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Increasing demand in the commercial sector is driving the market growth
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.
EU Building Automation Systems Market Segment Insights
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Building Automation Systems Component Insights
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.
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Building Automation Systems End User Insights
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.
Building Automation Systems Country Insights
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.
Europe Building Automation Systems Key Market Players & Competitive Insights
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.
Key Companies in the Building Automation Systems market include
- Johnson Controls International PLC
- Kieback&Peter GmbH & Co. KG
Europe Building Automation System Industry Developments
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Q1 2024: Hikvision announces technology partnership with Can'nX for European building automation Hikvision announced a technology partnership with Can'nX, enabling integration of Hikvision AI-enabled devices into the KNX protocol, the global standard for home and building automation, to enhance building management efficiency and security in European commercial and residential buildings.
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Q1 2024: Honeywell launches Advanced Control for Buildings Honeywell announced the launch of Advanced Control for Buildings, a building management system that utilizes existing electrical wiring to provide building managers with enhanced control over performance and energy management.
EU Building Automation Systems Market Segmentation
EU Building Automation Systems Component Outlook
EU Building Automation Systems End User Outlook
EU Building Automation Systems Regional Outlook
