Market performance indicates encouraging signs for future of BEMS sector

12 January 2026

The UK market for building energy management systems (BEMS) continued to grow in the third quarter of 2025, with total revenues rising 2.6% from the previous quarter to £210.1 million, according to the Building Controls Industry Association (BCIA). The sector has expanded despite wider construction challenges, including rising material costs and labour shortages.

The BCIA attributes the growth to increasing interest from developers, architects, and building owners in decarbonising buildings through automation and controls. Stacey Lucas, BCIA president, suggests the growth of the BEMS market was indicative of the built environment acknowledging the need to reduce carbon footprints. She says:

“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.”

Breaking down the market, product revenues reached £38.8 million in Q3, with manufacturer-owned systems up 8.3%, distributor channels up 7.4%, and sales to system installers up 2.1%. Original equipment manufacturer activity declined slightly but remains a small part of the category. Over the past year, product revenue totalled £162.1 million, down 0.6% from the previous 12 months.

Installation value added rose 2.2% to £112.9 million, with manufacturers’ contributions up 3.4% and system installers’ up 2%. While the rolling-year figure fell 4.1% to £455.8 million, the BCIA said quarterly growth suggested stabilisation. Value-added work continued to represent a substantial 76.9% of total installed systems revenue.

Service and maintenance proved resilient, increasing 6.2% to £58.2 million in the quarter. Manufacturers’ revenues rose 0.6% and system installers’ jumped 7.2%. Over the year, total revenues in the segment were largely unchanged at £215.8 million.

Installed systems revenue grew 2.5% to £146.9 million, with manufacturer-delivered installations up 4%, system installer-led installations up 1.1%, and distributor-sourced activity also rising. Market share shifts were modest, with manufacturers at 14.5%, system installers at 65%, and unspecified channels at 20.4%. The rolling-year total for installed systems reached £591.6 million.

Stacey continues:

“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.”

The BCIA publishes its Market Intelligence Report quarterly, providing members with detailed data on trends, revenues and growth opportunities across the BEMS sector.