The global building management systems market size was USD 17.61 billion in 2023, calculated at USD 20.25 billion in 2024 and is expected to be worth around USD 82.01 billion by 2034. The market is slated to expand at 15.01% CAGR from 2024 to 2034.
The global building management systems market size is expected to be valued at USD 20.25 billion in 2024 and is anticipated to reach around USD 82.01 billion by 2034, expanding at a solid CAGR of 15.01% over the forecast period 2024 to 2034. The rising use of smart sensors and IoT devices is observed to promote the building management systems market growth in the coming years.
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The Europe building management systems market size was exhibited at USD 6.52 billion in 2023 and is projected to be worth around USD 30.75 billion by 2034, poised to grow at a CAGR of 15.14% from 2024 to 2034.
Europe held the dominant share of the software building management systems market in 2023 and is observed to witness prolific growth in the during the forecast period. The region’s growth is attributed to the rapid infrastructure development, growing adoption of smart building solutions, increasing demand for energy-efficient and eco-friendly buildings, supportive regulatory frameworks, rise in R&D expenses, presence of prominent market participants, and increasing investment in smart city projects. In addition, there is a rising demand for innovative safety and security solutions in building facilities.
Furthermore, there is a rapid adoption of advanced technologies such as artificial intelligence, IoT, analytics, and cloud computing in building management systems. These integrations of advanced technologies enable predictive maintenance and improve control over building operations and real-time data analysis.
North America is anticipated to grow at the fastest rate in the building management systems market during the forecast period owing to the increasing popularity of demand for energy-efficient infrastructure, rising investments in smart city projects, the presence of its stringent regulations on greenhouse gas emissions, expansion of construction industry, increase in the number of technology companies, rapid adoption of advanced in smart buildings, and increasing awareness about energy conservation.
Several building management systems market players in North America are expanding their operations and adopting marketing strategies such as new product launches, partnerships or collaborations, and acquisitions to strengthen their positions. Moreover, the rising spending capacity of consumers for digitalizing building facilities is observed.
Building management systems (BMS) are computer-based systems installed to monitor and control the building's electrical and mechanical equipment, including lighting, HVAC, heat pumps, air handling units, condensing units, fire systems, energy, and security systems. Building management systems is a central control point for all facilities within a building. BMS can easily remotely control ventilation and heating systems from a mobile device and computer or laptop.
The physical presence of facility management staff is not required to go to each building, room, or floor to switch on, shut down, or manually adjust mechanical devices. Almost every equipment used in the building feeds data to one single system. The building management systems market enables well-informed decision-making, boosts efficiency, and reduces energy consumption, which leads to cost savings.
How Artificial Intelligence is Impacting the Growth of the Building Management Systems Market?
As technology continues to evolve, the integration of cloud computing technologies, the Internet of Things (IoT), and artificial intelligence (AI) in the building management systems market provide efficient solutions, such as extending the equipment life, water conservation, improving grid reliability, reducing energy consumption, lowing carbon emissions, and enhancing the overall occupant comfort. With technological advancements, the monitoring and controlling of various systems, such as HVAC, lighting, and security, provide a comprehensive view of building operations.
Cloud computing is integral to building management systems BMS as it offers remote monitoring and control capabilities. The cloud-based platform brings about scalability, better data storage, and accessibility from anywhere. Internet of Things (IoT) devices provide a broad range of data points for analysis and optimization. Artificial intelligence (AI) can analyze data efficiently and automatically adjust settings for maximum efficiency, resulting in reduced operational costs. Machine learning (ML) algorithms assist in predicting equipment failures before they occur, which leads to lowering downtime and ensuring a seamless and reliable experience.
