North American BA systems market to reach $615M by 2016, Frost & Sullivan says
Frost & Sullivan | Date:
The North American building automation (BA) systems market generated revenue of $535.3 million in 2011, up 0.7 percent over the previous year. Although the market declined in 2009 and 2010, it is expected to experience steady growth through 2016. By 2016, the market is expected to reach $615.4 million in revenue. The market is forecast to have a CAGR of 2.8 percent from 2011 to 2016.
Key drivers are the needs to increase energy efficiency and achieve energy savings as well as green and sustainability measures; restraints include perception of high cost, lack of common protocols, and, in the short term, difficult economic conditions. The application software segment is declining as controllers are being increasingly embedded with software. As software applications move to the cloud, this segment is likely to witness a further decline toward the end of the forecast period. The current sales model is also expected to gradually shift to a licensing model. Integration of BA systems with IT systems is expected to continue throughout the forecast period.
Another trend is the use of wireless technology. Wireless building-level controllers are expected to gain traction due to their added flexibility and easier installation. Although modest growth is expected in all verticals, the health care, government and education verticals are expected to witness the highest growth during the forecast period. About 40 percent of BA systems are sold via direct sales. The role and influence of system integrators are expected to strengthen, given the trend toward technology convergence in the market.