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Building Automation Market will Reach $43 Billion

After years of steady but low growth, the commercial building automation systems (BAS) market is experiencing a rapid period of change and investment.

Traditionally, growth and adoption has been closely tied to new building completion but new entrants and new connectivity are driving greater investment.

According to the latest market study by ABI Research, over the next five years the building automation services market will grow to $43 billion -- that's up from $35 billion this year.

Two key factors are driving a new round of growth. Greater environmental and financial demands have raised the appeal of reducing energy consumption in commercial buildings and the benefits for optimizing building automation systems.

In addition, a new level of connectivity that stretches the reach of BAS apps from new sensors and actuators through to cloud application management and data analysis.

"This is a market long dominated by a handful of major players who deploy and manage commercial building management systems,” says Jonathan Collins, principal analyst at ABI Research.

Now these players are developing new ways to integrate and compete with a host of new service offerings. Perhaps we'll start to see some more meaningful examples of smart, connected building technology applications.

Dominant players Siemens, Johnson Controls, Honeywell, and Schneider Electric are increasingly seeing demand for their BAS systems connected to third-party player software as building owners gradually look to gain savings and offer additional level of control within their properties.

Within the BAS market, software and services will see the greatest revenue growth while hardware will lag as the pricing of actuators and switches fall.

In its latest market data analysis of the BAS market, ABI Research charts and forecasts the growing demand and revenue potential for building automation systems and the devices that connect to them.

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