Building Automation to Reach $36 Billion by 2015, Says ABI Research

Building Automation to Reach $36 Billion by 2015, Says ABI Research

Recession and conflict always bring a reevaluation of energy management and calls for new ways to ensure organizations and nations use energy more efficiently. The same is true in the latest downturn and it is driving significant interest and activity in the market for building automation systems (BAS).

Energy use within commercial buildings has been growing year-on-year for decades and by now accounts for up to 20 percent of national energy consumption in some developed countries. This makes it a prime target for energy efficiency and environmental measures.

Despite being a traditionally slow growth area and one that was impacted by the latest economic downturn, the market for building automation systems will grow by three percent globally from 2009 to 2015, when the total market will reach a value of more than US$36 billion. This forecast is contained in a new study from ABI Research.

"Government financial incentives and regulations as well as organizations' own financial and environmental goals are coinciding with a drive to open up building automation systems to wider network management and integration, drawing companies such as IBM and Cisco into a market traditionally dominated by more specialist global companies such as Johnson Controls, Honeywell and others," said Principal Analyst Jonathan Collins.

Although low single-digit BAS market growth may not look significant, it actually is, given the current economic climate and the performance of the building industry in general. It also masks the shifts that will take place between revenue streams within the BAS market, as contract values will increasingly skew toward software and services and away from hardware – another result of the emerging trend for improved communication and connectivity with BASs.

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