The building automation market is set to grow from $101.74bn this year to $191.13bn by 2030, a CAGR of 13.4%, according to Markets & Markets.

The most significant factor driving this growth is the rising demand for energy-efficiency in commercial and residential buildings. Technologies can help reduce energy consumption by intelligently controlling HVAC, lighting and other critical systems. These also support compliance with stringent green building codes and sustainability goals that governments and regulatory bodies set.

Moreover, the growing adoption of IoT and smart sensors enables real-time monitoring and predictive maintenance, which enhances operational efficiency and reduces downtime.

During the forecast period, the lighting controls segment is projected to see a higher CAGR. The growing emphasis on energy efficiency and sustainability drives growth. As buildings account for a significant share of global energy consumption, there is a rising demand for smart lighting that reduces energy use through automation, occupancy sensing and daylight harvesting. In addition, the expanding commercial real-estate sector and the wave of smart building projects fuel the deployment of advanced lighting control infrastructure.

The commercial application segment is anticipated to secure the largest market share during the forecast period. The growth of building automation systems in the commercial sector is being driven by a convergence of technological, economic and regulatory factors. A primary catalyst is the rising demand for energy efficiency, as commercial buildings account for a significant portion of global energy consumption. The technology enables intelligent control of HVAC and lighting systems, resulting in cost savings. Increasing emphasis on sustainability and carbon emission reduction has led many companies to adopt green building certifications, often requiring automation.

Asia Pacific is expected to hold the largest share in 2030. The growth is attributed to the region’s rising awareness of environmental impact and carbon footprint, compelling developers to integrate automated systems for optimised energy consumption. Increasing investment from domestic and international players in infrastructure projects contributes to technological upgrades and market expansion. Moreover, declining sensor and controller costs are making the technology more accessible to mid-sized buildings. As digital transformation deepens across industries, the demand for intelligent, interconnected buildings continues to rise, positioning Asia Pacific as one of the fastest-growing markets for building automation.

Key companies include Johnson Controls (Ireland), Schneider Electric (France), Carrier (USA), Siemens (Germany), Honeywell (USA), Bosch (Germany), Legrand (France), Hubbell (USA), ABB (Switzerland) and Trane Technologies (Ireland).

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