Polaris Market Research
Intelligent Building Automation Technologies Market Growth Analysis, 2025-2034
Inquire Before Buying Request Free Sample
Intelligent Building Automation Technologies Market Growth Analysis, 2025-2034

Intelligent Building Automation Technologies Market Size, Share, Volume, Trends, Industry Analysis Report By Component (Hardware, Software, Services), By End User, By Region – Market Forecast, 2025–2034

  • Published Date:Jul-2025
  • Pages: 117
  • Format: PDF
  • Report ID: PM1431
  • Base Year: 2024
  • Historical Data: 2020-2023

Overview

The global intelligent building automation technologies market size was valued at USD 93.61 billion in 2024, growing at a CAGR of 10.32% from 2025 to 2034. Key factors driving demand for intelligent building automation technologies include expanding urbanization worldwide, rising demand for smart homes, and increasing investments in the development of smart cities.

Key Insight

  • The hardware segment accounted for 46.25% of revenue share in 2024.
  • The hardware segment witnessed 663 million unit sales in 2024.
  • 55 million licenses were registered under the software segment in the intelligent building automation technologies industry in 2024.
  • The commercial segment was valued at USD 50.53 billion in 2024.
  • The North America intelligent building automation technologies market accounted for 39.56% of global market share in 2024.
  • North America witnessed 254 million unit sales of hardware components in 2024.
  • The U.S. held 78.02% share of the North America market in 2024.
  • The intelligent building automation technologies industry in Asia Pacific is registering a CAGR of 11.71% from 2025 to 2034.

Intelligent Building Automation Technologies Market Size, By Region, 2020 - 2034 (USD Billion)

The global intelligent building automation technologies (IBAT) market refers to the ecosystem of smart technologies integrated into buildings to automate and optimize the management of various systems, including heating, ventilation, air conditioning (HVAC), lighting, security, energy, and other essential functions. These technologies use a network of sensors, controllers, and software platforms powered by artificial intelligence (AI), the Internet of Things (IoT), and advanced analytics to create more responsive, energy-efficient, and secure building environments. IBAT is a critical enabler in the evolution of traditional buildings into smart infrastructure that can dynamically respond to both internal and external stimuli.

One of the fundamental advantages of intelligent building automation is energy efficiency. Automated systems continuously monitor energy consumption patterns and environmental conditions, enabling real-time adjustments that reduce energy waste. For instance, smart lighting systems dim or switch off based on occupancy or natural light levels, while intelligent HVAC systems adjust temperatures based on room usage and external weather data. This reduces operational costs and contributes to sustainability efforts and lowers a building’s carbon footprint.

Safety and security are also strengthened through intelligent building automation. Advanced security systems in smart buildings include biometric access controls, real-time surveillance with facial recognition, intrusion detection, and emergency response automation. These systems can be centrally managed and integrated with building management platforms, allowing immediate alerts and actions in case of emergencies, thereby improving the overall safety and resilience of facilities.

The intelligent building automation technologies market demand is driven by the expanding urbanization worldwide. World Economic Forum, in its 2022 report, stated that the share of the world’s population living in cities is expected to rise to 80% by 2050. This increase in urbanization is creating pressure on developers and property managers seek intelligent building automation technologies (IBAT) to optimize energy use, enhance security, and improve occupant comfort in high-density environments. Additionally, the demand for seamless connectivity and data-driven management in modern urban infrastructure is further propelling the adoption of intelligent building automation technologies.

Industry Dynamics

  • Rising demand for smart homes is propelling the market growth as intelligent building automation technologies are required to manage smart home solutions.
  • Increasing investments in the development of smart cities boost the adoption of intelligent building automation technologies, as smart city management needs intelligent building automation technologies to enhance security.
  • The rising focus on energy efficiency globally is creating a lucrative market opportunity.
  • The high cost of intelligent building automation technologies is hampering its demand.

