According to a report of Transparency Market Research (TMR), the global commercial building automation market has highly consolidated vendor landscape owing to a presence of handful of companies accounting for the leading share in the market. ABB Ltd., Siemens AG, and United Technologies Corp. These players accounted for near about 39.1% shares in the overall market in 2015. Some of the other prominent players operating in the global market for commercial building automation are Honeywell International Inc., Cisco Systems Inc., and Ingersoll Rand Plc. In order to gain significant share in the global market, these players are adopting strategies such as acquisition, merger, and partnership. These activities are expected to further expect to increase consolidation in the global commercial building automation market.
According to TMR, the global commercial building automation market was valued at US$77.63 bn in the year 2016 and projected to reach a valuation of US$108.49 bn by the end of the year 2024 by expanding with a CAGR of 4.3% over the predicted period from 2016 to 2024. Based on the product, the HVAC systems are dominating the global market for commercial building automation. Based on the region, North America dominated the global market for commercial building automation followed by Europe. However, the Asia Pacific is projected to expand with higher CAGR over the forecast period owing to the growing demand for commercial building automation.
Growing Construction to Fuel Growth of the Market
The global commercial building automation market is gaining traction due to surging demand for energy-conservative processes coupled with the growing need of lowering operating costs mainly for constructing the government buildings. Additionally, numerous governments are taking initiatives for constructing the buildings with green materials which are fuelling growth of the global commercial building automation market.
Furthermore, growing adoption of building and automation from the construction of small and medium-sized buildings are propelling growth of the global commercial building automation market. These automation systems improve comfort level and satisfaction primarily for the consumers who are preferring the environmentally-friendly products. Moreover, the construction industry is widening globally and especially in the developing regions such as Asia Pacific, the Middle East and Africa, and Latin America. This growth is propelling growth of the global commercial building automation market.
Growing Government Initiatives to Propel Growth
Increasing concern over the decreasing sources of fuel and growing awareness and concern over environmental protection is leading to imposing stringent regulations. Thanks to these regulations, the consumers are using the environmentally-friendly products and adopting the building automation which is another factor fuelling growth of the global commercial building automation market.
Despite these growth prospects, high cost of installation, operation, and maintenance are limiting adoption of commercial building automation. Also, higher initial investment is limiting new players to enter in the market which are expected to hamper growth of the global commercial building automation market. Nonetheless, growing application of building automation in the security and surveillance is expected to offer lucrative opportunities for growth over the forecast period.