Henry Lawson, senior market research analyst at BSRIA.
According to BSRIA, the total market for controllers (DDC, room and field controllers) as well as software and hardware is forecast to grow from USD 7 billion in 2017 to USD 8.5 billion (in manufacturing selling prices) in 2022.
The fastest growth is projected for software used to manage and control and optimise the building systems, as well as building energy management – forecast to grow at 10 percent annually. This reflects the growing strategic importance of data and analytics in managing buildings.
A growing proportion of devices leaving the factory pre-fitted to be ready for IP connection “as and when needed” demonstrates how the IoT is becoming increasingly vital.
Building managers are increasingly interested in moving beyond HVAC systems to integrate other building systems such as lighting, security and, in some cases, fire. More than one quarter of building automation projects now integrate at least one of these additional systems. This is especially true of large, new, complex building projects such as transport terminals, retail centres, sports stadiums and universities.
The USA remains by far the largest market, followed by Germany, Japan and China. These four countries alone accounted for just under half of the total global BACS market in 2017, but all major markets are experiencing growth.
Regarding suppliers, the global market remains split between the 'Big Four': Siemens, Honeywell, JCI and Schneider Electric, who take almost half the total global market between them and a range of mainly regional players, some of which have achieved quite substantial sales by concentrating on key national markets, or by focussing on key areas such as software development.
Henry Lawson, BSRIA’s senior market research analyst, said: “While on the surface building automation looks to be a fairly mature and evolving market, BSRIA’s latest market studies dig below the surface to highlight some important trends that all market players need to be aware of.
“In this respect, we are looking at a market that increasingly focusses on the three “I”s: namely IP connectivity, integration of systems and information technology in general and software in particular. Watch this space.”
The World Building Automation and Control Systems (BACS) 2018 report, researched in 2017, published in April 2018, is available by country or as a package. It includes a detailed assessment of the current and future markets for intelligent control systems in non-residential buildings.