Intelligent Building Automation Technologies Market - Forecast(2024 - 2030)

Intelligent Building Automation Technologies Market Overview

The Intelligent Building Automation Technologies Market size is forecast to reach US$140.3 billion by 2030, growing at a CAGR of 9.8 % from 2024 to 2030. Intelligent building or home automation is the centralized control of the buildings, lighting, HVAC, access control, IoT devices, and security systems, software, and other such integrated smart grid systems. Its application is found in buildings of the various sectors like aviation, education, retail, manufacturing, healthcare, and many others. The intelligent building automation technologies industry has significant growth owing to the need for green energy solutions, energy-efficient infrastructure; increased usage, automation and control systems, and growth in technologies like Internet of Things (IoT). The above-mentioned factors are expected to drive the market growth. Automation and IoT faces a persistent threat of hacking and cybersecurity, and also lack of other necessary infrastructure like connectivity and networks still persists in many countries. The above-mentioned factors are turning out to be a key restrains for market growth. 

AI and ML technologies are increasingly being integrated into building automation systems to enhance efficiency, comfort, and sustainability. These technologies enable systems to learn from data patterns, optimize energy usage, and predict maintenance requirements. For instance, AI-powered analytics can analyze vast amounts of data from sensors and devices to identify inefficiencies and recommend optimization strategies in real-time. ML algorithms can also adapt to changing occupancy patterns and environmental conditions to adjust HVAC settings accordingly, optimizing energy consumption without compromising comfort levels. As AI and ML continue to advance, their integration into building automation systems is expected to become more sophisticated, offering greater autonomy and predictive capabilities.

With growing environmental concerns and regulatory pressure to reduce carbon emissions, there is a significant emphasis on sustainability and energy efficiency within the intelligent building automation technologies market. Building owners and operators are increasingly adopting automation solutions to monitor and control energy usage, minimize waste, and optimize resource utilization. This includes implementing smart lighting systems with occupancy sensors, deploying advanced HVAC controls for efficient temperature regulation, and integrating renewable energy sources such as solar panels and wind turbines. Moreover, building automation technologies enable real-time monitoring of energy consumption and environmental performance, allowing stakeholders to identify areas for improvement and implement proactive measures to reduce their carbon footprint. As sustainability goals become more stringent, the demand for intelligent building automation technologies that prioritize energy efficiency and environmental stewardship is expected to continue growing.

Market Snapshot:

COVID-19 Impact

The COVID-19 pandemic significantly impacted the Intelligent Building Automation Technologies Market. As the virus spread worldwide, numerous construction projects were halted or delayed, leading to a slowdown in the adoption of intelligent building automation technologies. With restrictions on movement and economic uncertainties, businesses were cautious about investing in new infrastructure. Additionally, the shift to remote work reduced the immediate demand for office space, dampening the need for sophisticated building management systems. Many companies redirected their budgets towards essential expenses, further stalling the market's growth. 

However, amidst the challenges, the pandemic also accelerated certain trends. The need for contactless solutions surged, prompting the integration of touchless access control systems, automated temperature screening, and advanced air quality monitoring in buildings. Moreover, the emphasis on health and safety in indoor environments bolstered the demand for intelligent systems capable of optimizing ventilation and sanitization processes. As the world gradually adapts to the new normal, the Intelligent Building Automation Technologies Market is poised for recovery, with a renewed focus on resilience, efficiency, and occupant well-being.

Intelligent Building Automation Technologies Market Report Coverage

The report: “Intelligent Building Automation Technologies Industry Outlook – Forecast (2024 - 2030)”, by IndustryARC covers an in-depth analysis of the following segments of the Intelligent Building Automation Technologies industry.

By Category: Hardware, Software, Service.

By Product: Security, Life Safety, Facility Management, Building Energy Management.

By Application: Residential, Commercial, Industrial.

By End user: Manufacturing, Aviation, Corporate offices, Retail, Healthcare, Life Sciences, Hospitality, Education, Others.

By Geography: North America (USA, Canada, and Mexico), Europe (UK, Germany, France, Italy, Netherlands, Spain, Russia, Belgium, and Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia, and New Zealand, Indonesia, Taiwan, Malaysia, and Rest of APAC), South America (Brazil, Argentina, Colombia, Chile, and Rest of South America), and Rest of the World (Middle East, and Africa)

Key Takeaways

• In the Intelligent Building Automation Technologies Market by category, the commercial building segment accounts for the largest share of up to 34% in 2023. This is due to the financial feasibility to implement the technology and the need for conservation of energy.

• The Intelligent Building Automation Technologies Market segmented by category finds the service segment has the largest market share in 2023. This is due to a surge in the demand for simplified and specific solutions and to reduce the operational costs for the client companies.

• North America market held the largest share of 33%, in 2023 and is expected to grow over the forecast period 2024-2030, This is due to increasing awareness about energy conservation among people who fueled the growth of green technology solutions. The financial potential with advanced technological research in North America helps in the growth of this market.

