Highlighting an increased desire from property developers, architects and designers to decarbonise the UK’s building stock through the specification and implementation of building controls and automation, the building energy management systems (BEMS) market showed steady progress in Q3 – rising 2.6% compared to the previous quarter.
While the wider construction industry saw its performance hampered by rising material costs and ongoing skilled labour shortages, the BEMS sector saw its total revenues rise to £210.1 million, according to the Building Controls Industry Association’s (BCIA) latest market report.
BCIA President, Stacey Lucas, suggested the growth of the BEMS market was indicative of the built environment acknowledging the need to reduce carbon footprints. She said: “The construction industry has faced a challenging 2025 but it’s pleasing to see that the BEMS sector is remaining resilient and showing promising signs for the future.
“As more building owners strive to decarbonise their buildings and meet their sustainability targets, we remain confident that the BEMS sector will increasingly gain prominence.”
Analysing the data in great detail, the BCIA’s Market Intelligence Report – released every quarter– breaks down the BEMS market into three key areas; product, installation value added, and service and maintenance.
Product revenue held relatively firm in Q3, sitting at £38.8 million, with most routes to market recording growth during the three-month period. In fact, manufacturer’s own systems saw a substantial uplift of 8.3%, while distributor and other channels rose by 7.4% and sales to system installers also saw an increase of 2.1%.
OEM activity did see a drop in the third quarter of 2025. However, this remains one of the smaller routes within the Product category. The overall rolling-year total for product stood at £162.1 million – a marginal decrease of 0.6% compared to the previous 12 months.
Installation Value Added delivered a stronger quarter compared to the previous period. Manufacturers and Systems Installers contributed most to the 2.2% rise to £112.9 million, with value added up 3.4% and 2% respectively. While the rolling-year position revealed a 4.1% decline to £455.8 million, the performance in Q3 suggests activity in this area is beginning to stabilise and improve. In fact, the proportion of value-added work within total installed systems remains high at 76.9%.
Service and maintenance followed the strong performances of the other two categories, remaining one of the most resilient parts of the BEMS market. Revenues rose by an encouraging 6.2% to £58.2 million, while Manufacturers had an uplift of 0.6% and System Installers jumped up 7.2% in the quarter. The rolling-year total saw a very slight drop of 0.1% to £215.8 million.
Installed Systems revenue also grew to £146.9 million, seeing an increase of 2.5% compared to the previous quarter. Manufacturer-delivered installations and System Installers also rose by 4% and 1.1% respectively, along with an uplift in distributor-sourced activity. Market share movements also remained modest, with manufacturers increasing to 14.5%, System Installers at 65% and Unspecified at 20.4%. Showing improved quarterly momentum, the rolling-year total for Installed Systems stood at £591.6 million.
Stacey continued: “The BEMS market is showing encouraging signs of growth – despite the ongoing challenges the construction industry is facing. With the UK’s net zero target of 2050 ever-approaching, the BCIA will continue to work with industry leaders and policy makers to not only support its members but also increase awareness both inside and outside the built environment of the important role building controls and automation can play.”
As the BCIA’s latest report indicates, demand for building controls and automation has been heightened by the need for building owners and facility managers to reduce their carbon footprints while creating smarter buildings.
Produced and provided exclusively to BCIA members every quarter, the MIR offers comprehensive insights into market trends and growth across the BEMS sector and a detailed understanding of the market. As a result, it is a hugely useful and informative resource with members able to recognise potential growth opportunities, navigate challenges with more confidence and knowledge and track developments.
