Smart Buildings

ABB Ramps Up its Mid-Market Commercial Building Automation Business

This article was written by Daphne Tomlinson, Senior Research Associate at Memoori. ABB is targeting a new growth opportunity in the commercial building solutions and services sector, according to its November 2019 Electrification Investor Day in Italy. The group presentation views commercial buildings as a high-growth segment with a $21 billion market size and a mid-term growth of >4% CAGR 2017 – 2025. ABB’s Electrification business strategy is to expand its solutions beyond connected electrical distribution products into the Building Automation Control Systems (BACS) market for commercial buildings in the mid-segment size range of 2,000 to 10,000 m2. They estimate this BACS market has a 10-15% penetration today. Buildings in this category include commercial offices and hotels as well as multisite retail operations, government buildings, and specialized segments like data centers and hospitals. In support of this strategy, ABB announced the acquisition of Cylon Controls, a second-tier building automation vendor in March 2020. The acquisition […]

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