Building Automation & Controls Market to Reach $50 billion by 2018

By: | April 24th, 2013

Building Automation and Controls (BAC) are a combination of hardware and software that control a building’s power systems; lighting and illumination; electric power and control; security, observation and magnetic card access; heating, ventilation and air-conditioning systems (HVAC); outdoor controls;  lift, elevator and escalator controls; entertainment and BMS (Building Management Systems).

Making Building Systems More Efficient

BAC systems provide efficient control of internal comfort conditions, individual room control, increased staff productivity, effective use of energy, improved building reliability and life, quick and effective responses to HVAC problems, and save time and money. The systems also provide information on problems in the building, allow for computerized maintenance scheduling, are easy and effective for employees to use, and easily detect problems.

Tallest Green Skyscraper in the World


“Smart Building” Trends

The top trends for the next several years will be a rebound in the North American market starting in 2013 and a switch in focus from new buildings to the greening of existing buildings. The building market will also experience the emergence of cloud-based management for buildings, a new awareness of the water crisis, more Zero-Net Energy buildings, and Green Building Performance Disclosure (GBPD) requirements. “Red List” chemicals will start to be phased out, local and state government mandates will change in favor of green buildings and solar power use in buildings will continue to grow.

Expanding Market Size

The BAC market is currently growing at a double-digit Compound Annual Growth Rate (CAGR) and is expected to reach $50 Billion by 2018. The largest components of growth are the huge demand for  HVAC, comprising 30% of the total market, and security and access controls, at between 40%-50% of the market to 2018.

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 Integration of New Wireless Automation Technologies

Building automation has been around for a several decades but installation of wireless technologies and integration of wired and wireless systems is propelling the market forward. There is now a great demand for energy efficient buildings, high-tech devices and enhanced security systems that are now a central component of BAC. Wireless technology has revolutionized BAC. In addition, evolving technologies and expanding markets are affecting each type of control. For example, newly developed dimming systems and sensors are in especially high demand.

Tax Incentives Encouraging Adoption

Governments are now offering incentives for investing in efficient buildings and power line communication. Global sporting events such as World Cup soccer in 2014 and the Olympics in 2016 are pushing market as well.

David Russell Schilling

David enjoys writing about high technology and its potential to make life better for all who inhabit planet earth.

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