04 December 2024
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Building Controls Industry Association (BCIA) President Stacey Lucas believes the organisation's latest market report shows significant signs of encouragement for the building controls industry for 2025 and beyond.
The BCIA’s quarterly MIS report of the UK building energy management systems (BEMS) market performance in Q3 revealed a 3.2% year-on-year increase up to £854 million.
Lucas 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 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 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 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%.
