| Study Period | 2019 - 2030 |
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 3.96 Billion |
| Market Size (2030) | USD 4.76 Billion |
| CAGR (2025 - 2030) | 3.75 % |
| Market Concentration | Low |
Major Players*Disclaimer: Major Players sorted in no particular order |
Europe Building Automation Systems Market Analysis
The Europe Building Automation Systems Market size is estimated at USD 3.96 billion in 2025, and is expected to reach USD 4.76 billion by 2030, at a CAGR of 3.75% during the forecast period (2025-2030).
The building automation systems landscape in Europe is undergoing a significant transformation driven by technological advancement and sustainability imperatives. Building automation and control systems have evolved beyond basic functionality to become sophisticated platforms that integrate multiple systems for centralized, real-time control and management across enterprise buildings. According to GSMA, the European market is expected to reach approximately 4.3 billion IoT connections by 2025, highlighting the rapid digitalization of building infrastructure. The integration of artificial intelligence and cloud computing has enabled autonomous data analysis for operation optimization, while wireless protocols and sensor networks are developing at an accelerated pace to support these advanced functionalities.
The focus on energy efficiency and sustainability continues to shape the European building automation systems market landscape. Buildings in the European Union account for approximately 40% of energy consumption and 36% of greenhouse gas emissions, primarily stemming from construction, usage, renovation, and demolition activities. This has led to increased adoption of sophisticated energy management solutions that can monitor, control, and optimize building operations. Modern building automation systems are increasingly incorporating predictive maintenance capabilities, leveraging data collection and analysis to solve complex industrial HVAC maintenance tasks, while simultaneously reducing operational costs and environmental impact.
The commercial sector has emerged as a significant driver of innovation in building automation systems, with a particular emphasis on smart building technologies. According to Iota Communications, HVAC systems alone account for over 40% of a commercial building's total energy consumption, creating a substantial opportunity for optimization through automated controls. The integration of IoT-enabled emergency lighting solutions, automated security systems, and sophisticated environmental controls has become standard in new commercial constructions, offering comprehensive solutions for protecting buildings from fires, monitoring entry points, and managing occupancy levels.
The market is witnessing a surge in strategic partnerships and technological innovations aimed at enhancing building automation capabilities. In May 2023, US-based Buildings IoT expanded its operations in the UK to serve building stakeholders across Europe, marketing its IoT Jetstream intelligent building platform for building owners, managers, and systems integrators. Similarly, in July 2023, SAUTER expanded its product range with a new generation of IoT-capable actuators, enabling semi-autonomous and autonomous control in heating, ventilation, and air conditioning systems. These developments reflect the industry's movement toward more integrated, intelligent, and efficient building automation and control systems that can adapt to changing operational requirements while maintaining optimal performance levels.
Europe Building Automation Systems Market Trends
Increasing Initiatives and Directives for Energy and Operational Efficiency
The European Union has implemented comprehensive regulatory frameworks and directives aimed at improving building energy efficiency and reducing environmental impact. A significant development is the regulatory decree requiring all large non-residential buildings to be equipped with main building automation systems by 2025, creating a strong imperative for building automation system adoption. According to the Buildings Performance Institute Europe (BPIE), building automation trends demonstrate remarkable cost-effectiveness across commercial buildings, delivering average net energy savings of approximately 37% for space heating, water heating, cooling, and ventilation, alongside a 25% reduction in lighting energy consumption when properly installed and operated.
The European Building Automation and Controls Association reports that building automation systems can reduce thermal and electrical energy consumption by up to 27% in residential buildings. This aligns with broader EU initiatives like the Energy Performance of Buildings Directive (EPBD) and Energy Efficiency Directive (EED), which promote awareness of the importance of building automation among property owners and occupants. For instance, Germany has implemented the Building Energy Act, which governs energy efficiency regulations in buildings while aiming to increase its renewable energy share from 17% to 80% by 2050. These initiatives are complemented by country-specific programs, such as the Swiss federal and cantonal buildings program that promotes energy-efficient renovation, renewable energies, waste heat recovery, and optimization of building services technology.
Understand The Key Trends Shaping This Market
Download PDF
Rapid Growth of IoT in European Countries
The Internet of Things (IoT) adoption in Europe is experiencing unprecedented growth, with GSMA forecasting an increase to 4.30 billion IoT connections by 2025, up from 2.50 billion in 2020. This rapid expansion is particularly evident in the building automation software market, where IoT enables sophisticated cloud computing capabilities for HVAC engineers, providing wireless connection to building automation objects from any location. The integration of IoT has revolutionized the building management systems market by enabling real-time data collection from various sensors monitoring humidity, temperature, motion, and CO2 levels, allowing for proactive management of building conditions through networked controllers.
