Building Management Systems Market – By Component, By Type, By System Type, By Deployment, By End Use – Global Forecast, 2025 – 2034

Building Management Systems Market Size

The global building management systems market size was valued at USD 19.8 billion in 2024 and is estimated to grow at 15.3% CAGR from 2025 to 2034. The market for building management systems is witnessing growth due to increased urbanization in emerging economies, adoption of smart home solutions across the world, and benefits from cost savings.
 

According to Confederation of Real Estate Developers' Associations of India (CREDAI) the housing demand in India will reach 93 million units in 2036. With the continuous increase in urbanization and the construction of new buildings, the demand for advanced, smart, and sustainable infrastructure is increasing, which fuels the demand for BMS solutions.
 

The focus of BMS providers should be on developing smart, energy-efficient solutions to meet the growing demand for housing in India. Improving automation, sustainability, and scalability will be the way forward as urbanization demands advanced building infrastructure.
 

Energy efficiency and cost savings is another key factor fueling the growth of the building management systems market. Building management systems optimize the energy use and reduce energy consumption. According to ABB the BMS systems can save up to 30% of costs by optimizing the energy usage across lighting, HVAC, and other system. Cost saving benefits have increased the adoption of BMS solutions in new constructions as well as renovations.
 

Goverments across the world are imposing strict building regulations such as LEED in U.S. and Future Homes Standard in UK to reduce carbon footprints. This regulatory push is creating demand for building management systems, as these systems aim to reduce energy consumption. 
 

BMS providers must focus on energy-efficient solutions, optimizing HVAC, lighting, and other systems, to ensure cost savings. Building regulations such as LEED and Future Homes Standard will drive higher adoption for BMS in new as well as under-construction buildings.
 

Further, smart homes and connected offices which are equipped with IoT devices such as smart lighting systems and security camaras, requires BMS integration for centralized control and monitoring. For instance, according to Statista, smart homes market is expected to reach USD 250.6 billion in 2029, with a CAGR of 9.55%. Growth in smart homes is likely to fuel the demand for BMS to control multiple systems, such as HVAC, security, fire safety, and lighting.
 

BMS providers should on focus implementing IoT-enabled smart home and office solutions for centralised control. Improved BMS functionalities in terms of HVAC, security, fire safety, and lighting will play an important role in capturing growth in markets driven by adoption of smart homes.
 

Building Management Systems Market Trends

• Integration of AI and ML for fault detection, predictive maintenance, energy consumption optimization is one of the major trends in the BMS market.  For instance, in August 2024, Honeywell and Cisco partnered to enhance energy efficiency with the help of AI integration. AI integration also provides real time monitoring and analytics which further helps in optimizing performance of various building systems.
   
• There is a shift towards cloud based BMS solutions in the market. Cloud solutions connects various systems such as lighting, HVAC, security systems to a single network, which allows to monitor and control the system from anywhere. Moreover, these solutions scale up easily and support any scale and complexity required. Cloud reduces the need to maintain physical infrastructures and maintenance requirements. This offers flexibility and makes cloud based BMS solution popular choice.
   
• The increased use of IoT devices in smart buildings is another key trend in the building management systems market. IoT sensors capture and send data in real time which enables the automation in building management systems, which has led to an improvement in energy efficiency and maintenance. For example, smart meters track real time energy usage and give suggestion to improve energy consumptions. IoT sensors in lighting systems can detect occupancy patterns and adjust the lighting according to the use.
   
• Smart Building as a Service is emerging as a trend in the BMS market. SBaaS provides building operation and energy management services on subscription basis. This option makes it easier for the building owners since this model gives them access to advanced technologies without huge upfront capital. This trend is significantly impacting the BMS market in developed regions such as North America and Europe.
   

Building Management Systems Market Analysis

Based on component, the building management systems market is divided into hardware, software, and services.
 

• The software segment is expected to register at a significant rate of over CAGR 16.5% over the forecast period. This growth is attributed to increased emphasis on energy efficiency and cost savings. BMS software such as computerized maintenance management software (CMMS), facility optimization software, building automation software, and HVAC control software, manage maintenance and repair activities, optimize building energy efficiency, and manage asset information, which lead to an optimal performance and costs savings, these benefits have contributed to the growth of software segment.
   
• The hardware market dominated the BMS market with a share of over 40% in 2024. Sensor, controller, and actuators are needed in critical systems like HVAC, lighting system, and security system that occur in a building to form its management system. Further, the increasing use of IoT devices have increased the demand for hardware components, these IoT devices are connected with BMS for controlling and monitoring. 
   
• Services segment in the BMS market will reach USD 13.9 billion in the year 2034. Service segment is poised to grow due to increasing need for installation, maintenance and repair, and consulting as the adoption of the building management systems increases. Increasing construction of new buildings in emerging economies are fueling the growth of installation services, while cybersecurity and data analytics services are in demand in developed regions.
   

