Europe Building Automation Systems Market to Reach USD 4.76 Billion by 2030 at 3.75% CAGR

The Europe Building Automation Systems market is estimated at USD 3.96 billion in 2025 and is projected to reach USD 4.76 billion by 2030, registering a 3.75% CAGR, according to DataM Intelligence figures referenced for this release. Robust growth is driven by stricter compliance demands under the revised Energy Performance of Buildings Directive (EPBD), rising electricity prices, and a wave of corporate sustainability initiatives focusing on net-zero targets. Notably, hardware components remain the backbone of market revenue, while Software-as-a-Service (SaaS) introduces new recurring revenue streams and quickens project payback, especially for mid-sized portfolios.​

Get a Free Sample PDF Brochure of the Report (Use Corporate Email ID for a Quick Response): https://www.datamintelligence.com/download-sample/building-automation-market?utm_source=OpenPR&utm_campaign=Onkar

Growth is concentrated in retrofit projects, given that nearly 75% of Europe's building stock predates 1990; innovation is now centered on wireless sensors, edge AI, and cloud analytics. While global manufacturers supply core controller hardware, hundreds of regional integrators influence project schedules and outcomes. Labour shortages and cybersecurity challenges slow project velocity, but partnerships and product standardization are beginning to reduce these risks.​

Key Highlights from the Report

➤ Europe Building Automation Systems market size to grow to USD 4.76 billion by 2030 at 3.75% CAGR.​

➤ Hardware led with 66.13% share in 2024; SaaS expected to see 6.11% CAGR through 2030.​

➤ Commercial buildings commanded 45.44% of value in 2024; residential fastest growth at 5.63% CAGR.​

➤ Retrofit projects controlled 71.35% share in 2024; new builds to grow at 4.92% CAGR.​

➤ BACnet captured 41.26% share in 2024; KNX IoT forecasted to rise at 6.40% CAGR.​

➤ Market growth fueled by stricter EPBD mandates, edge-AI, and ESG-linked financing incentives.​

Market Segmentation

Market segmentation is led by hardware, which contributes over two-thirds of total revenue-controllers, actuators, and gateways form the foundation for every building automation system deployed in Europe. Increasingly, wireless sensors and ultra-low-power chips enable rapid and non-invasive retrofits in older buildings. SaaS solutions are accelerating, as users favor operating expenditure models and rolling contracts for optimization and analytics features. Commercial end-users dominate value share, prioritizing energy savings, comfort, and regulatory compliance in offices, healthcare, and retail spaces. The residential segment is growing swiftly as multi-family properties adopt centralized energy management and smart-home features.​

Retrofits remain the dominant lifecycle segment, with wireless actuators and easy-install dashboards minimizing tenant disruption. New-build projects show quick expansion due to integrated design approaches and digital twins for predictive maintenance and efficient asset handover. Communication protocols are split, with BACnet the historic leader for large installations, while KNX IoT attracts smaller sites and new developers with flexible APIs and IPv6 support.​

Get Customization in the Report as Per Your Business Requirements: https://www.datamintelligence.com/customize/building-automation-market?utm_source=OpenPR&utm_campaign=Onkar

Regional Insights

Germany leads in overall market size, driven by rigorous energy codes and large campus deployments that integrate solar and storage solutions. Workforce shortages, though, stretch commissioning times and prompt innovation in prefabrication and remote factory testing. The UK and France follow, with British landlords leveraging tax reliefs and green leases to drive retrofits, while French municipalities benefit from EPBD-tied incentives. Nordic nations achieve the highest per-capita saturation, propelled by demand-response programs and harsh climate-related heating requirements.​

Southern and Eastern Europe are accelerating due to high electricity costs, modernization, and EU funding. In the east, logistics parks and new industrial developments provide showcase opportunities for fully BACnet-enabled smart infrastructure.​

Market Dynamics

Market Drivers

Growth hinges on compliance with EPBD revisions and mandatory automation in non-residential facilities, further supported by plummeting wireless sensor prices and rising corporate net-zero commitments. Edge-AI analytics are translating into significant OPEX savings for building operators, with predictive control reducing HVAC and energy costs and supporting real-time carbon reporting.​

Market Restraints

Legacy building stock, preservation laws, and variable cyber-security adoption rates slow retrofits and upgrades, especially in historic urban centers. Shortages in skilled labour add immediate bottlenecks, while vendor-specific protocol lock-in and fragmented technology landscapes occasionally deter system upgrades.​

Market Opportunities

Widespread retrofits targeting over 70% of the market, SaaS innovation, and integration with district heating and green financing schemes offer new growth avenues. Cybersecurity solutions, multilingual software, and partnerships with local installers are opening up underserved segments. Analytics, reporting, and interoperability services are increasingly bundled to help owners comply with ESG and EU taxonomy criteria.

Purchase This Exclusive Report at Just USD 4786 Only: https://www.datamintelligence.com/buy-now-page?report=building-automation-market?utm_source=OpenPR&utm_campaign=Onkar

Reasons to Buy the Report

✔ Market sizing and CAGR validated by DataM Intelligence.​

✔ Segment-level breakdowns (hardware, software, SaaS, retrofit, new-build).​

✔ Insight on regulatory drivers (EPBD, energy codes) and demand for compliance.​

✔ Regional trends and high-growth markets identified (Germany, Nordics, Eastern Europe).​

✔ Competitive landscape and recent expansions highlighted for core industry players.​

Frequently Asked Questions (FAQs)

◆ How big is the Europe Building Automation Systems market in 2025 and what is the forecast for 2030?​

◆ Which component leads the market, and is hardware still the dominant segment?​

◆ What is the fastest-growing end-user application for building automation?​

◆ Which region is projected to dominate the industry during the next five years?​

◆ Who are the key players in the Europe Building Automation Systems market?​

Company Insights

Siemens AG​

Johnson Controls International PLC​

Kieback&Peter GmbH & Co. KG​

Priva Holding BV​

Schneider Electric SE​

Recent Developments:

Siemens announced EUR 2.1 billion investment for smart-building controller production in Germany and Poland (May 2025).​

Johnson Controls acquired a European analytics firm for USD 450 million to boost predictive-maintenance features (February 2025).​

Schneider Electric launched SF6-free switchgear in France, supporting EU environmental goals (Jan 2025).​

ABB won a USD 280 million contract to automate airport infrastructure across Europe (Dec 2025).​

Conclusion

Europe's Building Automation Systems market is set for stable, compliance-driven growth with retrofit projects dominating and hardware anchoring revenue. Market advances are spurred by cloud analytics, wireless innovation, edge AI, and ESG imperatives, supported by a moderate but highly capable supplier base. As regulatory and cost pressures intensify, demand for scalable, interoperable, and secure solutions will transform both new-build and existing European building stock through this decade.

Contact Us

Mr. Sai Kiran
DataM Intelligence 4market Research LLP Ground floor
DSL Abacus IT Park, Industrial Development Area
Uppal, Hyderabad, Telangana 500039
USA: +1 877-441-4866
Email: Sai.k@datamintelligence.com
Visit Our Website: https://www.datamintelligence.com

About Us

DataM Intelligence 4Market Research is a comprehensive market intelligence platform offering syndicated and customized reports along with expert consulting across multiple industries, including chemicals, healthcare, agriculture, food & beverages, and more. With extensive experience and a strategy-focused approach, DataM provides businesses and individuals with reliable market insights, statistical forecasts, and personalized research solutions to help them make informed decisions and successfully bring innovations to market.

This release was published on openPR.