A collective share of 39.1% permitted three players in the global commercial building automation market to take lead in the year 2015. Siemens AG, ABB Ltd., and United Technologies Corp, each enjoyed vital tactical advantage in the global market for commercial building automation in 2015 through numerous avenues such as mergers and acquisitions, tapping the unexplored markets of emerging economies in the world, and launching enhanced products. The remaining market across the globe for commercial building automation showed high levels of fragmentation at the mentioned time, with the existence of a large pool of regional players in the market.
According to the research report published by Transparency Market Research, the global market for commercial building automation is reached an overall valuation of US$77.63 in the year 2016. This market valuation is expected to grow and touch the figure worth US$108.49 bn over the course of the given forecast period of 2016 to 2024 in terms of generation of revenue. The overall growth rate for the development of the global commercial building automation market is expected to show an impressive CAGR of 4.3% throughout the given period of forecast of 2016 to 2024. The extent of competition in the global market is projected to grow even more over the coming years of forecast period due to the aggressive expansion tactics adopted by the leading companies along with numerous lucrative opportunities emerging in the market that will attract new players in terms of swift growth.
Booming Construction Sector to Significantly Drive Global Commercial Building Automation Market
The chief factor responsible for driving the overall growth of the global commercial building automation market as well as the business expansion of players in it is the constant boom in the construction sector itself. Improvements in the economy across the globe are creating a wider scope of demand for different construction projects in residential as well as industrial sectors. This is more evident in the emerging economies of the Middle East and Africa region as compared to others. These regions are acting as a strong base for commercial building automation and thus are expected to significantly drive the overall growth of the market. The swift development of the construction sector is presently the primary reason for causing high demand for more efficient projects that will use less volumes of materials along with having a comparatively lower requirement for power. In addition to this, the increasing concern over the rapidly decreasing stockpiles of fuel and growing environmental pollution have enforced numerous governments to impose stringent policies regarding the efficient use of resources. This is expected to directly impact the overall development of the global commercial building automation market in the near future.
High Cost and Slow ROI to Impede Market Growth
However, the growth of the global market is not without any challenges in front of it. The gross cost of installation, maintenance, and operation of these commercial building automation systems is on the higher side. This is expected to be the chief impeding factor in slowing down the growth of the global market. The high costs are also responsible for demotivating new players into entering the market and the slow rate of ROI is also considerably slowing down the adoption among the end users. This is expected to create some problems for the smaller players in the global market for commercial building automation.