The advancement in IoT technology has facilitated the development of more sophisticated building automation solutions, such as smart wireless automated test systems for emergency lights and intelligent sensors that automatically evaluate building systems' functionality. For instance, these systems can now automatically track the duration and functionality of emergency lights on daily, weekly, and monthly bases, with results being transmitted directly to cloud platforms for building managers' immediate access. This evolution is supported by initiatives like the Next Generation Internet of Things (NGIoT) project, which addresses technological challenges and competitive impact for European stakeholders in the data economy. The integration of IoT with building management systems has also led to increased awareness regarding eco-friendly and energy-efficient building concepts, driving the demand for more sophisticated automation solutions across commercial and residential sectors.
Segment Analysis: By Component
Hardware Segment in Europe Building Automation Systems Market
The hardware segment dominates the Europe building automation systems market, commanding approximately 92% of the total market share in 2024. This segment encompasses critical components like controllers and field devices that form the backbone of building automation system infrastructure. The substantial market share reflects the essential role of hardware components in enabling core functionalities such as HVAC control, lighting management, and security systems. The segment's dominance is driven by the increasing adoption of smart building automation systems technologies across commercial, residential, and industrial sectors in Europe. The hardware components are particularly crucial in supporting energy efficiency initiatives and meeting stringent building automation systems regulations across European countries. The segment's growth is further bolstered by technological advancements in sensor technologies, controllers, and field devices that enable more sophisticated building management system capabilities.
Software-as-a-Service Segment in Europe Building Automation Systems Market
The Software-as-a-Service (SaaS) segment is emerging as the fastest-growing segment in the Europe building automation systems market, with a projected growth rate of approximately 5% during the forecast period 2024-2029. This rapid growth is attributed to the increasing demand for cloud-based building management system solutions that offer enhanced flexibility and scalability. The segment's growth is driven by the rising adoption of IoT-enabled building automation systems and the need for remote monitoring capabilities. Organizations are increasingly recognizing the benefits of SaaS solutions, including reduced maintenance costs, automatic updates, and improved data analytics capabilities. The segment is also benefiting from the growing trend towards smart buildings and the integration of artificial intelligence and machine learning technologies in building automation systems. European businesses are particularly drawn to SaaS solutions due to their ability to provide real-time insights into building operations and support sustainable building management practices.
Segment Analysis: By End-User
Commercial Segment in Europe Building Automation Systems Market
The commercial segment continues to dominate the Europe building automation systems market, holding approximately 73% market share in 2024. This significant market position is driven by the increasing adoption of smart building technologies and the growing emphasis on energy efficiency in commercial buildings across Europe. The segment's growth is further supported by stringent energy efficiency regulations and directives implemented by the European Union for commercial buildings. According to the Buildings Performance Institute Europe (BPIE), building automation systems are proving to be highly cost-effective for commercial buildings, delivering substantial energy savings across heating, water heating, cooling/ventilation, and lighting applications. The surge in commercial real estate investments across major European economies, particularly in Germany, the United Kingdom, and France, has also contributed to the segment's dominance. Additionally, the rising security concerns in commercial buildings have accelerated the adoption of integrated building automation system solutions that can help improve access control and monitoring capabilities.
Industrial Segment in Europe Building Automation Systems Market
The industrial segment is emerging as the fastest-growing segment in the Europe building automation systems market, projected to grow at approximately 4% during 2024-2029. This growth is primarily driven by the unprecedented rise in wholesale gas and electricity prices across Europe, compelling industrial facilities to implement more efficient building automation systems. Manufacturing facilities, warehouses, and distribution centers are increasingly recognizing the potential for significant cost savings through automated building management systems. The segment's growth is particularly notable in the warehousing and logistics industry, where lighting typically accounts for around 65% of energy consumption according to industry experts. The expansion of warehousing capacity across Europe, driven by the rise of e-commerce, is creating substantial opportunities for building automation systems. Furthermore, energy-intensive industries such as chemicals, steel, and paper are increasingly adopting building automation systems to combat rising operational costs and meet sustainability targets.
Remaining Segments in Europe Building Automation Systems Market
The residential segment represents a significant opportunity in the European building automation systems market, despite having a smaller market share compared to commercial and industrial segments. The segment's development is being shaped by increasing initiatives for energy-efficient homes, smart home integration, and the growing awareness of building automation systems benefits among homeowners. The European Commission's focus on reducing residential building emissions and improving energy efficiency is driving the adoption of building automation systems in this segment. The segment is also benefiting from the integration of IoT technologies and the increasing demand for comfortable, energy-efficient living spaces. Additionally, various government incentives and programs across European countries are encouraging homeowners to implement building automation systems, particularly for HVAC control and energy management applications.
