Commercial building automation market to reach $108 billion by 2024
The global commercial building automation market is expected to surge as demand increases for energy-conservative processes and companies focus on reducing overall operating costs, especially in the government buildings' segment, according to a new report.
Government initiatives for constructing green buildings and the rising primary focus on green building by more companies are key contributors to the growth of the automation market, the study by Market Research Reports Search Engine found.
Other factors driving it include a gain in demand for building automation within the small- and medium-sized buildings segments after the growing use of energy consumption analytics, the need to improve occupant comfort levels and mental satisfaction for environment-conscious buyers.
The global commercial building automation market was projected to reach $77.63 billion by the end of 2016. In terms of revenue, the market is expected to reach $108.49 billion by 2024, after expanding at an annual growth rate of 4.3 percent from 2016 to 2024.
High focus gained by HVAC
Power supply, interfacing components, room automation, HVAC systems, security and surveillance, and illumination and light sensors are the commonly known types of products within the global commercial building automation market. Of these, HVAC systems are expected to lead the market through 2024. The power supply market is also a strong segment within the global commercial building automation market and is further segmented into UPS, battery modules and others.
Based on types of material, the global commercial building automation market is divided into lighting control and regulation, interfacing and inter-working with other building systems, blind and shutter control, temperature control and regulation, energy and load management, security and fault monitoring, visualization and remote control and monitoring, reporting, display. Among those, in terms of revenue, temperature control and regulation held the leading share in the market for 2015, followed by lighting control and regulations. It is likely that both segments will retain their spots in the global commercial building automation market over the coming years, the report said.
North America shows dominance
Based on geography, the global commercial building automation market is segmented into North America, Europe, Asia Pacific and the rest of the world. North America held the top value share in 2015, followed by Europe. Both regions are expected to remain at the same spots through 2024, the report projects.
The global commercial building automation market generates a substantial volume of revenue from a few end users. The overall demand for energy conservation and reducing the overall operating cost is one of the key factors driving the market for commercial building automation market in North America, as well as Europe. Asia Pacific, on the other hand, is expected to show fast growth rate in its demand for commercial building automation systems, but is being stifled by factors such as a slow ROI for builders due to high installation costs.