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Intelligent Building Automation Technologies Market Segment Analysis- By Application

The Intelligent Building Automation Technologies Market by application is segmented into residential, commercial, and industrial. The commercial buildings segment held the largest share as of 2023 and is expected to grow over the forecast period 2024 - 2030. Commercial buildings mainly include office buildings, retail space, and warehouses. This growth in the segment is attributed to increasing demand for comfort, safety, and control with the help of automation. At the foundational level, businesses are increasingly prioritizing sustainability initiatives to align with global environmental goals, such as carbon neutrality and reducing greenhouse gas emissions. This fundamental shift is underscored by the deployment of advanced technologies and integrated systems aimed at optimizing energy consumption. Initiatives like Energy Performance Contracting (EPC) have gained traction, offered economic viability and incentivized the adoption of energy-efficient retrofits in commercial spaces. Furthermore, the proliferation of Next-Generation Smart Building solutions emphasizes the role of Information Communication Technologies (ICT) in enhancing energy efficiency and reducing environmental impact. For instance, in June 2022, leading IoT building automation company 75F and open smart building platform provider J2 Innovations (J2) announced a collaborative partnership aimed at elevating the energy efficiency standards of medium-sized commercial properties. This alliance leverages the respective strengths of J2 and 75F to expedite the implementation of plug-and-play, IoT-based building automation solutions. The advent of sustainable building practices, coupled with the rise of green construction materials and methodologies, underscores a paradigm shift towards eco-friendly infrastructure. Energy conservation measures, tailored for both new constructions and existing buildings, offer significant potential for reducing operational costs while promoting environmental stewardship. The convergence of these factors has propelled the demand for commercial Intelligent Buildings, positioning them as pivotal assets for businesses seeking to navigate the evolving landscape of sustainability and cost optimization. 

Intelligent Building Automation Technologies Market Segment Analysis- By End User

The Intelligent Building Automation Technologies Market by end user is segmented into manufacturing, aviation, corporate offices, retail, healthcare, life sciences, hospitality, education, others. The segment of corporate offices in Intelligent Building Automation Technologies Market held the largest share in 2023 and is predicted to grow further over the forecast period of 2024 - 2030. Smart technologies like sensors, smart thermostats, HVAC and lighting controls help reduce energy usage saving a significant amount of energy. They are the largest consumers of energy for machines, infrastructure lighting, air conditioning, and many other systems. In March 2022, Johnson Controls with matrix, a leading global technology solutions provider – will equip the new headquarters of the Discount Group near Tel Aviv with its OpenBlue digital platform technologies, creating new possibilities for operational energy efficiency, occupant comfort and sustainability in a dynamic solution. As a result, the growing competition among the corporates and technological advancement helps in growth of the corporate office segment. The increasing intelligent building projects as mentioned above for corporate offices has fueled the growth of Intelligent Building Automation Technologies Market. 

Intelligent Building Automation Technologies Market Segment Analysis- By Geography

The Intelligent Building Automation Technologies Market by geography is segmented into North America, Europe, Asia-Pacific (APAC), South America and rest of the world (RoW). North America dominated the Intelligent Building Automation Technologies Market share, in 2023, with a share of around 33% and is also analyzed to have significant growth during the forecast period 2024 - 2030. North America Intelligent Building Automation Technologies Market is expected to grow at a CAGR of 9.5% over the forecast period 2024 - 2030. Factors like the rise in use of IoT-connected devices, governments sponsoring smart city projects in the countries of North America are the reason for the growth of intelligent building automation technologies. The stringent government regulations for energy efficient infrastructure in the in North America have also contributed to this market growth. The growing concern and awareness among the end users in the region for environmental safety and pollution control is analyzed to encourage intelligent building automation technologies growth over time. Recent case studies further underscore North America's leadership in this domain, with companies like Google, Microsoft, and Amazon implementing advanced intelligent building automation technologies in their office facilities. These tech giants prioritize energy efficiency, occupant comfort, and operational optimization, driving the adoption of cutting-edge automation systems. All these factors have combined effect on the growth of Intelligent Building Automation Technologies Market and shall also help to drive the market further. 

Intelligent Building Automation Technologies Market Drivers

The increasing demand for Automated and Efficient Smart Cities fueled the growth of Intelligent Building Automation Technologies Market:

The rise in global warming and pollution creates the need to find solutions which are environment friendly. The advancements in the technology of Internet of Things (IoT), automation and sensor networks help to develop intelligent building automation technologies. Thus, a complete smart city can improve the quality of living while reducing costs and ensuring environment sustainability. As urbanization intensifies, municipalities and city planners are increasingly embracing smart city initiatives to address challenges related to sustainability, energy efficiency, and urban infrastructure management. Intelligent Building Automation Technologies play a pivotal role in this landscape, enabling seamless integration and management of various building systems to optimize energy consumption, enhance operational efficiency, and improve overall urban livability. As cities strive to become more resilient, interconnected, and sustainable, the demand for intelligent building solutions is poised to grow exponentially, driving innovation and transformation across urban environments. Thus, such initiatives and technological developments assist in the growth of Intelligent Building Automation Technologies Market.

