The global Building Automation Systems (BAS) market is estimated to reach $5.91 billion by 2026 from $4.69 billion in 2019, growing at a compound annual growth rate (CAGR) of 3.4%, according to a report by Frost & Sullivan.
The study reveals that energy-efficiency requisites, energy conservation and favorable government initiatives, rising energy prices, and strict building codes are prominent factors driving the global BAS market.
However, the market will be restrained by the COVID-19 pandemic in the short term, as some construction projects commissioned by companies and/or governments face delays or cancellations, the analyst firm said.
“Buildings, infrastructure, and energy will remain the core investment areas for smart city development, which is further expected to drive the demand for advanced and efficient BAS systems,” said Neha Tatikota, energy and environment research analyst at Frost & Sullivan. “Additionally, partnerships and collaborations are becoming increasingly important, as suppliers of all sizes seek to offer a comprehensive, end-to-end market segment solution.”
Tatikota added, “Integration of operational technology (OT) control network with information technology (IT) will continue to change the dynamics of the BAS market because this will reduce operating and infrastructure costs and improve the financial optimization of buildings. Further, the adoption of deep learning and machine learning algorithms for developing voice-over technology and advanced features will be crucial innovation areas for next-generation BAS solutions.”
Frost & Sullivan noted that leveraging the potential of the mixing and matching of BAS products to make them more versatile, compact, and innovative will present tremendous growth opportunities for market participants in:
-Internet of Things (IoT)-enabled solutions: Emerging IoT-enabled building automation suppliers need to partner with reputed and reliable system integrators for higher penetration into geographies and to expand their customer base.
-Intelligent Platform-as-a-service (PaaS) solutions: Market participants should focus on customer friendliness and flexible business models to build automation services via platform-based solutions.
-Innovation scouting: The most dynamic innovation areas in the BAS space are Big Data, IoT, cloud, AI, and ML algorithms. Companies should scout for such innovative solutions (for partnership, collaboration, or acquisition), especially in the start-up community.
-Integration of product lines: Product integration is another critical growth opportunity that needs to be leveraged to its full potential to introduce efficient products in the market.