Building Automation Systems Market Size, Share, and Growth Forecast for 2025 - 2032

Building Automation Systems Market Outlook (2025 - 2032)

The building automation systems market is estimated to be valued at US$ 106.8 Bn in 2025 and forecasted to reach US$ 205.8 Bn by the end of 2032. The market for building automation systems is predicted to grow at a CAGR of 9.8% from 2025 to 2032.

Any infrastructure must have a reliable building automation system. Monitoring, security, mechanical, humidity, fire, and lightning control systems all depend on it. For autonomous buildings, the building automation system is beneficial. The system can manage the facilities of the entire building.

The global market for building automation systems has been driven by rising security concerns, rising government and private sector initiatives, and the growing popularity of the Internet of Things. Automated building security systems are becoming more common in recent years.

The market's expansion will be slowed by a number of obstacles and constraints. Building automation system's high installation costs are one major constraint. Additionally, over the forecast period, government initiatives aimed at lowering carbon emissions and increasing energy efficiency are likely to present lucrative growth opportunities.

• The market for building automation systems was valued at US$ 97.5 Bn in 2024.
• In terms of the regional market landscape, the market in Europe held a leading market share of 30.6% in the global landscape in 2024 and is expected to retain its leading position throughout the forecast period.
• Meanwhile, demand for building automation systems in the North America region will hold around 26.1% of the market in 2024.

Which Factors Influence Most to Drive the Growth in Building Automation Systems Market?

“Growing Deployment Influences Building Automation”

The increase in building computerization frameworks in places of business, shopping centers, and public transportation centers, for example, train stations and air terminals, is expected to fuel the development of the structure mechanization and control framework market. Lighting controls, security and access control systems, and business sectors are the most commonly used items in the home, business, and commercial sectors. As security concerns have grown across all industries, security and access control systems have become essential to a number of industrial verticals.

• In May 2022, the latest addition to Johnson Controls-Hitachi's PRIMARY P300 line of high-efficiency, single-zone commercial mini-split systems is a Wall Mount indoor mini-split unit. This ductless heating and cooling system was designed to meet the specific needs of small to medium-sized businesses, restaurants, and educational facilities, among others. The new wall mount unit is small and light, and the Hitachi PRIMARY mini-split systems in general can be mounted in a variety of ways, making it easier for contractors to install them. A system's extensive capacity range ensures that it is precisely the right size for any application, and its long pipe increases layout flexibility.
• In September 2022, Fire-lite, a line of fire protection systems intended for small and medium-sized businesses, was recently introduced by Honeywell International in Australia. Australia-wide mid-rise residential, retail, and warehouse buildings. Fire-Lite's customizable and shrewd addressable fire boards are intended to meet a scope of building necessities by giving adaptable answers for help various establishments.

Rising Urbanization in low and middle income countries thriving demand for BAS

The rapid growth of the global urban population is a key driver for the increasing adoption of Building Automation Systems. Urbanization is expanding across all income levels, with middle-income countries witnessing an increase from 40% in 2000 to 54% in 2023, while lower-middle-income and low-income countries have also experienced steady growth. This trend is fueling the need for smart, energy-efficient, and technologically advanced buildings to manage rising energy demands, infrastructure pressures, and sustainability goals.

China, an upper-middle-income country, has seen urbanization soar from 48% in 2000 to 69% in 2023, driving investments in smart cities and green buildings. Similarly, India’s urban population has grown from 31% to 41%, pushing government initiatives like the Smart Cities Mission, which is accelerating the adoption of automated HVAC, lighting, and security systems. Meanwhile, in high-income countries such as the United States, where urbanization has stabilized at 81%, BAS adoption is driven by stringent energy efficiency regulations and retrofitting of older buildings.

Latin American countries, particularly Brazil, are integrating BAS into smart infrastructure projects, while African nations like South Africa and Kenya are gradually adopting smart building solutions. As cities continue expanding, BAS will play a crucial role in optimizing energy use, enhancing security, and ensuring sustainable urban growth worldwide.

Why in U.S Security and Surveillance System will boost the Demand of Building Automation Systems Market?

“Improvement in the Safety and Security”

The security and safety of buildings are enhanced by these solutions. The need for access control, activity monitoring, and higher levels of security has led to an increase in the demand for security and surveillance systems. The majority of the growth of the segment in the global market can be attributed to the commercial use of these systems in offices, shops, schools, and hospitals.

