Europe Building Automation Systems Market Size (2024 - 2029)

Europe Building Automation Systems Market Analysis

The Europe Building Automation Systems Market size is expected to grow from USD 3.67 billion in 2023 to USD 4.41 billion by 2028, at a CAGR of 3.75% during the forecast period (2023-2028).

• A building automation system (BAS), also referred to as a building control system or a building management system, is a system that controls several electric, electronic, and mechanical systems throughout a building. The report tracks the revenue accrued by companies through the sale of building automation solutions worldwide. Components like building management systems, lighting controls, fire detection, HVAC controls, and security systems are included in the scope of the study and span across end users, like residential and commercial.
• The building industry is essential to meeting the energy and environmental objectives of the EU. Better and more energy-efficient structures will also raise living standards for residents, reduce energy poverty, and benefit the economy and society by creating green jobs and other advantages like better indoor air quality and health.
• The demand for Internet of Things (IoT) products is growing across Europe. The region's IoT adoption is now being led by Germany, the United Kingdom, and the Netherlands, while Eastern Europe and the Nordics are closely trailing. Although the manufacturing, housing, health, and finance industries are leading the way in IoT adoption, the retail and agricultural industries are also experiencing significant development. Demand for outsourcing is still being driven by a lack of qualified specialists and a growing willingness to outsource.
• Technology for building automation systems (BAS) has advanced significantly and is always becoming better with new capabilities. It is noteworthy that many building managers still manually operate HVAC systems because they have little faith in the building automation system. Far too many buildings with perfectly functional building automation systems have their equipment being run manually by the building operators, whether due to a lack of understanding or the building automation system not being configured properly by the installation contractors.
• With the COVID-19 outbreak, most commercial and industrial construction projects started at a slow pace, while some were canceled. Production lines at some HVAC manufacturers had to be put on hold for several weeks, and installers saw their new installation projects limited by sanitary guidelines. However, in European countries such as Italy, AHU sales benefitted from the increased ventilation demand due to COVID-19. After the pandemic, commercial and industrial construction projects started, which propelled the market growth.

Europe Building Automation Systems Industry Segmentation

Building automation systems exhibit functions such as control of the building's environment, operating systems depending on the energy demand, and monitoring the system performance, based on which the systems produce sound alerts as required. It centrally controls the building's heating, ventilation, air conditioning (HVAC), electrical, access control, and other interrelated systems.

The market is analyzed by tracking the components of building automation systems in terms of revenue generated across Europe. The scope covers automation controllers as per their application according to their specific or general functionalities. The integrated software is installed based on the configuration for controllers and supervisory software for computers. The field devices include sensors, actuators, valves, switch boxes, relays, and management field devices. As part of the vendor market share, only controllers and software are considered while arriving at the market shares. The impact of macroeconomic trends is also considered while forecasting market growth. Market players, including their key developments and growth trends, are studied for the global and European markets.

The Europe Building Automation Systems Market is segmented by Component (Hardware (Controllers and Field Devices), Software-as-a-Service), by End User (Residential, Commercial, Industrial), by Country (Germany, United Kingdom, France, Nordics (Denmark, Sweden, and Finland), Spain, Italy, Rest of Europe). The market sizes and forecasts are provided in terms of value in USD for all the segments.