Report Coverage | Details |
Market Size by 2034 | USD 82.01 Billion |
Market Size in 2023 | USD 17.61 Billion |
Market Size in 2024 | USD 20.25 Billion |
Market Growth Rate from 2024 to 2034 | CAGR of 15.01% |
Largest Market | Europe |
Base Year | 2023 |
Forecast Period | 2024 to 2034 |
Segments Covered | Software, Application, and Regions |
Regions Covered | North America, Europe, Asia-Pacific, Latin America and Middle East & Africa |
Increasing demand for energy-efficient and eco-friendly buildings
Energy-efficient and eco-friendly buildings are expected to boost the growth of the building management systems market during the forecast period. As smart technology evolves, energy efficiency becomes a top priority for building owners. Building management systems (BMS) are increasingly becoming a crucial role in both new construction and retrofit projects. BMS can optimize energy usage within buildings, which will result in reducing energy consumption, promoting sustainable building practices, and adopting renewable energy sources. BMS systems are highly effective in energy management as they continuously monitor and analyze data from several building systems, including lighting and HVAC, to optimize energy usage.
High initial cost
The high initial cost is projected to hamper the growth of the market. The deployment of AI sensors requires significant investment as advanced technology and infrastructure are required. In addition, several lower and middle-income countries lack adequate internet connection infrastructure that provides the desired performance and is also likely to limit the expansion of the global building management systems market during the forecast period.
Rise in cybersecurity measures
The rising cybersecurity measures are expected to boost the growth of the building management systems market during the forecast period. BMS integrates a wider range of building functions, including lighting, heating, ventilation, air conditioning (HVAC), security, access control, and more, into a single unified system. As building management systems have become more sophisticated and increasingly connected. Cybersecurity has become a growing concern in safeguarding building systems from cyber threats and unauthorized access. More robust measures are widely adopted, including advanced encryption, secure communication protocols, and regular software updates necessary for data integrity.
The energy management segment held the largest share of the building management systems market in 2023 and is expected to sustain its position throughout the forecast period. The growth of the segment is majorly driven by the increasing energy costs, rising government initiatives towards sustainability, and increasing adoption of renewable energy. In energy management, BMS enables the comprehensive control of lighting systems and HVAC to optimize energy consumption. BMS allows buildings to automate functions and reduce energy costs. It also enables real-time monitoring and control of the building facility.
The security management segment is expected to witness considerable growth in the building management systems market over the forecast period. The significant rise in security concerns over the years led to an increasing adoption of BMS. The use of security surveillance devices such as CCTV cameras and biometric systems assists in ensuring the safety of the residents.
The commercial segment dominated the global building management systems market in 2023. BMS are computer-based systems widely installed in commercial buildings to monitor, supervise, and control the building's mechanical and electrical equipment. These systems include access control, fire alarms, programmable lighting, video surveillance, HVAC control, electric power management, and others. Moreover, the use of these systems helps to increase operating efficiency, improve indoor air quality, lower operating and maintenance costs, and enhance occupant experience.
The residential segment is projected to expand rapidly in the building management systems market in the coming years, owing to the increasing demand for smart and connected homes. Building management systems are designed to control, monitor, and optimize various building functions and services in residential buildings. These systems are extensively deployed in residential buildings to reduce energy consumption, boost operational efficiency, deliver occupant comfort, and improve overall building performance. Residents can easily personalize temperature and lighting settings through mobile apps, which creates a comfortable environment. It also allows the tracking of real-time data on air quality.
