Market Trends: Increasing construction activities across the globe are expected to primarily contribute to the industry growth.
The global intelligent building automation market is expected to witness significant growth with a CAGR of 7.5% over the forecast period according to a new study by Grand View Research, Inc.
The growth can be attributed to the growing penetration of digital transformation across the globe. Intelligent Building Automation is mainly designed to control and monitor security systems, lightings, fire, and humidity, among others in a building.
It helps to monitor the building performance and device failure and includes an alarm system that alerts the failure of a control system in a building.
The growing demand for cost-efficient building automation solutions by consumers is the major factor anticipated to boost the growth of the market over the next seven years.
Additionally, the deployment of Internet of Things (IoT) platform in intelligent building automation and growing demand for integrated safety and security systems are further expected to propel the growth of the market.
Integration of IT and building management systems for the development of intelligent building automation increases system performance. Intelligent building automation reduces the cost of installing and operating various autonomous building systems.
The growing adoption of devices or systems in various applications, including security, energy management, lighting, smart kitchen, and entertainment is expected to drive the growth of the market over the forecast period owing to the growing preference among consumers for security, safety, connectivity, and convenience.
Furthermore, the increasing demand for energy-efficient building solutions from real estate developers is anticipated to drive the growth of the market over the forecast period.
However, high costs associated with the installation of devices in intelligent building automation is expected to pose a challenge to the market growth over the forecast period.
Additionally, lack of awareness among consumers in developing economies is further expected to hinder the growth of the market.
Moreover, increasing number of favorable government initiatives to build smart cities is expected to create potential opportunities for the key players in the market to increase their market shares in terms of revenue over the forecast period.
However, adequate knowledge and promotion of such technologies are further expected to drive the growth of the overall market.
Security systems are anticipated to gain traction over the forecast period
The intelligent building automation market can be segmented into product, application, end use, and region. On the basis of product, the market is segregated into physical security systems, life safety systems, facility management systems, and building energy management software.
The physical security segment is expected to dominate the product segment growth in terms of revenue over the forecast period.
HVAC systems are instrumental in accelerating the market growth
On the basis of application, the market is segmented into fire safety, energy, Heating, Ventilating, and Air Conditioning (HVAC), lighting, security and access control system, car park management services, and others.
The HVAC segment is expected to account for the highest revenue share over the forecast period, owing to increasing adoption of intelligent HVAC systems that automatically regulate the temperature inside a building and consume less energy.
The residential segment is expected to witness significant growth
On the basis of end use, the market is segmented into residential, commercial, and industrial. The commercial segment is anticipated to account for the highest market revenue share over the forecast period owing to the growing adoption of intelligent building automation in large premises, retail facilities, and hotels & restaurants, among others.
Favorable government initiatives in Europe to keep the market growth prospects upbeat
North America is expected to gain the highest revenue share in the market during the forecast period owing to the constant development of technology and stringent government regulations to reduce CO2 emission in the region.
The Asia Pacific market is projected to register the highest growth rate in the in the market over the forecast period. This growth of the region can be attributed to the development of innovative technologies such as voice-controlled smart home devices and rising demand for smart homes in the region.
The European market is expected to account for significant market revenue share, preceded by North America, owing to increasing number of favorable government initiatives for building intelligent & smart infrastructure and stringent government directives such as Energy Performance of Buildings Directive and Energy Efficiency Directive that promote the improvement of energy performance of buildings in the region.
The growing awareness about security & safety at workplaces and increasing consumer interest toward green & smart building are expected to fuel the growth of the intelligent building automation market during the forecast period.
The growing number of construction activities in the region is further expected to drive the demand for intelligent building automation. For instance, according to the U.S. Census Bureau, total spending on construction was increased by 6.5% in 2016, as compared to construction spending in 2015.
The market is experiencing intense competition with several players focusing on inorganic growth strategies
The key players in the market are focusing on developing new intelligent building automation solutions and services through various growth strategies that include mergers and acquisitions, collaborations, business expansions, and launch of new solutions and services, as the competition is getting intense on a daily basis.