Analysis of BACS Market Maturity - Revision history

Editor at 06:33, 30 July 2025

2025-07-30T06:33:27Z

← Older revision		Revision as of 06:33, 30 July 2025
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−	[[File:BSRIA_Jeremy_Towler_and_header_1000.jpg\|link=~~File~~:~~BSRIA_Jeremy_Towler_and_header_1000~~.~~jpg~~]]	+	[[File:BSRIA_Jeremy_Towler_and_header_1000.jpg\|link=https://www.bsria.com/uk/news/article/where_in_the_world_analysis_bacs_market_maturity/]]

	The Building Automation and Control Systems (BACS) industry first emerged in the Western Hemisphere, and the leading incumbents are the same companies that established themselves early-on in those markets. Today, four companies account for around 54% of the world market – adding a fifth company takes it to just over 60%. Of those, three were founded in the USA, and two were founded in Europe – one German and one French.		The Building Automation and Control Systems (BACS) industry first emerged in the Western Hemisphere, and the leading incumbents are the same companies that established themselves early-on in those markets. Today, four companies account for around 54% of the world market – adding a fifth company takes it to just over 60%. Of those, three were founded in the USA, and two were founded in Europe – one German and one French.
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−	This article appears on the BSRIA news site as "Where in the world? Analysis of BACS Market Maturity" was written by Jeremy Towler and dated July 2025.	+	This article appears on the BSRIA news site as "[https://www.bsria.com/uk/news/article/where_in_the_world_analysis_bacs_market_maturity/ Where in the world? Analysis of BACS Market Maturity]" was written by Jeremy Towler and dated July 2025.

	--[[User:BSRIA\|BSRIA]]		--[[User:BSRIA\|BSRIA]]

Editor at 06:01, 30 July 2025

2025-07-30T06:01:32Z

← Older revision		Revision as of 06:01, 30 July 2025
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	--[[User:BSRIA\|BSRIA]]		--[[User:BSRIA\|BSRIA]]

−	[[Category:~~Articles_needing_more_work~~]]	+	= Related articles on Designing Buildings =
		+
		+	* Air conditioning.
		+	* Artificial intelligence.
		+	* BACS building automation controls - the information revolution.
		+	* BS EN 15232 Energy performance of buildings: impact of building automation, controls and building management.
		+	* Building Automation and Control System BACS.
		+	* BSRIA 2024 North America BACS software & services market study.
		+	* BSRIA study shows uptake of convergence and IoT in commercial buildings.
		+	* BSRIA study: The market for European Field Devices.
		+	* Building energy efficiency - is building automation the answer?
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		+	* Building management systems.
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		+	* Commercial building automation market.
		+	* Cyber threats to building automation and control systems.
		+	* Edge devices.
		+	* European BACS Market 2019 - 2024.
		+	* Energy management and building controls.
		+	* Global BACS Market: analytics and optimisation.
		+	* Global BACS market resilience.
		+	* Global building energy management systems market.
		+	* HVAC.
		+	* Internet of things.
		+	* Internet of things in commercial buildings.
		+	* Mechanical, electrical and plumbing MEP.
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		+	* Smart buildings.
		+	* US Smart Connected HVAC in Commercial Buildings Study 2017.
		+	* Wireless vs wired building energy management system.
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		+	[[Category:DCN_Definition]] [[Category:DCN_Product_Knowledge]] [[Category:DCN_Research,_Development_and_Innovation]] [[Category:International]] [[Category:News]] [[Category:Organisations]] [[Category:Publications_/_reports]] [[Category:Standards_/_measurements]] [[Category:Sustainability]] [[Category:Cost_/_business_planning]] [[Category:Procurement]] [[Category:Products_/_components]]

Editor at 05:10, 30 July 2025

2025-07-30T05:10:11Z

← Older revision		Revision as of 05:10, 30 July 2025
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−	[[File:~~BSRIA Jeremy Towler and header 1000~~.jpg]]	+	[[File:BSRIA_Jeremy_Towler_and_header_1000.jpg\|link=File:BSRIA_Jeremy_Towler_and_header_1000.jpg]]