Segments Covered in the Report
By Software
By Application
By Geography
Chapter 1. Introduction
1.1. Research Objective
1.2. Scope of the Study
1.3. Definition
Chapter 2. Research Methodology (Premium Insights)
2.1. Research Approach
2.2. Data Sources
2.3. Assumptions & Limitations
Chapter 3. Executive Summary
3.1. Market Snapshot
Chapter 4. Market Variables and Scope
4.1. Introduction
4.2. Market Classification and Scope
4.3. Industry Value Chain Analysis
4.3.1. Raw Material Procurement Analysis
4.3.2. Sales and Distribution Channel Analysis
4.3.3. Downstream Buyer Analysis
Chapter 5. COVID 19 Impact on Building Management Systems Market
5.1. COVID-19 Landscape: Building Management Systems Industry Impact
5.2. COVID 19 - Impact Assessment for the Industry
5.3. COVID 19 Impact: Global Major Government Policy
5.4. Market Trends and Opportunities in the COVID-19 Landscape
Chapter 6. Market Dynamics Analysis and Trends
6.1. Market Dynamics
6.1.1. Market Drivers
6.1.2. Market Restraints
6.1.3. Market Opportunities
6.2. Porter’s Five Forces Analysis
6.2.1. Bargaining power of suppliers
6.2.2. Bargaining power of buyers
6.2.3. Threat of substitute
6.2.4. Threat of new entrants
6.2.5. Degree of competition
Chapter 7. Competitive Landscape
7.1.1. Company Market Share/Positioning Analysis
7.1.2. Key Strategies Adopted by Players
7.1.3. Vendor Landscape
7.1.3.1. List of Suppliers
7.1.3.2. List of Buyers
Chapter 8. Global Building Management Systems Market, By Software
8.1. Building Management Systems Market, by Software, 2024-2033
8.1.1. Facility Management
8.1.1.1. Market Revenue and Forecast (2021-2033)
8.1.2. Security Management
8.1.2.1. Market Revenue and Forecast (2021-2033)
8.1.3. Energy Management
8.1.3.1. Market Revenue and Forecast (2021-2033)
8.1.4. Infrastructure Management
8.1.4.1. Market Revenue and Forecast (2021-2033)
8.1.5. Emergency Management
8.1.5.1. Market Revenue and Forecast (2021-2033)
Chapter 9. Global Building Management Systems Market, By Application
9.1. Building Management Systems Market, by Application, 2024-2033
9.1.1. Residential
9.1.1.1. Market Revenue and Forecast (2021-2033)
9.1.2. Commercial
9.1.2.1. Market Revenue and Forecast (2021-2033)
9.1.3. Industrial
9.1.3.1. Market Revenue and Forecast (2021-2033)
Chapter 10. Global Building Management Systems Market, Regional Estimates and Trend Forecast
10.1. North America
10.1.1. Market Revenue and Forecast, by Software (2021-2033)
10.1.2. Market Revenue and Forecast, by Application (2021-2033)
10.1.3. U.S.
10.1.3.1. Market Revenue and Forecast, by Software (2021-2033)
10.1.3.2. Market Revenue and Forecast, by Application (2021-2033)
10.1.4. Rest of North America
10.1.4.1. Market Revenue and Forecast, by Software (2021-2033)
10.1.4.2. Market Revenue and Forecast, by Application (2021-2033)
10.2. Europe
10.2.1. Market Revenue and Forecast, by Software (2021-2033)
10.2.2. Market Revenue and Forecast, by Application (2021-2033)
10.2.3. UK
10.2.3.1. Market Revenue and Forecast, by Software (2021-2033)
10.2.3.2. Market Revenue and Forecast, by Application (2021-2033)
10.2.4. Germany
10.2.4.1. Market Revenue and Forecast, by Software (2021-2033)
10.2.4.2. Market Revenue and Forecast, by Application (2021-2033)
10.2.5. France
10.2.5.1. Market Revenue and Forecast, by Software (2021-2033)
10.2.5.2. Market Revenue and Forecast, by Application (2021-2033)
10.2.6. Rest of Europe
10.2.6.1. Market Revenue and Forecast, by Software (2021-2033)
