BEMS market ends 2024 with promising performance upturn

Highlighting a determination from building owners to reduce energy consumption through technology, the building energy management systems (BEMS) market saw a 1.4% quarter-on-quarter increase in Q4 2024 – according to the Building Controls Industry Association’s (BCIA) latest market report.

Despite the construction industry facing a skills shortage and a slight decline in output, the building controls sector has remained resilient, thanks to advancements in transformational technologies and a heightened focus on energy efficiency from building owners, contractors, and architects.

President of the BCIA, Stacey Lucas, highlighted the growing importance of sustainability and meeting stricter energy efficiency mandates as the primary reason behind the quarter-on-quarter increase. She said: “The BEMS sector and construction industry as a whole had a very challenging 2024, but the building controls and automation market has shown some superb resilience in the face of substantial challenges.

“With 2025 set to be a hugely important year in the journey towards net zero, the BEMS industry will no doubt play a vital role, especially as more and more property owners look to reduce their carbon footprint by utilising the advancements in technology.”

Taking an in-depth look at the data, the BCIA’s quarterly Market Information Service (MIS) report breaks down the BEMS market into three key components: product, installation value added, and service and maintenance.

The total value of products supplied to the BEMS market dipped slightly in Q4 2024, falling 0.7% year-on-year to £161.2 million. However, Q4 product revenues rose 1.5% compared to the previous quarter, thanks to a substantial 7.6% increase in sales to systems installers and 12.3% rise in the value of products included in manufacturers’ own systems.

Additionally, sales to OEMs showed robust growth of 17.1% to £24.4 million over the year. This was likely due to the increased focus on sustainability and linked demand for smart buildings, exacerbating the need for bespoke BEMS to be designed and manufactured across the sector.  

Despite totalling an impressive £462.8 million, the value added through engineering, commissioning, and installation declined by 0.7% over the year. The fall was minimised, however, by the performance of the ratio of system price to product content. This slightly improved, suggesting a continued focus on high-value solutions. Furthermore, the value-added proportion within overall systems rose slightly to 77.2% for the year.

Illustrating the importance of maintaining and monitoring building controls and automation in an ever-evolving world, the revenues from service and maintenance in the UK market continued to show stability, rising by 1.1% year-on-year to £215.5 million. In fact, Q4 alone saw a 4.3% increase from the previous quarter, underlining the ongoing demand for system support and after-sales care services.  

Stacey continued: “The BEMS market continues to perform admirably, despite the construction industry slightly stagnating due to external pressures. As a leading voice in the industry, the BCIA has two major goals – to support its members and increase awareness of the need to embrace building controls to ensure a brighter and greener future for the built environment.”

Produced and supplied to BCIA members every three months, the MIS report offers detailed insights into market trends and growth across the BEMS market and enabling an in-depth understanding of the market – making it a hugely informative and useful resource. Consequently, members are able to recognise potential growth opportunities, track developments, and navigate challenges with more knowledge and confidence.

With the Q4 results illustrating significant resilience and growth across multiple sectors and 2025 set to be a hugely important year for sustainability protocols, the BEMS market is likely to be a major factor in the fight to lower carbon emissions and improve energy efficiency across the building controls industry and the built environment.