	The Building Automation and Control Systems (BACS) industry first emerged in the Western Hemisphere, and the leading incumbents are the same companies that established themselves early-on in those markets. Today, four companies account for around 54% of the world market – adding a fifth company takes it to just over 60%. Of those, three were founded in the USA, and two were founded in Europe – one German and one French.		The Building Automation and Control Systems (BACS) industry first emerged in the Western Hemisphere, and the leading incumbents are the same companies that established themselves early-on in those markets. Today, four companies account for around 54% of the world market – adding a fifth company takes it to just over 60%. Of those, three were founded in the USA, and two were founded in Europe – one German and one French.
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	Germany, France and the UK are each of a similar magnitude in terms of NR construction output and yet France is spending a notably higher proportion on BACS than the UK, and Germany spends far and away the greatest proportion globally (0.173%), which is a reflection of the high sophistication of its solutions and the high value placed on building automation and controls in general (graph below left).		Germany, France and the UK are each of a similar magnitude in terms of NR construction output and yet France is spending a notably higher proportion on BACS than the UK, and Germany spends far and away the greatest proportion globally (0.173%), which is a reflection of the high sophistication of its solutions and the high value placed on building automation and controls in general (graph below left).

−	[[File:~~BSRIA BACS as proportion of non residential construction output and per capita spend vs per capita income 1000~~.jpg]]	+	[[File:BSRIA_BACS_as_proportion_of_non_residential_construction_output_and_per_capita_spend_vs_per_capita_income_1000.jpg\|link=File:BSRIA_BACS_as_proportion_of_non_residential_construction_output_and_per_capita_spend_vs_per_capita_income_1000.jpg]]

	There is yet, another way of assessing the BACS market is to posit that the “richer” a country is in terms of GDP (per capita), the higher the spend per capita on BACS is likely to be. Analysis of the BACS markets recently surveyed does indeed suggest that there is a strong correlation (using NR construction produces a similar conclusion). Countries such as the USA, The Netherlands, Germany and the United Arab Emirates, which have a high average per capita GDP, have a high spend per head on BACS. Conversely, countries like China, India and Mexico have a lower per capita GDP and a much lower per capita spend on BACS (graph above right).		There is yet, another way of assessing the BACS market is to posit that the “richer” a country is in terms of GDP (per capita), the higher the spend per capita on BACS is likely to be. Analysis of the BACS markets recently surveyed does indeed suggest that there is a strong correlation (using NR construction produces a similar conclusion). Countries such as the USA, The Netherlands, Germany and the United Arab Emirates, which have a high average per capita GDP, have a high spend per head on BACS. Conversely, countries like China, India and Mexico have a lower per capita GDP and a much lower per capita spend on BACS (graph above right).
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−	This article appears on the BSRIA news site as "Where in the world? Analysis of BACS Market Maturity" dated July 2025.	+	This article appears on the BSRIA news site as "Where in the world? Analysis of BACS Market Maturity" was written by Jeremy Towler and dated July 2025.

	--[[User:BSRIA\|BSRIA]]		--[[User:BSRIA\|BSRIA]]

	[[Category:Articles_needing_more_work]]		[[Category:Articles_needing_more_work]]

Editor at 04:40, 30 July 2025

2025-07-30T04:40:08Z

← Older revision		Revision as of 04:40, 30 July 2025
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		+	[[File:BSRIA Jeremy Towler and header 1000.jpg]]
		+
	The Building Automation and Control Systems (BACS) industry first emerged in the Western Hemisphere, and the leading incumbents are the same companies that established themselves early-on in those markets. Today, four companies account for around 54% of the world market – adding a fifth company takes it to just over 60%. Of those, three were founded in the USA, and two were founded in Europe – one German and one French.		The Building Automation and Control Systems (BACS) industry first emerged in the Western Hemisphere, and the leading incumbents are the same companies that established themselves early-on in those markets. Today, four companies account for around 54% of the world market – adding a fifth company takes it to just over 60%. Of those, three were founded in the USA, and two were founded in Europe – one German and one French.

