North America Building Automation Systems Market Overview
North America Building Automation Systems Market Size was valued at USD 32,179.1 million in 2022. The North America Building Automation Systems market industry is projected to grow from USD 34,219.4 million in 2023 to USD 81,127 million by 2032, exhibiting a compound annual growth rate (CAGR) of 9.0% during the forecast period (2023 - 2032). Growth In Construction Industry, Increase in Focus for Designing and Establishing Energy-Efficient and Eco-Friendly Buildings Equipped with Building Automation, Integration Of IOT With Building Automation Systems, and Rapid Development of Wireless Protocols And Wireless Sensor Network Technology For Building Automation Systems are the key market drivers boosting the growth of the North America Building Automation Systems market.
FIGURE 1: NORTH AMERICA BUILDING AUTOMATION SYSTEMS MARKET SIZE 2019-2032 (USD MILLION)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
North America Building Automation Systems Market Trends
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Rise In Government and Stakeholder Funding For Developing Smart Cities.
Due to increased urbanization, cities now need creative solutions to long-term problems like managing garbage, traffic flow, meeting energy-efficiency requirements, preventing security breaches, and overseeing municipal surveillance. Governments in developing economies are concentrating on building smart cities with substantial expenditure from the public and private sectors in order to address the long-term problems brought on by increased urbanization. The increased fear of terrorism puts public places with high concentrations of people, both domestically and internationally, like jails, government buildings, and schools, at risk of security breaches. Governments everywhere are concentrating on financing building automation projects in smart cities by investing in equipment for video surveillance, access control, and fire safety, particularly in poor countries.
For the benefit of the ecology in the area, the US government is actively researching into climate change and green emissions. Therefore, as part of President Biden's investing in America agenda and environmental justice goals, the U.S. Environmental Protection Agency (EPA) launched two Notices of Funding Opportunity (NOFOs) for $20 billion across two grant competitions in July 2023 under the historic $27 billion Greenhouse Gas Reduction Fund, an inflation reduction act program. When combined, these competitive grant opportunities should help American families, particularly those in low-income and disadvantaged communities, reduce their energy costs while reducing harmful pollution to combat climate change and protect public health.
For instance, in March 2023, U.S. Transportation Secretary announced $94 million in grant awards for the 59 projects across 33 states through the first round of funding for the Strengthening Mobility and Revolutionizing Transportation (SMART) Grants Program. This budget is expected to be used in building and maintenance of smart infrastructure across the US.
In October 2021, DOE announced that they have invested $61 Million for smart buildings that accelerate renewable energy adoption and grid resilience in which it aims to connect via ten “connected communities” that would equip more than 7,000 buildings with smart controls, sensors, and analytics to reduce energy use, costs, and emissions.
North America Building Automation Systems Market Component Segment Insights:
North America Building Automation Systems Component Insights
Based on component, the North America Building Automation Systems market segmentation includes Hardware, Software, and Services. The Hardware held the majority share in 2022, contributing around ~69.9% to the market revenue. In recent times, it has become increasingly crucial to select the right hardware for building automation systems as smart buildings become more sophisticated and strict standards for cost-effectiveness and environmental sustainability become more significant. Sensors are devices that keep an eye out for and log important information including temperature, humidity, and occupancy both within and outside of a structure, as well as anomalous activity, security breaches, and fire breakouts. The brains behind the building automation system (BAS) are the controllers. They compile all of the sensor data and use it to deliver commands to all connected systems, including lighting, HVAC, and other systems.
FIGURE 2: NORTH AMERICA BUILDING AUTOMATION SYSTEMS MARKET, BY COMPONENT, 2022 VS 2032 (USD MILLION)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
North America Building Automation Network Type Insights
Based on type, the North America Building Automation Systems market segmentation includes Light control system, HVAC control system, surveillance system, fire protection system, access control system, facility management system, and others. The access control system held the majority share in 2022. A substantially changed corporate environment is causing a major change in commercial security. Selective access control to the building or to a certain area within it is the essence of building access control. Modern access control systems, on the other hand, are more sophisticated and include services, software, and hardware. Innovative access control technologies are becoming more and more popular as a part of building security systems, as they offer substantial advantages over traditional access control methods. One of the access control areas that is expanding the fastest is biometric technologies, Iris scanning, and mobile credentials. This method uses an individual's distinct physiological characteristics to obtain positive identification.
It is more accessible to users as well as a more secure way for organizations to authenticate persons before granting access. In March 2021, ASSA ABLOY Global Solutions launched CIPE Manager, a new access management solution designed to meet the stringent standards of critical infrastructure protection. With a user-friendly, cloud-based management solution, CIPE Manager enables organizations to manage all of their keys, locks, and access rights on the move. CIPE Manager integrates with every locking system in ASSA ABLOY Global Solutions' Digital range for Critical Infrastructure Protection.
