Europe Building Automation Systems Market Size was valued at USD 3.8 Billion in 2022. The Building Automation Systems market industry is projected to grow from USD 3.95 Billion in 2023 to USD 5.40 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 4.00% during the forecast period (2024 - 2032). The growing adoption of wireless technologies is one of the major market drivers driving the Building Automation Systems market in Europe, and the rising focus on smart cities initiatives is driving the market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The Europe Building Automation Systems market CAGR is expanding due to the commercial sector consisting of infrastructure, offices, hospitals, and retail space. Several factors, including the rapid growth of the Internet of Things (IoT), the integration of smart sensors, artificial intelligence (AI), machine learning (ML), and other technologies into a variety of end-uses and appliances, devices, and products in commercial buildings, are expected to sustain revenue growth in the market under study. According to the Buildings Performance Institute Europe (BPIE), building automation can be economically advantageous for almost all commercial buildings, regardless of energy prices, usage, and climatic considerations, if installed, commissioned, and run effectively. The group states that for space heating, water heating, cooling, and ventilation, the average net energy savings per installation are roughly 37%, and for lighting, it is 25%. The growing value of the commercial real estate market further propels the market and segment under study. For example, the United Kingdom's (UK) commercial real estate sector was valued at over USD 1.729 trillion in 2022, up from USD 1.559 trillion the year before, according to EPRA.
Furthermore, the growing focus on cybersecurity measures impacts the market expansion for building automation systems. The rising digital connectivity and reliance on buildings increase the potential for cybersecurity hazards and attacks on BAS infrastructure. Due to integrating IoT devices and cloud-based solutions, buildings are now more susceptible to system manipulation, data breaches, and unauthorized access. Building automation professionals are becoming more conscious of the requirement of strong cybersecurity protocols in response to these threats. To safeguard BAS against potential dangers, businesses, and organizations invest in cutting-edge cybersecurity solutions. It entails using secure communication protocols, encryption technology, and frequent software updates to fix bugs. Thus, driving the Europe Building Automation Systems market revenue.
The Europe Building Automation Systems market segmentation, based on components, includes hardware (controllers, field devices) and software-as-a-service. The hardware (controllers) segment dominated the market. Controllers with advanced integration capabilities can connect and interact with various building systems, such as security, lighting, HVAC, and more. Controllers that can handle large amount of data and apply analytics and machine learning to extract valuable insights from sensor data for improved building performance.
The software-as-a-service systems segment is expected to grow the fastest. Artificial intelligence (AI), machine learning (ML), and cloud computing are revolutionizing BAS software. These technologies provide personalized experiences, predictive maintenance, and optimization. Software is essential for optimizing energy use because it can automate control systems and analyze usage patterns.
Based on end users, the Europe Building Automation Systems market segmentation includes residential, commercial, and industrial. The residential category generated the most income. This industry looks for integrated technologies to improve comfort, security, and energy efficiency, focusing on home automation. The increasing customer awareness and technological advancements in smart home devices drive the adoption of BAS in residential settings. European residential end users are gaining market share due to the ease of remotely controlling home systems like security, heating, and lighting.
The commercial category is predicted to have the quickest rate. Establishments such as hotels, medical facilities, office buildings, educational institutions, retail stores, and more are considered commercial end users. The need for improved energy management, financial savings, tenant comfort, and compliance with environmental requirements motivates using BAS in commercial settings. Commercial buildings ' security and access control systems are increasingly connected with BAS. Thanks to this connection, all security devices, including alarms, access card systems, and surveillance cameras, may be monitored and controlled centrally.
Figure 1: Europe Building Automation Systems Market, by End User, 2022 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The largest market share is expected to be in Germany. The country's increasing energy-efficient product policies are expected to propel the industry. For example, on August 13, 2020, the Building Energy Act was updated and published in the Federal Law Gazette. The Buildings Energy Act was introduced by the federal government and was suggested by the federal ministries of economic affairs, energy, interior, and communities. On June 18, 2020, the German Bundestag passed the Building Energy Act. The Structures Energy Act, which oversees regulations about energy efficiency in buildings, is the vehicle through which the Coalition Agreement, decisions taken at the 2018 housing summit, and the activities delineated in the Climate Action Programme 2030 are all put into practice.
Figure 2: EUROPE Building Automation Systems MARKET SHARE BY Region 2022 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Prominent industry participants are making significant R&D investments to broaden their product offerings, contributing to the further expansion of the Building Automation Systems market. Market players also engage in various calculated strategic actions to increase their market share. Significant developments include introducing new products, contracts, mergers and acquisitions, increased investment, and cooperation with other businesses. To grow and thrive in an increasingly cutthroat and dynamic marketplace, the Building Automation Systems sector must provide affordable products.
Major companies in the building automation systems market are trying to boost market demand by making investments in research and development, including Siemens AG, Johnson Controls International PLC, Schneider Electric SE, Robert Bosch GmbH, Kieback&Peter GmbH & Co. KG, Priva Holding BV, Belimo Holding AG, Sauter AG, Trane Technologies PLC, and Lynxspring Inc.
March 2023: Siemens Smart Infrastructure unveiled Connect Box, an open-source, easily navigable Internet of Things system for small- to medium-sized buildings. With the ability to optimize energy efficiency by up to 30% and significantly improve The cleanliness of the air in modest to medium-sized establishments, such as shops and schools, apartments, or small offices, Siemens Xcelerator Portfolio's newest addition, Connect Box, is an approachable way to monitor building performance.
March 2023: The introduction of EcoStruxureBuilding Operation by Schneider Electric for the Indian market aims to improve building value and occupant comfort. Building owners may now use data that can be protected, standardized, and retrieved with machine learning and artificial intelligence due to the new solution.
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 3.8 Billion |
| Market Size 2023 | USD 3.95 Billion |
| Market Size 2032 | USD 5.40 Billion |
| Compound Annual Growth Rate (CAGR) | 4.00% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Component, End User, and Region |
| Region Covered | Europe |
| Countries Covered | Germany, France, UK, Italy, Spain, Sweden, Denmark, Luxembourg, Norway, Austria, and the Rest of Europe |
| Key Companies Profiled | Siemens AG, Johnson Controls International PLC, Schneider Electric SE, Robert Bosch GmbH, Kieback&Peter GmbH & Co. KG, Priva Holding BV, Belimo Holding AG, Sauter AG, Trane Technologies PLC, and Lynxspring Inc. |
| Key Market Opportunities | ·        Enhancing integration with renewable energy sources ·        Increasing cloud-based services |
| Key Market Dynamics | ·        Rising focus on smart city initiatives ·        Growing adoption of wireless technologies |
Frequently Asked Questions (FAQ) :
The Europe Building Automation Systems market size was valued at USD 3.8 Billion in 2022.
The market is projected to grow at a CAGR of 4.00% during the forecast period, 2024-2032.
The key players in the market are Siemens AG, Johnson Controls International PLC, Schneider Electric SE, Robert Bosch GmbH, Kieback&Peter GmbH & Co. KG, Priva Holding BV, Belimo Holding AG, Sauter AG, Trane Technologies PLC, and Lynxspring Inc.
The hardware (controllers) category dominated the market in 2022.
The residential category had the largest share of the market.
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Team Lead - Research she holds an experience of about 6+ years in market research and business consulting, working under the spectrum of information communication technology, telecommunications and semiconductor domains. aarti conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. her expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc.
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