Building Automation Market Forecasts to 2032 – Global Analysis By Offering (Hardware, Software, and Services), Technology (Wired Technologies, and Wireless Technologies), Application, End User, and By Geography
Description
According to Stratistics MRC, the Global Building Automation System Market is accounted for $104.4 billion in 2025 and is expected to reach $202.1 billion by 2032, growing at a CAGR of 9.9% during the forecast period. The building automation system provides integrated control systems for HVAC, lighting, access, and energy management in commercial buildings to enhance comfort, efficiency, and operational visibility. Modern BAS platforms incorporate IoT sensors, cloud analytics, and occupant-centric controls to optimize energy use and support sustainability targets. Integration with metering, fault detection, and maintenance workflows reduces operating costs and improves indoor environmental quality.
According to the U.S. Department of Energy (Building Technologies Office), about 80% of commercial buildings do not yet have a modern building automation / EMCS in place.
Market Dynamics:
Driver:
Growing adoption of smart city initiatives and IoT-enabled building management systems
Governments and municipalities are heavily investing in intelligent infrastructure to enhance urban livability, sustainability, and operational efficiency. These initiatives fundamentally rely on IoT-enabled building management systems to interconnect core functions like lighting, security, and HVAC. This creates a centralized, data-driven approach to facility management, leading to significant energy conservation and operational cost savings, thereby propelling market demand as building owners seek to meet modern urban standards.
Restraint:
Complexity in integrating new automation technologies with legacy building infrastructure
Many existing buildings operate on older, proprietary systems that lack the open communication protocols required by modern IoT solutions. This incompatibility often necessitates costly and disruptive custom engineering work, extensive rewiring, and system overhauls. Consequently, the high upfront cost and technical difficulty can deter investment, particularly in older commercial and public buildings, slowing down adoption rates.
Opportunity:
Growth of cloud-based Building Management Platforms
The emergence of sophisticated cloud-based building management platforms presents a substantial growth avenue for the market. These platforms democratize access to advanced analytics and centralized control by eliminating the need for large, on-premise server infrastructure. They offer scalable, subscription-based models that are more affordable for small and medium-sized enterprises. Furthermore, cloud platforms facilitate the integration of diverse building systems and enable remote, real-time monitoring and optimization, opening new service-based revenue streams for providers and making BAS capabilities accessible to a broader customer base.
Threat:
Economic volatility affecting construction and building renovation investments
Economic volatility and the potential for recession pose a credible threat to the BAS market's stability. These systems are often considered capital investments within larger construction or major renovation budgets. During periods of economic uncertainty or high-interest rates, both commercial and residential construction projects are frequently delayed or scaled back. Additionally, businesses tend to postpone non-essential capital expenditures on building upgrades, directly impacting the sale and installation of new automation systems and restraining short-term market growth.
Covid-19 Impact:
The pandemic initially caused significant supply chain disruptions and project delays, stalling market growth in 2020. However, it simultaneously accelerated the long-term adoption of BAS technologies. The increased focus on occupant health and safety led to a rise in demand for automated touchless controls, advanced air quality monitoring systems, and optimized HVAC systems to improve indoor ventilation. This shift in priorities highlighted the value of intelligent building systems in creating safer, more resilient, and more adaptable environments for occupants in a post-pandemic world.
The hardware segment is expected to be the largest during the forecast period
The hardware segment is expected to account for the largest market share during the forecast period, attributed to the fundamental need for physical components to enable any level of automation. This includes a wide range of essential devices, such as sensors, controllers, actuators, and field devices, which form the backbone of any BAS installation. As new constructions and retrofits continue to adopt automation, the prerequisite for this underlying hardware remains non-negotiable. Moreover, the continuous proliferation of IoT sensors for data collection ensures consistent and robust demand for hardware components, securing its position as the market's largest segment.
