BSRIA report shows software is increasingly reshaping building control
BSRIA has released its latest analysis of the global Building Automation and Control Systems (BACS) sector. The Building Automation and Control Systems 2026 report findings point to a market expanding on the back of regulation, Net Zero targets and the steady migration of building operations onto digital platforms.
The findings show that the global BACS product market grew by 7.6% in 2025 to reach $7.75 billion. Including products, labour and margin, the total installed BACS market is forecast to reach $41.1 billion by 2030.
In 2025, field devices and controllers are similar sized markets and represented the largest product segments in the smart buildings market by revenue. However, growth rates are expected to vary significantly through to 2030. Software is forecast to be the fastest growing category, driven largely by the emergence of Building Operational Platform (BOP) software, which is projected to grow at 16.7% CAGR.
By comparison, field devices and controllers are expected to grow more slowly reflecting the relative maturity of the hardware market. Overall, hardware is forecast to grow at around half the rate of software as the sector gradually shifts from analogue to digital devices across an already substantial installed base.
Demand for analytics, indoor air quality monitoring and integration with wider enterprise IT systems is increasingly pulling investment towards software and services. Building operators are seeking continuous monitoring and real-time performance data, particularly across larger commercial and public sector estates.
Jeremy Towler, Senior Market Intelligence Consultant at BSRIA, said: “More than ever before, the BACS market emphasises the operating relationship. Buyers are paying for performance, not just panels and sensors. Software, analytics and AI are starting to deliver on longstanding promises around energy efficiency and indoor environment, but progress is patchy. The suppliers and integrators that can connect existing estates, work across protocols and prove results will take the largest share of the next five years of growth.”
He added: “The next five years will be decided in existing buildings. Most of the stock that will be in use in 2050 is already standing, and it needs controls and software that can work across mixed estates and legacy protocols. The winners will be those who can prove the savings, not just install the kit.”
