China: Building Automation Market to Surge for The Near Future


China’s building automation market harbours immense growth potential for the near future as the country’s urbanization drive continues unabated and the government pushes for more sophisticated means of shoring up efficiency and sustainability in major cities.

A report published by IMS Research estimates that China’s building automation equipment market reached US$181.6 million in 2012, equivalent to nearly a tenth the size of the US market. Analysts expect the country’s building automation market to blossom rapidly over the next five years, however, becoming a formidable rival to America’s.

According to IMS Research’s projections, the market for building automation equipment is set to surge from US$181.6 million to around US$340 million in the space of only five years.

The primary spur for the realization of this market potential will be strenuous efforts by the Chinese government to lift the sustainability of its urban centres and reduce the country’s levels of air pollution, which have become so egregious in major cities like Beijing that they threaten to foment popular discontent.

While the Chinese government began issuing guidelines and regulations to foster the development of green building as early as the 1992 Earth Summit in Rio de Janeiro, these efforts have since lagged considerably behind China’s breakneck urbanization pace.

 According to data from the Chinese National Bureau of Statistics, China has less than 40 million square metres of green building space, despite a total of 645 million square metres of commercial and office space being built from 1998 to 2011.

The Chinese government is now striving to remedy this area of neglect, issuing the Implementation Opinions on Speeding up the Development of Green Buildings in China in May 2012, which set the goal of 30 per cent of new construction projects being green by 2020 – the first concrete target of its kind. Beijing has also issued ancillary fiscal and funding measures to provide support to China’s green building market.

According to IHS analyst Rita Liu, these efforts will serve to hugely boost the potential market for building automation equipment. Building automation serves as a near-ideal retrofit for the huge amount of building space constructed over the past two decades which is devoid green building measures, as it does not necessarily entail costly overhaul or renovation.

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