Global BAS Market Growing 11% Annually, Report Says
Led by North America, the building automation systems market is forecast to grow threefold in the next 10 years.
NEW YORK CITY — The global building automation systems (BAS) market is forecast to grow threefold in the next 10 years, reflecting a compound annual growth rate (CAGR) of more than 11%, according to a new report by Persistence Market Research.
In 2015, the global BAS market was valued at more than $43 billion and was projected to increase to $48 billion by the end of 2016. The segment is projected to reach $63 billion during the forecast period, 2016 to 2026.
North America is expected to lead the overall growth in BAS, with a projected market valuation of $55 billion by the end of 2026.
New regulatory norms have been introduced which are aimed at reducing extensive energy consumption. This, in turn, is expected to boost the market growth during the forecast period. Various developed economies across the globe including the U.S., Japan and Europe have already implemented new policies. This is creating lucrative market opportunities for further business.
The spectrum of new technologies used in developing BAS is also expected to fuel the growth of the market as enhanced technological features significantly improve the end-user experience.
Development of smart cloud-based and web-based networks well supported by the Internet of Things (IOT), wireless technologies, facility management solutions and integrated building solutions are extending the technological boundaries of BAS. Moreover, increasing demand for consolidated security solutions is an additional factor propelling the overall market growth.
Not Without Challenges
Factors such as high-cost of initial setup coupled with extensive maintenance requirement may limit widespread BAS adoption. In addition, lack of skilled technicians to operate such advanced systems is also identified as one of the major restraining factors of the market. Therefore, these factors are the major lookouts and will need to be resolved in order to attain complete market excellence, according to the report.
Demand for security and surveillance building automation systems will remain high owing to increasing incidence of security breaches and illegal encroachment across the globe. In terms of revenues, the security and surveillance segment will witness a robust growth as compared to other segments during the forecast period.
Key players operating in the global market for BAS include Honeywell, United Technologies (UTC), Philips Lighting Holding B.V., Johnson Controls (JCI), Rheem Manufacturing Co., GE, Ingersoll-Rand, and Lennox Int’l.
Most of the companies are developing smart cloud platforms in order to provide smarter building automation systems to their clients, according to the research firm.
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