Commercial Building Automation Systems Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The commercial building automation systems market is expected to grow at a CAGR of 8% over the forecast period (2021-2026). Government endeavors for developing green buildings and a rise in green building development by a few distinct organizations are the key points driving the market studied. Green buildings are developed using reused squander assets from development destinations. Expanded interest for green building materials was seen in private buildings and offices, as well as in commercial buildings sections.

Key Highlights

• The market studied continues to have a solid performance due to several dynamic forces, such as a potential trade war, skilled talent shortages, and straining supply chains. Commercial building automation provides service in lighting control and regulation, blind and shutter control, energy and load management, security and fault monitoring, and temperature control and regulation.
• A growing number of commercial building construction activities, increasing demand for lowering operating costs in construction, and rising demand for comfort and satisfaction are expected to drive the market studied. Building automation has been around for many decades. However, due to factors, like energy conservation and mandates for green construction, new technologies have been introduced. The latest smart building solutions leverage new technologies, such as IoT, Big Data, cloud computing, data analytics, deep learning, and artificial intelligence, for the benefits of saving energy, reducing operational expenditures, increasing occupancy comfort, and meeting increasingly stringent global regulations and sustainability standards. For example, Aquicore, a performance management platform of real estate, recently launched a new energy optimization tool named 'optimal start time'. This tool uses a complex algorithm in factoring outdoor temperature, insulation levels, and equipment efficiency. Optimal start time enables buildings to quickly save operating costs without affecting the tenant’s comfort. Moreover, the growing need for eco-friendly products may positively impact the commercial building automation market.

Key Market Trends

Growth in Global Green Building Market

Commercial real estate is among the top tangible measures to determine the health of any region. The constantly changing landscapes affect the growth of the commercial real estate sector. The governments are developing initiatives for green building. However, energy efficiencies are often associated with higher costs. Currently, green building construction attributes increased economic benefits over those that lack green qualities. These benefits include lower operating expenses, higher occupancy rates, and increased resale value. All these factors contribute to the builders and real estate buyers 'going green'. For developers interested in commercial and multi-family properties, implementing sustainable business practices can achieve longevity in the future market. Government initiatives for constructing green buildings and the rise in green building construction by several different companies are the major factors driving the commercial building automation systems market. Increased demand for green building materials was observed in the residential buildings segment, as well as in the office and commercial buildings segments.

Growth in Global Commercial Real Estate

Global commercial real estate (CRE) investment, including entity-level deals, equaled USD 260 billion in Q3 2019. Recent interest rate cuts widened yield spreads, which revived investor interest. Asia continues to provide comparatively high yields and income growth potential for global investors. Office and residential properties remained the most attractive investment assets in Europe, Middle East & Africa. Despite economic conditions, the commercial real estate market continued to grow in 2018. Investors from the Asia-Pacific preferred to invest outside the region entirely. In 2018, close to USD 41 billion was invested in other regions in 2018 compared to USD 21 billion within Asia-Pacific. Europe was the destination of choice for most, closely followed by North America.

Competitive Landscape

The report covers the major players operating in the market studied. Some of the major players in the market studied are GE, Honeywell, ABB, and Siemens. As per the study, the market studied is fragmented in nature. The companies operating in the market studied are introducing new products in the market. ODIN Building Automation Systems announced the launch of a new BACnet certified IoT software in April 2019. Furthermore, other players introduced new products, such as the BEAM X energy management system and Clarity3 for commercial buildings, among others.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support