Building Automation and Control System Market Report 2026

The building automation and control system market size has grown rapidly in recent years. It will grow from $106.95 billion in 2025 to $118.83 billion in 2026 at a compound annual growth rate (CAGR) of 11.1%. The growth in the historic period can be attributed to expansion of building automation adoption, reliance on imported control system components, growth in commercial and industrial construction, increased demand for integrated hvac and lighting control, early shift toward smart facility management.

The building automation and control system market size is expected to see rapid growth in the next few years. It will grow to $180.85 billion in 2030 at a compound annual growth rate (CAGR) of 11.1%. The growth in the forecast period can be attributed to increasing demand for energy-efficient buildings, rising adoption of wireless automation technologies, advancements in AI-driven building optimization, growth in retrofitting and modernization projects, expanding use of cloud-based building management systems. Major trends in the forecast period include integration of intelligent control algorithms, growth in smart building deployments, advancement in remote facility management, rising adoption of energy optimization systems, expansion of predictive maintenance solutions.

The building automation and control system market is poised for significant growth, driven by the rise in smart building construction. Smart buildings leverage advanced technology and interconnected systems to optimize energy efficiency, enhance occupant comfort, and improve operational efficiency. This trend is fueled by cost-saving opportunities, regulatory requirements, and the growing demand for connected and intelligent spaces. For example, in May 2024, the United States Environmental Protection Agency (EPA), a U.S.-based federal government agency, reported that by the end of 2023, over 43,000 buildings in the United States had earned the EPA’s ENERGY STAR certification. Together, these buildings have saved nearly $6 billion in energy costs and prevented more than 23 million metric tons of greenhouse gas emissions, equivalent to the annual emissions of over 3 million homes. This surge in smart building construction is driving the adoption of building automation and control systems to ensure interoperability and centralized control of building operations.

Leading companies in the building automation and control system market are prioritizing the development of innovative solutions such as advanced cybersecurity and smart building analytics to improve system reliability, safeguard data, and optimize building performance. Advanced cybersecurity protects networks and sensitive information from cyber threats, while smart building analytics leverages AI and IoT data to monitor and optimize energy consumption, occupancy, and maintenance, enhancing efficiency, comfort, and cost savings. For example, in January 2024, Honeywell International Inc., a U.S.-based technology and manufacturing company, launched the Advance Control Building Management System, a state-of-the-art solution for modern commercial and industrial facilities. The system integrates predictive energy analytics, adaptive control algorithms, and remote accessibility, enabling facilities to reduce energy usage while maintaining optimal comfort and safety. Its modular design allows seamless integration with existing infrastructure, and a user-friendly interface simplifies monitoring and decision-making for facility managers. The system also supports scalability for large enterprises, providing cloud-based insights and automated alerts to enhance maintenance and operational efficiency.

In March 2023, Building Controls and Solutions, a US-based distributor of energy management solutions, acquired Minvalco Inc. for $455 million. This acquisition aims to expand Building Controls and Solutions' services and strengthen its position in the North American building automation market. Minvalco Inc. is a US-based provider of building automation and control systems, aligning with Building Controls and Solutions' growth strategy in the rapidly expanding smart building construction sector.

Major companies operating in the building automation and control system market are Robert Bosch GmbH, Hitachi Ltd, Siemens AG, Cisco Systems Inc, Schneider Electric SE, Honeywell International Inc, ABB Ltd, Johnson Controls International plc, Trane Technologies plc, Emerson Electric Co, Legrand SA, Rockwell Automation Inc, Signify Holding B.V, Hubbell Incorporated, Lennox International Inc, Acuity Brands Inc, Carrier Global Corporation, Crestron Electronics Inc, Leviton Manufacturing Co. Inc, Beckhoff Automation GmbH & Co. KG, Snap One LLC, Lutron Electronics Co. Inc, Current Lighting Solutions LLC, Dialight plc, Uplight Inc.

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 are affecting the building automation and control system market by increasing the cost of imported electronic components such as sensors, controllers, networking modules, and software hardware, leading to higher installation and integration expenses for system providers. Commercial and industrial users in regions dependent on Asian electronics imports are the most impacted. However, tariffs can also stimulate regional electronics manufacturing, promote domestic sourcing, and drive innovation toward cost-efficient automation solutions.

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

A building automation and control system (BACS) is a centralized system that integrates and controls various building systems to optimize energy efficiency, enhance occupant comfort, and streamline facility management operations. It provides intelligent solutions to manage and optimize building performance, comfort, and efficiency.

Key offerings in building automation and control systems include solutions and services. These solutions streamline operations, enhance energy efficiency, and improve occupant comfort by integrating and automating various building systems such as HVAC, lighting, and security onto a centralized platform for monitoring and control. Technology types include wired and wireless, catering to end users in residential, commercial, and industrial sectors.Asia-Pacific was the largest region in the building automation and control system market in 2025. Europe is expected to be the fastest-growing region in the forecast period. The regions covered in the building automation and control system market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the building automation and control system market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The building automation and control system market consists of revenues earned by entities through services such as installation services, integration services, commissioning services, training services, energy management services, system upgrades and expansion, and other equipment used during the process. The market value includes the value of related goods sold by the service provider or included within the service offering. The market for building automation and control systems also includes sales of controllers, sensors, actuators, human-machine interfaces, networking infrastructure, and software application equipment. 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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