According to a new report from Navigant Research, global revenue for commercial building automation systems (BAS) is expected to grow from $59.3 billion annually in 2013 to $86.7 billion in 2023. At the beginning of 2014, Navigant released a report projecting the BAS market to reach $34 billion by 2021.
Growth in the BAS market is based primarily on energy code requirements, energy expenditure reductions and green building certifications. The widespread adoption of LED technology is another key driver in this sector, as many building owners are beginning to expect the same level of control from their lighting systems that they already get from managing their HVAC systems.
Johnson Controls, Honeywell, Siemens, Schneider Electric and United Technologies Corp. (UTC) lead the market, but the adoption of open protocols and commoditization of controls hardware has lowered the barriers to entry that new software-based companies face.
The commercial BAS market remains dependent on new construction and building retrofits. With the European economy facing a potential deflationary spiral of low growth, slowing commodity demand from China, the end of bond buying by the US Federal Reserve, and geopolitical instability in Eastern Europe and the Middle East, the economic outlook points toward a prolonged period of slow growth. The anemic global economy, with the exception of the United States, will weigh down the global construction market and thus overall demand for BAS’s.
Asia Pacific is currently the largest market for commercial BAS’s, with North America and Europe not far behind.
BAS technology is advancing as a result of better sensor technologies, cheaper and faster communications, and improved user interfaces and underlying control algorithms. Systems are also becoming more integrated. Deployments in which HVAC, lighting, fire and life safety, and security and access controls can directly communicate with each other are becoming more common.
The report “Commercial Building Automation Systems,” focuses on the market outlook of BAS’s for HVAC; lighting; fire and life safety; and security and access controls.