The building energy management systems (BEMS) segment is expected to have the highest CAGR during the forecast period
Over the forecast period, the building energy management systems (BEMS) segment is predicted to witness the highest growth rate, driven by intense regulatory and economic pressures to improve energy efficiency. Stricter global carbon emission targets and volatile energy costs are compelling building owners to invest in specialized systems that monitor, control, and optimize energy consumption. BEMS provide a direct path to significant operational cost savings and sustainability credential enhancement. Their ability to integrate with smart grids and leverage data analytics for predictive energy management makes them a high-value, fast-growing solution within the broader BAS market.
Region with largest share:
During the forecast period, the North America region is expected to hold the largest market share. This leadership is anchored in the region's early adoption of smart building technologies, stringent government regulations concerning energy efficiency, and the presence of a mature real estate and construction sector. Furthermore, high consumer awareness and the pressing need to modernize an aging building stock create a consistent, strong demand for advanced automation solutions. The concentration of major BAS vendors in this region also reinforces its dominant market position.
Region with highest CAGR:
Over the forecast period, the Asia Pacific region is anticipated to exhibit the highest CAGR. This accelerated growth is fueled by rapid urbanization, massive investments in smart city projects across countries like China, India, and Japan, and supportive government initiatives promoting green buildings. The region's booming construction industry, particularly in the commercial and industrial sectors, provides a fertile ground for new BAS installations. Additionally, rising energy costs and growing environmental consciousness are pushing the adoption of efficient building management systems, contributing to their high growth rat
Key players in the market
Some of the key players in Building Automation System Market include Honeywell International Inc., Siemens AG, Schneider Electric SE, Johnson Controls International plc, ABB Ltd, Emerson Electric Co., Rockwell Automation, Inc., Delta Electronics, Inc., Robert Bosch GmbH, Carrier Global Corporation, Trane Technologies plc, Mitsubishi Electric Corporation, Panasonic Holdings Corporation, Legrand SA, Lutron Electronics Co., Inc., Acuity Brands, Inc., Hitachi, Ltd., Cisco Systems, Inc., Beckhoff Automation GmbH & Co. KG, and Eaton Corporation plc.
Key Developments:
In November 2025, Siemens launched SIPANEL industrial control panels in the US, designed for protection, automation, and control applications in smart infrastructure projects, featuring digital twin precision engineering for faster delivery and integration.
In June 2025, Honeywell launched Honeywell Connected Solutions, an AI-powered platform that integrates critical building software and technologies into a single interface for more efficient building operations.
In May 2025, Emerson announced Project Beyond, a software-defined OT platform to modernize and integrate industrial automation stacks (relevant to facility and building control ecosystems).
Offerings Covered:
• Hardware
• Software
• Services
Technologies Covered:
• Wired Technologies
• Wireless Technologies
Applications Covered:
• Heating, Ventilation, and Air Conditioning (HVAC) Control
• Lighting Control Systems
• Security and Access Control Systems
• Building Energy Management Systems (BEMS)
• Elevators and Escalator Management Systems
End Users Covered:
• Commercial
• Residential
• Industrial
• Institutional
Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa
What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2024, 2025, 2026, 2028, and 2032
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements
According to the U.S. Department of Energy (Building Technologies Office), about 80% of commercial buildings do not yet have a modern building automation / EMCS in place.
Market Dynamics:
Driver:
Growing adoption of smart city initiatives and IoT-enabled building management systems
Governments and municipalities are heavily investing in intelligent infrastructure to enhance urban livability, sustainability, and operational efficiency. These initiatives fundamentally rely on IoT-enabled building management systems to interconnect core functions like lighting, security, and HVAC. This creates a centralized, data-driven approach to facility management, leading to significant energy conservation and operational cost savings, thereby propelling market demand as building owners seek to meet modern urban standards.
Restraint:
Complexity in integrating new automation technologies with legacy building infrastructure
Many existing buildings operate on older, proprietary systems that lack the open communication protocols required by modern IoT solutions. This incompatibility often necessitates costly and disruptive custom engineering work, extensive rewiring, and system overhauls. Consequently, the high upfront cost and technical difficulty can deter investment, particularly in older commercial and public buildings, slowing down adoption rates.
