Products are a third of the market, value-add at 44 percent, with service and maintenance taking the rest
The global building automation and control systems market is expected to be worth just over $26 billion by 2019, according to BSRIA’s new World Market Intelligence (WMI) report: 2015 World Building Automation and Control Systems (BACS) study.
The BSRIA study reveals that currently there are a small, but growing number of BACS systems with data analytics/building energy management systems (BEMS) across all geographical areas. There is a slow trend of BACS data analytics/BEMS migrating to the cloud. The IT industry is also slowly entering the data analytics/BEMS market.
In some countries, the role of system integrators and control contractors has become more important whereas in other countries, manufacturers are increasingly providing value-added service directly.
Jeremy Towler, BSRIA’s manager for energy and smart technologies, said, “Research in North America shows that some independent contractors and system integrators exclusively focus on a single brand. In Europe value-add and service is increasing its role due to energy saving, dominated by specialist installers (except in Spain, Italy, and Turkey). In China and India this segment is dominated by independent system integrators/contractors. The situation is similar in Middle East and Africa, where small independent system integrators are competing with some large system integrators in this growing segment.”
The growth of the BACS market in BRIC [Brazil, Russia, India, and China] countries has slowed down, mainly due to falling oil prices, as well as political-economic developments. The previously well-performing Brazilian economy and construction market (leading up to the Rio 2016 Summer Olympic Games) led to a good performance of the BACS market in 2014; nevertheless, the economic recession and the corruption scandals affecting the construction market are expected to have a negative impact on the BACS segment at least until 2017.
The total world BACS market saw an annual growth rate of 2.7 percent between 2012 and 2014 to reach $21.8 billion. Products account for around a third of the market, with value-add at 44 percent, and service and maintenance taking for the rest. North America accounts for 26 percent of the BACS product market, while Europe’s share is 38 percent (including Turkey and Russia). Asia-Pacific (including China and India) accounts for around 20 percent, leaving the share for Middle East and Africa at around 15 percent.
The BACS markets of the remaining three members of the BRIC country group (Russia, India, and China), along with Turkey, Saudi Arabia, and United Arab Emirates (UAE) are predicted to grow the fastest in the next five years.