The building automation market will be worth US$45 billion by 2021, with Europe possessing the greatest market share, followed by North America and Asia Pacific, according to a new report by global market intelligence company ABI Research.
ABI Research notes that the building automation market will experience steady but incremental growth over the next five years.
It adds that holding back its adoption is the slow return on investment for building owners due to the high costs of installing building automation systems.
The research shows that the big four building automation original equipment manufacturers - Honeywell, Schneider Electric, Johnson Controls and Siemens - hold more than 60% market share and have a strong influence in the market.
IoT driving consumer uptake
Commenting on the impact of IoT in the building automation market, Adarsh Krishnan, senior analyst at ABI Research, said: "The Internet of Things and its adoption in consumer markets has a noticeable impact in a traditionally conservative industry with distributed intelligence and cloud-based analytics gaining acceptance."
The analyst goes on to say that the market is experiencing a gradual shift toward more integrated solutions, where interoperable systems are widely accepted, which in turn, fosters innovative applications to optimise building environment.
Regarding utility deployments - when building automation systems are combined with smart grid technology, energy providers are able to gain greater insight into energy and water consumption in buildings in order to efficiently manage resources.
According to the ABI report release, wired field equipment has accounted for the majority of commercial building connections in 2015, but wireless is gaining traction for connecting wireless field devices.
It concludes by saying that applications such as lighting and HVAC are increasing their use of wireless technologies and will account for 19% and 21% of the annual field equipment shipped in 2021.