Japan Building Automation System Market Assessment, By Component, By Application, By Communication Technology, By End-user, By Sales Channel, By Region, Opportunities and Forecast, FY2017-FY2031

Japan building automation system market size was valued at USD 4.42 billion in FY2023, which is expected to reach USD 7.6 billion in FY2031, with a CAGR of 7.02% for the forecast period between FY2024 and FY2031, designed to oversee and regulate various aspects of a building, including lighting, security, and HVAC (Heating, Ventilation, and Air Conditioning) systems. In Japan, the BAS industry is experiencing substantial growth driven by the increasing demand for energy-efficient structures and the proliferation of smart homes and buildings. Government initiatives and regulatory measures like the Energy Conservation Law and the Building Standards Act predominantly influence Japan's BAS market. The government actively promotes the adoption of energy-efficient technologies to curb energy consumption and reduce carbon emissions in buildings.

Furthermore, the rising trend of smart homes and buildings fuels the demand for advanced BAS solutions. These smart structures incorporate a range of sensors and devices that facilitate automated control of lighting, HVAC, security, and other systems. As more homeowners and building proprietors embrace these technologies, the BAS market is poised for significant expansion. Another contributing factor to the BAS market's growth in Japan is the heightened focus on enhancing indoor air quality and occupant comfort. Advanced BAS systems can monitor and manage indoor air quality parameters, including temperature, humidity, and CO2 levels, ensuring a pleasant and healthy indoor environment.

Rising Demand for Smart Building Technologies

The Japan Building Automation System (BAS) market is experiencing growth due to the increasing demand for smart building technologies. The technologies aim to optimize performance, reduce energy consumption, and improve occupant comfort. BAS systems provide centralized control and monitoring, driven by factors like energy efficiency, occupant comfort, and IoT devices, advancing the capabilities of smart building technologies. These technologies extend beyond enhancing energy efficiency to encompass building safety and security. By integrating Building Automation Systems (BAS) with access control, video surveillance, and other security systems, smart building solutions are optimizing safety measures. For instance, the Savic-net G5 is a building management system, building upon Azbil's established expertise in elevating building environments. This system incorporates state-of-the-art IoT, AI, and big data technologies, reflecting Azbil's dedication to developing innovative solutions that harmonize energy efficiency, occupant comfort, and safety. With this new generation of building management, input from all stakeholders connected to the building is actively encouraged and incorporated, ensuring a comprehensive and holistic approach to building optimization.

Focus on Occupant Comfort

The emphasis on user comfort is a major trend influencing the Japanese building automation system industry. Property managers and owners are prioritizing occupant comfort to boost building occupants' productivity and well-being. By offering centralized control and oversight of building systems, including heating, cooling, and lighting, BAS systems play a crucial role in allowing its focus on the comfort of occupants. BAS systems can optimize the indoor environment by adjusting real-time temperature, humidity, and lighting levels based on occupancy and outdoor weather conditions.

Occupancy sensors and other smart building technologies can further enhance occupant comfort by enabling BAS systems to personalize the indoor environment for individual occupants. For example, Johnson Controls relies on the Metasys Building Automation System as the cornerstone of contemporary building energy management effectiveness. This sophisticated, top-tier technology integrates commercial HVAC, lighting, security, and safety systems, enabling seamless communication on a unified platform. This empowers you to access the necessary information to make more intelligent decisions, all while improving the comfort, safety, and productivity of building occupants.

Rising Demand for Security and Safety Solutions

The Japan building automation system (BAS) market is experiencing a surge in demand for security and safety solutions due to concerns about safety in commercial and residential spaces, the increasing incidence of natural disasters, and the global health crisis. The need for robust, reliable BAS systems integrating security measures and emergency response protocols is increasing. Advanced BAS can effectively address touchless access control, occupancy monitoring, and air quality management, making BAS a valuable tool for safeguarding occupants and assets driving the market growth in this area.

In July 2023, Honeywell revealed its partnership with JGC Holdings Corporation, a prominent global engineering firm headquartered in Yokohama, Japan. In this collaboration, Honeywell will supply essential process control and safety instrumented systems for JGC's innovative green ammonia production facility. This initiative, backed by government funding, is a pioneering pilot project designed to establish an Integrated Control System for the green ammonia chemical plant. Its ultimate objective is positioning green ammonia as a substantial and dependable clean fuel source, aligned with the plant owners' Net Zero aspirations.

Government Schemes

The Japanese government promises to align with the goals of the Paris Agreement by aiming for carbon neutrality by 2050. Furthermore, the target has been set for reducing greenhouse gas emissions by 46% by 2030 compared to levels from the fiscal year 2013. Recognizing that buildings are responsible for approximately 30% of Japan's total energy consumption, the government has identified the pressing need to promote energy efficiency and the adoption of renewable energy sources in the building sector. To address these challenges, the Japanese government has amended the Building Energy Efficiency Act, the primary legislation governing energy efficiency in the construction industry. These amendments, collectively known as the "Amended Act," are set to be implemented gradually between 2023 and 2025. This legislative update underscores the government's commitment to enhancing energy efficiency and sustainability in the construction and building sectors, aligning with its ambitious targets for reducing greenhouse gas emissions and fostering an eco-friendly future.

Impact of COVID-19

The pandemic had a mixed impact on the Japan building automation system market. On the one hand, the pandemic has accelerated the adoption of smart building technologies, including BAS systems, as building owners and managers seek to improve occupant safety and comfort. Also, the pandemic has highlighted the importance of indoor air quality and ventilation, leading to increased demand for BAS systems that can monitor and control HVAC systems. However, the pandemic led to a slowdown in construction activity and delayed the implementation of new BAS projects. The economic uncertainty caused by the pandemic led building owners and managers to delay investments in new building automation technologies. Additionally, disruptions in global supply chains resulted in shortages of certain BAS components, causing delays and increased costs for some projects.

Key Players Landscape and Outlook

The forecast for the Japan BAS market is promising, and future years should see significant expansion. The market is expected to increase due to the rising use of smart building technology, the emphasis on occupant satisfaction, and government calls for higher energy efficiency. In addition, BAS providers should benefit from incorporating building automation systems alongside structural components like lighting and security. However, the market will probably encounter difficulties, such as COVID-19's effects on construction activity and supply chain interruptions. BAS providers must keep innovating and creating new technologies to address the changing demands of building managers and owners to remain competitive in the market.

For instance, in November 2022, PC-based building automation played a key role in creating a digital twin for Building H in Wuhan. From the start, Building H focused on green design principles. Beckhoff's technology seamlessly integrated all building equipment into a system developed by Dongfeng Design Institute. Building H has a digital twin for self-diagnosis, analysis, and autonomous decision-making. It's an 82,000-square-meter landmark in Wuhan with eco-friendly features like rooftop solar power and rainwater recycling, controlled by Beckhoff's system for reliable operation.

In February 2023, Toshiba Carrier Corporation disclosed its plans to release an improved energy-efficient wired remote control (RBC-AMSU52) for commercial air conditioning systems in April 2023. TCC operates within Carrier Global Corporation, a world leader in providing solutions for safe, sustainable, intelligent building environments and cold chain management. The updated product boasts enhanced functionality and user-friendliness, offering efficiency benefits for administration and maintenance tasks. Users can conveniently operate the equipment and access/share product information via a smartphone.