International. The building automation market is projected to experience sustained but gradual growth over the next five years, generating $45 billion in 2021, according to a report by ABI Research. Europe will be the largest market in terms of revenue, followed by North America and Asia-Pacific in 2021.
Office buildings are projected to be the largest vertical markets in the forecast period followed by retail and public assembly buildings. Among the other verticals, hospitality and healthcare are expected to witness rapid growth from 2016 to 2021.
In hospitality, short hotel remodeling cycles are becoming a lucrative market for solution providers to upgrade or replace existing systems with smarter systems to improve the overall customer experience. In healthcare, increasing compliance requirements are driving the use of connected medical devices to improve auditability in the use of high-value movable property and to control environments to improve patient comfort.
While the market continues to witness a gradual shift towards more integrated solutions, there is a greater acceptance of interoperable systems that foster innovative applications to optimize the building environment. This also allows the potential integration of building automation systems with the usefulness of smart meters to gain a greater understanding of energy and water consumption in buildings in order to efficiently manage resources.
