Commercial Building Automation Products: Technologies and Global Markets
The global building automation market was $68.5 billion in 2010 and $71.5 billion in 2011. It will further grow to $88.2 billion in 2016, a compound annual growth rate (CAGR) of 4.3% between 2011 and 2016.
SCOPE OF REPORT
Building automation systems for commercial, office, institutional, and high-rise residential buildings involve a suite of components that include (in alphabetical order):
- BMS systems.
- Environmental controls (HVAC).
- Energy management.
- Lighting management.
- Security and access control.
This report examines technologies, markets, and factors influencing the markets for integrated control systems and systems that integrate the controls of various subsystems. Markets are forecast on the basis of historic activity and current opportunities, government initiatives and policies, and the status of the construction and renovation industries in specific nations.
The forecasts presented are for the total available markets. Some discussion is provided that compares actual revenues with market potential on various continents. Markets are broken down on a geographic basis and discussed within the context of the trends in construction activity, regulatory initiatives, and the revenue potential associated with building automation systems.
The bulk of the revenue comes from the world’s three largest markets: Europe, North America, and Asia. A detailed analysis of the building automation market potential in these geopolitical economic regions is used as a basis for estimating world markets for these products. Thorough analyses are carried out on construction industry practices in the target regions. Trends toward the uptake of building automation products and costs are examined, along with associated laws, regulations, and common practices.
Identification has also been made of the prime party in the project chain that makes the decision on which and to what extent a building automation configuration is selected for a building project. Geographic and environmental factors influencing requirements for the systems are examined, as are national and international responses to global environmental challenges.
Paul Korzeniowski is a market research analyst and building automation consultant with more than two decades of experience. His work has centered on determining major market trends in the development of new networking standards, integration of building systems and the emergence of new technologies such as wireless communications. He has authored reports on markets for building automation systems for a wide variety of publications, including Investor's Business Daily, Business 2.0 and EnergyBiz.
Building automation systems markets experienced an 8% drop in revenue in 2009. Moving forward, the outlook is for a flat market through much of 2010. Eventually, the market is expected to rebound and grow, from a value of $62.4 billion in 2009 to $72.6 billion in 2014, a 3.1% compound annual growth rate (CAGR).
Emerging sectors such as energy management will experience a higher compound annual growth rate (CAGR) of 4.1%. This sector was worth $10.8 billion in 2009 and is expected to reach $13.2 billion by 2014.
The more mature sector of HVAC will experience a 2.8% compound annual growth rate (CAGR), from $29.7 billion in 2009 to $34.2 billion in 2014.
The global market potential for building management systems (BMS) is estimated at $37.7 billion in 2004. Rising at an average annual growth rate (AAGR) of 2.9%, the available market is expected to reach $43.6 billion in 2009.
Equipment accounts for less than a third of all revenues generated by installation of an integrated BMS. The remainder is attributable to services that include consulting and design, installation, training and commissioning.
The Pacific Rim is the fastest growing regional market segment. China, Japan, the U.S. and Western Europe account for 75% of the world’s BMS market.
The market in China is growing at a pace seemingly limited only by the amount of materials and expertise that can be brought into the country.
BMS revenues significantly lag the market opportunity that exists.