According to system type, the building management systems market is divided into HVAC system, energy management, fire and safety, security and access control, smart building integration, facility management system, emergency management, and others.
 

• The energy management segment accounted for 25.1% of the market share in 2024. The energy management segment dominated the market because of increased focus on energy efficiency, reducing carbon emissions, and increasing energy prices. Energy management systems monitor and control the energy needs of the building, which help to reduce energy consumption, resulting into reduced operating costs of the building.
   
• HVAC system segment is valued at USD 4.5 billion in 2024. The demand for energy-efficient temperature management solutions in commercial and residential buildings is driving the demand for HAVC system. Smart HVAC system, including IoT sensors and AI, will adapt to temperature, ventilation and humidity by reducing the use of energy by 20% to 30%.
   
• Fire and safety market is projected to grow at a CAGR of 13.7% during the forecast period. The fire and safety segment is growing because of increased concerns for safety regulations, urbanization, and strict government mandates. In addition, the inclusion of IoT-based fire safety systems reduces response times, increases safety, and lowers risks, leading to increased market demand.
   
• Security and access control market held a market share of 11.6% in 2024. Increased crimes in the cities, terrorism threats, and data breaches are necessitating the access control and security systems. These systems employ intelligent technology such as biometrics and facial recognition to monitor things in real-time, access them remotely, and enhance security.
   
• Smart building integration segment accounted for a share of 7.7% in 2024. Increasing automation and convenience are the major driving forces for smart building integration in residential and commercial buildings. Smart building solutions integrate all systems, such as lighting, HVAC, security, and energy management, onto a single platform to enhance energy efficiency, sustainability, and comfort.
   
• Facility management system segment is valued at USD 1.2 billion in 2024. The facility management system segment is growing in the BMS market because of central building operations management. Cloud-based and mobile-enabled facility management platforms allow building operators to streamline the tasks, thereby reducing costs to operate any complicated infrastructure with much better functionality and performance.
   
• In 2024, emergency management segment accounted for USD 1.3 billion. Emergency management systems are on the rise because of the rising need for real time crisis management and quick response systems in buildings in case of an emergency. It provides effective communication, evacuation plans, and automatic system shutdowns in emergencies, hence, making this segment grow.
   

Based on type, the building management systems market is divided into standalone BMS, integrated BMS, and IoT-based BMS.
 

• IoT-based BMS is projected to register a CAGR of 18.1% during the forecast period due to the increasing adoption of smart home technologies, and its scalability. These solutions can easily incorporate new devices and can be further expanded over many floors or new buildings across the network. This allows building owners to control and monitor all devices and buildings through one device. This scalability of IoT-based BMS solutions is major factor behind the growth of this segment.
   
• In 2024, the standalone BMS segment accounts for a market share of 32.5% because this is affordable and suitable for small and mid-size buildings. Standalone BMS solutions offer separate HVAC, security, and lighting controls without needing integration to other systems. This solution is increasingly implemented in developing economies, boosting the market for standalone BMS.
   
• The integrated BMS market is valued at USD 8.4 billion in 2024. The increasing demand for centralized building automation is propelling the integrated BMS market. These systems combines HVAC, security, energy management, and lighting into single platform, which reduces the cost of operations and enhance efficiency. Thus, driving the demand for integrated BMS segment.
   

Based on deployment type, the building management systems market is segmented into on-premises and cloud based.
 

• The cloud based segment accounted for a market share of over 60.9% in 2024 as it offers centralized management and control, scalability and flexibility, remote access and monitoring. The increased demand of IoT solutions has created the demand for cloud based BMS, as it offers more efficient and sustainable operations.
   
• On-premises segment is valued at USD 2.6 billion in 2024. Strict regulatory compliance and privacy requirements in international infrastructure is driving the growth of on-premises segment as it offers better control and security. Further, it provides customization of BMS solutions for specialized operation requirements which is critical for existing building, also contributes to the growth of the segment.
   

Based on end use, the building management systems market is divided into commercial buildings, industrial buildings, residential buildings.
 

• The commercial buildings segment is expected to reach over USD 43 billion in 2034. Commercial buildings segment is projected to grow significantly due to increased need for energy efficient, smart, cost effective building management solutions across various commercial buildings such as corporate offices, retail, and hospitality.
   
• Industrial segment of the market held a share of 31.3% in 2024, because of increased need for predictive maintenance, automation, and energy efficiency in industrial buildings. BMS solutions optimize energy uses, monitor machinery, and HVAC systems, leading to reduction in costs. Moreover, expansion of smart factories, industry 4.0 is propelling the growth of the segment. 
   
