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

Europe Building Automation Systems Market is segmented by Component​ (Hardware (Controllers and Field Devices)​, Software​, Services​), End-user (Residential, Commercial, Industrial) and Country

Market Snapshot

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Study Period: 2018 - 2026
Base Year: 2020
CAGR: 10.52 %

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Market Overview

Europe Building Automation Systems Market is expected to grow at a CAGR of 10.52% during the forecast period of 2021-2026. Moreover, the Building Automation System is used to monitor, and control buildings' technical systems and services, and the growing emphasis on reducing utility costs continue to drive the adoption of building automation systems.

  • The demand for the building automation market is overgrowing due to the rising awareness of energy management in the European region. Besides, according to the European Union's National energy and climate plan, the EU wants to increase energy efficiency by 32.5% within 2030.
  • Additionally, the members' states under the European Union are also following a long term strategy to manage energy consumption in Europe efficiently. Under this strategy, the European Investment bank (EIB) intends to support EUR 1 trillion of investment in climate action and environmental sustainability within the period from 2021 to 2030.
  • The market is witnessing a considerable demand for interoperability between different building installations like heating, ventilation units, chillers, etc., and standardization of their communication protocol. However, different software is used in commercial and residential sectors, which include BMS, HVAC, etc. An HVAC system can control any building by controlling the temperature where it works. Moreover, this HVAC System also offers a cost-effective solution for any commercial or industrial sector, which can save around 30-50% amounts of money on utility bills.
  • The lack of standard communication protocol and the ongoing COVID 19 pandemic can create a significant market restraint for the major vendors of this market. The Coronavirus outbreak globally has led to a stalled economic activity in early 2020. It not only affects the production rate of different constructions but also negatively affect the adoption of BAS(Building Automation System) in European countries.
  • Furthermore, according to Eurostat, construction production in Spain and France is affected by 24.4% and 24%, respectively. The significant reason behind this decline is the stalled economic situation during the COVID 19 pandemic. However, in 2020, the European Commission proposed a EUR 750 billion recovery fund for driving the demand for clean mobility and renewables, which can influence the application of Building Automation Systems in European countries.

Scope of the Report

The Europe Building Automation market is growing due to the rising awareness of environmental sustainability among the different building owners and stakeholders. This market is segmented by the Component type and End-User. Moreover, its Hardware division is further segmented into Controllers and Field Devices.

Component
Hardware
Controllers
Field Devices
Software​
Services​
End-user​
Residential
Commercial​
Industrial​
Country
Germany
United Kingdom​
France ​
Nordics (Denmark, Sweden, Finland)​
Spain​
Italy​
Rest of Europe

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Key Market Trends

Commercial Sector is One of the Fastest Growing Segment for this Market

  • The commercial sectors in Europe are opting for a building automation system due to its cost-effectiveness and simple architecture. Moreover, the building automation system installed to monitor and control buildings’ technical systems and services such as air conditioning, ventilation, lighting, and hydraulic.
  • However, the growing trend of smart offices is also influencing the growth of this market. Moreover, the emergence of NextGen BMS is now enabling more functions like demand response and energy management in addition to the traditional energy visualization and analytics due to integrated information management software.
  • This building automation system not only reduces the energy cost but also can increase the productivity of any employee. According to Smart Glass International, existing commercial houses in Europe will invest USD 960 billion within 2023 to make their existing infrastructure more environmentally friendly.
  • Major Vendors in this market are also innovating their existing products to gain some competitive advantage over its other competitor. For instance, Johnson Controls recently launched the OpenBlue platform, where its customers are not only able to save their energy cost, but also it enables buildings to switch into different modes on addressing various critical situations.
SME Number_EU.PNG

United Kingdom is one of the country to hold the significant market share for this market