Opportunity:
Growth of cloud-based Building Management Platforms
The emergence of sophisticated cloud-based building management platforms presents a substantial growth avenue for the market. These platforms democratize access to advanced analytics and centralized control by eliminating the need for large, on-premise server infrastructure. They offer scalable, subscription-based models that are more affordable for small and medium-sized enterprises. Furthermore, cloud platforms facilitate the integration of diverse building systems and enable remote, real-time monitoring and optimization, opening new service-based revenue streams for providers and making BAS capabilities accessible to a broader customer base.
Threat:
Economic volatility affecting construction and building renovation investments
Economic volatility and the potential for recession pose a credible threat to the BAS market's stability. These systems are often considered capital investments within larger construction or major renovation budgets. During periods of economic uncertainty or high-interest rates, both commercial and residential construction projects are frequently delayed or scaled back. Additionally, businesses tend to postpone non-essential capital expenditures on building upgrades, directly impacting the sale and installation of new automation systems and restraining short-term market growth.
Covid-19 Impact:
The pandemic initially caused significant supply chain disruptions and project delays, stalling market growth in 2020. However, it simultaneously accelerated the long-term adoption of BAS technologies. The increased focus on occupant health and safety led to a rise in demand for automated touchless controls, advanced air quality monitoring systems, and optimized HVAC systems to improve indoor ventilation. This shift in priorities highlighted the value of intelligent building systems in creating safer, more resilient, and more adaptable environments for occupants in a post-pandemic world.
The hardware segment is expected to be the largest during the forecast period
The hardware segment is expected to account for the largest market share during the forecast period, attributed to the fundamental need for physical components to enable any level of automation. This includes a wide range of essential devices, such as sensors, controllers, actuators, and field devices, which form the backbone of any BAS installation. As new constructions and retrofits continue to adopt automation, the prerequisite for this underlying hardware remains non-negotiable. Moreover, the continuous proliferation of IoT sensors for data collection ensures consistent and robust demand for hardware components, securing its position as the market's largest segment.
The building energy management systems (BEMS) segment is expected to have the highest CAGR during the forecast period
Over the forecast period, the building energy management systems (BEMS) segment is predicted to witness the highest growth rate, driven by intense regulatory and economic pressures to improve energy efficiency. Stricter global carbon emission targets and volatile energy costs are compelling building owners to invest in specialized systems that monitor, control, and optimize energy consumption. BEMS provide a direct path to significant operational cost savings and sustainability credential enhancement. Their ability to integrate with smart grids and leverage data analytics for predictive energy management makes them a high-value, fast-growing solution within the broader BAS market.
Region with largest share:
During the forecast period, the North America region is expected to hold the largest market share. This leadership is anchored in the region's early adoption of smart building technologies, stringent government regulations concerning energy efficiency, and the presence of a mature real estate and construction sector. Furthermore, high consumer awareness and the pressing need to modernize an aging building stock create a consistent, strong demand for advanced automation solutions. The concentration of major BAS vendors in this region also reinforces its dominant market position.
Region with highest CAGR:
Over the forecast period, the Asia Pacific region is anticipated to exhibit the highest CAGR. This accelerated growth is fueled by rapid urbanization, massive investments in smart city projects across countries like China, India, and Japan, and supportive government initiatives promoting green buildings. The region's booming construction industry, particularly in the commercial and industrial sectors, provides a fertile ground for new BAS installations. Additionally, rising energy costs and growing environmental consciousness are pushing the adoption of efficient building management systems, contributing to their high growth rat
Key players in the market
Some of the key players in Building Automation System Market include Honeywell International Inc., Siemens AG, Schneider Electric SE, Johnson Controls International plc, ABB Ltd, Emerson Electric Co., Rockwell Automation, Inc., Delta Electronics, Inc., Robert Bosch GmbH, Carrier Global Corporation, Trane Technologies plc, Mitsubishi Electric Corporation, Panasonic Holdings Corporation, Legrand SA, Lutron Electronics Co., Inc., Acuity Brands, Inc., Hitachi, Ltd., Cisco Systems, Inc., Beckhoff Automation GmbH & Co. KG, and Eaton Corporation plc.
