- The market is estimated to reach $5.91 billion by 2026 from $4.69 billion
- Buildings, infrastructure, and energy will remain the core investment areas for smart city development
- This will also present tremendous market growth opportunities for market participants in IoT enables solutions
The market is estimated to reach $5.91 billion by 2026 from $4.69 billion in 2019, which could grow at a compound annual growth rate (CAGR) of 3.4%. However, the market would be restrained by the Covid-19 pandemic in the short term, as some construction projects commissioned by the companies or government face delays or cancellations.
Integration of operational technology
According to Neha Tatikota, Energy and Environment Research Analyst at Frost and Sullivan, “Buildings, infrastructure, and energy will remain the core investment areas for smart city development, which is further expected to drive the demand for advanced and efficient BAS systems.” She also added that partnerships and collaborations are becoming increasingly important as suppliers of all sizes seek to offer a comprehensive, end-to-end market segment solution.”
Thus integration of operational technology control network with information technology will continue to change the dynamic of the BAS market because this will reduce operating and infrastructure costs. This will also improve the financial optimisation of buildings. Further, the adoption of deep learning and machine learning (ML) algorithms for developing voice-over technology and advanced features will be crucial innovation areas for next-generation BAS solutions.
This will also present tremendous market growth opportunities for market participants in IoT enables solutions. Hence, the upcoming IoT enabled building automation suppliers are required to partner with reputed and reliable system integrators for higher penetration into geographic and to expand their customer base. One of the most dynamic innovation areas in the BAS space are Big Data, IoT, cloud, AI, and ML algorithms. Lastly, product integration is another critical growth opportunity that needs to be leveraged to its full potential to introduce efficient products in the market.
Global Building Automation Systems (BAS) Market, Forecast to 2026 is the latest addition to Frost and Sullivan’s Energy and Environment research and analyses available through the Frost and Sullivan leadership council. They also help organisations identify a continuous flow of growth opportunities to succeed in an unpredictable future.