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Building automation market to grow at 11% CAGR, says Berg
- November 16, 2020
- Steve Rogerson
The installed base of connected building automation systems in North America and Europe will reach 34.4 million systems in 2024, according to IoT analyst firm Berg Insight.
The number reached an estimated 20.5 million in 2019. This included building systems that are connected to the internet and can send data to a back-office platform. Around 3.2 million connected building systems were shipped in the two regions in 2019.
Berg estimates the installed base will grow at a CAGR of 11.0 per cent in these two regions to reach 34.4 million connected building automation systems in 2024. The building automation market in Europe and North America generated at the same time revenues of close to €29.5bn in 2019. The market is forecast to grow at a CAGR of 10.4 per cent to €48.4bn in 2024.
Building automation systems include a wide range of products for controlling, monitoring and automating functions in buildings such as commercial office spaces, retail stores, hotels, schools, hospitals and industrial buildings.
Berg groups building automation systems into six primary categories: HVAC and energy management; lighting and window control; fire safety, security and access control; elevator and escalator management; audio, video and entertainment; and water management.
The building automation market is served by a range of different actors, spanning from small start-ups to major corporations that operate globally in various industry sectors.
The leading building management system (BMS) providers include large companies such as ABB, Honeywell, Siemens, Johnson Controls and Schneider Electric. These players are also the leading actors in one or several segments in this report.
Leading providers of HVAC control products include Delta Controls, Distech Controls, KMC Controls and Danfoss. Major lighting and window control providers include Signify, Acuity Brands, Lutron and Somfy. The markets for fire safety, security and access control are led by Assa Abloy, Axis, Carrier and Tyco. The elevator and escalator management market is dominated by Kone, Otis, Schindler and ThyssenKrupp while the audio, video and entertainment segment is served by AMX/Harman, Crestron, Elan Home Systems and Extron.
Water management is a smaller segment and includes market players such as Apana and Banyan Water.
Building automation has been around for many decades but there is a new urgency due to factors such as energy conservation as well as mandates for green construction. IoT, cloud computing, data analytics, deep learning, artificial intelligence and other new technologies allow building owners to measure and conserve energy more easily. These technologies also help reduce operational expenditures, meet stringent global regulations and sustainability standards, and increase occupancy comfort.
“New sensor-based solutions that provide real-time data on indoor climate, workplace occupancy and space utilisation have really gained traction during the past few years,” said Martin Backman, senior analyst at Berg Insight.
Building automation systems can help boost workplace productivity and optimise office space, which in turn can cut costs and increase revenues for companies. Data generated from these can also be used to reduce the spread of viruses and other diseases inside buildings, something that is more important since the outbreak of Covid-19.
“Providers of occupancy and space utilisation applications now market their services as a tool to help workers return to work safely,” said Backman.