Building Automation Systems Market By Component (Hardware (Sensors, Controllers, Actuators, User Interfaces (Touch Panels, Displays), Communication Devices), Software (Energy Management Systems, Facility Management Systems, Security Management Systems, HVAC Control Systems), Services (Installation and Integration, Maintenance and Support, Consulting)); By Application (HVAC Control and Monitoring, Lighting Control and Monitoring, Security and Access Control, Fire and Life Safety, Energy Management, Occupancy Control, Water Management Systems); By Communication Protocol (Wired (BACnet, LonWorks, Modbus, KNX), Wireless (Zigbee, Wi-Fi, Bluetooth, EnOcean)); By End-Use Sector (Residential Buildings, Commercial Buildings (Offices, Retail Spaces, Hospitality (Hotels, Restaurants), Healthcare Facilities (Hospitals, Clinics), Educational Institutions), Industrial Buildings, Government Buildings); By Geography, Segment revenue estimation, Forecast, 2024-2032.

The building automation systems market was worth USD 75.4 billion in 2023 and will be worth USD 132.0 billion by 2030, growing at a CAGR of 8% during the forecast period.

 

The global market for Building Automation Systems (BAS) is expanding due to the increasing demand for energy-efficient services and smart technologies, as buildings consume nearly 40% of energy worldwide. Many governments and companies are now implementing BAS to decrease power consumption, lower carbon footprint, and enhance performance. For example, modern BAS systems reduce energy consumption by up to 30% by controlling heating, ventilation, lighting, cooling, and security based on their occupancy and environmental status. Recent developments include IoT and AI integration into building automation, where equipment can be monitored and even maintainable in real-time. Steadily increasing in smart cities and green building projects because was, which involve the implementation of intelligent systems that regulate resource consumption and improve sustainability are also expected to fuel the demand for BAS.

 

One of the best prospects for the Building Automation Systems (BAS) market can be found in the growing development of smart buildings and the implementation of renewable energy systems. The smart building market worldwide is expected to grow by more than 20% annually due to the increase in the adoption of green building structures. For instance, BAS connected to solar power and energy batteries can help manage energy usage and potentially cut the common electricity grid by 25%. The latest advancement is AI's use in BAS platforms, which aims to learn energy use patterns and consequently can control systems such as HVAC and lighting. In the same way, the encouragement of green building from the government across European and North American countries has also increased the acceptance rate of BAS for maximizing efficiency and minimizing carbon emissions. Such developments create massive opportunities for BAS providers to seek more different, newer specialized niche and green technology markets.

 

 

Market Segmentation

By Component

• Hardware

  • Sensors

  • Controllers

  • Actuators

  • User Interfaces (Touch Panels, Displays)

  • Communication Devices

• Software

  • Energy Management Systems

  • Facility Management Systems

  • Security Management Systems

  • HVAC Control Systems

• Services

  • Installation and Integration

  • Maintenance and Support

  • Consulting

 

By Application:

• HVAC Control and Monitoring

• Lighting Control and Monitoring

• Security and Access Control

• Fire and Life Safety

• Energy Management

• Occupancy Control

• Water Management Systems

 

By Communication Protocol:

• Wired

  • BACnet

  • LonWorks

  • Modbus

  • KNX

• Wireless

  • Zigbee

  • Wi-Fi

  • Bluetooth

  • EnOcean

 

By End-Use Sector:

• Residential Buildings

• Commercial Buildings

  • Offices

  • Retail Spaces

  • Hospitality (Hotels, Restaurants)

  • Healthcare Facilities (Hospitals, Clinics)

  • Educational Institutions

• Industrial Buildings

• Government Buildings

 

By Region

North America

• US

• Mexico

• Canada

• Rest of North America

 

Europe

• Switzerland

• Russia

• France

• Germany

• U.K

• Finland

• Turkey

• Netherlands

• Belgium

• Spain

• Italy

• Rest of Europe

 

Asia Pacific

• India

• China

• South Korea

• Japan

• Singapore

• Thailand

• Indonesia

• Malaysia

• Philippines

• Australia

• Rest of Asia-Pacific

 

LAMEA

• Brazil

• Argentina

• Uruguay

• Saudi Arabia

• Rest of LAMEA

 

Segment Analysis for the Building Automation Systems Market

By Component:

Leading Segment: Hardware (Sensors, Controllers, Actuators)

Hardware dominates the market with over 40% share, driven by the widespread adoption of sensors and controllers for HVAC and lighting systems. Honeywell’s advanced actuators and controllers are widely used in commercial buildings for energy optimization. This segment is growing steadily with a CAGR of 8%, supported by the increasing demand for real-time monitoring in smart buildings.

