Global Market Size, Forecast, and Trend Highlights Over 2025-2037
Building Automation Systems Market size was valued at USD 99.1 billion in 2024 and is estimated to reach USD 348 billion by the end of 2037 at a CAGR of 10.6% between 2025 and 2037. In 2025, the building automation systems industry is evaluated at USD 107 billion.
The building automation systems (BAS) supply chain is estimated to have vital players across the world. As per the trade data, there are more than 800 suppliers across 55 countries, and around 570 buyers in 40 countries. Key components in the supply chain include automation stations and valves sourced from leading exporters such as Switzerland and China. Moreover, key players ought to invest in specialized facilities equipped to assemble BAS components. To ease the trade, the U.S. General Services Administration (GSA) has initiated efforts to standardize BAS solutions, which will streamline hardware and software solutions for major modernizations. As of September 2024, the producer price index (PPI) for automatic environmental control manufacturing, which is a key segment of BAS, has indicated an upward trend. The PPI was estimated at 321.22, highlighting the rising costs of manufacturing BAS systems.
A major factor driving the growth of the building automation systems market is the push for sustainability goals worldwide. Standards such as LEED (Leadership in Energy and Environmental Design) and BREEAM (Building Research Establishment Environmental Assessment Method) assist in reducing carbon emissions. These regulations push building owners to adopt BAS systems to optimize energy-intensive systems such as HVAC, while the application of BAS systems is noted to reduce energy use in commercial buildings by more than 25%. The trends indicate a favorable growth of the BAS market throughout the anticipated timeline.
Building Automation Systems Sector: Growth Drivers and Challenges
Growth Drivers
- Government mandates for energy efficiency and net-zero buildings: The building automation systems market growth is amplified by the stringent regulations mandating energy efficiency which can create lucrative opportunities for BAS. The U.S. Department of Energy (DOE) announced goals to curtail energy consumption in federal buildings. The target is to reduce energy consumption by more than 50% by 2035 in comparison to the energy levels used in 2023. BAS is set to be a major contributing factor in these goals, facilitating the market expansion. Additionally, the opportunities are expected to be rife in emerging economies as well as countries push for decarbonization goals.
- Rise in building retrofitting opportunities: Due to the advent of smart cities across the world, opportunities are rife to retrofit existing buildings with BAS. In January 2024, the World Economic Forum (WEF) released a report that retrofitting a building lead to more than a 35% reduction in energy intensity. Furthermore, more than a 10% reduction in global energy demand. The largest opportunities to retrofit are expected to emerge from APAC due to large-scale urbanization driving the construction of commercial, residential, and industrial spaces.
Technological Advancements Reshaping the Building Automation Systems Market
The market is undergoing considerable transformation due to building operations advancements. Industries are adopting new technologies at varying paces. For instance, the manufacturing sector is leveraging AI-driven BAS to reduce downtime. Two recent developments that are set to usher in greater opportunities within the BAS market are the advent of AI-powered management systems and cloud-native wireless building management systems (BMS). While the former facilitates predictive analytics for buildings, the latter offers remote monitoring capabilities, which are particularly useful in federal buildings. The following table presents highlights of the adoption and impact of these technological trends across various industries:
|
Technological Trend |
Industry |
Company & Implementation |
Impact |
|
AI & ML for Predictive Maintenance |
Manufacturing |
Siemens AG deployed AI-driven BAS at the Amberg facility for predictive equipment monitoring. |
31% reduction in unplanned downtime; 21% increase in operational efficiency. |
|
Cloud-Based BAS Solutions |
Financial |
Bank of America implemented cloud-based BAS across 1,500 branches. |
14% reduction in energy costs; improved regulatory compliance. |
|
IoT Integration |
Telecommunications |
AT&T installed IoT-enabled BAS in data centers for HVAC monitoring and control. |
26% decrease in energy consumption; improved system reliability. |
|
Advanced Cybersecurity Measures |
Healthcare |
Mayo Clinic upgraded BAS with advanced cybersecurity protocols. |
35% reduction in cybersecurity incidents; ensured HIPAA compliance. |
|
Energy Management Systems |
Retail |
Walmart deployed BAS for lighting and HVAC optimization in retail stores. |
22% reduction in energy usage; improved in-store environmental control. |
Sustainability Advancements in the Building Automation Systems Market
The global BAS market is supported by the sustainability trends. To adhere to the net-zero carbon goals, it is necessary for emissions from buildings to be mitigated, creating ample opportunities for BAS manufacturers. The integration of BAS ensures that the environmental impact is lowered, which bodes well for key players associated with the construction industry in boosting investor confidence. Moreover, global manufacturers are integrating BAS with renewable sources such as solar and wind. The tangible outcomes, such as carbon footprint reduction, bolster growth. The data below highlights key corporate sustainability efforts, showing their quantitative impacts and future ambitions.
