The building automation market size is projected to reach $167.4bn by 2031 from $76.75bn in 2023, a CAGR of 10.2%, according to Insight Partners.

Growing construction activities and increasing demand for smart buildings are fuelling the growth.

Building automation systems use sensors, actuators and networking technologies to provide centralised control and monitoring systems, such as lighting, HVAC, security, access control and energy management. These technologies are designed to increase building efficiency, lower energy usage, simplify facility management procedures, and guarantee adherence to regulations and standards. Advancements associated with IP-based devices, SaaS, integration of IoT, machine learning and other technologies are expected to bring more trends in the building automation system market in the coming years.

Building automation systems (BAS) let an operator access, control and monitor all connected building systems via one interface. BAS technology allows owners to use networked electronic devices to obtain centralised management over the operations of their building.

To maintain occupant comfort, the systems control ventilation, humidity, lighting and temperature. Occupancy sensors and scheduling help reduce energy waste by modifying environmental systems while not in use. Additionally, they ensure every system is running accurately at optimal efficiency. Operators are notified by sensors when preventative maintenance is necessary. The fire, access and surveillance systems in the building are all integrated to provide security.

Geographically, North America dominated the building automation system market in 2023. Increasing construction activity across the region and the economic growth of several states are among major factors expected to drive the regional market for building automation systems. Building automation systems provide energy efficiency by offering financial savings. Moreover, the development of smart cities in the USA and Canada is expected to boost the market during the forecast period.

Based on component, the building automation market is segmented into hardware, software and services. The hardware segment held the largest share of the building automation system market in 2023. By end user, the building automation system market is segmented into commercial, industrial and residential. The commercial segment dominated the building automation system market in 2023.

Traditional building automation systems rely on wired infrastructure, limiting flexibility in sensor placement and system expansion. This limitation can be negated with sensors equipped with wireless sensor network (WSN) technology, allowing for easy reconfiguration and scalability. Wireless sensor networks eliminate the need for large cabling, reducing installation costs and labour. WSN technology enables control of building systems and real-time monitoring, optimising energy use based on occupancy and environmental conditions.

According to International Energy Agency reports, the building sector represented approximately a third of total energy system emissions, including building operations (26%) and embodied emissions (7%) for construction material production, in 2022.

Many wireless protocols and standards, including Z-Wave, 6LoWPan, Zigbee and EnOcean, offer innovation within the building automation system ecosystem. The Z-Wave protocol is a simple, wireless, interoperable, RF-based communication technology designed particularly for monitoring, controlling and status-reading applications in light commercial and residential environments. The protocol allows companies to offer a wide range of home automation options to customers.

Sustainable buildings aim to reduce energy consumption and carbon emissions. BAS can monitor, control and optimise HVAC, lighting and other systems based on occupancy and environmental conditions. With an increasing shift towards renewable energy sources, such as solar and wind, BAS can intelligently manage the integration and use of these sources within building operations, ensuring optimal energy use and cost savings.

BAS provide real-time data on energy use and environmental metrics, facilitating informed decision-making for energy conservation strategies and compliance with sustainability standards and regulations. Moreover, BAS can maintain indoor air quality, regulate temperature and optimise natural lighting, contributing to enhanced occupant satisfaction and comfort. Also, sustainable BAS result in cost savings, lower maintenance and prolonged equipment life. The use of sustainable options aligns with global sustainability goals, improving energy efficiency, enhancing occupant comfort and offering significant economic benefits.

For more on the report, go to www.theinsightpartners.com/reports/building-automation-system-market.