Europe Building Automation Systems Market Geography Segment Analysis
Building Automation Systems Market in Germany
Germany dominates the European building automation systems landscape, commanding approximately 30% of the total market share in 2024. The country's leadership position is reinforced by its strong industrial base and commitment to energy-efficient building technologies. The German government's ambitious climate neutrality goals have catalyzed the adoption of smart building solutions across commercial, residential, and industrial sectors. The presence of major industry players like Siemens AG and Kieback&Peter has fostered innovation and technological advancement in the region. The country's focus on developing integrated smart city initiatives, particularly through programs like the Smart City Model Projects Program, has created a robust ecosystem for building automation systems. German businesses are increasingly embracing cloud-based building management systems and IoT integration, driving market expansion. The emphasis on energy optimization and operational efficiency in commercial buildings has particularly accelerated the adoption of advanced building automation technologies.
Building Automation Systems Market in Nordics
The Nordic region, comprising Denmark, Sweden, and Finland, has established itself as a significant hub for building automation systems innovation. The region's commitment to sustainable building practices and energy efficiency has driven substantial market growth. The Nordic countries are particularly notable for their advanced implementation of IoT-enabled building solutions and smart city initiatives. The integration of AI and digital technology in smart building design has been accelerated by changing work patterns and environmental considerations. The region's focus on predictive maintenance and real-time decision support systems has created a sophisticated market for building automation solutions. Nordic countries have also been at the forefront of implementing innovative energy management solutions, particularly in commercial and industrial buildings. The collaboration between property technology businesses and telecommunications providers has fostered the development of more efficient and connected building management systems. The region's emphasis on occupant comfort and environmental sustainability continues to drive technological advancement in the building automation sector.
Building Automation Systems Market in France
France has emerged as a key player in the European building automation systems market, driven by stringent energy efficiency regulations and environmental policies. The country's commitment to reducing greenhouse gas emissions has spurred the adoption of smart building technologies across various sectors. French businesses are increasingly focusing on integrated building management solutions that combine energy efficiency with operational optimization. The market has seen significant advancement in the integration of IoT and AI technologies in building automation systems. The country's emphasis on modernizing commercial and industrial buildings with smart technologies has created substantial opportunities for market growth. French companies are particularly focused on developing solutions that align with the country's carbon neutrality goals. The market has also benefited from strong government support for energy-efficient building renovations and upgrades. The presence of major industry players like Schneider Electric has contributed to technological innovation and market development in the region.
Building Automation Systems Market in United Kingdom
The United Kingdom has positioned itself as a significant market for building automation systems, driven by its strong focus on sustainable building practices and smart city initiatives. The country's building automation sector has been particularly responsive to the growing demand for energy-efficient solutions in commercial and residential buildings. British businesses are increasingly adopting integrated building management systems that incorporate advanced IoT and AI technologies. The market has benefited from the country's robust construction sector and ongoing infrastructure development projects. The UK's emphasis on reducing carbon emissions in buildings has created strong demand for smart automation solutions. The integration of building automation systems with other smart technologies has been particularly successful in the commercial sector. The market has also seen significant development in areas such as access control, security systems, and energy management solutions. The presence of innovative technology providers and system integrators has contributed to the market's dynamic growth.
Building Automation Systems Market in Other Countries
The building automation systems market across other European countries, including Spain, Italy, and Switzerland, demonstrates diverse adoption patterns and growth trajectories. These markets are characterized by varying levels of technological maturity and different regulatory frameworks supporting building automation. Southern European countries are showing increasing interest in smart building solutions, particularly for commercial and hospitality sectors. The adoption of building automation systems in these regions is primarily driven by the need for energy efficiency and operational cost reduction. Eastern European countries are gradually expanding their building automation infrastructure, particularly in new commercial construction projects. The market in these regions benefits from increasing awareness of environmental sustainability and the need for modern building management solutions. Regional variations in construction activity and economic conditions influence the pace of adoption across different countries. The presence of both international and local players has created a competitive landscape that fosters innovation and market growth across these diverse regions.
