Building Automation Systems Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The Building Automation Systems Market was valued at USD 60.31 billion in 2020 and expected to reach USD 112.93 billion by 2026 and grow at a CAGR of 11.02% over the forecast period (2021-2026). Building automation systems, otherwise known as building automation and control systems (BACS), are automated systems that integrate and connect different facility technologies, including HVAC, lighting, surveillance, and security, among others, through information flow to a monitoring point.

• The need for energy management and the growing emphasis on overcoming utility costs continue to drive the adoption of building automation systems. In developed parts of the world, most of the high-rise buildings are equipped with these solutions.
• Energy consumption is expected to increase over the coming years; according to the US Energy Information Administration (EIA), global energy consumption is expected to grow by nearly 50% during 2018-2050, with Asia being the major consumer of energy over the years.
• In order to enhance their energy efficiency, various significant economies have already formed regulations, and other countries are following suit. For example, the 2012 Energy Efficiency Directive established measures to help the EU reach a 20% energy efficiency target by 2020; this was amended in 2018, with an energy efficiency target of at least 32.5% for 2030. Such developments in the regions are forcing businesses and homes to adopt energy-efficient solutions.
• With the increasing focus on government regulations, cost savings, and optimizing their energy consumption, homes, industries, and enterprises are actively investing in energy-efficient systems. Proactive measures taken by government organizations for the implementation of standards, such as ISO 50001 (energy-management-system standard) in the building sector, have the potential to stimulate the integration of building automation systems.
• Consequently, numerous opportunities for automation can now be found across small-to-medium-sized buildings and all the buildings in the world's emerging regions, majorly in the APAC region, where the number of households grew exponentially over the last two decades. The United Nations anticipates the urbanization in Asia to reach 64.1% by 2050, further opening up opportunities for the building and construction industry.
• The market is witnessing a considerable demand for interoperability between different building installations, like heating, ventilation units, and chillers, and standardization of their communication protocol. It is expected that the organizations that limit their roles to energy and HVAC control may eventually find it very difficult to grow and face commoditization of their services.
• The market for BAS is anticipated to witness higher adoption among commercial buildings than the residential buildings. The increased adoption of smart building technologies due to the increased need to cut extra expenses in the commercial buildings sector is anticipated to be a significant driver.