Fastest-Growing Segment: Software (Energy Management and Security Systems)

Software solutions are growing at a CAGR of over 11%, driven by advancements in AI & IoT-enabled platforms. Energy Management Systems (EMS), such as those offered by Siemens, enable predictive analytics & real-time monitoring. This helps in reducing energy consumption by up to 20%. Increasing demand for cybersecurity in smart buildings is also fueling the adoption of security management systems.

 

By Application:

Leading Segment: HVAC Control & Monitoring

HVAC control and monitoring account for approximately 35% of the market share, as heating and cooling systems are critical components of building automation. Companies like Johnson Controls lead the market with solutions that improve energy efficiency by up to 30%. The adoption of advanced HVAC systems is particularly high in North America and Europe, where stringent energy regulations drive demand.

Fastest-Growing Segment: Energy Management

Energy management is the fastest-growing application, with a CAGR of 12%. The rising focus on sustainability & reducing carbon footprints has increased the adoption of energy management systems in commercial and industrial buildings. For instance, Schneider Electric's EcoStruxure platform is widely used in large facilities to optimize energy consumption and comply with green building standards.

 

By Communication Protocol:

Leading Segment: Wired Protocols (BACnet, Modbus)

Wired communication protocols dominate the market with a 50% share due to their reliability and ability to handle high data loads. BACnet is particularly prevalent in large commercial buildings and industrial facilities, where seamless integration of HVAC, lighting, and security systems is required. For example, Modbus systems are widely implemented in industrial automation projects in Europe.

Fastest-Growing Segment: Wireless Protocols (Zigbee, Wi-Fi)

Wireless protocols are the fastest-growing segment, with a CAGR of over 14%, driven by advancements in IoT & the need for flexible building automation systems. Zigbee and Wi-Fi are increasingly being deployed in residential and small commercial spaces due to ease of installation and scalability. EnOcean’s energy-harvesting wireless sensors are widely used in smart homes for lighting & energy control.

 

By End-Use Sector:

Leading Segment: Commercial Buildings (Offices, Retail, Hospitality)

Commercial buildings lead the market with a share of over 40%, driven by the need for energy-efficient systems in offices, retail spaces & hospitality sectors. Hilton Hotels implemented advanced building automation systems to reduce energy usage by 20%.

Fastest-Growing Segment: Healthcare Facilities

The healthcare sector is growing at a CAGR of 13%. The growth is driven by the need for sophisticated HVAC & security systems in hospitals & clinics. These systems ensure patient safety, optimal air quality & compliance with health regulations. Cleveland Clinic implemented a BAS to control HVAC systems which enhanced operational efficiency & reduced energy costs.

 

By Region:

Leading Region: North America

North America accounts for 35% of the market share, driven by the presence of major automation providers like Honeywell & Johnson Controls. The region's focus on green building initiatives & energy efficiency propels the adoption of BAS. For example, the U.S. Department of Energy's Better Buildings Initiative encourages the use of BAS in commercial and government buildings.

Fastest-Growing Region: Asia Pacific

Asia Pacific is the fastest-growing region, with a CAGR of over 13%, driven by rapid urbanization & smart city projects in countries like China & India. The Indian government’s Smart Cities Mission has accelerated the adoption of building automation systems in residential and commercial sectors. For instance, Alibaba’s smart campus in China utilizes advanced BAS solutions for energy efficiency and security.

 

Key Players

• Honeywell International Inc.

• Siemens AG

• Johnson Controls International plc

• Schneider Electric SE

• ABB Ltd.

• United Technologies Corporation (Carrier)

• Legrand SA

• Cisco Systems, Inc.

• Delta Controls

• Distech Controls Inc.

• Crestron Electronics, Inc.

 

Building Automation Systems Market Report Coverage

Report Attribute	Details
Forecast Period	2023 – 2030
Market Size Value in 2023	USD 75.4 billion
Revenue Forecast in 2030	USD 132.0 billion
Overall Growth Rate	CAGR of 8%
Base Year for Estimation	2022
Historical Data	2017 – 2021
Unit	USD Billion, CAGR (2023 – 2030)
Segmentation	By Component, By Application, By Communication Protocol, By End-Use Sector, By Region
By Component	Hardware, Software, Services
By Application	HVAC Control, Lighting Control, Security and Access Control, Energy Management
By Communication Protocol	Wired (BACnet, LonWorks), Wireless (Zigbee, Wi-Fi, Bluetooth)
By End-Use Sector	Residential, Commercial, Industrial, Government Buildings
By Region	North America, Europe, Asia-Pacific, LAMEA
Country Scope	US, Canada, Mexico, UK, Germany, France, China, Japan, India, South Korea, Australia, etc.
Pricing and Purchase Options	Avail customized purchase options to meet your exact research needs.