North America Building Automation Network Connectivity Insights
Based on network connectivity, the North America Building Automation Systems market segmentation includes Wired and Wireless. The wired held the majority share in 2022. Modern building automation systems depend on wireless communication to offer more flexible, accessible, and scalable control and management of many building functions. Massive buildings' wireless systems have swiftly evolved into a shifting target. The development of wireless technology has had a big impact on building implementation options. Some of the key drivers propelling the market for wireless connectivity in building automation include portability, ease of installation, cost savings, and remote control. The primary purpose of the Zigbee standard was to automate low-energy buildings. Designed prior to the Bluetooth standard committee, Zigbee makes use of the IEEE 802.15.4, often known as the IEEE Standard for Low-Rate Wireless Networks. For many nodes with little contact, it facilitates communication. If a small number of components are needed for a high throughput installation, this is a promising approach for building automation. With further improvements, Wi-Fi might reach up to 5 GHz and offer incredibly high speed. Z-Wave is a patented wireless technology designed for small commercial building applications like tenant spaces. It operates in the 908.42-MHz band. Devices like locks, thermostats, and lights frequently use it since it operates on a low power wireless radio frequency.
North America Building Automation Systems Building Size Insights
Based on building size, the North America Building Automation Systems market segmentation includes Small, Mid-Sized, and Large. The Mid-Sized held the majority share in 2022. The emergence of mid-sized buildings in North America is a reflection of the dynamic nature of urban environments and the need for spaces that are efficient, sustainable, and adaptable. The need for mid-sized buildings is expected to continue to be high as cities expand and the population grows, contributing to the general urbanization and economic growth of North America. The application of automation technology and control systems in buildings that fall between small and large is known as mid-size building automation. Compared to smaller buildings, these constructions frequently have bigger footprints, more stories, and a greater occupancy rate. Furthermore, the increased emphasis on automation in mid-sized buildings may be seen in the integration of security systems, agile spaces, and occupant-centric solutions.
North America Building Automation Building Type Insights
Based on building type, the North America Building Automation Systems market segmentation includes Older Buildings and Newer Building. The Newer Building held the majority share in 2022. The need for new building construction in North America is being driven by a complex and dynamic environment of growing economic conditions, population growth, and urbanization in the continent's member states. Demand patterns in various North American countries and regions are further shaped by local market conditions, legislative frameworks, and economic cycles. In addition, the demand for new building construction is significantly impacted by technological advancements and innovations in building processes, materials, and systems. The construction industry is changing due to emerging technologies like 3D printing, modular building automation, and smart building construction, which may lead to a rise in the demand for projects incorporating these innovations. Building automation is using machine learning (ML) and artificial intelligence (AI) more and more. Artificial intelligence (AI)-powered algorithms can analyze massive amounts of data produced by sensors and devices to find trends, improve system performance, and forecast maintenance requirements. Over time, machine learning algorithms can become more and more efficient in their operations by continuously learning and adapting.
North America Building Automation Systems Application Insights
Based on application, the North America Building Automation Systems market segmentation includes Residential, Commercial, Industrial, Government, and Religious Buildings. The Commercial held the majority share in 2022. North American commercial buildings are changing dramatically because of various factors, including but not limited to economic growth, urbanization and infrastructure development, evolving workplaces and office designs, the growth of retail and e-commerce, hospitality and tourism, sustainable construction, and energy efficiency.
Hospitals in North America are increasingly implementing advanced building automation technologies to improve patient care, safety, energy management, and operational efficiency. These technologies include demand-based ventilation, patient-centric solutions, and integration with healthcare systems. Through the integration of smart building solutions with healthcare-specific technology, hospitals are able to maximize resource usage while providing a state-of-the-art, patient-centered environment. Integrated building automation systems, which centralize management and monitoring of several building systems, are being gradually implemented by hospitals. Included are energy management, fire protection, security, lighting, HVAC, and access control. Increased operational efficiency and cost savings are the outcome of better coordination and optimization of these essential systems made possible by integrated systems.
North America Building Automation Systems Country Insights
By Country, the study provides market insights into US, Canada and Mexico. The US America Building Automation Systems market accounted for ~86.6% in 2022. Energy consumption reduction has been a top priority for managers and owners of commercial buildings in the United States. Over 40% of the energy used in the US is absorbed by commercial and residential structures, according to the US Energy Information Administration. The New York State Energy Research and Development Authority (NYSERDA) claims that real-time energy management systems can result in significant cost savings. These developments have affected energy-efficient construction as a component of intelligent commercial building solutions. Buildings must use less energy in order to comply with national energy and environmental challenges, lower costs for building owners and tenants, and mitigate greenhouse gas (GHG) emissions. The US Department of Energy estimates that the buildings sector accounted for approximately 76% of the electricity used. With today's affordable technology, building energy consumption might be lowered by more than 20% and, if research goals are met, by more than 35%. In theory, much greater savings are possible. The rising demand for smart workplaces is also hastening the establishment of SEZs (Special Economic Zones). Green HVAC systems are designed to increase energy efficiency and save expenses. For example, Ice Energy, a famous energy storage company located in Glendale, California, developed Ice Bear, an ice-powered air-conditioning device, to cool buildings and, in most situations, lower a building's net energy usage.
