia Pacific market is projected to gain traction owing to increasing adoption of building automation technology in several countries including China, India, and Japan. Furthermore, governments in various countries such as South Korea, China, and India are investing extensively in the development of smart cities. Moreover, development of network infrastructure in Asia Pacific is anticipated to open new market growth opportunities in the near future.

Middle East & Africa is projected to have steady growth from 2019 to 2025 due to growing investment in the development of public infrastructure. In addition, increasing number of international tourists bodes well for the integration of security systems, which, in turn, is expected to further fuel the regional market growth.

Impact of COVID-19

Due to outbreak of COVID-19, many countries have imposed lockdown to reduce the spread of virus infection. In North America and Europe, the demand for equipment and software for buildings increased in first quarter of 2020. However, construction projects are halted and supply chain disrupted from March onwards owing to strict lockdown.

During lockdown, most companies have shut temporarily and encourage employees to work from home. Post lockdown, companies have to change their strategies in terms of workspace and places. Therefore, the demand for IBAT solution will increase, as it helps to monitor how every square foot of space is used and track occupied and non-occupied areas in the office building. In addition, smart technology will detect the employees’ temperature with thermal cameras and smart restroom system will enable door contact sensor, and fill level sensor for hand sanitizers. Thus, several benefits of building automation technology in working space is expected to drive the market growth post lockdown.

To limit human contact and spread of virus, strict lockdown has had impact on retail sector. Therefore, retailers are focusing to retain customers and to reduce cost through energy efficiency by adopting IBAT solutions. Smart shelves and store mapping can enhance the customer experience in this situation. With the help of beacon or occupancy sensors can track customers through stores. Smart shelves can directly integrate with customer’s app.  Several benefits associated with IBAT solution will boost the demand across these sectors.

Intelligent Building Automation Technologies Market Share Insights

The major players operating in this market are Johnson Control; Azbil Corporation; Eaton; General Electric; Schneider Electric; Honeywell International Inc.; Ingersoll Rand plc.; Siemens Building Technologies Inc.; United Technologies Corporation; Hubbell Inc.; Rockwell Automation Inc.; and ABB Ltd. Market players are focusing on implementing some strategies like merger & acquisition to gain maximum market share. For example, Honeywell International Inc. acquired a warehouse automation solutions provider Transnorm company. This acquisition will help the former to expand its business and customer base in Western Europe. Market players are also focusing on product launch to sustain in the competitive market.

Report Scope

Attribute

Details

Base year for estimation

2018

Historical data

2014 - 2017

Forecast period

2019 - 2025

Representation

Revenue in USD Billion and CAGR from 2019 to 2025

Regional scope

North America, Europe, Asia Pacific, Latin America, and MEA

Country scope

U.S., Canada, U.K., France, Germany, Singapore, China, India, Japan, Malaysia, Singapore, Brazil, Mexico, Saudi Arabia, & UAE

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

15% free customization scope (equivalent to 5 analyst working days)

If you need specific information that is not currently within the scope of the report, we will provide it to you as a part of the customization


Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Million Insights has segmented the global intelligent building automation technologies market report based on component, product, application, and region:

• Component Outlook (Revenue, USD Billion, 2014 - 2025)
    • Hardware
    • Software
    • Service

• Product Outlook (Revenue, USD Billion, 2014 - 2025)
    • Security Systems
    • Life Safety Systems
    • Facility Management Systems
    • Building Energy Management Systems

• Application Outlook (Revenue, USD Billion, 2014 - 2025)
    • Residential
    • Commercial
    • Industrial

• Regional Outlook (Revenue, USD Billion, 2014 - 2025)
    • North America
        • U.S.
        • Canada
    • Europe
        • U.K.
        • Germany
        • France
    • Asia Pacific
        • Australia
        • China
        • Japan
        • India
        • Malaysia
        • Singapore
    • Latin America
        • Brazil
        • Mexico
    • Middle East & Africa
        • Saudi Arabia
        • UAE

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