Get Analysis on Important Geographic Markets
Download PDF
Europe Building Automation Systems Industry Overview
Top Companies in European Building Automation Systems Market
The European building automation systems companies market features prominent players like Siemens AG, Johnson Controls, Schneider Electric, and Honeywell leading the innovation landscape. Companies are increasingly focusing on developing IoT-enabled solutions, cloud-based building management platforms, and energy-efficient control systems to maintain their competitive edge. Strategic partnerships with technology providers and startups have become crucial for expanding product portfolios and accessing new capabilities in areas like artificial intelligence and digital twins. Market leaders are investing heavily in research and development to create more integrated and intelligent building automation solutions, while also emphasizing sustainability and energy efficiency in their offerings. The industry has seen a significant push towards developing open protocols and interoperable systems, allowing for better integration of various building subsystems and third-party solutions.
Market Dominated by Global Technology Conglomerates
The European building automation systems companies market structure is characterized by the strong presence of large multinational technology conglomerates that leverage their extensive resources and established distribution networks. These major players benefit from their ability to offer comprehensive solutions that integrate various building management functions, from HVAC and lighting to security and energy management. Regional specialists like Kieback&Peter and Priva have carved out significant niches in specific geographic markets or technological segments, particularly in countries like Germany and the Netherlands, where they maintain a strong local presence and customer relationships.
The market exhibits moderate consolidation with ongoing merger and acquisition activities aimed at expanding geographical presence and technological capabilities. Companies are actively pursuing acquisitions of smaller, specialized firms to enhance their digital capabilities and expand their solution portfolios. Strategic partnerships between established players and innovative startups have become increasingly common, particularly in areas such as IoT integration, cloud computing, and advanced analytics. This trend is reshaping the competitive landscape as traditional building automation companies seek to transform themselves into providers of comprehensive smart building solutions.
Innovation and Integration Drive Market Success
Success in the European building automation manufacturers market increasingly depends on companies' ability to deliver integrated, intelligent solutions that address evolving customer needs for energy efficiency and sustainability. Incumbent players must focus on developing more sophisticated software platforms that can handle complex building operations while providing actionable insights through advanced analytics. Companies need to invest in expanding their service capabilities, particularly in areas such as predictive maintenance and remote monitoring, while also strengthening their cybersecurity offerings to address growing concerns about data protection and system security.
For emerging players and contenders, success lies in identifying and exploiting specific market niches where they can offer unique value propositions. This includes developing specialized solutions for particular building types or specific functions within building automation. The ability to provide excellent local support and service, combined with a deep understanding of regional regulations and standards, remains crucial for gaining market share. Companies must also consider the growing influence of environmental regulations and energy efficiency standards, which are increasingly shaping product development and market opportunities in the European region.
Europe Building Automation Systems Market Leaders
-
Siemens AG
-
Johnson Controls International PLC
-
Kieback&Peter GmbH & Co. KG
-
Priva Holding BV
-
Schneider Electric SE
- *Disclaimer: Major Players sorted in no particular order
Need More Details on Market Players and Competiters?
Download PDF
Europe Building Automation Systems Market News
- September 2023: BT and Johnson Controls announced a strategic collaboration to assist business customers in the United Kingdom and internationally in benefiting from smart building technology. This technology will digitally monitor, analyze, and optimize energy usage in the workplace. Buildings, from offices to factories, can all benefit from these solutions, which help customers reach Net Zero faster while reducing operating costs. Both companies offer solutions that leverage smart building technology. Johnson Controls OpenBlue's digital platform is connected by a secure, flexible network that can improve data collection, enhance security, and efficiently manage connected buildings at scale.
- May 2023: Johnson Controls expanded its residential and commercial contractor resource collection with the new Johnson Controls Ducted Systems (DS) Solutions App. The free app provides contractors immediate access to commercial and residential equipment information, which helps simplify installation, troubleshooting, and maintenance processes. Users can search for content by entering the model number or scanning the equipment's QR code to access product-specific information quickly.