|
Company |
Sustainability Initiatives |
Goals & Vision (2030) |
Impact on Business |
|
Honeywell |
Reduced GHG emissions by 91% (2004–2023); integrated renewables in BAS |
Net-zero Scope 1 & 2 emissions by 2035 |
Cut energy costs by 14%; boosted ESG investor engagement |
|
Johnson Controls |
Uses 64% renewable energy (2023); deployed heat pump tech in BAS |
100% renewable electricity in operations by 2030 |
Increased revenue from sustainable products by 7.3% (2023 YoY) |
|
Schneider Electric |
46% of energy sourced from renewables (2022); advanced waste recycling |
Carbon neutrality by 2030; zero waste to landfill by 2025 |
Saved €151M in energy and resource use (2021–2023) |
|
Siemens |
Achieved 70.5% emissions reduction in operations since 2015 |
Fully carbon-neutral by 2030 |
Improved global facility efficiency by 20.5%; enhanced brand trust |
|
Legrand |
Reduced industrial waste by 28% via circular programs |
31% emissions reduction from the product lifecycle by 2030 |
Achieved a 12.5% rise in brand equity in sustainability indexes |
Restraints:
- High upfront capital expenditure: The market is negatively impacted by the high upfront capital expenditure. For instance, automation retrofits cost 35% more than traditional systems, which pose accessibility concerns to SMEs. Moreover, the lack of a skilled workforce in emerging nations to manage complex automation infrastructure hinders the market expansion.
- Cybersecurity concerns: With the advent of cloud-based solutions, along with IoT integration, the data privacy concerns with BAS platforms have imploded. The connective nature of the automation system adds to its vulnerabilities to cyberattacks. Additionally, conflicts between BACnet, LonWorks, and KNX can delay integrations, causing additional constraints.
Building Automation Systems Market: Key Insights
| Report Attribute | Details |
|---|---|
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
10.6% |
|
Base Year Market Size (2024) |
USD 99.1 billion |
|
Forecast Year Market Size (2037) |
USD 348 billion |
|
Regional Scope |
|
Building Automation Systems Segmentation
Security & Access Controls (Video Surveillance Systems, Biometric Systems)
The video surveillance systems segment in building automation systems market is poised to account for a dominant revenue share of 54.5% by the end of 2037. The segment’s growth is attributed to the rising demand for components such as monitors, cameras, storage solutions, video analytics software, etc. Due to security concerns and the rising percentage of gated communities across the world, the demand for video surveillance systems is expected to remain steady throughout the anticipated forecast timeline.
HVAC Controls (Smart Thermostats, Variable Air Volume Controls, Sensors, Fan Coil Units)
The smart thermostat segment is expected to hold a larger share in the building automation systems market throughout the forecast period. While the global trends of large-scale IoT adoption and the integration of AI algorithms bolster the efficacy of smart thermostats, their energy efficiency also places them as a key factor in BAS. Manufacturers are slated to find heightened opportunities in regions with large-scale urbanization rates, such as India and China. In India, the Energy Efficient Buildings program is a supportive regulatory boost for the continued growth of the segment.
Our in-depth analysis of the global market includes the following segments:
|
Security & Access Controls |
|
|
HVAC Controls |
|
|
Lighting Controls |
|
Vishnu Nair
Head - Global Business DevelopmentCustomize this report to your requirements — connect with our consultant for personalized insights and options.
Building Automation Systems Industry - Regional Synopsis
North America Market Forecast
The North America building automation systems market is poised to account for a dominant revenue share of 37.3% by the end of 2037. The market’s growth curve is favorably impacted by the rising energy efficiency mandates, leading to greater opportunities in retrofitting spaces with building automation systems. Moreover, the smart city programs in the U.S. and Canada are creating lucrative opportunities for BAS manufacturers. The market analysis predicts a stable demand for HVAC automation, along with lighting systems that are energy-efficient. With technological advancements in AI and cloud-connected building systems, the North America BAS market is predicted to maintain its dominance throughout the forecast timeline.
A major factor in the U.S. building automation systems market’s growth is the technological advancements in connected systems. Cities such as Seattle and New York have proactively passed smart building mandates, creating opportunities to supply automated control systems. A significant segment within the market is set to emerge from federal buildings requiring advanced BAS solutions. For instance, in 2022, more than 35.5% of the commercial space in the U.S. adopted BAS. With a rising number of spaces across the healthcare, residential, commercial, and industrial sectors in the U.S. requiring energy-efficient solutions, the U.S. market is set to maintain its dominant share.