The rise in adoption of IoT-Enabled Technology has fueled the growth of Intelligent Building Automation Technologies:

Internet of Things has a significant impact due to growth in the need for efficient and smart building automation technologies, their operations and sustainability. IoT-enabled infrastructure increases its performance efficiency and uses sensor networks to enhance user experience. It serves various purposes like reducing energy use; repairing and maintaining building automation systems, and reducing administrative costs of buildings. Also, usage of data collected from various sensors, including indoor air quality and space utilization, at the building level to regulate air-conditioning and lighting systems in real-time to optimize the energy consumption. The IoT project utilizes data from city systems, including energy sources, satellites, and social datasets to tackle key city issues, and also runs a smart city education programme for schools and local universities to give students skills in digital technology and smart city creation. Hence, the rise in IoT-enabled devices has greatly contributed in developing the intelligent building automation technologies and shall also drive this market in future. 

The rising energy and environment conservation concern and awareness among the people:

End users, globally, are aware of the consequences of global warming and pollution, and also do they realize the exhausting fuel deposits. All of these pose a threat to the environment and nature. Large amounts of CO2 emissions cause significant damage leading to global warming. Buildings occupying offices typically consume up to 30% of total energy use of total buildings in that area. If they have laboratories, this rate increases to 60-70%. In a typical lab, centralized DCV can reduce HVAC costs by 40-60 % and with an average reduction of around 750 metric tons of carbon dioxide equivalent. According to reports by American Council for Energy-Efficient Economy (ACEEE), a single isolated system can save up to 5-15% of energy, whereas a smart building can save up to 30-50%. Thus, growth in intelligent building automation technologies is providing reduction in energy consumption and reduce the cost. For example in Taiwan, the government is actively promoting conservation programs to increase energy efficiency by 33% by 2025. In the U.S., the 30% of energy used in commercial buildings is wasted for which the US Environmental Protection Agency’s Building Technology Office (BTO) is aiming for a 20% reduction in energy use by commercial buildings by 2030. The growing concerns and awareness among the people have given a boost to energy saving technologies. The growth of this market in future is evident from the mentioned instances and data. 

Intelligent Building Automation Technologies Market Challenges

The privacy and cybersecurity concerns still persist for Smart IoT devices used for Intelligent Building Automation Technologies:

Automation technology is still developing and at the same time it poses a security threat to these smart buildings. Most of the devices and sensors that can be easily hacked expose smart buildings to various threats like robbery, personal information leak and misuse of sensitive information. For instance, they lead to threatening situations like stopping the working of passenger lifts; gaining access to security feeds from CCTV cameras, and disrupting power supplies of the building. Malware injections can occur through external network connections or internal attacks launched at the device. Exploiting insecure industrial protocols is another way that attackers can disrupt operations, particularly true for building automation systems. In September 2023, Johnson Controls, a global leader in smart building technology, experienced a ransomware attack that exposed vulnerabilities and highlighted cybercriminal tactics. The ransomware group, known as “Dark Angels”, claims to have stolen 27Tb of data from the company. The incident has left many building owners and operators questioning whether an upstream breach with a trusted technology partner could potentially trickle down to impact their facilities. These rising privacy and security risks pose a restraint to smart building market growth.

Intelligent Building Automation Technologies Industry Outlook

Product launches, acquisitions, and R&D activities are key strategies adopted by players in the Intelligent Building Automation Technologies industry. The Intelligent Building Automation Technologies top 10 companies include:

1. ABB

2. Azbil Corporation

3. Eaton Corporation

4. General Electric

5. Siemens AG

6. Schneider Electric

7. Honeywell International Inc.

8. Johnson Controls

9. Larsen & Toubro Limited

10. Rockwell Automation Inc.

Recent Developments:

• In July 2023, RENEW Energy Partners, LLC and Buildings IOT joined forces to expedite the decarbonization of buildings and promote the adoption of property technology, analytics, and controls in the built environment. Utilizing Buildings IOT's advanced intelligent building management platform, onPoint, RENEW aims to accelerate its mission of reducing carbon emissions from buildings. This collaboration will entail offering onPoint as a service to property owners and all clients of RENEW.

• In May 2023, Cohesive Technologies, a provider of communication solutions, announced its participation in the esteemed Smart Home Expo 2023, the nation's premier technology event. Teaming up with Snom, a leading provider of SIP unified communication solutions, Cohesive Technologies will showcase its latest offerings and solutions at the event.

• In January 2022, Johnson Controls announced the acquisition of FogHorn, the leading developer of Edge AI software for industrial and commercial IoT solutions for innovation in Johnson Controls OpenBlue technology. This integration shall accelerate the pace towards the company’s vision of creating smart buildings.

• In June 2022, leading IoT building automation company 75F and open smart building platform provider J2 Innovations (J2) announced a collaborative partnership aimed at elevating the energy efficiency standards of medium-sized commercial properties. This alliance leverages the respective strengths of J2 and 75F to expedite the implementation of plug-and-play, IoT-based building automation solutions. 

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