FIGURE 3: NORTH AMERICA BUILDING AUTOMATION SYSTEMS MARKET SIZE BY COUNTRY 2022 VS 2032 (USD Million)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
North America Building Automation Systems Key Market Players& Competitive Insights
With a strong presence across different verticals and geographies, the North America Building Automation Systems market is highly competitive and dominated by established, pure-play vendors. Over 20 vendors cater to this market, and they continually innovate their solutions to meet the evolving needs of businesses by adopting new technologies. These vendors have a robust geographic footprint and partner ecosystem to cater to diverse customer segments. The North America Building Automation Systems market is highly competitive, with many vendors offering similar products and services.
The major players in the market include ABB, Bosch Building Technologies GmbH, Emerson Electric. Co., Csico Systems, Inc, Siemens Building Technologies, Hitachi, and Schneider Electric. Industries Corporation constantly takes on new challenges to ensure the stability of its management foundation by extending its reach into business fields such as engine production, vehicle assembly, and the development and production of lift trucks and car air-conditioning compressors. It concentrates on broadening its product offerings to reach new audiences in the global market.
The North America Building Automation Systems market is consolidated, increasing competition, acquisitions, mergers, and other strategic market developments and decisions to improve operational effectiveness.
Key Companies in the North America Building Automation Systems market include
- ABB
- Bosch Building Technologies GmbH
- Emerson Electric. Co.
- Csico Systems, Inc
- Siemens Building Technologies
- Hitachi
- Lutron Electronics Inc.
- Automated Logic
- MSA Safety Incorporated
- Beckhoff
- Mitsubishi Electric Corporation
- Delta Controls
- Honeywell International Inc.
- Johnson Controls
- Schneider Electric
North America Building Automation Systems Industry Developments
- In June 2023, Schneider Electric announced the addition of two new products to its Connected Room Solution: SpaceLogic RP-V and Insight Sensor. With this enhancement, the solution provides ventilation based on demand and real space occupancy. By regulating the climate of a room by counting the number of people in space and altering airflow and energy usage appropriately, this people-centric technology gives organisations the potential to improve energy efficiency and cut expenses.
- In March 2023, Lutron's Athena lighting management system includes the Athena wireless processor. The new processor is ideal for smaller settings while still being easily scaled for use in larger projects.
North America Building Automation Systems Market Segmentation:
North America Building Automation Systems Component Outlook
- Hardware
- Software
- Services
North America Building Automation Systems Type Outlook
- Light Control System
- HVAC Control System
- Surveillance System
- Fire Protection System
- Access Control System
- Facility Management System
- Others
North America Building Automation Systems Connectivity Outlook
North America Building Automation Systems Building Size Outlook
North America Building Automation Systems Building Type Outlook
- Older Buildings
- Newer Building
North America Building Automation Systems Application Outlook
- Residential
- Commercial
- Industrial
- Government
- Religious Buildings
North America Building Automation Systems Country Outlook
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Report Attribute/Metric
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Details
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Market Size 2022
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USD 32,179.1 million
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Market Size 2023
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USD 34,219.4 million
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Market Size 2032
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USD Â 81,127 million
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Compound Annual Growth Rate (CAGR)
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9.0% (2023-2032)
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Base Year
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2022
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Market Forecast Period
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2023-2032
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Historical Data
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2019- 2022
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Market Forecast Units
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Value (USD Million)
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Report Coverage
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Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends
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Segments Covered
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Component, Type, Network Connectivity, Building Size, Building Type, and Application.
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Geographies Covered
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North America
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Countries Covered
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US, Canada, and Mexico
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Key Companies Profiled
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ABB, Bosch Building Technologies GmbH, Emerson Electric. Co., Csico Systems, Inc, Siemens Building Technologies, Hitachi, Lutron Electronics Inc., Automated Logic, MSA Safety Incorporated, Beckhoff, Mitsubishi Electric Corporation, Delta Controls, Honeywell International Inc., Johnson Controls, and Schneider Electric
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Key Market Opportunities
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Rise In Government And Stakeholder Funding For Developing Smart Cities
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Key Market Dynamics
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Growth In Construction Industry
Increase In Focus for Designing And Establishing Energy-Efficient And Eco-Friendly Buildings Equipped With Automation
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Frequently Asked Questions (FAQ) :
The North America Building Automation Systems market size is expected to be valued at USD 32,179.1 Million in 2022.
The global market is projected to grow at a CAGR of 9.0 % during the forecast period, 2023-2032.
The US had the largest share of the global market.
The key players in the market are ABB, Bosch Building Technologies GmbH, Emerson Electric. Co., Csico Systems, Inc, Siemens Building Technologies, Hitachi, Lutron Electronics Inc., Automated Logic, MSA Safety Incorporated, Beckhoff, Mitsubishi Electric Corporation, Delta Controls, Honeywell International Inc., Johnson Controls, and Schneider Electric.
Hardware dominated the market in 2022.