• The residential segment accounts for a CAGR of 15.5% during 2025 to 2034. The residential market is growing at a rapid rate, mainly because of the growth in luxury homes, gated communities, and the adoption of smart home technologies.  
   

The North America building management systems market held a market share of 34.2% in 2024. Growth in the North American BMS market is driven by strong demand for energy-efficient buildings, smart city initiatives, and the acceptance of green building certifications.
 

• The U.S. market is valued at USD 5 billion in 2024. The BMS market in U.S. is growing due to government regulations on energy consumption, green building standards and increasing adoption of smart homes in the country. U.S. is an early adopter of new technologies because of major companies in the market such as Honeywell International and Emerson Electric is headquartered in the country which help to adopt new technology.
   
• Canada building management systems industry is projected to grow at 14.1% during the forecast period, because of energy efficiency requirements and smart building technologies. Cities such as Toronto and Vancouver are experiencing the increasing demand for housing, which also contributes to the growth of the market.
   

The Asia Pacific building management systems market is expected grow significantly to reach to USD 25.1 by 2034. Rapid urbanization and infrastructure development coupled with strict government requirements for energy efficiency, these factors are propelling the BMS market in Asia Pacific region.
 

• India market is anticipated to register a CAGR of 18.7% during 2025-2034 due to growing urbanization and rapid expansion of commercial real estate. Smart city infrastructure attracts investment, mainly in cities such as Mumbai, Pune, Delhi, and Bengaluru, because of the rising level of urbanization.
   
• China industry is expected to reach at USD 11.3 billion by 2034, owing to rapid urbanization and government initiative for smart city and sustainability, and cities of China like Shanghai, Beijing is investing in building smart technologies concerning energy efficiency which is creating a massive demand for BMS market.
   
• Japan market is valued at USD 800 million in 2024. The growth of BMS market in Japan is attributed to government’s focus on energy conservation and technological advancements in the BMS solution. Additionally, aging infrastructure and the increasing need of buildings automation creates demand for advanced building management solutions.
   
• South Korea building management systems market is projected to grow at a CAGR of 14.2% during the forecast period. The BMS market in South Korea is fueled by the  emphasis on smart building solutions and technological innovation. Government policies promoting green buildings and sustainable infrastructure and the growth of high-tech industrial facilities and smart homes, are driving the adoption of BMS in South Korea.
   
• Australia market is projected to reach at USD 1.7 billion by 2034. Strict regulations for energy efficiency in the country and increasing climate change awareness are fuelling investments in energy-efficient commercial and residential buildings, thereby driving BMS market growth.
   

The Europe building management systems industry is valued at USD 5.7 billion in 2024. BMS market in Europe is growing due to stringent energy efficiency regulations, an increased adoption of smart cities and green building certifications. Moreover, IoT-enabled and AI-driven technologies are escalating the integration of BMS in European countries.
 

• Germany building management systems market is valued at USD 1.6 billion in 2024. Building management system market in Germany is growing because of government's commitment to energy efficiency and sustainability. Further, Germany's Energy Transition (Energiewende) policy, further driving demand for advanced BMS solutions in both commercial and residential buildings.
   
• UK market is projected to grow at a CAGR of 15.7%.  UK Green Building Council's sustainability frameworks and net-zero building targets are driving up demand for building management systems. In addition, smart homes and smart office solutions within urban areas is also supporting the growth with BMS adoption.
   
• France building management systems industry is valued at 800 million in 2024. The BMS market in France is growing due to demand for sustainable building solutions, smart buildings, and intelligent energy management in urban areas, especially in commercial buildings.
   
• Italy market is valued at USD 500 million in 2024. The demand for smart buildings in Milan and Rome is raising the BMS market in Italy. Moreover, the growth of luxury residential properties is driving home automation and sustainable building solutions in the country.  
   
• Spain building management systems industry is estimated to grow at a CAGR of 14.2%. In Spain, the BMS market is growing due to high emphasis on energy efficiency both in commercial and residential sectors. The popularity of smart homes and government subsidies for sustainable infrastructure are driving the demand for integrated BMS solutions.
   

Latin America building management systems market is anticipated to register a CAGR of 13.7% during the forecast period. The growth of the BMS market in Latin America is attributed to the increasing urbanization and smart city development projects. Governments in the region are encouraging the adoption of BMS solutions by providing incentives, thus driving the growth.
 

• Brazil market is valued at USD 600 million in 2024. Brazil's BMS market is on the rise due to commercial real estate development in cities like Sao Paulo and Rio de Janeiro. Office buildings, shopping malls, and corporate hubs are adopting smart building technologies in these cities.
   
• Mexico building management systems industry is valued at USD 400 million in 2024. Mexico's growth in the BMS market is attributed to investments in smart cities, along with rapid urbanization and developing infrastructure and commercial buildings.
   