  • The Building Automation Market in the United Kingdom is overgrowing due to the different laws and regulations of the UK government to reduce environmental impacts. According to Climate Change’s 2019 Progress Report to Parliament, the United Kingdom (UK) govt wants to reduce the carbon footprint by 57% from 2023 to 2027. Moreover, under Clean Growth Strategy, the United Kingdom government wants to remove all environmental wastes by 2050.
  • Additionally, the growth of the urbanized population is influencing the growth of this market. According to the World Bank, the degree of urbanization is increased by 0.25% from its previous year 2018.
  • Furthermore, the growing trend towards the integration of IoT with BMS, along with increasing awareness regarding the eco-friendly and energy-efficient building concepts is expected to impact the market significantly. For instance, the United Kingdom government recently invested Euro 24 million for IoT research centers in this country.
  • However, the market is moving towards smarter solutions through the deployment of artificial intelligence systems. These will continuously collect and analyze data on behavior and usage patterns from sensors, users, and external data sources. According to the International Development Research Centre (IDRC) Canada, the AI(artificial intelligence) score of United Kingdom is 9.06 which supports its as a leading nation in adopting artificial intelligence

Energy Consumption.PNG

Competitive Landscape

The competitive rivalry in this market is very high due to the presence of many primary vendors in this market. Moreover, the key players in this market are continuously innovating and following a rapid acquisition strategy to strengthen its skills and resources. Some major players for this market are ABB Ltd, Trane Technologies PLC, Siemens AG​, Johnson Controls International PLC​ , etc.

  • July 2020: Johnson Controls completed its agreement to purchase EuroPAC Alarmcentrale and EuroPAC Telefooncentrale businesses in the Netherlands. This acquisition not only expands its customer base but also strengthens its Video as a Service (VaaS) capabilities.
  • March 2020: Priva Holding BV introduced Priva’s Building Operator, which is designed with cloud-connected applications. The company expected that this new product could provide real-time information reliably and securely.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS

    1. 4.1 Market Overview

    2. 4.2 Industry Attractiveness - Porters 5 Force Analysis

      1. 4.2.1 Threat of New Entrants

      2. 4.2.2 Bargaining Power of Buyers/Consumers

      3. 4.2.3 Bargaining Power of Suppliers

      4. 4.2.4 Threat of Substitute Products

      5. 4.2.5 Intensity of Competitive Rivalry

    3. 4.3 Industry Value Chain Analysis​

  5. 5. Effect of COVID 19 in Building Automation Market

  6. 6. MARKET DYNAMICS

    1. 6.1 Market Drivers

      1. 6.1.1 Increasing Initiatives and Directives for Energy and Operational Efficiency​

      2. 6.1.2 Rapid growth of IoT in European Countries

    2. 6.2 Market Restraints

      1. 6.2.1 Absence of Technology Alignment and High Acquisition and Implementation Costs​

  7. 7. MARKET SEGMENTATION

    1. 7.1 Component

      1. 7.1.1 Hardware

        1. 7.1.1.1 Controllers

        2. 7.1.1.2 Field Devices

      2. 7.1.2 Software​

      3. 7.1.3 Services​

    2. 7.2 End-user​

      1. 7.2.1 Residential

      2. 7.2.2 Commercial​

      3. 7.2.3 Industrial​

    3. 7.3 Country

      1. 7.3.1 Germany

      2. 7.3.2 United Kingdom​

      3. 7.3.3 France ​

      4. 7.3.4 Nordics (Denmark, Sweden, Finland)​

      5. 7.3.5 Spain​

      6. 7.3.6 Italy​

      7. 7.3.7 Rest of Europe

  8. 8. COMPETITIVE INTELLIGENCE

    1. 8.1 Company Profiles*

      1. 8.1.1 Siemens AG

      2. 8.1.2 Johnson Controls International PLC

      3. 8.1.3 Kieback&Peter GmbH & Co. KG

      4. 8.1.4 Priva Holding BV

      5. 8.1.5 Schneider Electric SE

      6. 8.1.6 Robert Bosch GmbH

      7. 8.1.7 Trane Technologies PLC

      8. 8.1.8 Lynxspring Inc.

      9. 8.1.9 Belimo Holding AG

      10. 8.1.10 Sauter AG

  9. 9. VENDOR MARKET SHARE ANALYSIS

  10. 10. INVESTMENT ANALYSIS

  11. 11. FUTURE OUTLOOK OF THE MAREKET

**Subject to Availability

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Frequently Asked Questions

The Europe Building Automation Systems Market market is studied from 2018 - 2026.

The Europe Building Automation Systems Market is growing at a CAGR of 10.52% over the next 5 years.

ABB Ltd, Siemens AG, Johnson Controls International PLC, Trane Technologies PLC, Kieback&Peter GmbH & Co. KG are the major companies operating in Europe Building Automation Systems Market.

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