This report provides Transforma Insights’ view on the Building Automation market. The building automation market is an expanding global opportunity, with growth underpinned by initiatives taken by governments to promote sustainable smart buildings, decreasing the cost of hardware and networking technologies, smart city initiatives, and increased construction activity, amongst others. While the reduction in solution cost has been a major driver for the installation of building automation systems for retrofit projects, other factors are impacting installation in new construction projects. As building automation systems have become more affordable, even small and mid-sized apartment owners are now using automation to operate buildings. Previously these systems were not usually deployed in sparsely occupied buildings such as warehouses and garages but with increased affordability, these systems have applications in such non-traffic areas as well.
The report provides a detailed definition of the sector, analysis of market development and profiles of the key vendors in the space. It also provides a summary of the current status of adoption and Transforma Insights’ ten-year forecasts for the market. The forecasts include analysis of the number of IoT connections by geography, the technologies used and revenue.
A full set of forecast data, including country-level forecasts, sector breakdowns and public/private network splits, is available through the IoT Forecast tool.
The “Market development” section begins with a list of the drivers that are expanding the building automation market (such as various government initiatives). It then discusses how the evolution of IoT technologies has made building automation systems more powerful, less expensive, and more accessible than before. Apart from financial advantages, the indirect benefits of deploying building automation systems (such as better lease rates, valuation, and sales price) have been discussed here as well. It also mentions the connectivity technologies used in these systems (like Wi-Fi, mesh technologies, Bluetooth, Ethernet, and PLC) and their advantages.
It then expounds on how smart cities (mostly government-led ones) are accelerating the adoption of building automation systems, especially in countries like China, South Korea, India, and Japan. The discussion in this section also includes new mergers, partnerships, and innovations that are enhancing the capabilities of building automation systems (which have edge processing capabilities and use advanced network technologies).
The Building Automation category comprises three areas: Building Automation Systems, Air Quality Monitoring, and Water Flow Detectors.
This section talks about how various governments are becoming increasingly concerned about high energy consumption in buildings and are therefore, coming up with firm energy-efficiency policies, which are encouraging the installation of building automation systems. It also lists some of the benefits (like reducing a building’s carbon footprint) and challenges (lack of clarity on the return on investment and payback period) of deploying building automation systems.
Some examples of relevant IoT deployments in this application have also been included here like the 250 Villas in Al Barari deploying Pacific Controls' U-home automation system.
This section begins with an explanation of the increasing air pollution levels and environmental concerns being the main drivers behind the growth of the air quality monitoring system market, resulting in various governments setting air quality standards and taking measures to monitor indoor air quality.
It then discusses other factors like Covid-19 and the countries with high outdoor pollution levels, which necessitate monitoring pollution levels (North American and East Asian countries, especially China, Japan and South Korea are at the forefront in the adoption of air quality monitoring systems). It also lists some of the barriers (like the lack of mandatory requirements by governments) which may hamper their adoption, especially in developing countries.
There are some examples of relevant IoT deployments in this application as well. For instance, the Grosvenor Group deployed Aeroqual's AQY 1 air quality monitors in and outside its shopping centres, eventually identifying the high-impact zones in those areas.
This section of the report discusses the drivers behind the increasing adoption of water flow detectors (like the increasing demand for smart sensors to measure water consumption and reduce water leakage). It then lists some of the benefits of deploying such monitors (like monitoring excess water flow, reducing wastage, and preventing the growth of bacteria like legionella in water).
It also talks about the increasing product offerings (like Resideo’s Wi-Fi-enabled and battery-powered water leak and freeze detector sending notifications on detecting a frozen pipe or a leak) and the heightened rate of innovation in network technology in the context of the arrival of cellular LPWA technologies. It also lists some of the potential barriers which may limit their adoption in future (like smaller houses and buildings that don’t require the detection of the precise location of a leak may deem installation of separate leak detectors irrelevant).
This section also provides some examples of relevant IoT deployments in this application like the Dubai Exhibition Centre partnering with TTK to deploy a water leak detection solution.
The key vendors section lists some of the main providers of products and services related to the market such as ABB, Honeywell, Johnson Controls, Siemens, Schneider Electric, Samsung SmartThings, Aeroqual, Emerson Electric, Vivint, and ADT. The report provides profiles of the various vendors including aspects most relevant to this Application Group, such as product offerings, pricing, financial results, and technology.
In the market forecasts section, we provide a summary of the forecasts from the Transforma Insights IoT Forecast Database:
The report charts the growth in the number of building automation devices which will grow from 358 million in 2020 to 1.6 billion in 2030.
Transforma Insights forecasts are compiled on a country-by-country basis. This report includes a regional summary, showing splits between Australasia, Greater China, North America, Europe, Japan, Latin America, MENA, Russia & Central Asia, South East Asia, South Korea, India & South Asia, and Sub-Saharan Africa.
Transforma Insights’ IoT forecasts include splits between the various connectivity technologies as follows: 2G, 3G, 4G, 5G mMTC, 5G non-mMTC, LPWA (non-mMTC), Satellite, Short Range, and Other.
This section discusses which technologies will be used in the building automation application group.
This part of the report discusses the market growth in terms of revenue (module revenue, service wrap revenue, and VAC revenue). Transforma Insights estimates that the revenue in the Building Automation Application Group will grow at a CAGR of 16%.
