Building automation systems market to reach $5.91 bn by 2026

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 percent, said a recent report published by Frost & Sullivan.

The analysis 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, Frost & Sullivan observed, 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. “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 (ML) algorithms for developing voiceover technology and advanced features will be crucial innovation areas for next-generation BAS solutions.”

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; Intelligent Platform-as-a-service (PaaS) solutions; Innovation scouting; and Integration of product lines.