The building automation systems (BAS) market is expected to grow at a strong 7.2% compound annual growth rate (CAGR) from USD 56.99 billion in 2025 to USD 114.06 billion by 2035. This rise is being driven by the convergence of energy efficiency regulations, smart infrastructure, and the growing demand for operational transparency across real estate portfolios. Traditional stand-alone HVAC, lighting, and access control systems are being replaced by unified platforms as intelligent systems are increasingly integrated into new construction and retrofit projects.

This growth is propelled by government initiatives aimed at reducing carbon emissions and improving energy efficiency, which are creating substantial opportunities for market expansion. The increasing adoption of the Internet of Things (IoT), heightened security concerns, and investments from both public and private sectors are also key drivers of this market’s momentum.

Additionally, advancements in wireless protocols, sensor networks, and the advent of Industry 4.0, along with the rapid evolution of cloud technologies, are further accelerating the growth of the building automation systems industry. These technological innovations are enhancing the efficiency and functionality of BAS, reinforcing their significance in modern infrastructure.

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Key Takeaways from the Building Automation Systems Market Report:

• U.S. to generate a revenue of USD 23.6 Billion by 2035 as sales of building automation systems will continue to be driven by the rapid adoption of technology in commercial and industrial activities.

• U.K. would likely contribute a share of USD 5.2 billion by 2035 due to the adoption of smart home devices and favorable regulations laid by authorities.

• China is the most lucrative region among all with a growth trajectory of 9.6% as the idea of building automation systems is still relatively new in China, industry players are able to increase their industry share and provide cutting-edge BAS solutions there.

• The industry’s largest contributor, HVAC Control, is anticipated to expand at a CAGR of 6.1% during the forecast period. The growth is attributed to the growing population and to enhance their industry share and enter a new industry, HVAC manufacturers are expanding their product profile.

• The service segment registered the highest growth rate of 7.8% as building automation industry participants are encouraging sales by providing enticing packages and offers, as well as post-sales assistance in maintenance and installation.

Competitive Landscape:

The top 5 players in the global building automation industry include Siemens AG, Honeywell International, ABB, Schneider Electric, and Johnson Controls, plc. As per FMI’s analysis, top 5 players are anticipated to account for 44% of the total industry share.

As a part of their growth strategies, leading players operating in the global Building Automation Systems Market are emphasizing product developments, intensive research and development, and strategic collaborations, mergers, and acquisitions to establish a firm foothold in the industry. For instance:

• In August 2021, Schneider Electric, a global data center hardware giant, entered an on-demand leasing program hardware deal with the American Power Conversion line for uninterruptable power supplies (UPS). The partnership will allow channel partners to offer improved visibility and front-end maintenance across their customers’ UPS systems.

• In July 2021, ASM Global, a global leader in entertainment experience, announced a strategic collaboration with Honeywell International, a leader in connected buildings, to create smarter and safer venue operations and more enjoyable audience experiences across ASM’s diverse portfolio.

Leading Key Players:

• Honeywell International

• Beijer Electronics

• ABB

• Siemens AG

• Johnson Controls

• Schneider Electric

• General Electric

• Legrand

• Lutron Electronics Co

• Control4 Corporation

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Building Automation Systems Market Segmentation:

By Product Type:

• Hardware

• Software

• Services

By System Type:

• Security & Surveillance

• HVAC

• Lighting Solutions

• BEMS (Building Energy Management)

By Application Type:

• Commercial

• Residential

• Government

By Region:

• North America

• Latin America

• Europe

• South Asia & Pacific

• East Asia

• Middle East & Africa (MEA)