Rising Demand for Smart Homes: Consumers demand smart homes for luxury and comfort. These smart homes feature voice-controlled lighting, smart thermostats, and automated security systems, prompting developers and manufacturers to integrate intelligent building automation technologies to manage these integrated smart solutions. Additionally, energy-saving regulations and rising utility costs are prompting homeowners to prefer smart homes, boosting demand for scalable, intelligent building automation technologies.

Increasing Investments in Development of Smart Cities: Smart cities require buildings to integrate automation systems for energy management, real-time monitoring, and optimized resource use, driving widespread adoption of intelligent building automation technologies. The push for data-driven smart city management is further accelerating the need for intelligent building automation technologies to enhance security, reduce carbon footprints, and improve occupant comfort. Therefore, the rising investments in the development of smart cities fuel the demand for intelligent building automation technologies (IBAT).

Intelligent Building Automation Technologies Market Size Worth USD 248.37 Billion by 2034 | CAGR: 10.32%

Segmental Insights

Component Analysis

Based on component, the segmentation includes hardware, software, and services. The hardware segment accounted for 46.25% of revenue share in 2024 and witnessed 663 million unit sales due to widespread deployment of IoT sensors, controllers, access control systems, and HVAC control devices. Organizations across commercial, residential, and industrial sectors prioritized hardware to improve energy efficiency, safety, and operational convenience. The proliferation of smart sensors and IoT-enabled devices contributed to the dominance of the hardware segment, as these components form the backbone of any intelligent building setup. Moreover, the rising demand for retrofitting older buildings with automated lighting and energy management systems further boosted hardware adoption.

The software segment is expected to register a CAGR of 11.52% from 2025 to 2034 and is expected to register 156 million licenses by 2034, owing to growing emphasis on data-driven decision-making and real-time analytics. Facility managers increasingly rely on centralized software to optimize energy usage, monitor equipment health, and implement predictive maintenance strategies. Additionally, advancements in AI and machine learning are enhancing the functionality of software platforms, enabling automated anomaly detection, occupant behavior analysis, and adaptive climate control. The increasing shift toward smarter, scalable, and more secure automation ecosystems continues to fuel demand for software solutions across both new construction and renovation projects.

End User Analysis

In terms of end use, the segmentation includes commercial, residential, and industrial. The commercial segment was valued at USD 50.53 billion in 2024, due to high demand for smart infrastructure across office complexes, airports, shopping malls, hospitals, and hotels. Facility owners in the commercial sector prioritized automation to enhance operational efficiency, reduce energy consumption, and comply with evolving building codes and sustainability regulations. The growing adoption of advanced HVAC, lighting, and security control systems enabled businesses to lower operating costs while providing a safer and more comfortable environment for occupants. Additionally, the increased focus on green building certifications such as LEED and BREEAM drove investments in intelligent systems that support real-time monitoring and performance optimization in commercial buildings.

The residential segment is projected to hold 27.80% of revenue share by 2034, owing to rising urbanization, growing consumer awareness about energy conservation, and the increasing popularity of smart homes. Homeowners are increasingly adopting integrated systems that manage lighting, security, HVAC, and entertainment through centralized platforms or mobile apps. Moreover, falling prices of smart devices and government incentives for energy-efficient home upgrades further accelerate adoption in both single-family homes and multi-unit residential buildings.

Intelligent Building Automation Technologies Market By Comppnent Analysis, 2020 - 2034 (USD Billion)

Regional Analysis

The North America intelligent building automation technologies market accounted for 39.56% of global market share in 2024. This dominance is attributed to the rising need for energy efficiency and increasing investments in the development of smart cities. Governments and organizations in the region increasingly adopted green building standards that pushed the integration of hardware components such as IoT-enabled HVAC, lighting, and security systems. The hardware components in North America witnessed 254 million unit sales in 2024. The rise of hybrid work models has also increased demand for smart office solutions that optimize space utilization and energy consumption, leading to market expansion. Additionally, advancements in AI and cloud computing enabled predictive maintenance and real-time monitoring, which further propelled intelligent building automation technologies adoption in North America.