The Canada market is poised to expand its revenue share during the forecast timeline. A major factor in the market's growth curve is the ambitious net-zero carbon goals of Canada, creating opportunities to retrofit BAS to reduce emissions. Additionally, Innovation, Science and Economic Development Canada (ISED) reports that between 2021 and 2023, federal programs in the country, such as the Smart Buildings Initiative and the Clean Energy Fund, allocated over 701 million towards creating energy-efficient public infrastructure. Amidst other recent developments impacting the sector's growth, the Canadian Green Building Council reported that around 29% of the commercial buildings that are newly constructed have smart lighting systems.
Asia Pacific Market Forecast
The APAC building automation systems market is set to exhibit the fastest growth throughout the forecast timeline by expanding at a CAGR of 9.3%. Two key facets of the APAC market are the rapid urbanization, led by countries such as China, India, and South Korea, along with a major push in construction activities in urban areas, led by China, India, Vietnam, Indonesia, Singapore, etc. The table below highlights two recent major initiatives in the BAS market in APAC.
|
Country |
Initiative |
Start Year |
Mandates/Goals |
Funding/Support |
Target Year |
|
South Korea |
Zero-Energy Building (ZEB) Expansion |
2023–2024 |
- ZEB Grade 3 required for all new public buildings (55–75% energy independence) |
N/A |
2030 |
|
China (Shenzhen) |
Green Retrofit Incentive Program |
2024 |
- Retrofitting existing buildings for energy efficiency under a green development scheme |
CNY 4.10 million allocated over two years |
2026 |
China is slated to remain a major market in APAC. The growth is impacted by favorable government initiatives and rapid urbanization in the country. For instance, the Ministry of Industry and Information Technology (MIIT) has been instrumental in the promotion of smart city projects as well as energy-efficient buildings. Additionally, China has received flak for a large percentage of its contribution to GHG emissions, which creates lucrative opportunities for the integration of BAS as the country strives to negate emissions. Lastly, China remains a global leader in the installation of automation across multiple sectors, and the trends are expected to converge with the BAS market.
The India BAS market is likely to exhibit expansion trends during the forecast period. India remains an economy with massive potential, especially in service-related industries. This creates opportunities to provide building retrofit services and tie up with the nationwide Smart Cities Mission that is currently underway. Additionally, the real estate market in India is extremely lucrative, with cities such as Mumbai experiencing a considerable real estate boom. This trend, along with an increase in disposable income, is driving housing retrofit demands, which can be predicted to impact the growth of the BAS market in India.
Companies Dominating the Building Automation Systems Landscape
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
The building automation systems market remains competitive, bolstered by the surging demand for energy-efficient systems and smart buildings. Key players in the market, such as Siemens, Honeywell, Schneider Electric, etc., are striving to expand their distribution lines across multiple regional markets. Moreover, companies from APAC, such as LG and Mitsubishi, are gaining momentum by leveraging the heightened end use application potential across multiple economies in the region. The table below highlights the major players in the BAS market along with their revenue share.
|
Company Name |
Country of Origin |
Market Share (%) (2024) |
|
Siemens AG |
Germany |
12.5% |
|
Honeywell International Inc. |
USA |
10.3%% |
|
Johnson Controls International plc |
Ireland/USA |
10.0% |
|
Schneider Electric SE |
France |
9.6% |
|
ABB Ltd |
Switzerland |
8.9%% |
|
United Technologies Corporation (Carrier) |
USA |
XX% |
|
Delta Electronics, Inc. |
Taiwan (operates in Malaysia) |
XX% |
|
LG Electronics Inc. |
South Korea |
XX% |
|
Distech Controls Inc. (part of Acuity Brands) |
Canada/USA |
XX% |
|
Beckhoff Automation GmbH |
Germany |
XX% |
|
Advantech Co., Ltd. |
Taiwan |
XX% |
|
Infosys Ltd |
India |
XX% |
|
Automated Logic Corporation (a Carrier company) |
USA |
XX% |
Below are the areas covered for each company in the building automation systems market:
Recent Developments
- In September 2024, Metasys 14.0 was launched by Johnson Controls. The new solutions are expected to bolster sustainability and energy management with advanced features such as preconfigured energy dashboards.
- In 2024, Andorix announced the deployment of private 5G wireless networks within multiple manufacturing facilities in North America. Moreover, the advancement has facilitated improvement in connectivity solutions for sensors and IoT devices. The AI integration also aids in predictive maintenance, marking a major growth in smart building tech.
- Report ID: 3697
- Published Date: May 13, 2025
- Report Format: PDF, PPT
Frequently Asked Questions (FAQ)
Building Automation Systems Market Report Scope
FREE Sample Copy includes market overview, growth trends, statistical charts & tables, forecast estimates, and much more.
Connect with our Expert
