Robust performance from BEMS market illustrates growing confidence in sector

A recent look at the UK building energy management systems (BEMS) market performance in Q3 revealed a promising 3.2% year-on-year increase up to £854 million – emphasising the growing demand for smart buildings and acknowledgement of the importance of reducing energy consumption through BEMS.  

While the construction industry as a whole is combating significant challenges, including a major skills shortage, the building controls sector continues to perform admirably, with major companies and organisations leading the way when it comes to innovation and the utilisation of technology to improve energy efficiency and reduce carbon emissions in the built environment.

BCIA President Stacey Lucas suggested the report showed some significant signs of encouragement for the building controls industry for 2025 and beyond. She said: “The wider construction industry has faced some significant challenges in the last few months but the building controls sector has continued to perform commendably. This is in no small part down to the increasing focus on sustainability throughout the built environment and the drive to reduce carbon emissions wherever possible.

“The BEMS industry remains a vital lynch-pin of energy efficiency and that’s set to increase further as we move into 2025 and beyond.”

The BCIA’s quarterly MIS report takes a close look at the data, breaking 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 Q3 2024, falling 1.8% from the previous quarter and amounting to £39.2 million. However, this compares favourably to Q2, which saw a much larger drop of 5.8%.

Despite the overall drop, and product sales to systems installers falling by 17.0%, there were signs of encouragement, with manufacturers’ own systems seeing a strong quarterly growth of 28.9%. This was likely due to an increased need for bespoke BEMS and a real focus from across the built environment on sustainability and energy efficiency. Driven by distributors and others, which saw a year-on-year growth of 3.3%, the rolling year total for product sales remained steady, with a marginal increase of 0.4%.

The rolling year figures for the value added through engineering, commissioning, panels, and installation activities showed an encouraging 3.8% growth, reaching £475.2 million. This was despite a quarterly decrease of 14%, amounting to £107.5 million in Q3 2024. The value added by manufacturers and systems installers both saw declines in Q3, dropping by 6.5% and 15.5% respectively. This, of course, may be influenced by the time of year, with construction and installation demand typically lower in the colder winter months.

Driven by a 23.4% rise in quarterly contributions from manufacturers, the revenues from service and maintenance in the UK market showed signs of resilience, increasing by 0.6% in Q3 to reach £51.4 million. Illustrating its consistent importance to the overall market, service and maintenance also demonstrated a 4% growth over the rolling year. Following on from the last quarter’s huge rise, systems installers’ rolling year figures dipped slightly, falling by 3%.

Stacey continued: “Despite the construction industry as a whole stagnating, the BEMS market continues to offer value, highlighting its importance to the building controls industry. As a leading voice in the industry, the BCIA is focused on not only supporting its members but also increasing awareness of the need to embrace building controls technology to ensure a greener and brighter future for the built environment and keep the UK on the path towards net zero.”

Produced and supplied to BCIA members every quarter, the MIS report is a hugely useful and informative resource, offering detailed insights into market trends and growth across the BEMS market and enabling an in-depth understanding of the market. As a result, members are able to track developments, navigate challenges with more confidence and knowledge, and recognise potential growth opportunities.

While the Q3 results indicate a slight contraction in the BEMS market, key sectors have maintained upward momentum, highlighting optimism for the months ahead. Playing a vital role in the building controls industry, the BEMS market will undoubtedly remain key when it comes to system performance and energy efficiency.