Growing awareness regarding workplace safety and security, a shift toward green and smart buildings, and improving comfort level of the occupants are major factors that are expected to fuel demand for intelligent building automation technologies. Increasing demand for automated HVAC and safety in the healthcare and hospitality industries is also boosting market growth. Intelligent building automation technologies assist various industries in the optimisation of energy usage and reducing its operating expenditure.

Rising establishment of smart infrastructure across the globe is expected to contribute significantly to market growth. Various factors such as increasing green building initiatives, development of cloud-based IoT platforms, and growing environmental concerns are expected to boost market growth over the forecast period. Surging energy prices and urgent need to manage them also serve as key driving factors.

New products, and mergers & acquisitions

Prominent players are placing emphasis on new product launches in order to combat increasing competition. They are also focusing on acquiring a larger market share through inorganic growth strategies like mergers and acquisitions. For instance, Honeywell International Inc. completed the acquisition of Transnorm, a warehouse automation solutions provider, in September 2018. This enabled the former to expand its customer base across Western Europe.

Key findings:

• System component in this field are separated into three categories - hardware, software, and service. The hardware segment held the largest market share of 53.8% in 2022. 

• Based on product, the facility management systems segment dominated the market due to a rising need to achieve economies of scale in manufacturing facilities.

• On the basis of application, the commercial sector is expected to continue its dominance through 2022. This growth can be attributed to increasing adoption of IBAT by hotels, airports, and retail and IT companies.

• Geographically, Asia Pacific is expected to grow at the fastest CAGR of 12.0% during the forecast period. Growth can be attributed to increasing investments in infrastructure in order to support smart city initiatives across the region.