January 2025
Which Building Automation Vertical Drives Long-Term Growth?
Building automation is a dynamic industry with numerous verticals, from data centers to K-12 education projects, each offering unique challenges and opportunities. As demand for advanced automation systems continues to grow, one question stands out for businesses: which verticals provide the most sustainable, long-term growth potential?
At LVI Associates, we understand the importance of aligning talent with the right industry verticals to ensure lasting success. With the right expertise, companies can tap into the most promising sectors within building automation and position themselves for long-term growth. Recent poll results from Toby Northfield shed light on which verticals are considered the most valuable for BAS companies, providing valuable insights for businesses looking to thrive in the market.
Data centers: The backbone of the digital economy
Data centers have become the foundation of the digital economy, driven by the explosion of cloud computing, the Internet of Things (IoT), and e-commerce. As the world generates more data, the demand for efficient, reliable data centers continues to rise. These facilities require advanced building automation systems to manage HVAC, cooling, lighting, and security to keep operations running smoothly.
The growth of the digital world means that data centers will remain a critical part of infrastructure for years to come. With increased investment in these facilities, building automation professionals with expertise in these systems are in high demand. Ensuring your business has the right talent to manage and optimize these complex systems is key to staying competitive in this sector.
Healthcare: Automation for efficiency and patient safety
The healthcare industry is one of the most essential and fast-evolving sectors. Hospitals, medical clinics, and healthcare facilities rely heavily on building automation systems to maintain optimal conditions for patient care, energy efficiency, and safety. Systems like HVAC, temperature control, lighting, and security are crucial for creating a safe and comfortable environment for both patients and staff.
As healthcare demands rise, driven by aging populations and increased focus on sustainability, the need for skilled professionals to manage building automation systems will continue to grow. Ensuring your team has the expertise to meet these demands will position your business for long-term success in this critical industry.
K-12 education projects: Sustainable growth in school systems
K-12 education projects present unique opportunities in building automation. Schools are increasingly looking to invest in energy-efficient, sustainable solutions to improve indoor air quality and overall comfort for students and staff. These systems help regulate HVAC, lighting, and security, providing an optimal learning environment.
While K-12 projects may not always have the largest budgets compared to other sectors, they offer a steady and reliable demand for building automation services. This is largely due to the ongoing need for retrofitting, upgrading, and maintaining older school buildings, which require modern automation systems to meet energy efficiency standards, improve comfort, and enhance security. School districts are increasingly prioritising energy-efficient solutions, driven by both environmental goals and the need to reduce long-term operational costs. Additionally, the push for healthier and safer environments in schools—such as improved air quality, lighting controls, and temperature regulation—further supports the demand for advanced automation systems. This makes K-12 projects a sustainable vertical for building automation companies, offering consistent work and long-term opportunities as schools continue to invest in infrastructure improvements.
Commercial real estate
Commercial real estate (CRE) is evolving rapidly with the rise of smart, energy-efficient buildings. From office towers to retail spaces, building owners and managers are increasingly adopting automation systems to optimize energy consumption, improve occupant comfort, and enhance building security. As businesses become more focused on sustainability and reducing operational costs, the demand for advanced building automation systems continues to increase.
The long-term viability of the commercial real estate (CRE) sector in building automation is driven by a combination of economic, environmental, and technological factors. As the demand for energy-efficient and sustainable buildings grows, property owners and developers are increasingly turning to advanced automation systems to enhance the efficiency and functionality of their buildings. The shift toward smart buildings, which integrate cutting-edge technologies to optimize energy usage, lighting, heating, and cooling, ensures a steady flow of work for companies that can provide innovative solutions tailored to these needs. Additionally, with tenants becoming more discerning about the quality of their workspace, building automation plays a critical role in creating comfortable, secure, and productive environments. This shift is not just about meeting sustainability goals—it's also about maximizing operational cost savings and boosting the long-term value of real estate assets. As cities continue to embrace green building standards and prioritize smart infrastructure, the CRE sector will remain a key growth area for building automation professionals, offering substantial opportunities for companies equipped with the right expertise and technology to deliver these solutions.
Industrial and manufacturing: Boosting efficiency through automation
The industrial and manufacturing sectors are increasingly embracing automation to improve efficiency and productivity. From managing lighting and HVAC to ensuring security and worker comfort, building automation systems play a pivotal role in industrial facilities. As industries seek to optimize energy use and reduce waste, there is a growing demand for sophisticated building automation solutions.
The ongoing push for operational efficiency and sustainability in manufacturing and industrial sectors presents ample opportunities for growth in building automation. Companies that specialize in this area are well-positioned to meet the increasing demands for automation in these critical industries.
Poll results: Which industry vertical is the best for a BAS company to specialize in?
To gain insights into what industry professionals consider the most sustainable vertical for building automation, Toby Northfield, Associate Vice President at LVI Associates conducted a poll asking which vertical BAS companies should specialize in. The results provide valuable insight into market trends:
0%
Data Centers
0%
Hospitals
0%
K-12
0%
Government
It's clear that the building automation industry is evolving rapidly, and the poll results reflect this shift. Data centers and hospitals are at the forefront, with both industries experiencing sustained growth. As digital infrastructure expands and healthcare continues to innovate for better patient care, the demand for advanced building automation systems in these areas will only increase. It’s also interesting to see how K-12 and government projects still have a place, but perhaps not with the same urgency or scale as the healthcare and data center sectors. For BAS companies, it’s all about aligning with these high-growth verticals, while ensuring you have the specialized talent to meet the complex needs of each industry.
The importance of talent in building automation success
No matter which vertical your company specializes in, talent is the key to success. The complexity of building automation systems requires skilled professionals who understand the intricacies of HVAC, lighting, security, and digital controls. At LVI Associates, we specialize in connecting businesses with the right talent—whether it’s for managing complex automation systems in data centers or ensuring sustainable energy solutions in healthcare.
At LVI Associates, we’re committed to helping businesses like yours find the talent needed to excel in these key sectors. By partnering with us, you gain access to a network of top professionals with the technical expertise required to navigate the complexities of building automation. Together, we can ensure your business stays ahead of the competition and thrives in an ever-evolving market.
Ready to find the talent that will drive your building automation projects forward? Request a call back today.