The reason for the segment's expansion is the widespread use of video surveillance and access control systems in homes, businesses, government buildings, and financial institutions. Due to these the Security and Surveillance segment was estimated to have the significant market share of 15.5% in 2024.

In India why Adoption is increased in Building Automation Systems Market?

“Technological Advancement in ML and IoT”

Smart cities are getting more and more support from government agencies all over the world, and smart buildings are expected to become mainstream soon. New technologies like Wi-fi and the Internet of Things (IoT) are being incorporated into current building automation and control systems as a result of significant technological advancements. The global market for building automation and control systems is expected to expand thanks to advancements in cloud computing, machine learning, artificial intelligence, and connectivity technologies.

Due to these building automation systems market in India is estimated to grow at a CAGR of 15.5% over the forecast period in India.

In Building Automation Systems Market in Europe, Which Country will create more Opportunities?

“Development of Smart Cities”

Germany is one of the most significant country in Europe holding the largest share of 17.8% in the European building automation systems market. The market for smart buildings and homes has pushed for more energy-efficient, safer, and easier-to-use access controls. It is anticipated that it will be the basis for intelligent buildings in future smart cities, making it the next great opportunity for leaders in the industry to pursue. It connects smart building technology to other systems like lighting management and HVAC. The growing acceptance of smart city projects presents attractive opportunities in the market for building automation and controls.

Category-wise Insights

 “Smart HVAC System Enhances the Energy Efficiency of Building Automation Systems”

?The increasing demand for smart Heating, Ventilation, and Air Conditioning (HVAC) systems drives the Building Automation Systems market. Smart HVAC systems integrate advanced sensors, controls, and diagnostic tools to optimize performance, enhance energy efficiency, and improve indoor air quality.

According to the U.S. Department of Energy (DOE), heating and cooling account for nearly 50% of energy consumption in residential buildings, highlighting the critical need for energy-efficient solutions. Smart HVAC systems leverage advanced sensors, IoT-enabled controls, and data analytics to optimize temperature control, monitor air quality, and manage energy consumption in real time.

Smart thermostats, a key component of smart HVAC systems, have been shown to achieve energy savings ranging from 8% to 31% by employing features such as occupancy sensing and nighttime setback. These devices adjust heating and cooling based on real-time data, contributing to significant reductions in energy consumption. ?

The segment is anticipated to hold about 30% market share by the end of forecast period.

 “Rising Demand for Saving Energy Due to the Volatile Cost of Energy Sources”

Building automation systems can regulate a building's heating and cooling, lighting, appliances, and other energy requirements to maximize energy efficiency and worker productivity, according to a government organization. This means that commercial buildings waste energy and can save it. As a result, these solutions are being implemented by commercial buildings, such as shopping malls, supermarkets, warehouses, restaurants, office buildings, colleges, schools, libraries, museums, hospitals, and nursing homes, to reduce the costs of building management.

Due to these the building automation market for commercial was estimated to have the largest market share of 32.1% in 2024.

Competitive Landscape

The global Integrated building automation systems market's key players are focusing on business strategies such as product expansion. Companies involved in building automation systems are aiming for product innovation and strategic partnerships with other vendors to enhance their portfolios while addressing the demand of an expanding customer pool. The introduction of new products and strategic partnerships are key in this landscape.

• In May 2022, Building connect+, an enhanced version of the cloud-based controls and monitoring platform, has been made available by Mitsubishi Electric Trane HVAC US, a leading manufacturer of ductless and ducted mini-split as well as variable refrigerant flow (VRF) heat-pump and air conditioning systems. Building connect is a cloud-based, pre-engineered, secure control and monitoring platform for controlling and managing BACnet-enabled third-party devices and city multi systems.
• In March 2022 - Hitachi Elevator Co. Ltd., a joint venture between Hitachi Ltd. and Siam Motors Group, Thailand's sole elevator and escalator sales and Service Company, announced the first-ever full-scale Smart Building Solution business in Thailand and Southeast Asia. Using the Lumada IoT platform, this aims to add value to buildings by providing digital services and a physical security system for the new normal.

Recent developments related to key players providing Building Automation Systems Market have been tracked by the analysts at Persistence Market Research, which will be accessible in the full report.

Building Automation Systems Market Report Scope

Key Segments of Building Automation Systems Market Research

By System:

• Security and Surveillance
• HVAC
• Lighting Solutions
• Building Energy Management
• Others

 By Application:

• Commercial
• Residential
• Government
• Others

By Region:

• North America
• Latin America
• Europe
• East Asia
• South Asia & Oceania
• Middle East and Africa

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