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New Building Constructions and Strict Energy-Use Norms Fuel Demand for Building Automation Systems in Europe

Convergence of IoT and automation technologies to foster the development of building automation systems across various segments


News provided by

Frost & Sullivan

Dec 05, 2019, 06:21 ET

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LONDON, Dec. 5, 2019 /CNW/ -- Stricter energy-use regulations, a flourishing construction market, and an increasing need to update ageing building stock are fuelling the building automation systems (BAS) industry in Europe. The sector garnered $1.8 billion in 2018, registering a CAGR of 2.7%. However, the requirement of high initial investments and slowing economic conditions in certain regions could restrain further expansion of the market. According to Frost & Sullivan's latest research, the European BAS market is projected to grow at a modest CAGR of 2.6% between 2018 and 2025, raking in an estimated $2.1 billion in revenue.

"Building automation systems help improve the security, safety, comfort, and operational efficiency of a building," said Neha Tatikota, Industry Analyst, Energy and Environment at Frost & Sullivan. "Such intelligent networking of all systems in a building not only improves energy efficiency but also enhances the productivity of the people in the building, thus delivering value-added human-centric services."

Frost & Sullivan's recent analysis, European Building Automation Systems (BAS) Markets, Forecast to 2025, surveys the trends and developments that are influencing the performance of the building automation systems market in Europe. The research provides a detailed market share and competitive analysis, region-wise revenue forecasts through 2025, and strategic recommendations to make the most of the growth opportunities in this space.

For further information on this analysis, please visit: http://frost.ly/3wl

Constructing with smart building technology is an increasing trend in Europe, as retrofitting existing buildings is comparatively expensive and complicated. It also has a direct impact on the value of the building. On average, incorporating BAS would result in up to 17% growth in resale value, 35% increase in rental rates, 18% higher occupancy rates, 30% lower operating expenses, and 9% higher net operating income.

"The key to increasing the performance and profitability of a building will be to drive greater energy savings and comfort," noted Neha. "Cutting-edge technologies involving IoT, Big Data, and cloud platforms have made it convenient to gather and normalise data from buildings, which helps analyse energy usage trends while facilitating fault detection and monitoring of overall building energy performance."

Vendors operating in this sector can capitalise on the opportunities in:

  • Developing areas of expertise around specific use cases, such as cloud-based analytics or energy optimisation
  • Offering auto-configurations to enable a higher range of connected devices, service mechanisms, and advanced levels of security
  • Making buildings more human-centric to attract and retain staff
  • Incorporating standardised measures and costs to achieve optimum pricing

"Smart buildings will continue to evolve, utilising the broader benefits of artificial intelligence to enable total automation," added Neha. "Predictive analysis of occupants' schedules and patterns will be the key feature of the latest BAS technologies, making buildings more human-centric, while companies are producing software and apps that will make systems in a building space far more intelligent."

European Building Automation Systems (BAS) Markets, Forecast to 2025 is a part of Frost & Sullivan's Energy and Environment Growth Partnership Service program, which helps organisations identify a continuous flow of growth opportunities to succeed in an unpredictable future.

About Frost & Sullivan

For over five decades, Frost & Sullivan has become world-renowned for its role in helping investors, corporate leaders and governments navigate economic changes and identify disruptive technologies, Mega Trends, new business models and companies to action, resulting in a continuous flow of growth opportunities to drive future success. Contact us: Start the discussion.

European Building Automation Systems (BAS) Markets, Forecast to 2025
ME17-19

Contact:

Kristi Cekani
Corporate Communications - Frost & Sullivan, Europe
P: +39 (0)2 4851 6133
E: [email protected] 
http://ww2.frost.com

SOURCE Frost & Sullivan

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