Building Management System Market Size was valued at USD 15.3 Billion in 2022. The Building Management System market industry is projected to grow from USD 17.59 Billion in 2023 to USD 53.823 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 15.00% during the forecast period (2024 - 2032). Some key market drivers propelling the expansion include the increased emphasis on creating eco-friendly and energy-efficient buildings, the expanding use of automated security systems in commercial buildings, and the growing appeal of IoT-based Building Automation Systems (BASs).
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Globally, energy conservation through building energy efficiency has become increasingly important. Energy-passive building design before actual construction and low-energy building materials during construction are the two primary components of energy efficiency in a structure. Integrating renewable energy technology and using energy-efficient equipment with low operating requirements are the primary goals of green building construction. Additionally, the amount of energy used by infrastructure and buildings is growing dramatically, indicating the need for alternative energy-saving strategies and environmentally friendly building operations. Furthermore, sustainable automation systems are becoming increasingly necessary as energy efficiency may be attained through insulation, better building practices, and altered building construction methods. This raises the need for Building Management System, which propels the market's expansion.
All buildings, but notably commercial ones, require security systems. It ensures the security of both intellectual and physical property and the continuity of corporate activities. Due to their vulnerability to danger, commercial assets such as industrial businesses, financial and political organizations, schools, healthcare facilities, and oil and gas industries need special safety and security protocols. Additionally, compared to standard apartment building security systems, a commercial building security system offers a more complete solution and includes a variety of automation technologies. This incorporates perimeter security (CCTV), many sensors and detectors, including infrared, microwave, and laser sensors, and multi-layered commercial access control. All commercial security systems can be combined into more flexible and scalable sophisticated security solutions, driving market expansion.
Smart buildings are equipped with cutting-edge building automation and management technology that enhances government monitoring and control over HVAC, lighting, and mechanical systems in federal buildings nationwide, hence improving system efficiency. Using raw data collected from mechanical or electrical systems and analysis, building management system technology finds inefficiencies that can be fixed right away. In addition, by using cutting-edge technologies and identifying energy-saving potential, governments may truly make an impact through the smart buildings project. The government is increasing efforts to enhance energy performance management in federal buildings through the smart buildings initiative. This will result in the installation of intelligent BMSs, which will lower energy expenditures and the environmental impact. Every nation's government is enhancing the energy performance management of federal buildings through the smart building project, which lowers greenhouse gas emissions and energy costs. It is, therefore, anticipated to generate a sizable possibility for market expansion. Thus, driving the Building Management System market revenue.
The Building Management System Market segmentation, based on software, includes Facility Management, Emergency Management, Energy Management, Security Management, and Infrastructure Management. The energy management segment dominates the market. The demand for professional services is rising as building management solutions are adopted more widely due to regulatory pressure, revised policy frameworks, operational efficiencies, cost control, sustainability benefits, and shifting business dynamics.
The Building Management System Market segmentation, based on service type, includes Professional Services and Managed Services. The professional services category generated the most income attributed to growing energy prices, global ecological objectives, and the growing use of smart technologies. An increasing number of companies globally are investing heavily in advanced energy management solutions due to the increased focus on lowering carbon footprints and meeting energy efficiency standards.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The Building Management System Market segmentation, based on application, includes Residential, Industrial, and Commercial. The commercial category generated the most income since this vertical has the largest need for energy conservation and a decrease in overall operating costs. Building Management System are becoming more and more necessary in commercial applications as a result of various building standards and policy frameworks that require business entities to control energy usage and carbon emissions.
By region, the study provides the market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American Building Management System market area will dominate this market. It is projected that energy savings and the desire to make buildings safer and more secure will drive the most growth in revenue in the future. This is a result of the growing need in North American regions for smart-building technology that guarantees uninterrupted functioning over time.
Further, the major countries studied in the market report are the US, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, and South Korea.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe's Building Management System market accounts for the second-largest market share, driven by strict laws requiring energy conservation and the rising popularity of sustainable building techniques. Major contributors include the UK, France, and Germany, which prioritize cutting carbon emissions and have high rates of adoption of smart technology. The European BMS industry is expanding due to the need for energy-efficient solutions and the incorporation of renewable energy sources. Further, the German Building Management System market held the largest market share, and the UK Building Management System market was the fastest growing market in the European region.
The Asia-Pacific Building Management System Market is expected to grow at the fastest CAGR from 2024 to 2032. This can be linked to the region's increasing need for environmentally friendly and energy-efficient buildings. Furthermore, growing awareness of the benefits these systems provide—such as improved control over building operations and higher energy efficiency—is driving the growth of the Building Management System market in Asia Pacific. Moreover, China’s Building Management System market held the largest market share, and the Indian Building Management System market was the fastest growing market in the Asia-Pacific region.
Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Building Management System market grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Building Management System industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global Building Management System industry to benefit clients and increase the market sector. In recent years, the Building Management System industry has offered some of the most significant advantages to medicine. Major players in the Building Management System market are attempting to increase market demand by investing in research and development operations, including Honeywell International Inc. (US), Johnson Controls International PLC (Ireland), IBM Corporation (US), Siemens AG (Germany), United Technologies Corp. (US), Schneider Electric SE (France), Ingersoll-Rand Plc (Ireland), and Delta Controls (Canada).
Energy management and automation are the areas of expertise for Schneider Electric SE (Schneider Electric), originally known as Schneider Electric SA. It creates associated technologies and solutions for the distribution of electricity. Automation and control products, solar and energy storage, medium voltage distribution and grid automation, low voltage goods and systems, essential power, cooling, and racks are some of its main offerings. In addition, the company provides cloud, field and automation, energy and sustainability, consulting, and training services.
The multi-industry and technology corporation Johnson Controls International Plc is known as Johnson Controls. Building items and systems are designed, developed, manufactured, and installed by it. The company provides a range of services, including building automation and controls, digital solutions, retail solutions, HVAC equipment, distributed energy storage, fire detection, industrial refrigeration, and residential and smart home security. Further, Johnson Controls provides data-driven solutions, technical support, and energy management guidance. In both the residential and non-residential building segments, it provides services to clients.
Honeywell International Inc. (US)
Johnson Controls International PLC (Ireland)
IBM Corporation (US)
Siemens AG (Germany)
United Technologies Corp. (US)
Schneider Electric SE (France)
Ingersoll-Rand Plc (Ireland)
Delta Controls (Canada)
October 2023: Green-building efficiency and Hangzhou Hikvision Digital Technology Co., Ltd. collaborated on "digital twins" projects. To address the growing demand for intelligent and environmentally friendly buildings, Hikvision created a cutting-edge digital twin solution. By digitally recreating buildings, the technology enables real-time tracking of important metrics like security and energy efficiency. This makes it possible to respond quickly to events or technical problems, which improves overall operational effectiveness.
May 2023: KE2 Therm Solutions, Inc. was fully acquired by ACUITY BRANDS, INC. Within the Intelligent Spaces Group business sector, the industrial technology company integrated KE2 Therm, a company recognized for intelligent refrigeration control solutions, into Distech Controls. Lowering operating and maintenance expenses and increasing system efficiency should increase profitability. Through this acquisition, the business was able to expand its product line and attract new clients in the commercial sector.
March 2022: Leading energy management technology company GridPoint just wrapped up a successful capital round of USD 75.00 million. The strategic finance was led by Shell Ventures and the Sustainable Investing Group at Goldman Sachs Asset Management. The funding will support GridPoint's initiatives to advance grid modernization and decarbonize commercial buildings.
Facility Management
Emergency Management
Energy Management
Security Management
Infrastructure Management
Professional Services
Managed Services
Residential
Industrial
Commercial
North America
US
Canada
Europe
Germany
France
UK
Italy
Spain
Rest of Europe
Asia-Pacific
China
Japan
India
South Korea
Australia
Rest of Asia-Pacific
Rest of the World
Middle East
Africa
Latin America
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 15.3 Billion |
| Market Size 2023 | USD 17.59 Billion |
| Market Size 2032 | USD 53.823 Billion |
| Compound Annual Growth Rate (CAGR) | 15.00% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2019-2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Software, Service Type, Application, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The US, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, and South Korea |
| Key Companies Profiled | Honeywell International Inc. (US), Johnson Controls International PLC (Ireland), IBM Corporation (US), Siemens AG (Germany), United Technologies Corp. (US), Schneider Electric SE (France), Ingersoll-Rand Plc (Ireland), and Delta Controls (Canada). |
| Key Market Opportunities | Encouragement and Support from the Government for the Development of Smart Cities |
| Key Market Dynamics | Greater Focus on Developing Buildings that are Energy- and Environmentally-Efficient Increasing Number of Commercial Buildings Using Automated Security Systems |
Frequently Asked Questions (FAQ) :
The Building Management System Market size was valued at USD 17.59 Billion in 2023.
The global market is projected to grow at a CAGR of 15.00% during the forecast period, 2024-2032.
North America had the largest share in the global market.
The key players in the market are Honeywell International Inc. (US), Johnson Controls International PLC (Ireland), IBM Corporation (US), Siemens AG (Germany), United Technologies Corp. (US), Schneider Electric SE (France), Ingersoll-Rand Plc (Ireland), and Delta Controls (Canada), among others.
The professional services category dominated the market in 2023.
The commercial category had the largest share in the global market.
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