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London (Sept. 9th, 2013)—The Asian market for building automation equipment will grow to more than $1 billion in 2015, according to a new study by IHS Inc. (NYSE: IHS), a leading global source of critical information and insight.
Growth in the Asian market for building automation equipment is being driven by several key factors, including a recovering manufacturing industry; increasing urbanization in China, India, and Southeast Asia; and a growing commitment towards the use of green building solutions. The figure below shows the forecast for the Asian market for building automation equipment from 2012 to 2017, in terms of year-on-year growth. 
“The Asian market for building automation equipment is forecast to grow by more than $400 million from 2012 to 2017,” said Sam Grinter, market analyst in the Building Technologies Group at IHS. “A key driver of growth has been the recovery of the global economy, which has stimulated the manufacturing industry in Asia.”
Investment by governments and corporations in construction projects is also increasing demand for building automation equipment in Asia. Examples of construction projects include Terminal 3 at the Soekarno Hatta International Airport in Indonesia, the Anxi Cloud Computing Service Center in China, the Chongqing Automobile Factory in China and the Yongsan IBD Office Tower in South Korea.
“Currently, building automation systems in Asia are predominately installed in the largest buildings, such as airports, hospitals, and large multi-tenant commercial offices,” Grinter continued. “However, as the price of energy in Asia increases, and as governments implement tighter legislation and building standards, it is expected that building automation systems will increasingly be deployed in medium and smaller-sized buildings. This will greatly increase the demand for affordable building automation systems in Asia.”
IHS estimates that Johnson Controls, Siemens and Honeywell were among the largest Western building automation equipment manufacturers in Asia in 2012 in terms of revenue. However, local vendors, such as Azbil (formerly Yamatake), Supcon, and Tsinghua Tongfang, have been successful in previous years and are also well placed to take advantage of the forecast growth.
CatNet Systems “Today the Asian market remains largely unconsolidated,” Grinter added. “However, it is anticipated that small- and medium-sized local manufacturers may be acquired as Western brands increasingly look to gain a foothold in this high growth market.”
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About IHS (
IHS (NYSE: IHS) is the leading source of information, insight and analytics in critical areas that shape today's business landscape. Businesses and governments in more than 165 countries around the globe rely on the comprehensive content, expert independent analysis and flexible delivery methods of IHS to make high-impact decisions and develop strategies with speed and confidence. IHS has been in business since 1959 and became a publicly traded company on the New York Stock Exchange in 2005. Headquartered in Englewood, Colorado, USA, IHS is committed to sustainable, profitable growth and employs approximately 8,000 people in 31 countries around the world. 


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