SecurityWorldMarket

15/11/2020

Commercial building automation market set to bounce back

Gothenburg, Sweden

Berg Insight estimates that 3.23 million connected building automation systems were shipped in Europe and North America in 2019, and that the total installed base of connected systems in the same areas reached an estimated 20.5 million systems in 2019. In its latest report, the research company forecasts that the installed base will grow at a CAGR of 11.0 percent in the two regions to reach 34.4 million connected building automation systems in 2024.

Building automation systems include a wide range of solutions for controlling, monitoring and automating functions in buildings such as commercial office spaces, retail stores, hotels, schools, hospitals and industrial buildings. These systems can be controlled in various ways, ranging from simple local controls and user interfaces to cloud-based Building Management System (BMS) that offer remote and centralised control of several building functions across multiple sites.

For the purposes of this latest report, Berg insight’s definition of a connected building is one that includes one or several building automation systems that can be controlled and monitored remotely through a web portal or internet-connected management system. A smart building is furthermore one that includes a system that combines and aggregates data from various building functions to provide insights on the overall building performance. In a smart building, the various systems are aware of each other and exchange data to optimize building operations and occupancy comfort.

Building automation has been around for many decades but there is a new urgency due to factors such as energy conservation as well as mandates for green construction. IoT offers the technologies for building owners to easily measure and conserve energy. The researchers found that a major change is starting to happen now especially in new construction, where the primary driver is changing from cost reduction to features that enhance the user experience and change how users and buildings interact. New use-cases are emerging which leverage the Internet of Things, sensors and connectivity. The technology enables customisation of spaces in offices and conference rooms based on occupancy levels and occupant preferences as well as provide location and navigation throughout a building to help occupants find conference rooms and available work desks.

Berg Insight estimates that the building automation market as a whole in Europe and North America generated revenues of close to € 29.5 billion in 2019, and predicts that the market will grow at a CAGR of 10.4 percent to € 48.4 billion in 2024. Developments within connectivity, interoperability, artificial intelligence and machine learning enabling new and improved services are expected to create growth in the marketplace. Due to the COVID-19 pandemic, revenues in 2020 are expected to be slightly lower compared to the previous year. In 2021, revenues are however expected to bounce back and exceed the 2019 figures.

The research shows that the building automation market is served by a range of different players, spanning from small start-ups to major corporations that operate globally in various industry sectors.

The leading BMS providers include large companies such as ABB, Honeywell, Siemens, Johnson Controls and Schneider Electric. These players are also leaders in one or several of the building automation categories in this report. Berg Insight cites leading players in each of the sub categories including leading providers of HVAC control products such as Delta Controls, Distech Controls, KMC Controls and Danfoss. Major lighting and window control solution providers including, Signify, Acuity Brands, Lutron and Somfy. The fire safety, security and access control market is led by Assa Abloy, Axis, Carrier and Tyco. The elevator and escalator management market is dominated by Kone, Otis, Schindler and Thyssenkrupp while the audio, video and entertainment segment is served by AMX/Harman, Crestron, Elan Home Systems and Extron. Water management is a smaller segment and includes market players such as Apana and Banyan Water.


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