Key Developments:
In November 2025, Siemens launched SIPANEL industrial control panels in the US, designed for protection, automation, and control applications in smart infrastructure projects, featuring digital twin precision engineering for faster delivery and integration.
In June 2025, Honeywell launched Honeywell Connected Solutions, an AI-powered platform that integrates critical building software and technologies into a single interface for more efficient building operations.
In May 2025, Emerson announced Project Beyond, a software-defined OT platform to modernize and integrate industrial automation stacks (relevant to facility and building control ecosystems).
Offerings Covered:
• Hardware
• Software
• Services
Technologies Covered:
• Wired Technologies
• Wireless Technologies
Applications Covered:
• Heating, Ventilation, and Air Conditioning (HVAC) Control
• Lighting Control Systems
• Security and Access Control Systems
• Building Energy Management Systems (BEMS)
• Elevators and Escalator Management Systems
End Users Covered:
• Commercial
• Residential
• Industrial
• Institutional
Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa
What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2024, 2025, 2026, 2028, and 2032
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements
Table of Contents
200 Pages
- 1 Executive Summary
- 2 Preface
- 2.1 Abstract
- 2.2 Stake Holders
- 2.3 Research Scope
- 2.4 Research Methodology
- 2.4.1 Data Mining
- 2.4.2 Data Analysis
- 2.4.3 Data Validation
- 2.4.4 Research Approach
- 2.5 Research Sources
- 2.5.1 Primary Research Sources
- 2.5.2 Secondary Research Sources
- 2.5.3 Assumptions
- 3 Market Trend Analysis
- 3.1 Introduction
- 3.2 Drivers
- 3.3 Restraints
- 3.4 Opportunities
- 3.5 Threats
- 3.6 Technology Analysis
- 3.7 Application Analysis
- 3.8 End User Analysis
- 3.9 Emerging Markets
- 3.10 Impact of Covid-19
- 4 Porters Five Force Analysis
- 4.1 Bargaining power of suppliers
- 4.2 Bargaining power of buyers
- 4.3 Threat of substitutes
- 4.4 Threat of new entrants
- 4.5 Competitive rivalry
- 5 Global Building Automation Market, By Offering
- 5.1 Introduction
- 5.2 Hardware
- 5.2.1 Sensors
- 5.2.2 Controllers and Relays (DDC)
- 5.2.3 Actuators and Valves
- 5.2.4 5.2.4. Dampers
- 5.3 Software
- 5.3.1 Building Management Platforms (On-Premise)
- 5.3.2 Cloud-based/ SaaS Platforms
- 5.4 Services
- 5.4.1 Installation & Integration
- 5.4.2 Maintenance & Support Services
- 5.4.3 Consulting & Training Services
- 6 Global Building Automation Market, By Technology
- 6.1 Introduction
