The building automation system market is projected to reach USD 148.6 billion by 2027 from USD 86.8 billion in 2022; it is expected to grow at a CAGR of 11.4% from 2022 to 2027.
Building automation is an easy
way of controlling and monitoring systems installed in buildings. These systems
include facility management systems, security and access controls, and fire and
life safety alarms. Building automation helps reduce energy consumption in
buildings, enhances the comfort level of occupants, and manages building
operations effectively. The growth of the building automation system market is
fueled by the increasing requirement for energy-efficient facilities with
enhanced security systems. Besides this, advancements in wireless communication
technologies have reduced the complexity and the cost of installing building
automation systems in the existing buildings.
The combination of IoT and
building automation has also enabled the exchange of information among several
electronic devices and the cloud without the need for direct human intervention
that makes buildings smart. This factor has also accelerated the growth of the
building automation system market. However, the key restraints faced by the
companies operating in this market include the false notion about the high
installation costs of building automation systems and technical difficulties in
their deployment. The increasing global concerns for energy conservation and
the rising energy costs are fueling the demand for building automation systems
for making buildings energy efficient. This is one of the key factors driving
the growth of the building automation system market. The surging demand for
building automation systems for use in commercial applications can be
attributed to the ability of these systems to reduce the operating costs of
buildings. The easy maintenance of temperature and lighting levels, along with
enhanced security levels offered by building automation systems, fuel market
growth.
Driver: Heightened focus on
developing energy-efficient and eco-friendly buildings
The building sector is one of
the largest energy-consuming sectors and usually accounts for more than
one-third of the total energy consumption worldwide. It is an equally important
source of carbon dioxide (CO2) emissions. According to the International Energy
Agency (IEA), energy use in buildings represents as much as 80% of the total
energy use across specific regions that are highly dependent on traditional
biomass. The number of electrical systems used in buildings is rising, which
increases energy consumption, as well as CO2 emissions. Hence, the sustainable
and efficient use of energy is crucial.
The demand for building
automation systems is increasing with the growing focus on the reduction of
energy consumption and maintenance costs of buildings. Building automation
systems play an important role in optimizing energy usage and reducing energy
costs. HVAC and lighting control systems consume maximum energy. According to
the IEA, currently, air heating and cooling, together with water heating,
account for ~60% of the global energy consumption in buildings. Therefore, they
represent a major opportunity to reduce the energy consumption of buildings.
Building automation systems also help automate HVAC and lighting systems,
saving 5–30% of the overall energy consumption of a building. Moreover,
building automation systems assist in reducing the overall building maintenance
cost by providing building operators with early diagnosis of operational issues
in equipment, if any. This helps prevent losses and inconvenience due to
unexpected breakdowns.
Download PDF Brochure: https://www.marketsandmarkets.com/pdfdownloadNew.asp?id=408
Restraint: False notion about
high installation costs of building automation systems
Building automation systems help
in saving energy and reducing operating and maintenance costs. However, end
users and building owners are reluctant to these systems due to their false
perception that the installation costs of these systems are high. They are
unaware of the fact that the cost is primarily dependent on the complexity of
integration pertaining to a specific application. End users demand affordable
building automation systems but fail to realize the extent of the energy
savings and the associated benefits of long-term cost savings. On an average,
lighting accounts for about 25% of a building’s energy usage. With lighting
control systems, the lighting cost can be reduced by 30–60% while enhancing
lighting quality and reducing environmental impact. Besides this, the initial
investment in building automation and control systems can be easily recovered
in a few years as it helps reduce energy costs, maintenance costs, and repair
and replacement costs. The perception of the high cost of building automation
systems and the lack of awareness about their benefits in terms of long-term
cost savings can hinder the adoption and growth of the building automation
system market globally.
Opportunity: Rise in government
and stakeholder funding for developing smart cities
Nowadays, cities need innovative
solutions to overcome long-term challenges such as controlling traffic flows,
managing waste, meeting energy-efficiency targets, controlling security
breaches, and managing city surveillance owing to rapid urbanization.
Governments in developing economies, including China and India, are focusing on
developing smart cities through huge government and stakeholder funding to curb
the long-term challenges arising from growing urbanization. With increasing
threats from terrorism, both international and domestic, public-concentrated areas,
including government offices, buildings, schools, and prisons, are exposed to
security threats. Thus, governments across the world, especially in developing
countries, are concentrating on investing in video surveillance, access
control, and fire protection systems for building automation projects
in smart cities.
Challenge: Absence of standard
communication protocols
The power of building automation
systems lies in synchronization and communication among various equipment used
in the overall system. Communication protocols play a vital role in ensuring
the proper integration of various devices and equipment for the smooth
functioning of BAS. However, the lack of common open communication protocols
may lead to the use of different protocols by these devices. It restricts the
communication between different devices and obstructs the effortless
functioning of building automation systems as all protocols may not be directly
compatible with each other. For instance, BACnet and LonWorks do not work well
with each other but work well with DALI. The building operator needs to select
the products based on protocols that are used by several different vendors to
avoid complexities. For instance, Clipsal C-Bus is the commonly used building
automation system in Australia, while M-Bus is popular in Europe. Manufacturers
are looking forward to having proprietary protocols and standards to gain a
competitive advantage in the marketplace. This intense competition in the
market is leading to the lack of development of products with common standards
and communication protocols, thereby hampering the growth of the building
automation system market.
About
MarketsandMarkets™
MarketsandMarkets™ provides quantified B2B
research on 30,000 high growth niche opportunities/threats which will impact
70% to 80% of worldwide companies’ revenues. Currently servicing 7500 customers
worldwide including 80% of global Fortune 1000 companies as clients. Almost
75,000 top officers across eight industries worldwide approach
MarketsandMarkets™ for their painpoints around revenues decisions.
Our 850 fulltime analyst and SMEs at
MarketsandMarkets™ are tracking global high growth markets following the
“Growth Engagement Model – GEM”. The GEM aims at proactive collaboration with
the clients to identify new opportunities, identify most important customers,
write “Attack, avoid and defend” strategies, identify sources of incremental
revenues for both the company and its competitors. MarketsandMarkets™ now
coming up with 1,500 MicroQuadrants (Positioning top players across leaders,
emerging companies, innovators, strategic players) annually in high growth
emerging segments. MarketsandMarkets™ is determined to benefit more than 10,000
companies this year for their revenue planning and help them take their
innovations/disruptions early to the market by providing them research ahead of
the curve.
MarketsandMarkets’s flagship competitive
intelligence and market research platform, “Knowledgestore” connects over
200,000 markets and entire value chains for deeper understanding of the unmet
insights along with market sizing and forecasts of niche markets.
Contact:
Mr. Aashish Mehra
MarketsandMarkets™
INC.
630 Dundee Road
Suite
430
Northbrook,
IL 60062
No comments:
Post a Comment