Building automation set for nearly 12% CAGR

  • May 17, 2026
  • Steve Rogerson

The intelligent building automation market is projected to scale from $122.5bn this year to $191.1bn in 2030, representing a CAGR of 11.8%, according to Research & Markets.

This growth is propelled by the increasing need to optimise building performance, lower operational costs and improve occupant comfort. Building stakeholders are deploying automation that responds dynamically to real-time factors such as occupancy, energy demands and environmental conditions.

Organisations across various sectors, including commercial, industrial and institutional, are upgrading from isolated systems to integrated automation platforms that enable centralised control and monitoring. The shift towards cloud-based technology, analytics and connected sensor applications is boosting visibility into building operations, thereby supporting data-driven decision-making.

Consequently, there is growing interest in scalable products promoting energy efficiency, operational reliability and sustainable infrastructure management across diverse building environments.

Connectivity technology is set to record the highest CAGR within the forecast period. This growth is driven by the increasing reliance of buildings on fluid communications between sensors, controllers and management systems. Communication protocols, both wired and wireless, are facilitating system integration, improving interoperability and offering greater flexibility for new and retrofit projects.

Wireless technology, in particular, is favoured for its ease of deployment and ability to support scalable architectures. As intelligent buildings produce larger volumes of real-time data, the need for secure and reliable connectivity infrastructure becomes critical, further catalysing market growth.

Temperature sensors are anticipated to dominate the sensor technology segment due to their pivotal role in HVAC systems, contributing to thermal comfort, energy efficiency and operational effectiveness across building environments. Integration of these sensors with energy management platforms allows for real-time adjustments in response to indoor and outdoor conditions, proving essential for new and retrofitted intelligent building automation systems.

Asia Pacific is expected to exhibit the fastest growth rate during the forecast period, driven by urban expansion and infrastructure projects in key economies such as China, India, Japan and Australia. Government-driven smart city initiatives, stringent energy-efficiency policies and the uptake of digital management platforms aid this expansion. Growth is largely fuelled by greenfield projects and early-stage technology integration rather than replacement of existing systems.

Leading market players include Honeywell, Johnson Controls, Siemens, Schneider Electric and ABB.

For more on the report, go to www.researchandmarkets.com/reports/5940280/intelligent-building-automation-technologies.