Building Automation System Market Report 2026

The building automation system market size has grown rapidly in recent years. It will grow from $110.73 billion in 2025 to $124.73 billion in 2026 at a compound annual growth rate (CAGR) of 12.6%. The growth in the historic period can be attributed to growing adoption of early hvac control systems, increased reliance on wired building automation networks, expansion of standalone energy management platforms, rising deployment of basic access control solutions, development of foundational sensor and controller technologies.

The building automation system market size is expected to see rapid growth in the next few years. It will grow to $204.14 billion in 2030 at a compound annual growth rate (CAGR) of 13.1%. The growth in the forecast period can be attributed to increasing adoption of AI-enabled building optimization, growing use of cloud-based automation software, expansion of wireless and interoperable control technologies, rising demand for integrated multi-system building platforms, development of advanced sensors for predictive facility management. Major trends in the forecast period include growing integration of multi-system building controls into unified platforms, increasing adoption of smart hvac and lighting optimization solutions, expansion of retrofit building automation projects in aging infrastructure, rising demand for remote monitoring and predictive maintenance services, wider deployment of advanced security and access control systems in commercial buildings.

The anticipated rise in construction activities is expected to propel the growth of the building automation system (BAS) market. Construction activities involve the process of constructing or assembling physical structures, including buildings, roads, bridges, and other infrastructure projects. As these activities expand, the demand for building automation systems is likely to increase correspondingly. The implementation of automation solutions can help reduce administrative burdens on engineering personnel and enhance the productivity of construction managers in these essential areas. For example, in September 2024, data published by the Office for National Statistics, a UK-based recognized national statistics agency, indicated that construction output in the UK was projected to have increased by 1.2% in the three months leading up to July 2024. This growth was supported by a 1.6% rise in new work and a 0.8% increase in repair and maintenance, with notable gains of 1.7% in May and 0.5% in June 2024. Thus, the surge in construction activities is driving the expansion of the building automation system market.

Leading firms in the building automation system market are prioritizing innovative offerings such as the connect box to drive revenue growth. The connect box, a smart IoT solution, targets small and medium-sized buildings, delivering up to 30% enhanced energy efficiency and improved indoor air quality. Notably, Siemens Smart Infrastructure, a division of Siemens AG, unveiled the connect box in March 2023. This cloud-based interface provides centralized building management capabilities, furnishing valuable insights into operations and enabling process optimization. The accessible online platform via smartphones or desktops offers clients licensing options catering to their specific needs.

In April 2024, Building Controls & Solutions LLC, a US-based company specializing in building automation, acquired Yorkland Controls Limited for an undisclosed amount. This acquisition enhances Building Controls & Solutions LLC's capacity to improve its product offerings and broaden its presence in the HVAC and building automation industry. Yorkland Controls Limited, based in Canada, provides building automation systems and solutions designed to integrate various systems and devices within a building.

Major companies operating in the building automation system market are Honeywell International Inc., Robert Bosch GmbH, Johnson Controls International plc, Mitsubishi Electric Corporation, ABB Ltd., Schneider Electric SE, Siemens AG, Hubbell Inc., United Technologies Corporation, Ingersoll-Rand plc, General Electric Company, Cisco Systems Inc., Trane Technologies, Lutron Electronics Co. Ltd., Hitachi Ltd., Huawei Technologies Co. Ltd., Emerson Electric Co., Legrand, Control4 Corporation, Automated Logic Corporation, Delta Controls Inc., Distech Controls Inc., Crestron Electronics Inc., Leviton Manufacturing Co. Inc., Lynxspring Inc., Reliable Controls Corporation, Tridium Inc., Carrier Corporation, Computrols Inc., Daikin Industries Ltd.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs on electronic components, sensors, controllers, and networking devices are raising manufacturing and integration costs across building automation systems, significantly affecting hardware segments and cloud-connected automation technologies sourced from Asia-Pacific. These tariffs increase project expenses, delay deployment timelines in commercial and industrial facilities, and pressure supply chains in North America and Europe. Nevertheless, they encourage domestic production, accelerate local sourcing strategies, and foster innovation in cost-efficient building automation solutions. Ultimately, tariffs create short-term disruptions but contribute to strengthening regional manufacturing ecosystems.

The building automation systems market research report is one of a series of new reports that provides building automation systems market statistics, including building automation systems industry global market size, regional shares, competitors with a building automation systems market share, detailed building automation systems market segments, market trends and opportunities, and any further data you may need to thrive in the building automation systems industry. This building automation systems market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

A building automation system refers to an intelligent framework incorporating both hardware and software components. Its purpose is to oversee and regulate diverse building systems such as heating, ventilation, air conditioning (HVAC), lighting, security, and more enabling their interaction and control through a unified platform.

Primary offerings within building automation systems include facility management systems, security and access controls, fire protection systems, building energy management software, services related to building automation, and other related solutions. Facility management software, for instance, streamlines tasks ranging from simple to moderately complex facility management responsibilities, empowering users to manage these tasks autonomously. Comprising hardware and software components, this software finds applications across various sectors, including industrial, residential, and commercial spaces.North America was the largest region in the building automation system market in 2025. Asia-Pacific is expected to be the fastest-growing region in the global building automation system market report during the forecast period. The regions covered in the building automation system market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the building automation system market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The building automation system market consists of revenues earned by entities by providing services such as design and engineering, installation and commissioning, maintenance and support, monitoring and optimization and consulting and training. The market value includes the value of related goods sold by the service provider or included within the service offering. The building automation system market also includes sales of sensors, output devices, controllers, communication protocols, and a terminal. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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