Intelligent Building Automation Technologies (IBAT) Market Report

Intelligent Building Automation Technologies (IBAT) Market Analysis Report By Component, By Product (Facility Management Systems, Security Systems), By Application, And Segment Forecasts, 2019 - 2025

  • Published Date: Oct, 2019
  • Base Year for Estimate: 2018
  • Report ID: 978-1-68038-218-1
  • Format: Electronic (PDF)
  • Historical Data: 2014 - 2017
  • Number of Pages: 120

Industry Insights

The global intelligent building automation technologies (IBAT) market size was valued at USD 64.7 billion in 2018 and is expected to gain traction over the forecast period. The market has witnessed considerable growth owing to factors such as growing concerns over global warming, rising energy prices, and increasing awareness regarding energy conservation. Rising use of renewable energy sources and increasing awareness among consumers about environmental protection will further drive the market.

Building automation systems (BAS) integrate lighting, energy, safety, and security systems into one intuitive system, which balances optimum efficiency with productivity and occupant comfort. Growing awareness for life safety and security among the population is expected to favor market growth. People are becoming aware of financial losses incurred due to natural or man-made calamities such as floods, earthquakes, terrorist attacks, or construction fires. For instance, according to the U.S. Fire Administration, in 2018 alone there were 5,610,000 fire incidents with losses up to USD 23 billion.

U.S. intelligent building automation technologies market

Organizations are widely adopting intelligent building automation technologies as these technologies offer various applications such as lighting management, managing air conditioning and heat ventilation, and analyzing building data. Organization are largely focusing on measures to curb energy consumption by activating/deactivating lights, HVAC systems, and other applications. According to a research conducted by elektormagazine.com, the implementation of IBAT in 10,000 square meters facility can save as much as 1,000,000 euros a year. Such factors are expected to fuel market growth.

Increasing need for enhanced security and safety in intelligent buildings is also expected to considerably contribute to intelligent building automation technologies market growth. Adoption of various protocols of building automation, development of open-ended architecture, easy access to technological developments, and implementation of intelligent BAS in residences are expected to support industry growth on a large scale. Intelligent building automation technologies analyze and monitor the performance of buildings in terms of sustainability, comfort, and productivity. Also, these technologies are used in residences for micro-grid management.

However, lack of awareness among end users and high initial investments may pose a challenge for growth over the forecast period. Also, technical difficulties related to intelligent building automation technologies operation may hinder market growth. Nevertheless, commoditization of the systems and development of comprehensive valuation model may act as an opportunity for key players.Use of IP-based communication and convergence of Internet of Things and automation technologies is opening new avenues the development of BAS across commercial, residential, and industrial segments.

Component Insights

On the basis of component, the IBAT market is segmented into hardware, software, and service. Intelligent building automation technologies are an interconnected network of software and hardware, which controls and monitors the building facility environment. Various hardware equipment used include actuators, controllers, and sensors. These devices collectively ensure HVAC systems are properly managed through automated control and that the building climate remains within an acceptable range.

Intelligent building automation technology services comprise engineering services. These engineering services help in achieving energy-efficient, safe, and economical operation of building control systems. The implementation of smart building services results in reduced operational expenses, reduced energy usage, and improved performance. This, in turn, is expected to propel the services segment growth over the forecast period.

Product Insights

On the basis of product, the intelligent building automation technologies market is segmented into security systems, life safety systems, facility management systems, and building energy management systems (BEMS). The security systems segment significantly contributed to market growth in 2018 and is expected to grow at a steady rate. Security systems include building access control, CCTV, and elevator access control, which help in reducing risks and preventing loss and damage to property. Facilities management systems are the largest contributor to this market, whereas demand for BEMS is expected to grow at a significant pace.

Growing concerns about losses in emergency situations, need for logging methods for energy consumed by residential as well as industrial equipment, and rising popularity of security through video surveillance are expected to spur the demand for intelligent building automation technology. Building energy management systems primarily focus on controlling, monitoring, measuring, and optimizing building technical services. These systems offer various benefits such as reduced energy consumption, easy detection of power issues, and reduction in carbon emissions. They monitor energy consumed by mechanical and electrical equipment, such as air conditioners, ventilators, and heaters to reduce costs and increase efficiency.