10.2.6.2. Market Revenue and Forecast, by Application (2021-2033)
10.3. APAC
10.3.1. Market Revenue and Forecast, by Software (2021-2033)
10.3.2. Market Revenue and Forecast, by Application (2021-2033)
10.3.3. India
10.3.3.1. Market Revenue and Forecast, by Software (2021-2033)
10.3.3.2. Market Revenue and Forecast, by Application (2021-2033)
10.3.4. China
10.3.4.1. Market Revenue and Forecast, by Software (2021-2033)
10.3.4.2. Market Revenue and Forecast, by Application (2021-2033)
10.3.5. Japan
10.3.5.1. Market Revenue and Forecast, by Software (2021-2033)
10.3.5.2. Market Revenue and Forecast, by Application (2021-2033)
10.3.6. Rest of APAC
10.3.6.1. Market Revenue and Forecast, by Software (2021-2033)
10.3.6.2. Market Revenue and Forecast, by Application (2021-2033)
10.4. MEA
10.4.1. Market Revenue and Forecast, by Software (2021-2033)
10.4.2. Market Revenue and Forecast, by Application (2021-2033)
10.4.3. GCC
10.4.3.1. Market Revenue and Forecast, by Software (2021-2033)
10.4.3.2. Market Revenue and Forecast, by Application (2021-2033)
10.4.4. North Africa
10.4.4.1. Market Revenue and Forecast, by Software (2021-2033)
10.4.4.2. Market Revenue and Forecast, by Application (2021-2033)
10.4.5. South Africa
10.4.5.1. Market Revenue and Forecast, by Software (2021-2033)
10.4.5.2. Market Revenue and Forecast, by Application (2021-2033)
10.4.6. Rest of MEA
10.4.6.1. Market Revenue and Forecast, by Software (2021-2033)
10.4.6.2. Market Revenue and Forecast, by Application (2021-2033)
10.5. Latin America
10.5.1. Market Revenue and Forecast, by Software (2021-2033)
10.5.2. Market Revenue and Forecast, by Application (2021-2033)
10.5.3. Brazil
10.5.3.1. Market Revenue and Forecast, by Software (2021-2033)
10.5.3.2. Market Revenue and Forecast, by Application (2021-2033)
10.5.4. Rest of LATAM
10.5.4.1. Market Revenue and Forecast, by Software (2021-2033)
10.5.4.2. Market Revenue and Forecast, by Application (2021-2033)
Chapter 11. Company Profiles
11.1. Schneider
11.1.1. Company Overview
11.1.2. Product Offerings
11.1.3. Financial Performance
11.1.4. Recent Initiatives
11.2. Azbil Corporation
11.2.1. Company Overview
11.2.2. Product Offerings
11.2.3. Financial Performance
11.2.4. Recent Initiatives
11.3. Delta Electronics, Inc.
11.3.1. Company Overview
11.3.2. Product Offerings
11.3.3. Financial Performance
11.3.4. Recent Initiatives
11.4. Emerson Electric Co.
11.4.1. Company Overview
11.4.2. Product Offerings
11.4.3. Financial Performance
11.4.4. Recent Initiatives
11.5. Hubbell Inc.
11.5.1. Company Overview
11.5.2. Product Offerings
11.5.3. Financial Performance
11.5.4. Recent Initiatives
11.6. Cisco Systems, Inc.
11.6.1. Company Overview
11.6.2. Product Offerings
11.6.3. Financial Performance
11.6.4. Recent Initiatives
11.7. Siemens
11.7.1. Company Overview
11.7.2. Product Offerings
11.7.3. Financial Performance
11.7.4. Recent Initiatives
11.8. Johnson Controls
11.8.1. Company Overview
11.8.2. Product Offerings
11.8.3. Financial Performance
11.8.4. Recent Initiatives
11.9. Airedale
11.9.1. Company Overview
11.9.2. Product Offerings
11.9.3. Financial Performance
11.9.4. Recent Initiatives
11.10. Hangzhou Hikvision Digital Technology Co., Ltd.
11.10.1. Company Overview
11.10.2. Product Offerings
11.10.3. Financial Performance
11.10.4. Recent Initiatives
Chapter 12. Research Methodology
12.1. Primary Research
12.2. Secondary Research
12.3. Assumptions
Chapter 13. Appendix
13.1. About Us
13.2. Glossary of Terms
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