Energy Conservation and Operational Efficiency Norms to Steer Deployment of Commercial Building Automation Systems

The global market for commercial building automation is treading growth due to the serious need for energy conservation. The evolution of computers, information technology, and communications protocols has been instrumental in building automation systems (BAS) to be effective for controlling heating, ventilation, and air conditioning systems in mostly all new commercial and government buildings. The use of BAS can also link lighting, fire safety, security, and other systems to improve the operational efficiency of a building. Although the implementation of BAS is a hefty expense, it is beneficial for reducing the overall energy consumption in the long run. 

The global market for commercial building automation was valued at US$77.63 bn in 2016. Displaying a steadfast growth at a CAGR of 4.3% between 2016 and 2024, the market is predicted to reach US$108.49 by 2024.

Q. What are the factors stoking demand for commercial building automation systems?

A. At the forefront of fuelling the growth of the commercial building automation system market is the serious need for energy conservation and reduce overall operational costs, especially in government buildings. Government initiatives for the construction of green buildings and statutes laid out for the deployment of energy efficiency systems at the time of new building construction are key contributors to the growth of the global commercial building automation market.

Driving the demand for commercial building automation systems is the uptake of these systems within the small and medium-sized building segments. This is to improve the comfort level for occupants and to improve building energy efficiency for environmental protection reasons. 

Q. What factor is holding back the market’s growth?

A. Due to the high cost involved in the installation, operation, and maintenance of commercial building automation systems, the entry of new players is limited. Moreover, the slow rate of ROI is also deterring end users from the adoption of these systems. This is posing a challenge for smaller players in the global market as they will be receiving low returns from clients than what large players may receive. 

Q. On which region should market players shift their focus to?

A. North America accounted for the largest share in the global market for commercial building automation in 2015 followed by Europe. These regions are expected to be a hotspot for the growth of this market in the coming years as well. The increasing demand for energy conservation and need to reduce the overall operating cost of commercial buildings is one of the major factors driving the commercial building automation market in North America and Europe. 

On the other hand, Asia Pacific is expected to witness a fast growth rate due to the stipulations for energy efficiency and reducing operational costs of commercial buildings. However, currently, the growth of the region is stifled due to small-scale participation by builders on account of the high installation costs.


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