Application Insights

On the basis of application, the market is segmented into residential, commercial, and industrial. The commercial segment generated the highest revenue in 2018 and was valued at USD 27.8 billion. In large commercial sites, such as industrial zones, office parks, shopping malls, airports, and seaports, intelligent building automation technology helps in reducing the cost of energy, spatial management, and maintenance by a large percentage. This application segment is expected to continue its dominance over the forecast period owing to increasing need to improve commercial building efficiency and stringent regulations regarding energy consumption.

Europe intelligent building automation technologies market

The residential segment is expected to register the highest CAGR over the forecast years. Growing concerns for security among home owners as a result of rise in number of burglaries and thefts globally are anticipated to drive the residential segment. Need to save energy and curb costs is also a crucial factor boosting the adoption of intelligent building automation technologies. Property owners can use data collected by motion and occupancy sensors at a building level to regulate air-conditioning and lighting in real time, thereby reducing energy costs and optimizing the internal environment for its intended purpose.

Regional Insights

The Europe market was valued at just under USD 16.0 billion in 2018. Market growth can be attributed to EU directives such as the Energy Performance of Buildings Directive, aimed at improving the energy performance of a building. Moreover, rising implementation of security systems by home owners is expected to keep growth prospects upbeat. Increasing demand for energy-efficient products and smart grid services in countries such as France and Germany is further expected to propel regional growth over the forecast period.

The Asia Pacific market is expected to witness increased traction due to adoption of intelligent building automation technology in emerging economies such as China and India. Moreover, governments in countries such as India, South Korea, and China are making investments in the development of smart cities. In addition, enhancement of network infrastructure in the region is expected to provide lucrative opportunities for market players in the coming years. Middle East and Africa is expected to witness significant growth over the forecast period owing to huge investments in the development of public infrastructure. Moreover, the growing number of international tourists bodes well for the implementation of security systems, further fueling the market for intelligent building automation technologies.

Intelligent Building Automation Technologies Market Share Insights

Key players in the market include ABB; Azbil Corporation; Eaton; General Electric; Ingersoll Rand plc.; Siemens Building Technologies Inc.; Schneider Electric; Honeywell International Inc.; Hubbell Inc.; Johnson Control; Rockwell Automation Inc.; and United Technologies Corporation. These players have been focusing on acquiring a larger market share by engaging in mergers and acquisitions. For instance, Honeywell International Inc., in September 2018, completed the acquisition of Transnorm, a warehouse automation solutions provider, enabling the former to expand its customer base across Western Europe.

Prominent players are also emphasizing on new product launches in order to combat increasing competition. In November 2015, General Electric launched its automation and controls solution platform for the implementation of industrial internet in power industries. With the acquisition of Alstom, GE paired its legacy in technology with Alstom’s to form its new platform called automation and control solution. These solutions enable customers to access their data, machines, and people for faster, better, safer, and enhanced reliability.

Report Scope

Attribute

Details

Base year for estimation

2018

Actual estimates/Historical data

2014 - 2017

Forecast period

2019 - 2025

Market representation

Revenue in USD Billion and CAGR from 2019 to 2025

Regional scope

North America, Europe, Asia Pacific, Latin America, and MEA

Country scope

U.S., Canada, U.K., France, Germany, Australia, China, India, Japan, Malaysia, Singapore, Brazil, Mexico, Saudi Arabia, & UAE

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

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Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global intelligent building automation technologies market report on the basis of component, product, application, and region:

  • Component Outlook (Revenue, USD Billion, 2014 - 2025)

    • Hardware

    • Software

    • Service

  • Product Outlook (Revenue, USD Billion, 2014 - 2025)

    • Security Systems

    • Life Safety Systems

    • Facility Management Systems

    • Building Energy Management Systems

  • Application Outlook (Revenue, USD Billion, 2014 - 2025)

    • Residential

    • Commercial

    • Industrial

  • Regional Outlook (Revenue, USD Billion, 2014 - 2025)

    • North America

      • U.S.

      • Canada

    • Europe

      • U.K.

      • France

      • Germany

    • Asia Pacific

      • Australia

      • China

      • India

      • Japan

      • Malaysia

      • Singapore

    • Latin America

      • Brazil

      • Mexico

    • MEA

      • Saudi Arabia

      • UAE

Key questions answered by the report
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