U.S. Intelligent Building Automation Technologies Market Insight

The U.S. held 78.02% share of the North America intelligent building automation technologies landscape in 2024 and registered sales of 178 million of hardware components due to strict energy regulations, corporate sustainability goals, and the proliferation of smart buildings. The Department of Energy (DOE) and the EPA incentivized energy-efficient buildings through programs such as ENERGY STAR, which fueled intelligent building automation technologies adoption. The growth of proptech and increasing cybersecurity concerns in smart infrastructure in the U.S. also contributed to market dominance.

Europe Intelligent Building Automation Technologies Market Trends

The market in Europe is projected to hold 31.03% revenue share and will report 450 million unit sales of hardware components by 2034, due to EU directives such as the Energy Performance of Buildings Directive (EPBD) and the Green Deal, which mandated near-zero-emission buildings by 2030. Countries such as the UK, Germany, France, Italy, and others in the region are adopting intelligent building automation technologies to reduce carbon footprints. The rise of sustainable urban development and smart city projects is further driving the adoption of automation. Additionally, high energy costs and the need for occupant comfort and safety in the region are pushing demand for intelligent automation.

Germany Intelligent Building Automation Technologies Market Overview

The industry in Germany is estimated to register a CAGR of 11.39% during 2025–2034, owing to its Energieeffizienzstrategie 2050 and stringent building energy act (Gebäudeenergiegesetz) regulations. The push for energy-neutral buildings and the integration of renewable energy sources is driving the demand for intelligent building automation. The country’s strong manufacturing sector, which demands smart factories with automated HVAC and lighting, is further boosting market growth in the country.

Asia Pacific Intelligent Building Automation Technologies Market

The intelligent building automation technologies industry in Asia Pacific is registering a CAGR of 11.71% from 2025 to 2034, and is projected to register 395 million unit’s sales of hardware components driven by rapid urbanization, smart city projects, and government initiatives. United Nations Human Settlements Programme, in its report, stated that the urban population in Asia is expected to grow by 50% by 2050. Countries such as China, Japan, and South Korea are investing heavily in 5G-enabled smart buildings and AI-driven automation. In India and Southeast Asia, rising commercial real estate development and energy cost concerns are increasing demand for automated building systems. Additionally, green building certifications in the region are promoting the adoption of intelligent building automation technologies. The growing middle class and demand for smart homes are contributing to market expansion.

Intelligent Building Automation Technologies Market Trends, by Region, 2020 – 2034 (USD Billion)

Key Players and Competitive Analysis

The intelligent building automation technologies market is highly competitive, with key players such as ABB Limited, Azbil Corporation, Carrier Global Corporation, Daikin Industries, Emerson Electric Co., Johnson Controls, Schneider Electric, and Siemens dominating the industry. These companies compete on innovation, energy efficiency, IoT integration, and AI-driven automation to deliver smart building solutions. Schneider Electric and Siemens lead with comprehensive ecosystems that integrate building management systems (BMS), HVAC controls, lighting, and security into unified platforms. Johnson Controls (OpenBlue) and Honeywell (Forge) emphasize AI-powered analytics for predictive maintenance and energy optimization, while Carrier Global and Daikin focus on next-gen HVAC solutions with IoT connectivity. Emerging competitors such as Distech Controls and Delta Controls specialize in open-protocol automation, appealing to customers seeking vendor-agnostic systems. Mitsubishi Electric and Robert Bosch leverage their expertise in industrial automation to enhance the reliability of smart buildings, whereas Rockwell Automation and Eaton Corporation target commercial and industrial facilities with scalable automation solutions.

A few major companies operating in the intelligent building automation technologies industry include ABB Limited; Azbil Corporation; Carrier Global Corporation; Daikin Industries, Ltd.; Delta Controls; Distech Controls; Eaton Corporation; Emerson Electric Co.; Johnson Controls, Inc.; Mitsubishi Electric Corporation; Robert Bosch GmbH; Rockwell Automation, Inc.; and Schneider Electric.

