The global market for building automation is projected to grow considerably till 2027, according to market watcher Research Dive.

By component, the hardware sub-segment is estimated to hold largest market share by 2027. Regionally, the North America market is predicted to dominate in the global industry.

The global building automation market is projected to grow at a CAGR of 9.9% from $68.1bn in 2019 to $142.3bn in 2027.

The growing popularity of smart buildings among consumers and the increasing demand for eco-friendly and energy-efficient buildings are the factors expected to foster the growth of the global building automation system market during the analysis period. Moreover, the implementation of artificial intelligence (AI) for complete automation during the construction of buildings is projected to create huge growth opportunities for the global market by 2027.

However, the high costs associated with building automation systems (BAS) is estimated to hinder the market growth in the coming years.

The Covid-19 pandemic has unfavourably impacted the global building automation market. This is mainly because automation systems are majorly used in the construction sector and the construction activities were stopped at the beginning of the pandemic to curb the virus spread.

However, the unlock procedures have started in many parts of the world and the construction activities have taken momentum. Thus, the demand for the building automation is expected to increase, which will help the global market sustain during the pandemic period.

By component, the hardware sub-segment was worth $36.1bn in 2019 and is projected to hold the majority of market share in the forecast period. This is mainly because hardware is an essential component for setting up automation system in buildings and thus hardware is majorly used in building automation.

By application, the industrial sub-segment accounted for $20.4bn in 2019 and is predicted to observe significant growth during the forecast period. This is mainly because the industrial sector uses building automation systems for easy monitoring and assessing of production and supply.

By offerings, the security and access control sub-segment accounted for $14.8bn in 2019 and is estimated to hold the majority of market share by 2027. This is mostly because security and access control keep a close view on the place, helping in controlling, managing and accessing the security as well as the control panels is an appropriate way.

By region, the North America market for building automation system valued at $24bn in 2019 and is estimated to dominate in the global industry throughout the forecast period. The presence of large number of companies for construction activities is predicted to be the major factor to drive the regional market growth. Besides, the increasing investments of these companies in BAS is boosting growth in North America.

Some of the top players of the global building automation system industry are Honeywell, Johnson Control, Robert Bosch, Mitsubishi Electric, Schneider Electric, ABB, Siemens, Hubbell, General Electric and United Technologies.

These players are implementing numerous strategies to gain a leading position in the global industry. For instance, last year Siemens launched its Desigo PXC4 and PXC5 building automation controllers to renovate buildings into high-performing and energy efficient assets. They provide benefits for automating small and medium-sized buildings to get the most scalable and flexible building automation.