- 6.2 Wired Technologies
- 6.2.1 BACnet
- 6.2.2 LonWorks
- 6.2.3 Modbus
- 6.2.4 KNX
- 6.2.5 Other Wired Technologies
- 6.3 Wireless Technologies
- 6.3.1 Wi-Fi
- 6.3.2 Zigbee
- 6.3.3 Bluetooth/ Bluetooth Low Energy (BLE)
- 6.3.4 LoRaWAN
- 6.3.5 Cellular
- 7 Global Building Automation Market, By Application
- 7.1 Introduction
- 7.2 Heating, Ventilation, and Air Conditioning (HVAC) Control
- 7.3 Lighting Control Systems
- 7.4 Security and Access Control Systems
- 7.4.1 Video Surveillance Systems (CCTV)
- 7.4.2 Access Control Systems
- 7.4.3 Fire and Life Safety Systems
- 7.5 Building Energy Management Systems (BEMS)
- 7.6 Elevators and Escalator Management Systems
- 8 Global Building Automation Market, By End User
- 8.1 Introduction
- 8.2 Commercial
- 8.2.1 Office Buildings
- 8.2.2 Retail Malls and Spaces
- 8.2.3 Hospitals and Healthcare Facilities
- 8.2.4 Hotels and Resorts
- 8.2.5 Data Centers
- 8.2.6 Airports and Railways Stations
- 8.3 Residential
- 8.3.1 Luxury Apartments and Condominiums
- 8.3.2 Gated Communities and Townships
- 8.4 Industrial
- 8.4.1 Manufacturing Plants
- 8.4.2 Warehouses and Logistics Centers
- 8.5 Institutional
- 8.5.1 Educational Institutions
- 8.5.2 Government and Public Infrastructure
- 9 Global Building Automation Market, By Geography
- 9.1 Introduction
- 9.2 North America
- 9.2.1 US
- 9.2.2 Canada
- 9.2.3 Mexico
- 9.3 Europe
- 9.3.1 Germany
- 9.3.2 UK
- 9.3.3 Italy
- 9.3.4 France
- 9.3.5 Spain
- 9.3.6 Rest of Europe
- 9.4 Asia Pacific
- 9.4.1 Japan
- 9.4.2 China
- 9.4.3 India
- 9.4.4 Australia
- 9.4.5 New Zealand
- 9.4.6 South Korea
- 9.4.7 Rest of Asia Pacific
- 9.5 South America
- 9.5.1 Argentina
- 9.5.2 Brazil
- 9.5.3 Chile
- 9.5.4 Rest of South America
- 9.6 Middle East & Africa
- 9.6.1 Saudi Arabia
- 9.6.2 UAE
- 9.6.3 Qatar
- 9.6.4 South Africa
- 9.6.5 Rest of Middle East & Africa
- 10 Key Developments
- 10.1 Agreements, Partnerships, Collaborations and Joint Ventures
- 10.2 Acquisitions & Mergers
- 10.3 New Product Launch
- 10.4 Expansions
- 10.5 Other Key Strategies
- 11 Company Profiling
- 11.1 Honeywell International Inc.
- 11.2 Siemens AG
- 11.3 Schneider Electric SE
- 11.4 Johnson Controls International plc
- 11.5 ABB Ltd
- 11.6 Emerson Electric Co.
- 11.7 Rockwell Automation, Inc.
- 11.8 Delta Electronics, Inc.
- 11.9 Robert Bosch GmbH
- 11.10 Carrier Global Corporation
- 11.11 Trane Technologies plc
- 11.12 Mitsubishi Electric Corporation
- 11.13 Panasonic Holdings Corporation
- 11.14 Legrand SA
- 11.15 Lutron Electronics Co., Inc.
- 11.16 Acuity Brands, Inc.
- 11.17 Hitachi, Ltd.
- 11.18 Cisco Systems, Inc.
