New building constructions plus strict energy-use norms seen fueling BAS demand in Europe

The convergence of IoT and automation technologies is helping to foster the development of building automation systems across various segments in Europe, reports Frost & Sullivan.

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Stricter energy-use regulations, a flourishing construction market, and an increasing need to update aging building stock are fueling the building automation systems (BAS) industry in Europe, reports technology markets analyst Frost & Sullivan

The analyst's recent study, entitled 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.

According to the study, the sector reportedly 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, warns the analyst. According to Frost & Sullivan’s 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,” notes 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.”

Constructing with smart building technology is an increasing trend in Europe, confirms the analyst, as retrofitting existing buildings is held to be comparatively expensive and complicated. Smart building technology also has a direct impact on the value of the building. According to Frost & Sullivan, "on average, incorporating BAS [may] 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,” continues Tatikota, adding: “Cutting-edge technologies involving IoT, big data, and cloud platforms have made it convenient to gather and normalize data from buildings, which helps analyze energy usage trends while facilitating fault detection and monitoring of overall building energy performance.”

The analyst maintains that vendors operating in the smart buildings sector should be able to capitalize on the opportunities in: developing areas of expertise around specific use-cases, such as cloud-based analytics or energy optimization; 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; and incorporating standardized measures and costs to achieve optimum pricing.

“Smart buildings will continue to evolve, utilizing the broader benefits of artificial intelligence to enable total automation,” concludes Frost & Sullivan's Tatikota. “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.”

The European Building Automation Systems (BAS) Markets, Forecast to 2025 report is a part of Frost & Sullivan’s 'Energy and Environment Growth Partnership Service' program, put forth to "help organizations identify a continuous flow of growth opportunities to succeed in an unpredictable future." For more information, visit the analyst's website at: https://ww2.frost.com/.

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