MEA building management systems market is valued at USD 900 million in 2024. The rise in BMS market is attributed to government initiated infrastructure building projects, foreign direct investments and integration of smart technologies into building designs.
 

• Saudi Arabia market is estimated to grow at a CAGR of 13.4% during the forecast period. The mega projects such as NEOM, The Red Sea Project, and Qiddiya are rapidly expanding in Saudi Arabia, which will drive the demand for advanced building automation solutions.
   
• South Africa building management systems industry is estimated to grow at a CAGR of 13.7% during the forecast period. There is increasing energy cost, power cuts which demand energy saving solutions in commercial and industrial buildings, which is driving the adoption of BMS solutions in South Africa. 
   
• UAE industry is estimated to reach USD 300 million by 2034. BMS market in UAE is growing because of emphasis on luxury real estate, hospitality, and high-tech commercial spaces. The country is experiencing increased demand for automated, IoT-integrated building management systems.
   

Building Management Systems Market Share

The market is highly competitive. Key players in the market are Honeywell International, Inc., Siemens, ABB, Schneider Electric, and Johnson Controls. These companies hold a share of 25% in the BMS market. Companies in the market compete over technological innovations, scalable BMS solutions, and price. Companies are investing in innovative products with advanced features such as AI-driven analytics, improved performance, and energy efficiency.
 

Key players take advantages of their broad product offerings and expertise in the building management solutions to maintain and gain competitive advantage. These companies specialize in building automation, cybersecurity, and security solutions. Their products cover a wide range of applications, and their geographic reach also adds to their dominant position in the market.
 

Collaboration and partnership for innovation in technology is common practice in the market. Major companies are co-developing smart building management solutions which helps them to reduce research and development costs and price barriers. Major companies are actively acquiring small technology businesses to improve their technology base and offer innovative solutions.
 

Honeywell International is a major company in the building management systems market. Its building technology segment generated a revenue of over USD 6 billion in 2023. The company is actively advancing its product offerings through technological advancements. In January 2024, Honeywell launched a building control platform called Advanced Control for Buildings. This platform uses ML and automation to streamline the building operations.
 

ABB is also a leader in the market and the strategies of the company in the market are mergers & acquisitions, investment in modern technologies, and expansion into new regions. This strategy is helping the company get competitive advantage within the industry. Recently, ABB launched ABB-free@home in India, a Smart Home automation system. This cutting-edge, all-inclusive wireless home automation solution aims to provide comfort, security, and energy efficiency for the residential segment. It also enables the integration and control of additional elements, including white good appliances, third party devices, as well as EV chargers, via a single interface. 
 

Building Management Systems Market Companies

Some of the prominent market participants operating in the building management systems industry include:

• ABB
• Azbil
• Bosch
• Emerson
• Hikvision
• Hitachi
• Honeywell
• Johnson Controls
   

Building Management Systems Industry News

• In December 2024, Legrand introduced WEOZ, an intelligent building manager, to improve energy and operational efficiency in small and medium-sized buildings. WEOZ is an advancement of building management systems since it is built on a Internet of Things (IoT) environment and integrates many functions in energy management.
   
• In September 2024, Schneider Electric has announced an all-in-one home energy management system that can help homeowners in the United States simplify their energy consumption and increase their sustainability. This revolutionary energy management system combines solar, battery, electric car charging, and utility electricity into a single, user-friendly platform controlled by the Schneider Home app.
   
• In January 2023, ABB unveiled its Cylon Smart Building Management Systems for the Middle East with a vision to make automation and energy control of commercial and industrial buildings of all sizes even more effective. Cylon BMS offers real-time monitoring and management of building facilities and is the perfect tool to cut energy costs dramatically by means of efficient energy control and automation.
   

The building management systems market research report includes an in-depth coverage of the industry with estimates and forecast in terms of revenue in USD Million from 2021 – 2034 for the following segments:

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Market, By Component

• Hardware
• Software
• Services

Market, By Type

• Standalone BMS
• Integrated BMS
• IoT-based BMS

Market, By System Type

• HVAC system
• Fire and safety
• Energy management
• Security and access control
• Smart building integration
• Facility management system
• Emergency management
• Others

Market, By Deployment

• On-premises
• Cloud-based

Market, By End Use

• Commercial building
• Industrial building
• Residential building

The above information is provided for the following regions and countries:

• North America 
  • U.S.
  • Canada
• Europe 
  • Germany
  • UK
  • France
  • Spain
  • Italy
• Asia Pacific 
  • China
  • India
  • Japan
  • Australia
  • South Korea
• Latin America 
  • Brazil
  • Mexico
  • Argentina
• Middle East and Africa 
  • Saudi Arabia
  • South Africa
  • UAE