Building Management System Market Definition And Segments
A building management system (BMS) is a computer-based control system that monitors and manages a building's mechanical and electrical equipment. The primary purpose of a BMS is to automate and optimize the control and monitoring of various building systems and equipment, such as heating, ventilation, air conditioning (HVAC), lighting, security, and access control. It helps to improve energy efficiency, reduce costs, and enhance occupant comfort and safety.
The main components of building management system are hardware, software, and services. Hardware in the building management system (BMS) market refers to the physical components used to control and monitor building systems, such as sensors, actuators, controllers, and interfaces. Wireless technologies and wired technologies are used by various end-users such as commercial buildings, residential buildings, industrial buildings, and government and public buildings.
The building management system market covered in this report is segmented –
1) By Component: Hardware, Software, Service
2) By Technology: Wireless Technologies, Wired Technologies
3) By End-User: Commercial Buildings, Residential Buildings, Industrial Buildings, Government And Public Buildings
The building management system market size has grown exponentially in recent years. It will grow from $14.77 billion in 2023 to $18.43 billion in 2024 at a compound annual growth rate (CAGR) of 24.8%. The growth in the historic period can be attributed to advances in data analytics, rising energy costs, energy efficiency regulations, rising energy costs, shift towards smart buildings.
The building management system market size is expected to see exponential growth in the next few years. It will grow to $44.9 billion in 2028 at a compound annual growth rate (CAGR) of 24.9%. The growth in the forecast period can be attributed to increasing demand for energy efficiency, rising focus on occupant comfort, regulatory compliance requirements, demand for smart buildings, focus on predictive maintenance. Major trends in the forecast period include adoption of IoT and smart building technologies, focus on energy efficiency, rise of cloud-based solutions, demand for integrated systems, enhanced security and access control.
Driving Growth With Building Management Systems (BMS) In The Construction Industry
The rapid expansion of building and construction-related activities is expected to propel the growth of the building management system market going forward. Construction activities refer to any proposed or ongoing installation, repair, maintenance, or similar action on the land, including the movement of vehicles and cranes, the transport of building supplies, and the anchoring or shoring of rocks. BMS allows building managers to centrally control and manage multiple building systems from a single interface, including HVAC, lighting, security, and access control. This centralized control enables efficient operation and coordination of building functions, optimizing energy usage and occupant comfort. For instance, in June 2023, according to the United States Census Bureau, a US-based primary agency of the Federal Statistics System, construction spending reached $566.7 billion in the initial four months of 2023, an increase of 6.1 % compared to $533.9 billion in the same period of 2022. Therefore, the rapid expansion of building and construction-related activities drives the building management system market.
Major companies operating in the building management system market are Siemens AG, United Technologies Corporation (UTC), International Business Machines Corporation (IBM), Cisco Systems Inc., Schneider Electric SE, Mitsubishi Electric Corporation, Honeywell International Inc., ABB Group, Johnson Controls International plc, Carrier Global Corporation, Trane Technologies plc, Emerson Electric Co., Legrand SA, Rockwell Automation Inc., Crestron Electronics Inc., Delta Controls Inc., Automated Logic Corporation, Trend Control Systems Ltd., KMC Controls Inc., Alerton, Reliable Controls Corporation, Distech Controls Inc. (Acuity Brands), Cylon Controls Ltd., Automated Building Controls (ABC) Ltd., Computrols Inc., Innotech Control Systems
Innovating Building Management With Automated Solutions For Enhanced Efficiency
Major companies operating in the building management system are developing automated building management systems to streamline building operations, improve energy efficiency, and enhance occupant comfort. An automated building management system (BMS) is a centralized system that uses sensors, controllers, and software to automate and control various building systems. For instance, in January 2024, Honeywell International Inc., a manufacturer of building controls, launched advance control for buildings. This distinctive technology combines automation, machine learning, and cybersecurity to optimize building operations, increase energy efficiency, and enhance the overall occupant experience. Honeywell's Advance Control for Buildings represents a significant advancement in building control technology by leveraging existing wiring and strategic partnerships with semiconductor leaders such as NXP Semiconductors and Analog Devices Inc., offering faster network speeds, enhanced security, and increased operational efficiency.
Learnd Strengthens Building Management System Sector Through BGES Group Acquisition
In March 2024, Learnd, a UK-based technology company, acquired BGES Group for an undisclosed amount. The acquisition of BGES Group by Learnd strengthens Learnd's position in the building management system sector by providing expertise, expanding market reach, enhancing resources, and fostering synergies between the two entities to deliver cutting-edge solutions in energy management and sustainability. BGES Group is a UK-based building management firm providing services focused on reducing energy costs and carbon emissions in non-residential buildings.
Europe was the largest region in the building management system market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the building management system market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the building management system market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The building management system market consists of revenues earned by entities by providing services such as energy management, fire detection and alarm systems, environmental monitoring, occupancy tracking, and lighting control. The market value includes the value of related goods sold by the service provider or included within the service offering. The building management system market also includes sales of security devices, sensors and actuators, user interfaces, and building automation controllers. 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.
The building management system market research report is one of a series of new reports from The Business Research Company that provides building management system market statistics, including building management system industry global market size, regional shares, competitors with a building management system market share, detailed building management system market segments, market trends and opportunities, and any further data you may need to thrive in the building management system industry. This building management system market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.