The smart building movement is expected to drive 8% global growth through the end of 2019 coming from companies that adopt building automation systems for commercial projects, according to Future Market Insights.
The analyst firm said that 64% of the total market for building automation systems will come from commercial applications, with the remainder of the market focused on residential spaces from consumer-focused companies like Apple and Google NEST.
The big commercial players are Schneider Electric, ABB, Siemens AG, Johnson Controls and Honeywell International. Together, those top five control 40% of the global market.
The overall market for commercial and residential grew 7% in 2018 over the prior year, totaling $35 billion. Based on that trend, the total for 2019 could reach $38 billion.
Commercial structures including offices, schools, hospitals and others increasingly want centralized control systems that come with hassle-free operations, Future Market Insights said.
In 2019, end users are also following a trend of adopting automation services over purchases of hardware and software. “This inclination is primarily conditioned by attractive packages offered by service providers, along with satisfactory pre-sales and post-sales customer assistance, starting from installation to maintenance. Even so, the value of building automation software will reach $10.5 billion in 2019, Future Market Insights said.
Europe and North America are the biggest markets for building automation systems, with Europe taking 32% and North American with 30%. Future Market Insights added that East Asia is “likely to emerge as the new gold mine of opportunities, with growth primarily driven by a drastic makeover of the regional architecture, engineering and construction industry.” Building automation systems in East Asia are expected to grow by 9% in 2019 compared to a year earlier.