LONDON — Building owners across the globe are increasingly adopting building automation (BA) systems to tackle rising energy costs, according to a report from Frost & Sullivan. Opportunities for manufacturers will be particularly promising in the stabilizing economies of Brazil, China, Germany, India, Russia, and the United States due to high infrastructure spending.
Analysis from Frost & Sullivan’s Global Building Automation Market report finds that the market earned revenues of $5.78 billion in 2013 and estimates it will reach $7.28 billion in 2018. The data center and hospitality application segments are expected to experience rapid growth due to growing Internet penetration in emerging nations and the expansion of the tourism market.
“Government regulations and policies designed to improve energy efficiency in buildings are driving the market for BA systems especially in North America, Europe, and parts of Asia-Pacific,” said Frost & Sullivan Energy & Environmental Research Analyst Balaji Anand Sagar. “Market participants realize that BA systems are essential to achieve energy efficiency targets dictated by government regulations and are offering reliable solutions at competitive prices.”
However, insufficient clarity on the benefits of building automation systems is discouraging building owners from considering these solutions during the budgeting and bidding stages, Frost & Sullivan said. Further, the lack of standardization across regions reduces customers’ confidence.
Providing turnkey solutions with robust capabilities will help building automation companies boost their visibility in specific application markets, said Frost & Sullivan. Rolling out open building automation systems that use standard protocols must also be a go-to-market strategy.
“Intelligent building control systems, fault detection, predictive diagnostics, big data analytics, and remote correction on the cloud will shape the market over the next few years,” noted Sagar. “Further, open connectivity and interoperability of BA systems will enable the automation of a much broader Internet of devices and take the global BA market to greater heights.”
For more information on the Global Building Automation Market report, click here.
Publication date: 9/1/2014