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Building automation market to grow steadily through 2021

Posted: 12 Nov 2015 ?? ?Print Version ?Bookmark and Share

Keywords:ABI Research? building automation? Internet of Things?

According to the latest forecast from ABI Research, the building automation market will experience steady but incremental growth in the next five years to generate $45 billion by 2021. Europe will dominate the market in terms of revenues followed by North America and Asia Pacific in 2021.

The big four building automation OEMs, namely Honeywell, Schneider Electric, Johnson Controls and Siemens, have more than 60 per cent market share and a strong influence in the market. Holding back adoption is the slow return on investment for building owners due to the high costs of installing building automation systems.

Office buildings are projected to be the biggest verticals in the forecast period followed by retail and public assembly buildings. Among the other verticals, hospitality and healthcare are expected to witness rapid growth from 2016-2021. In hospitality, the short refurbishment cycles in hotels are becoming a lucrative market for solution providers to upgrade or replace existing systems with more intelligent systems to improve the overall customer experience. In healthcare, increasing regulatory and compliance requirements are driving the use of connected medical devices to improve auditability in the use of high value moveable assets and to control environments to improve patient comfort.

"The Internet of Things and its adoption in consumer markets has a noticeable impact in the traditionally conservative industry with distributed intelligence and cloud-based analytics gaining acceptance," said Adarsh Krishnan, senior analyst at ABI Research.

As the market continues to witness a gradual shift towards more integrated solutions, there is wider acceptance for interoperable systems that foster innovative applications to optimise building environment. This further allows for potential integration of building automation systems with utility deployed smart metres to gain greater insight into energy and water consumption in buildings in order to efficiently manage resources.

Wired field equipment accounts for the majority of commercial building connections in 2015, but wireless is gaining traction for connecting wireless field devices. Wired connectivity solutions adhere to the high Quality of Service (QoS) requirements for applications, such as security, fire and life safety applications that are critical requirements mandated by regulatory compliance. Applications such as lighting and HVAC are increasing their use of wireless technologies accounting for 19 per cent and 21 per cent of the annual field equipment shipped in 2021.

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