India 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, Wi

India 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, FY2017-FY2031

India building automation system market size was valued at USD 3.3 billion in FY2023, expected to reach USD 7.7 billion in FY2031, with a CAGR of 11.2% for the forecast period between FY2024 and FY2031. India's building automation system (BAS) market is experiencing rapid growth due to the increasing demand for energy-efficient and sustainable buildings. BAS systems enable automatic control of various building systems, such as HVAC, lighting, security, and fire protection, to optimize performance and energy consumption. The market is driven by urbanization, rising disposable income, and the adoption of smart homes and IoT devices. The fragmented BAS market is expected to grow significantly in the coming years.

However, high initial installation and maintenance costs may hinder market growth. In August 2023, STMicroelectronics launched the STHS34PF80 sensor, a human-presence and motion detector designed to enhance security systems, home automation, and IoT devices relying on passive infrared (PIR) sensing. This sensor can detect stationary objects without movement and eliminate the need for a Fresnel lens, simplifying construction. This sensor improves presence detection for smart homes and buildings, offering cost-effective and low-power operation for building automation.

Accenture and Johnson Controls have partnered to establish two OpenBlue Centers in Bangalore and Hyderabad, utilizing advanced technologies like AI, digital twins, IoT, 5G, and cloud computing. The goal is to accelerate the adoption of advanced automation in building operations, enhancing sustainability, safety, security, and user experiences, thus enhancing overall operational efficiency.

Increasing Demand for Intelligent Buildings

India's demand for intelligent buildings is rising due to their energy efficiency, security, and comfort benefits. Building automation systems integrate subsystems like lighting, HVAC, and security, allowing buildings to adapt to occupant needs and optimize energy consumption. Government initiatives, such as the Smart Cities Mission launched in FY2016, drive the growth of India's building automation system market, promoting sustainable development and efficient citizen engagement.

As of May 2023, the Smart City Mission has initiated approximately 7,800 projects with an estimated value of USD 21,950 million. Among these projects, over 5,700 (representing 73% by number) have been completed, with a cumulative value of USD 13,415 million (accounting for ~60% by value). The remaining projects will be finalized by June 30, 2024. According to the Minister for Housing and Urban Affairs, USD 4,685 million has been allocated for the Smart Cities Mission up to May 1, 2023. Out of this allocation, USD 4,300 million has been effectively utilized to fund various initiatives and projects within the mission.

Growing Demand for Integrated Solutions

India's building automation system market is experiencing a substantial upswing in demand for integrated solutions. This remarkable growth can be attributed to several key factors, including the rapid pace of urbanization and infrastructure development throughout the country with an increasing emphasis on energy efficiency and sustainability, and the growing adoption of smart technologies within both commercial and residential buildings. Integrated building automation systems represent a holistic approach to manage and control various facets of a building's operations, including lighting, HVAC (heating, ventilation, and air conditioning), security, and energy management, all through a centralized and interconnected platform. These comprehensive solutions enhance occupant comfort and safety while playing a pivotal role in optimizing energy consumption and operational costs.

With the government's steadfast commitment, the development of smart cities and the promotion of sustainable building practices is expected to increase the demand for integrated building automation solutions for its robust growth trajectory in India.

The Era of the Internet of Things (IoT) is Driving the Market Growth

The India building automation system market is experiencing significant growth due to the Internet of Things (IoT) rise. As smart buildings become more popular and demand for energy-efficient solutions has increased, the IoT integration has made building automation systems indispensable. Remote access and control of lighting, HVAC, and security systems have increased efficiency and cost savings. The growing demand for smart homes and government initiatives for sustainable development drive market expansion. The integration of IoT is a key driver of this growth and is expected to continue.

For instance, in April 2023, 75F, a renowned IoT-based building management system provider, introduced a suite of innovative solutions at ACREX India, targeting enhancements in building efficiency, air quality, and cost-efficiency. These product offerings align seamlessly with 75F's mission to advocate technology adoption for energy efficiency and sustainability. The additions of 75F are the Chiller Plant Manager (CPM), Occupancy Temperature Node, True CFM, Hyperstat, Helio Node, Portfolio Analytics Manager, Occupant App, Domain Modeler, and QR code for asset tracking.

Government Schemes

The Indian government has implemented several policies and initiatives to encourage the adoption of building automation systems (BAS) across the nation. These measures are geared towards lowering energy consumption, enhancing energy efficiency, and bolstering the sustainability of buildings. Among the notable government policies and programs pertinent to the India building automation system market are:

Smart Cities Mission: The Smart Cities Mission, initiated in June 2015, has a core objective of delivering essential infrastructure, fostering a clean and sustainable environment, and enhancing the quality of life for urban citizens through the implementation of innovative ""smart solutions."" This ambitious project identified 100 cities through a rigorous two-stage competition to be transformed into Smart Cities, and these cities have been making commendable strides toward achieving their goals.

The Energy Conservation Building Code (ECBC) is a vital regulatory framework aimed at promoting energy efficiency in the construction and operation of buildings. Introduced by the Bureau of Energy Efficiency (BEE) under the Ministry of Power, it sets standards and guidelines for building design and construction to reduce energy consumption and greenhouse gas emissions. ECBC covers aspects such as building envelope, lighting, heating, ventilation, and air conditioning systems. Its implementation helps reduce energy costs, environmental impact, and dependency on fossil fuels while fostering sustainable building practices nationwide.

Impact of COVID-19

The pandemic significantly impacted the India Building Automation System (BAS) market. The market experienced a decline in growth due to the disruption in the construction and real estate industries caused by the pandemic. The nationwide lockdowns, labor shortages, and supply chain disruptions led to project delays and cancellations, resulting in a decrease in demand for BAS. However, the pandemic increased the focus on health and safety measures, leading to increased demand for contactless and touchless building automation systems such as access control, HVAC systems, and lighting controls. As the country recovered and the construction industry gradually resumed its activities, the demand for BAS is expected to increase as building owners and operators look to optimize energy efficiency and enhance occupant comfort and safety.

Key Players Landscape and Outlook

The India building automation system (BAS) market is highly competitive, with domestic and international players offering various products and solutions. Emerging startups are entering the market with innovative solutions. The market is expected to grow due to rising demand for energy-efficient buildings, urbanization, and government initiatives promoting smart city development.

For instance, in March 2023, Schneider Electric has introduced EcoStruxure™ Building Operation for the Indian market, aiming to improve occupant comfort and increase in building value. With buildings accounting for 30% of India's electricity consumption, this integrated smart building management system supports net-zero carbon buildings and long-term data center operational resilience. By enabling 40% energy savings, this collaborative IoT solution will drive India towards future-ready, connected, highly efficient, and sustainable buildings, contributing to India's sustainability goals.

For instance, in June 2022, Honeywell launched a carbon and energy management solution in India, designed to monitor building emissions. The software, developed by Indian engineers, is being rolled out globally, enabling precise tracking of carbon emissions and energy consumption in buildings. This initiative is a significant step towards addressing climate change through innovative solutions developed in India.