Building automation to see 11.6% CAGR

  • March 11, 2024
  • Steve Rogerson

The building automation market is set to reach $166.4bn by 2030, expanding at a CAGR of 11.6% between 2023 and 2030, according to Congruence Market Insights.

The market is primarily driven by increasing demand for energy-efficiency, advancements in IoT and AI technologies, and stringent government regulations promoting sustainable infrastructure. However, problems such as high initial investment costs and interoperability issues may hinder market growth. Opportunities lie in the integration of smart building technologies with IoT platforms, rising adoption of cloud-based offerings, and the emergence of smart cities initiatives.

AI impacts the global building automation systems market by changing building management processes, enhancing energy efficiency, and optimising operational performance. AI-driven algorithms analyse vast amounts of data collected from sensors and devices to provide actionable insights for predictive maintenance, fault detection and energy optimisation.

Machine-learning algorithms continuously improve system performance and adapt to changing environmental conditions, ensuring optimal comfort levels while reducing energy consumption. AI-powered analytics also enable real-time monitoring and control of building systems remotely, enhancing operational efficiency and reducing maintenance costs. Despite the significant benefits, challenges such as data privacy concerns and the need for skilled personnel proficient in AI technologies remain key considerations for market adoption.

The global market exhibits regional nuances driven by factors such as infrastructure development, regulatory policies and technological advancements. North America holds the largest market share, primarily attributed to the widespread adoption of smart building technology, stringent energy efficiency regulations, and the presence of key market players.

The major opportunity in the future lies in the Asia-Pacific region, fuelled by rapid urbanisation, increasing investments in smart infrastructure projects, and government initiatives promoting sustainable development. Other regions such as Europe, the Middle East and Africa are also witnessing significant growth prospects driven by similar factors.

The global market is highly competitive, with key players focusing on product innovation, strategic collaborations, and mergers and acquisitions to gain a competitive edge.

Established companies such as Siemens, Honeywell and Johnson Controls dominate the market with their extensive product portfolios and global presence. Other notable players include Schneider Electric, UTC, ABB, Legrand, Ingersoll Rand, Delta Controls and Crestron Electronics.

The competition landscape is characterised by intense rivalry and a continuous emphasis on technological advancements and service offerings to cater to evolving customer demands, says the report (