Key Players

  • ABB Limited
  • Azbil Corporation
  • Carrier Global Corporation
  • Daikin Industries, Ltd.
  • Delta Controls
  • Distech Controls
  • Eaton Corporation
  • Emerson Electric Co.
  • Johnson Controls, Inc.
  • Mitsubishi Electric Corporation
  • Robert Bosch GmbH
  • Rockwell Automation, Inc.
  • Schneider Electric

Industry Developments

May 2025: ABB announced the launch of ABB Smart EMS, a smart energy management solution that empowers homeowners to control their energy use, reduce costs, and maximize efficiency.

May 2025: Carrier Global Corporation, a global company in intelligent climate and energy solutions, announced plans to invest an additional $1 billion over five years in manufacturing, innovation, and workforce expansion across the U.S.

June 2021: Azbil Corporation announced that it has started developing new digital solutions for use with intelligent building management systems (IBMS), with support from the Singapore Economic Development Board (EDB).

Intelligent Building Automation Technologies Market Segmentation

By Component Outlook (Revenue, USD Billion, Volume, 2020–2034)

  • Hardware
    • Sensors
    • Controllers
    • Actuators
    • Networking Devices
    • Others
  • Software
    • Building Management Systems (BMS)
    • Energy Management Software
    • Lighting Control Software
    • HVAC Control Software
    • Fire, Life & Safety and Security
    • Others
  • Services
    • Professional Services
    • Managed Services

By End User Outlook (Revenue, USD Billion, Volume, 2020–2034)

  • Commercial
  • Residential
  • Industrial

By Regional Outlook (Revenue, USD Billion, Volume, 2020–2034)

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • France
    • UK
    • Italy
    • Spain
    • Netherlands
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • India
    • Malaysia
    • South Korea
    • Indonesia
    • Australia
    • Vietnam
    • Rest of Asia Pacific
  • Middle East & Africa
    • Saudi Arabia
    • UAE
    • Israel
    • South Africa
    • Rest of Middle East & Africa
  • Latin America
    • Mexico
    • Brazil
    • Argentina
    • Rest of Latin America

Intelligent Building Automation Technologies Market Report Scope

Report Attributes

Details

Market Size in 2024

USD 93.61 Billion

Market Size in 2025

USD 102.59 Billion

Revenue Forecast by 2034

USD 248.37 Billion

CAGR

10.32% from 2025 to 2034

Base Year

2024

Historical Data

2020–2023

Forecast Period

2025–2034

Quantitative Units

Revenue in USD Billion, Volume, and CAGR from 2025 to 2034

Report Coverage

Revenue Forecast, Competitive Landscape, Growth Factors, and Industry Trends

Segments Covered
  • By Component
  • By End User

Regional Scope
  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa

Competitive Landscape
  • Intelligent Building Automation Technologies Industry Trend Analysis (2024)
  • Company Profiles/Industry participants profiling includes company overview, financial information, product/service benchmarking, and recent developments

Report Format
  • PDF + Excel

Customization

Report customization as per your requirements with respect to countries, regions, and segmentation.

FAQ's

The global market size was valued at USD 93.61 billion in 2024 and is projected to grow to USD 248.37 billion by 2034.

The global market is projected to register a CAGR of 10.32% during the forecast period

North America dominated the market in 2024.

A few of the key players in the market are ABB Limited; Azbil Corporation; Carrier Global Corporation; Daikin Industries, Ltd.; Delta Controls; Distech Controls; Eaton Corporation; Emerson Electric Co.; Johnson Controls, Inc.; Mitsubishi Electric Corporation; Robert Bosch GmbH; Rockwell Automation, Inc.; and Schneider Electric.

The hardware segment dominated the market in 2024.

The residential segment is expected to witness the fastest growth during the forecast period.

© 2025 Polaris Market Research and Consulting. All rights reserved

paypal