NewsPronto

 
The Property Pack
.

Technology

  • Written by Grand View Research
By the end of 2024, the U.S. intelligent building automation market is expected to witness significant growth with a CAGR of 8.4%, according to Grand View Research, Inc. The global market is anticipated to register significant growth with a CAGR of around 6.5% by the same year. The growth of the market can be attributed to the increasing digital transformation across the globe.

Intelligent Building Automation Market Trends 2014-2024 found that the increasing number of smart city mobility schemes integrated with smart technology infrastructure is expected to drive demand for intelligent building automation. The growing popularity of Artificial Intelligence (AI) among individual and development of AI based residential devices, including personal voice assistance such as Google Home and Amazon Echo is major trend found in the market. The rapid adoption of such devices is expected to lead to commercialization of intelligent building solution over the forecast period. Additionally, consumers are shifting their expectations towards in-building experience, which involves the application of intelligent technology solutions for comfort, sustainability, and productivity.

The growing demand for cost-efficient building automation solutions by consumers is the major factor anticipated to boost the growth of the market over the next seven years. Additionally, the deployment of Internet of Things (IoT) platform in intelligent building automation and growing demand for integrated safety and security systems are further expected to propel the growth of the market. The integration of IT and building management systems for the development of intelligent building automation is anticipated to increase system performance. Intelligent building automation reduces the cost involved in installing and operating various autonomous building systems.

Furthermore, Grand View Research found that the increasing adoption of devices or systems in various smart home applications, including security, energy management, lighting, smart kitchen, and entertainment, is expected to drive the growth of the market over the forecast period.

Security systems are anticipated to gain traction over the forecast period

According to Grand View Research, Inc., the intelligent building automation market is segmented into product, application, end use, and region. The physical security segment is expected to dominate the product segment (in terms of revenue) over the forecast period. The growing number of cyberattacks on connected home systems is expected to drive the demand for physical security for minimizing financial risks and business interruption.

HVAC systems are instrumental in accelerating the market growth

The HVAC segment is expected to account for the highest revenue share in the application segment, owing to the increasing adoption of intelligent HVAC systems that automatically regulate the temperature inside a building and consume less energy. Additionally, LED lighting product manufacturers use HVAC to develop cost-effective LED bulbs for smart buildings.

The commercial segment is anticipated to account for the highest market revenue share in the end use segment over the forecast period owing to the growing adoption of intelligent building automation solutions in large premises, retail facilities, and hotels & restaurants, among others. Customers and employees rely on devices and access to real-time data for enhanced productivity, sustainability, and convenience. This trend has been coined as consumerization of technology. It is expected to increase investment in construction of smart commercial buildings through the implementation of intelligent building automation solutions.

Grand View Research, Inc. evaluated 10 countries, by analyzing a nation’s interest in adopting intelligent building automation solutions. The analysis taken into account for regulatory policies, digital and city infrastructure, and participation of local organizations.

The intelligent building automation market is experiencing significant traction in the following countries:

  • U.S.

  • Canada

  • UK

  • Germany

  • France

  • China

  • India

  • Japan

  • Brazil

  • Saudi Arabia

Europe Intelligent Building Automation market revenue share (%), by application, 2017

 

Source: Grand View Research

Intelligent building automation is gaining popularity in Europe as it is energy saving and eco-friendly solution. In addition, increasing demand for electricity than supply is expected to provide potential opportunity for integrating intelligence in to buildings. Furthermore, favorable government initiatives for building intelligent & smart infrastructure and stringent government directives such as Energy Performance of Buildings Directive and Energy Efficiency Directive that promote the improvement of energy performance of buildings in the region. This is expected to drive growth of the market.

U.S. is expected to gain the highest revenue share in the market from 2014 to 2024, owing to the growing adoption of connected devices and systems in various applications, including security, energy management, lighting, smart kitchen, and entertainment, among others.

The increasing number of smart city projects in China is expected to drive the demand for intelligent building automation solutions over the forecast period. As of April 2017, 290 cities had initiated smart city projects and more than 300 cities signed an agreement with IT companies, including Chinese telecommunications companies such as Tencent and Ant Financial for constructing smart cities in China.

The market is experiencing intense competition with several players focusing on inorganic growth strategies

The key players in the intelligent building automation market are mainly focusing on developing new intelligent building automation solutions and services through various growth strategies such as mergers and acquisitions, collaborations, business expansions, and launch of new solutions and services, owing to the intense competition sustaining in the market. The key market participants include ABB Ltd.; Azbil Corporation; Eaton Corporation; General Electric Corporation; Honeywell International, Inc.; Ingersoll Rand, Inc.; Hubbell, Inc.; Johnson Controls, Inc.; Rockwell Automation; and Siemens Building Technologies, Inc.; among others.