- 11.19 Beckhoff Automation GmbH & Co. KG
- 11.20 Eaton Corporation plc
- List of Tables
- Table 1 Global Factory Automation Market Outlook, By Region (2024–2032) ($MN)
- Table 2 Global Factory Automation Market Outlook, By Component (2024–2032) ($MN)
- Table 3 Global Factory Automation Market Outlook, By Hardware (2024–2032) ($MN)
- Table 4 Global Factory Automation Market Outlook, By Hardware: Sensors & Vision Systems (2024–2032) ($MN)
- Table 5 Global Factory Automation Market Outlook, By Robots (2024–2032) ($MN)
- Table 6 Global Factory Automation Market Outlook, By Controllers (2024–2032) ($MN)
- Table 7 Global Factory Automation Market Outlook, By Drives (2024–2032) ($MN)
- Table 8 Global Factory Automation Market Outlook, By Actuators & Valves (2024–2032) ($MN)
- Table 9 Global Factory Automation Market Outlook, By Safety Components (2024–2032) ($MN)
- Table 10 Global Factory Automation Market Outlook, By Other Hardware (2024–2032) ($MN)
- Table 11 Global Factory Automation Market Outlook, By Software (2024–2032) ($MN)
- Table 12 Global Factory Automation Market Outlook, By Supervisory Control and Data Acquisition (SCADA) (2024–2032) ($MN)
- Table 13 Global Factory Automation Market Outlook, By Manufacturing Execution Systems (MES) (2024–2032) ($MN)
- Table 14 Global Factory Automation Market Outlook, By Distributed Control Systems (DCS) (2024–2032) ($MN)
- Table 15 Global Factory Automation Market Outlook, By Human-Machine Interface (HMI) (2024–2032) ($MN)
- Table 16 Global Factory Automation Market Outlook, By Product Lifecycle Management (PLM) (2024–2032) ($MN)
- Table 17 Global Factory Automation Market Outlook, By Industrial Internet of Things (IIoT) Platforms (2024–2032) ($MN)
- Table 18 Global Factory Automation Market Outlook, By Services (2024–2032) ($MN)
- Table 19 Global Factory Automation Market Outlook, By System Integration & Consulting (2024–2032) ($MN)
- Table 20 Global Factory Automation Market Outlook, By Maintenance & Support Services (2024–2032) ($MN)
- Table 21 Global Factory Automation Market Outlook, By Training & Implementation Services (2024–2032) ($MN)
- Table 22 Global Factory Automation Market Outlook, By Solution (2024–2032) ($MN)
- Table 23 Global Factory Automation Market Outlook, By Programmable Logic Controllers (PLC) (2024–2032) ($MN)
- Table 24 Global Factory Automation Market Outlook, By Machine Vision Systems (2024–2032) ($MN)
- Table 25 Global Factory Automation Market Outlook, By Human-Machine Interface (HMI) (2024–2032) ($MN)
- Table 26 Global Factory Automation Market Outlook, By Distributed Control Systems (DCS) (2024–2032) ($MN)
- Table 27 Global Factory Automation Market Outlook, By Supervisory Control and Data Acquisition (SCADA) (2024–2032) ($MN)
- Table 28 Global Factory Automation Market Outlook, By Manufacturing Execution Systems (MES) (2024–2032) ($MN)
- Table 29 Global Factory Automation Market Outlook, By Industrial Networks (2024–2032) ($MN)
- Table 30 Global Factory Automation Market Outlook, By Process Automation (2024–2032) ($MN)
- Table 31 Global Factory Automation Market Outlook, By End User (2024–2032) ($MN)
- Table 32 Global Factory Automation Market Outlook, By Food & Beverage (2024–2032) ($MN)
- Table 33 Global Factory Automation Market Outlook, By Chemicals & Materials (2024–2032) ($MN)
- Table 34 Global Factory Automation Market Outlook, By Pharmaceuticals & Healthcare (2024–2032) ($MN)
- Table 35 Global Factory Automation Market Outlook, By Oil & Gas (2024–2032) ($MN)
- Table 36 Global Factory Automation Market Outlook, By Energy & Power (2024–2032) ($MN)
- Table 37 Global Factory Automation Market Outlook, By Semiconductor & Electronics (2024–2032) ($MN)
- Table 38 Global Factory Automation Market Outlook, By Aerospace & Defense (2024–2032) ($MN)
- Table 39 Global Factory Automation Market Outlook, By Packaging (2024–2032) ($MN)
- Table 40 Global Factory Automation Market Outlook, By Machine Manufacturing (2024–2032) ($MN)
- Table 41 Global Factory Automation Market Outlook, By Other End Users (2024–2032) ($MN)
- Note: Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.
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