Europe Building Automation Systems Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
- 4.1 Market Overview
-
4.2 Industry Attractiveness - Porter's Five Forces Analysis
- 4.2.1 Bargaining Power of Suppliers
- 4.2.2 Bargaining Power of Buyers
- 4.2.3 Threat of New Entrants
- 4.2.4 Threat of Substitutes
- 4.2.5 Degree of Competitive Rivalry
- 4.3 Industry Value Chain Analysis
- 4.4 Impact of COVID-19 Aftereffects and Other Macroeconomic Factors on the Market
5. MARKET DYNAMICS
-
5.1 Market Drivers
- 5.1.1 Increasing Initiatives and Directives for Energy and Operational Efficiency
- 5.1.2 Rapid Growth of IoT in European Countries
-
5.2 Market Restraint
- 5.2.1 Absence of Technology Alignment and High Acquisition and Implementation Costs
6. MARKET SEGMENTATION
-
6.1 By Component
- 6.1.1 Hardware
- 6.1.1.1 Controllers
- 6.1.1.2 Field Devices
- 6.1.2 Software-as-a Service
-
6.2 By End User
- 6.2.1 Residential
- 6.2.2 Commercial
- 6.2.3 Industrial
-
6.3 By Country***
- 6.3.1 Germany
- 6.3.2 United Kingdom
- 6.3.3 France
- 6.3.4 Spain
- 6.3.5 Italy
- 6.3.6 Netherlands
- 6.3.7 Belgium
- 6.3.8 Sweden
- 6.3.9 Finland
- 6.3.10 Denmark
7. COMPETITIVE LANDSCAPE
-
7.1 Company Profiles
- 7.1.1 Siemens AG
- 7.1.2 Johnson Controls International PLC
- 7.1.3 Kieback&Peter GmbH & Co. KG
- 7.1.4 Priva Holding BV
- 7.1.5 Schneider Electric SE
- 7.1.6 Robert Bosch GmbH
- 7.1.7 Trane Technologies PLC
- 7.1.8 Lynxspring Inc.
- 7.1.9 Belimo Holding AG
- 7.1.10 Sauter AG
- *List Not Exhaustive
8. VENDOR MARKET SHARE ANALYSIS
9. INVESTMENT ANALYSIS
10. FUTURE OF THE MARKET
**Subject to Availability
***In the final report, Netherlands, Belgium, Sweden, Finland, and Denmark will be studied together as 'Rest of Europe'
You Can Purchase Parts Of This Report. Check Out Prices For Specific Sections
Get Price Break-up Now
Europe Building Automation Systems Industry Segmentation
Building automation systems exhibit functions such as control of the building's environment, operating systems depending on the energy need, and monitoring the system enactment, based on which the systems produce sound alerts as needed. It centrally controls the building's heating, ventilation, air conditioning (HVAC), electrical, access control, and other interrelated systems.
The European building automation systems market is segmented by component (hardware [controllers and field devices] and software-as-a-service), end user (residential, commercial, and industrial), and country (Germany, United Kingdom, France, Spain, Italy, and Rest of Europe). The report offers the market size and forecasts for all the above segments in value (USD).
| By Component | Hardware | Controllers |
| Field Devices | ||
| Software-as-a Service | ||
| By End User | Residential | |
| Commercial | ||
| Industrial | ||
| By Country*** | Germany | |
| United Kingdom | ||
| France | ||
| Spain | ||
| Italy | ||
| Netherlands | ||
| Belgium | ||
| Sweden | ||
| Finland | ||
| Denmark |
Need A Different Region or Segment?
Customize Now
Europe Building Automation Systems Market Research FAQs
How big is the Europe Building Automation Systems Market?
The Europe Building Automation Systems Market size is expected to reach USD 3.96 billion in 2025 and grow at a CAGR of 3.75% to reach USD 4.76 billion by 2030.
What is the current Europe Building Automation Systems Market size?
In 2025, the Europe Building Automation Systems Market size is expected to reach USD 3.96 billion.
Who are the key players in Europe Building Automation Systems Market?
Siemens AG, Johnson Controls International PLC, Kieback&Peter GmbH & Co. KG, Priva Holding BV and Schneider Electric SE are the major companies operating in the Europe Building Automation Systems Market.
What years does this Europe Building Automation Systems Market cover, and what was the market size in 2024?
In 2024, the Europe Building Automation Systems Market size was estimated at USD 3.81 billion. The report covers the Europe Building Automation Systems Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Europe Building Automation Systems Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
Our Best Selling Reports
Europe Building Automation Systems Market Research
Mordor Intelligence provides a comprehensive analysis of the building automation systems market. We leverage our extensive experience in tracking building automation manufacturers and industry developments across Europe. Our research thoroughly examines Building Automation and Control Systems (BACS) and Building Automation System (BAS) implementations. We offer detailed insights into major building automation companies and their technological innovations. The report covers emerging building automation trends, including advancements in building automation software and strategies for control system integration.
Stakeholders benefit from our detailed analysis of leading building automation system companies and their market positioning across Europe. The report, available as an easy-to-download PDF, provides valuable insights for building management system companies and industry professionals. Our research includes detailed profiles of the top 10 building management system companies, regional market dynamics, and a comprehensive analysis of building automation systems companies throughout the European region. Additionally, the report examines emerging technological trends and regulatory frameworks affecting building management systems implementation across different European countries.
