Technology & Real Estate

August 16, 2019 Comments Off on Building Automation System Market Expected to Grow at CAGR 8% Over Next Decade Views: 431 National News

Building Automation System Market Expected to Grow at CAGR 8% Over Next Decade

The global building automation system market is expected to grow at a compound annual growth rate of 8% over the next decade, according to a new research study by Future Market Insights (FMI).

In 2018, the global building automation system market grew 7% to total $35 billion, marking an upwards trajectory from $33 billion in 2017. Growing investments in smart buildings is one of the key indicators in the growth of the building automation system market in 2019 and beyond, according to the report.

The top five players in the building automation market — Schneider Electric SE, ABB, Siemens AG, Johnson Controls Inc. and Honeywell International Inc. — command approximately 40% of the global market share. But, despite their sphere of influence, leading players in the market will continue to face competition from new vendors, the study says.

“Apple and Google NEST are entering into the building automation space and upending the market structure, which, in turn is hard-pressing the established players to come up with new strategy models,” the study says. “These new vendors are focusing on residential spaces and addressing special requirements coming from them, which, in turn, is enabling these companies to tap into niche corners and reap sizeable profits throughout. These particulars signal that manufacturers don’t have to stick to their conventional ideologies to sustain growth, they can go beyond core competencies and catch up with some new market trends instead.”

Additionally, FMI forecasts that the adoption of building automation systems in commercial applications will grow by 8% year-over-year in 2019. Commercial structures such as offices, schools and hospitals, stay at the forefront of demand for a centralized control system that offers hassle-free operations.

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