Australia Building Automation System Market Assessment, By Component [Hardware, Software], By Application [HVAC Control Systems, Lighting Control Systems, Electronic Security & Safety, Building Energy Management System], By Communication Technology [Wired

Australia Building Automation System Market Assessment, By Component [Hardware, Software], By Application [HVAC Control Systems, Lighting Control Systems, Electronic Security & Safety, Building Energy Management System], By Communication Technology [Wired, Wireless, Others], By End-user [Commercial, Industrial, Residential], By Sales Channel [Direct, Channel], By Region, Opportunities and Forecast, 2016-2030F

Australia building automation system market size was valued at USD 1.9 billion in 2022, which is expected to reach USD 3.1 billion in 2030, with a CAGR of 6.5% for the forecast period between 2023 and 2030. Australia's building automation system market refers to the use of advanced technologies to control and automate various building systems, such as heating, ventilation, air conditioning, lighting, security, and energy management. Building automation systems (BAS) are designed to improve the energy efficiency of buildings, reduce operating costs, and enhance the occupant experience. The BAS market in Australia is growing rapidly due to the increasing demand for sustainable and energy-efficient buildings.

The Australian government has implemented several policies and initiatives to promote energy efficiency in buildings, such as the National Australian Built Environment Rating System (NABERS) and the Commercial Building Disclosure (CBD) Program. These policies have incentivized building owners and managers to invest in BAS solutions to reduce their carbon footprints and energy bills. The BAS market in Australia is driven by advancements in IoT (Internet of Things) and artificial intelligence technologies. These technologies enable BAS solutions to collect and analyze data from building systems, leading to more accurate and effective automation.

The Growth of IoT and AI Technologies

The proliferation of IoT and artificial intelligence (AI) technologies is profoundly influencing Australia's building automation system (BAS) market. IoT-equipped devices and sensors progressively find their place in buildings, furnishing real-time insights into energy usage, temperature, air quality, and occupancy rates. These data streams serve as valuable inputs for BAS solutions, empowering them to optimize building systems to achieve superior energy efficiency and enhanced occupant comfort.

AI technologies seamlessly integrate into BAS solutions, ushering in advanced analytics and automation capabilities. AI algorithms exhibit prowess in analyzing vast datasets, unveiling patterns, and fine-tuning building systems to suit specific conditions, including occupancy levels and weather dynamics. The outcome is more precise and efficient, reducing energy consumption and operational expenses. Furthermore, the fusion of IoT and AI technologies is propelling the evolution of novel BAS solutions, encompassing predictive maintenance systems and intelligent lighting solutions. These advancements are poised to further revolutionize Australia's building management and energy efficiency.

Demand for Smart Buildings and Connected Devices Drives Growth

The Australia building automation system market is driven by the increasing demand for smart buildings and connected devices. These systems utilize IoT and AI technologies to automate heating, ventilation, air conditioning, lighting, and security. BAS solutions are becoming interoperable, allowing seamless integration with other smart building technologies. This unified management system adapts to changing conditions and occupant needs. Smart building technologies like occupancy sensors and mobile apps also provide greater occupant comfort and convenience.

For instance, in September 2023, Johnson Controls-Hitachi Air Conditioning unveiled the Hitachi air365 Hybrid dual fuel system, a groundbreaking solution that integrates a heat pump and furnace. This innovative system offers efficient and cost-effective home comfort throughout the entire year, while making significant strides in reducing carbon emissions. The air365 Hybrid system is centered around the electric Hitachi Mini VRF heat pump, serving as the primary source for heating and cooling. It introduces a pioneering dual-fuel module that is easily attached to a home's gas furnace, whether newly installed or already existing.

Increasing Demand for Energy Efficiency

The Australia building automation system market is experiencing a surge in demand due to the growing focus on energy efficiency. As Australia faces climate change and rising energy costs, businesses and homeowners increasingly adopt BAS technologies to reduce energy consumption in commercial and residential buildings. Government initiatives, such as energy efficiency regulations, further stimulate the adoption of BAS, making it a strategic investment in a sustainable and cost-effective future for Australia's built environment.

For example, in September 2023, ABB has introduced the Cylon Building Management System in the Australian market. Globally, buildings account for 30% of total energy consumption and are responsible for 40% of worldwide carbon emissions. ABB's Cylon Building Management System (BMS) product range offers comprehensive automation and energy management solutions for a diverse range of commercial and industrial buildings. This BMS empowers occupants and property owners to efficiently automate operations, reducing energy expenses through precise energy control and management. Additionally, it facilitates real-time monitoring and control of building facilities, enhancing overall operational efficiency.

Impact of COVID-19

The pandemic had a mixed impact on the Australia building automation system market. The restrictions reduced demand for BAS solutions due to decreased occupancy rates in commercial buildings, especially in retail and hospitality sectors. Also, it has highlighted the importance of indoor air quality and building health, increasing demand for BAS solutions to monitor and improve these factors. Additionally, the shift towards remote work has increased the need for smart building technologies that can enable remote monitoring and control of building systems. This has led to increased demand for BAS solutions that offer greater flexibility, scalability, and remote access.

Key Players Landscape and Outlook

The Australia building automation system (BAS) market is dominated by major players like Schneider Electric, Siemens, Honeywell, Johnson Controls, ABB and others. These companies offer comprehensive solutions for energy management, HVAC control, lighting systems, and integrated smart building technologies. The market is expected to grow due to the nation's growing focus on energy efficiency, sustainability, and smart building initiatives, with technological trends like IoT integration enhancing building performance.

For instance, the Canberra Hospital Expansion project while celebrating World Environment Day in June 2023, emphasized its new Critical Service Building's eco-friendly features. The building's commitment to environmental sustainability is underscored by its exclusive use of electric power, resulting in a significant reduction in carbon emissions, positioning it as a national leader in environmentally conscious healthcare infrastructure.

Furthermore, in September 2023, Johnson Controls, renowned for its intelligent and eco-conscious building solutions, introducing the OpenBlue Service: Assurance of Security Device Performance. This innovative solution empowers clients to enhance building security, manage risks, and optimize their security technology investments by offering a unified approach to overseeing and controlling security devices from various providers, along with remote support services and zero-trust cybersecurity protection.