Building Automation Systems - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2025 - 2030)

Building Automation Systems Market Analysis

The building automation systems market size reached a value of USD 202.29 billion in 2025 and is forecast to reach USD 347.05 billion by 2030, reflecting an 11.40% CAGR. At 50% of a commercial facility’s energy bill, HVAC remains the primary cost driver, so automation platforms that link HVAC with lighting and security are receiving priority investment. California’s 2025 Title 24 standards now oblige every new non-residential project to include demand-responsive controls that follow OpenADR protocols. The U.S. Department of Energy has determined that ASHRAE 90.1-2022 will lift commercial building efficiency by 9.8% over the 2019 edition. Similar frameworks in the EU and Asia-Pacific require precise carbon reporting, so owners see automation as essential, not optional. Market leaders are using strategic acquisitions to widen product scope and lock in long-term service contracts, while wireless BACnet cuts installation time by 70% for retrofit projects.

Global Building Automation Systems Market Trends and Insights

Rising Energy-Efficiency & Regulatory Push

New energy codes are turning automation from a discretionary upgrade into a regulatory requirement. The EU Energy Performance of Buildings Directive obliges every residential building to reach at least an E-rating by 2030 and a D-rating by 2033, forcing owners to automate lighting, HVAC, and metering. California’s 2025 rules demand remote set-point adjustment for non-residential HVAC systems, while lighting loads above 4,000 W must provide a 15% automated power reduction. Michigan has joined with a new commercial code that mirrors ASHRAE 90.1-2022. These standards remove the traditional payback debate and establish a durable growth floor for the building automation systems market.

Government Incentives for Smart Buildings

Fiscal policy complements regulation by lowering the initial capital outlay. In the United States, the Infrastructure Investment and Jobs Act and the Inflation Reduction Act subsidize automation hardware and software, supporting projects such as Schneider Electric’s USD 140 million Tennessee plant expansion. Utility rebates cut the University of California, San Diego’s wireless thermostat project cost from USD 295,700 to USD 14,600, delivering a 0.2-year payback. In Asia-Pacific, Singapore’s Green Building Master Plan offers grants that cover up to 50% of smart-building retrofit expenses. Such incentives accelerate adoption curves and shorten sales cycles across the building automation systems market.

High Upfront & Retrofit Costs

Retrofit projects must overcome labor and wiring expenses that can outstrip equipment prices. Honeywell’s Advance Control for Buildings leverages existing cabling to cut retrofit installation time by 40%, yet smaller properties still face capital constraints. Financing solutions such as energy-service agreements remain underdeveloped compared with solar PPA structures, creating a drag on deployment velocity in markets where incentives are limited.

Other drivers and restraints analyzed in the detailed report include:

1. IoT & Cloud Integration Accelerating Adoption
2. AI-Based Performance Contracts
3. Cyber-Security & Interoperability Gaps

For complete list of drivers and restraints, kindly check the Table Of Contents.

Segment Analysis

Hardware still provides 55.90% of 2024 revenue, primarily through sensors, controllers, and field devices. Software, however, is growing at a 12.40% CAGR as owners shift from perpetual licenses to subscription models. The building automation systems market size for software is projected to reach USD 132 billion by 2030, equal to 38% of total revenue, up from 29% in 2024. Schneider Electric’s SaaS portfolio climbed 140% in 2024, showing how data analytics, remote diagnostics, and cybersecurity services create recurring revenue.

Much of the incremental value is unlocked through cloud APIs that link disparate devices. Johnson Controls’ flattened Metasys architecture halves integration time and boosts device throughput, while Honeywell’s Connected Solutions bundles hardware and software in an outcome-based contract. As a result, the building automation systems market continues to migrate toward software-defined solutions that optimize over the asset life rather than the initial capital cycle. That migration also elevates cybersecurity and data-sovereignty questions that regulators are starting to codify in procurement guidelines.

Security and access control retained a 50.30% revenue share in 2024, reflecting corporate risk mitigation priorities. Building energy management systems are expanding at an 11.80% CAGR, and their share of the building automation systems market size is set to rise from 19% in 2024 to 24% by 2030. Utilities now pay peak-shaving fees of USD 60–100 per kW per year, improving energy management payback, while demand-response programs reward dynamic load shedding. ABB and Samsung are integrating residential energy management into SmartThings Pro, highlighting convergence between commercial automation and the consumer IoT domain.

Energy codes increasingly require continuous commissioning dashboards that pull data from HVAC, lighting, and plug loads. Owners, therefore, bundle energy management into base-build specifications rather than treating it as an add-on. In commercial portfolios above 50 sites, portfolio analytics reduce utility bills by 12% and shrink corporate emissions baselines, supporting environmental, social, and governance reporting. Developers who factor these benefits into pro-formas gain access to green loan discounts, creating a self-reinforcing cycle for the building automation systems market.

Building Automation and Control System Market is Segmented by Component (Hardware, Software, Services), System Type (HVAC Control Systems, Lighting Control Systems, Security and Access Control Systems, and More), Communication Technology (Wired, Wireless), End-User (Residential, Commercial, Industrial, and Institutional/Government), and by Geography. The Market Forecasts are Provided in Terms of Value (USD).

Geography Analysis

North America holds a 38.00% revenue share and is projected to preserve its lead through 2030 as federal decarbonization mandates require a 90% fossil-fuel phase-out in federal facilities by 2029. The GSA’s Oklahoma City Federal Building validated a 41% energy cut through grid-interactive controls, creating a benchmark for other agencies. State-level codes in California and Michigan raise the baseline for private projects, and generous tax credits reduce net costs for retrofit portfolios.

Asia-Pacific is the fastest-growing territory with a 12.20% CAGR. China’s 14th Five-Year Plan embeds building automation in smart city budgets, while Singapore’s Green Building Master Plan underwrites performance-based retrofits. ABB and Samsung have teamed up to integrate energy analytics into mainstream consumer platforms, expanding addressable demand from high-end offices to mass-market apartments. Emerging ASEAN economies post 8.1% annual growth as national energy master plans fund public-sector use cases.

Europe benefits from the Energy Performance of Buildings Directive, which sets progressive renovation targets through 2033. Germany’s AI economy is expanding at 15% per year, providing a talent pool and R&D base that underpins advanced automation. Northern European countries lead on net-zero hotel and mixed-use developments, exemplified by Denmark’s Alsik Hotel, which integrates guest-booking systems with HVAC for continuous efficiency.

List of Companies Covered in this Report:

1. Honeywell International Inc.
2. Cisco Systems Inc.
3. Trane Technologies plc
4. Lutron Electronics Co. Ltd
5. Hubbell Inc.
6. United Technologies Corp.
7. Hitachi Ltd.
8. Huawei Technologies Co., Ltd.
9. Emerson Electric Co.
10. Mitsubishi Electric Corp.
11. Johnson Controls International plc
12. Siemens AG
13. Schneider Electric SE
14. ABB Ltd.
15. Delta Controls Inc.
16. Distech Controls (Acuity Brands)
17. Carrier Global Corp. (Automated Logic)
18. Bosch Building Technologies
19. Legrand SA
20. Signify N.V.
21. Azbil Corporation
22. KMC Controls Inc.
23. Alerton (Honeywell)
24. Crestron Electronics
25. Rockwell Automation Inc.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support