Building automation market in a slow but steady growth period
The global building automation systems market was worth $90.1 billion in 2014. This market should reach $94.1 billion in 2015 and nearly $116.4 billion by 2020, registering a compound annual growth rate (CAGR) of 4.3 percent, according to a new report from BCC Research.
Transformation has gradually been taking place in the building management system (BMS) market. This market is trailing other markets, and, as a consequence, these new technologies have had limited impact on how BMS systems work. BCC Research shows BMS systems will have a profound impact in the future, and, as a result, suppliers are trying to position themselves to take advantage of these changes.
The building automation market has been in a slow but steady growth period. While the various products are grouped together in this market, they’re at various stages of development and showing varying degrees of growth with more mature sectors, such as HVAC and lighting, demonstrating lower growth rates than emerging sectors, like energy management and security.
In industrialized markets, such as Europe and North America, the number of new construction projects has slowed. In booming markets, such as China, and emerging markets, like South America and Africa, the underlying infrastructure is not yet as well developed, so there’s more new construction and higher growth rates for building automation initiatives in these markets than in the more mature venues. The changing market dynamics leave established vendors’ markets open to intrusion from newcomers who can leverage technology to deliver products and services more effectively.
“The most sophisticated, extensive, and integrated control systems are frequently found in the newest buildings or those that undergo significant renovations. Thus, the market for building automation systems is inextricably linked to the fortunes of the construction industry,” said Paul Korzeniowski, research analyst, BCC. “The industry is served by hundreds of thousands of businesses worldwide. This places the market for these products with architects, developers, contractors, and construction companies.”
The report examines technologies, markets, and factors influencing the markets for integrated control systems and systems that integrate the controls of various subsystems. Markets are forecast on the basis of historic activity and current opportunities, government initiatives and policies, and the status of the construction and renovation industries in specific nations.