Infotech Lead India: The building automation services market will grow to $43 billion over the next five years from $35 billion in 2013.
New entrants and new connectivity are driving investment in commercial building automation systems (BAS) market.
Companies such as Siemens, Johnson Controls, Honeywell, and Schneider Electric will benefit as they are seeing demand for their BAS systems connected to third-party player software.
ABI Research says building owners are gradually looking to gain savings and offer additional level of control within their properties. Within the BAS market, software and services will see the greatest revenue growth while hardware will lag as the pricing of actuators and switches fall.
Greater environmental and financial demands have raised the appeal of reducing energy consumption in commercial buildings and the benefits for optimizing building automation systems.
In addition, a new level of connectivity that stretches the reach of BAS’s from new sensors and actuators through to cloud application management and data analysis.
Jonathan Collins, principal analyst at ABI Research. “These players are developing new ways to integrate and compete with a host of new service offerings.”
Meanwhile, a report in Reportlinker.com says the total building automation and controls market is expected to reach $49.5 billion by 2018 growing at a double digit CAGR from 2013 till 2018.
Currently, HVAC controls contribute to more than 33 percent of the global building automation and controls market. However, the security & access controls are estimated to contribute the highest by the end of 2018.
The factors such as evolving technologies and market dynamics that are affecting each type of controls.
Dimming systems and sensors are expected to grow at high rate in the lighting controls market for the next five years.
The report says the stringent regulations being imposed by the governments augmented by the increasing need to save operational costs by building owners has enhanced the demand for building automation and controls.
Though the concept of building automation has been in existence for a long time and has witnessed profound growth in the last five years there is huge demand for HVAC, security and access controls. Growing awareness of wireless technologies and the developments towards the integration of wired and wireless will propel the market in the future.
Demand for energy efficient buildings, more convenient devices and enhanced security via building automation and controls remains the major drivers for the building automation controls market.
Growth in government incentives, assistance of powerline communication and global sporting events such as World Cup Soccer in 2014, Olympics in 2016 offer excellent opportunities to the market growth. In addition to this, wireless technology has revolutionized the market; further boosting the market for already existing buildings.