Commercial Building Automation Market to Top $43 billion by 2018, Says ABI Research

Two key factors are driving a new round of growth

NEW YORK--After years of steady but low growth the commercial building automation systems (BAS) market is experiencing a rapid period of change and investment. Traditionally, growth and adoption has been closely tied to new building completion but new entrants and new connectivity are driving greater investment. Over the next five years the building automation services market will grow to $43 billion, up from $35 billion this year.

Two key factors are driving a new round of growth. Greater environmental and financial demands have raised the appeal of reducing energy consumption in commercial buildings and the benefits for optimizing building automation systems. In addition, a new level of connectivity that stretches the reach of BAS's from new sensors and actuators through to cloud application management and data analysis.

"This is a market long dominated by a handful of major players who deploy and manage commercial building management systems," says Jonathan Collins, principal analyst at ABI Research. "Now these players are developing new ways to integrate and compete with a host of new service offerings."

Dominant players Siemens, Johnson Controls, Honeywell, and Schneider Electric are increasingly seeing demand for their BAS systems connected to third-party player software as building owners gradually look to gain savings and offer additional level of control within their properties. Within the BAS market, software and services will see the greatest revenue growth while hardware will lag as the pricing of actuators and switches fall.

In its latest Market Data analysis of the BAS market, ABI Research charts and forecasts the growing demand and revenue potential for building automation systems and the devices that connect to them.

These findings are part of ABI Research's Home Automation Research Service (, which includes Research Reports, Market Data, Insights, and Competitive Assessments. These reports cover the development of the commercial building automation as well as home automation markets across a range of technologies.

ABI Research provides in-depth analysis and quantitative forecasting of trends in global connectivity and other emerging technologies. From offices in North America, Europe and Asia, ABI Research's worldwide team of experts advises thousands of decision makers through 70+ research and advisory services. Est. 1990. For more information visit, or call +1.516.624.2500.

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