The commercial building automation system (BAS) market is expected to reach more than $44.2 billion globally by 2029, growing at a compound annual growth rate (CAGR) of 3.2% between 2020 and 2029, according to a new research from Navigant Research.
The report noted that the global BAS market is undergoing large structural change. Although BASes are seeing increased adoption throughout the global building stock, particularly in retrofit and new construction, large-scale trends are expected to significantly affect the market’s 10-year growth Outlook, Navigant Research said.
“The development of the intelligent buildings (IBs) market through Internet of Things (IoT) deployments in buildings has introduced customers to new tools for data acquisition and analysis,” said Daniel Talero, research analyst with Navigant Research. “Market entrants are competing with traditional BAS offerings, while major BAS vendors recognize the market evolution and are introducing new versions of core BAS offerings as well as complementary IB solutions.”
According to the report, the result is an “increasingly dynamic competitive landscape” that will likely see considerable transformation in the future. Global revenue for traditional commercial BAS products is anticipated to reach $66 billion by 2029, growing steadily from 2020 to 2029. However, a significant amount of this growth is expected to be cannibalized by the emerging building IoT market, which is projected to grow at almost triple the commercial BAS rate, according to the study.
Building automation is the automatic centralized control of a building’s heating, ventilation and air conditioning (HVAC), lighting and other systems through a building management system or building automation system (BAS). The main goals of building automation systems are improved occupant comfort, efficient operation of building systems, reduction in energy consumption and operating costs, and improved life cycle of utilities.