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	On the other hand, does size alone matter? Another way to analyse country performance and potential, is to compare the total BACS spend as a proportion of non-residential (NR) construction output. In this analysis, China stands alone in that, despite spending USD 3.5 billion on NR construction in 2024, it spent just 0.004% of this value on BACS. By contrast, India spent the same proportion even though its NR construction output was more than five times smaller. US NR construction output was less than half that of China, but it spent 0.108% of this value on BACS, confirming it as a much more mature market. Nevertheless, the Netherlands spent the same proportion on BACS as the USA, despite US NR construction spend being 16 times greater.		On the other hand, does size alone matter? Another way to analyse country performance and potential, is to compare the total BACS spend as a proportion of non-residential (NR) construction output. In this analysis, China stands alone in that, despite spending USD 3.5 billion on NR construction in 2024, it spent just 0.004% of this value on BACS. By contrast, India spent the same proportion even though its NR construction output was more than five times smaller. US NR construction output was less than half that of China, but it spent 0.108% of this value on BACS, confirming it as a much more mature market. Nevertheless, the Netherlands spent the same proportion on BACS as the USA, despite US NR construction spend being 16 times greater.

−	Germany, France and the UK are each of a similar magnitude in terms of NR construction output and yet France is spending a notably higher proportion on BACS than the UK, and Germany spends far and away the greatest proportion globally (0.173%), which is a reflection of the high sophistication of its solutions and the high value placed on building automation and controls in general.	+	Germany, France and the UK are each of a similar magnitude in terms of NR construction output and yet France is spending a notably higher proportion on BACS than the UK, and Germany spends far and away the greatest proportion globally (0.173%), which is a reflection of the high sophistication of its solutions and the high value placed on building automation and controls in general (graph below left).

−	There is yet, another way of assessing the BACS market is to posit that the “richer” a country is in terms of GDP (per capita), the higher the spend per capita on BACS is likely to be. Analysis of the BACS markets recently surveyed does indeed suggest that there is a strong correlation (using NR construction produces a similar conclusion). Countries such as the USA, The Netherlands, Germany and the United Arab Emirates, which have a high average per capita GDP, have a high spend per head on BACS. Conversely, countries like China, India and Mexico have a lower per capita GDP and a much lower per capita spend on BACS.	+	[[File:BSRIA BACS as proportion of non residential construction output and per capita spend vs per capita income 1000.jpg]]
		+
		+	There is yet, another way of assessing the BACS market is to posit that the “richer” a country is in terms of GDP (per capita), the higher the spend per capita on BACS is likely to be. Analysis of the BACS markets recently surveyed does indeed suggest that there is a strong correlation (using NR construction produces a similar conclusion). Countries such as the USA, The Netherlands, Germany and the United Arab Emirates, which have a high average per capita GDP, have a high spend per head on BACS. Conversely, countries like China, India and Mexico have a lower per capita GDP and a much lower per capita spend on BACS (graph above right).

	This provides us with a useful metric to identify those markets which are relatively “mature” in that they have a high BACS spend relative to their GDP, and those which can potentially be seen as underdeveloped. The “mature” markets would include The Netherlands, Germany, The United Arab Emirates and Saudi Arabia. It suggests that the markets with a disproportionately low spend are under-developed markets. These include China, Spain, the UK, Australia and the USA.		This provides us with a useful metric to identify those markets which are relatively “mature” in that they have a high BACS spend relative to their GDP, and those which can potentially be seen as underdeveloped. The “mature” markets would include The Netherlands, Germany, The United Arab Emirates and Saudi Arabia. It suggests that the markets with a disproportionately low spend are under-developed markets. These include China, Spain, the UK, Australia and the USA.

	Given that the USA is by a large margin, the largest BACS market in the world, this might seem surprising, particularly as the USA has the highest per capita GDP of any major economic power, but it shows that the country still has a lot of room for growth. There are clear opportunities in the lower income countries of China, India and South America, particularly in larger cities, where the demand for commercial real estate is highest.		Given that the USA is by a large margin, the largest BACS market in the world, this might seem surprising, particularly as the USA has the highest per capita GDP of any major economic power, but it shows that the country still has a lot of room for growth. There are clear opportunities in the lower income countries of China, India and South America, particularly in larger cities, where the demand for commercial real estate is highest.
		+
		+	-----
		+	This article appears on the BSRIA news site as "Where in the world? Analysis of BACS Market Maturity" dated July 2025.
		+
		+	--[[User:BSRIA\|BSRIA]]

	[[Category:Articles_needing_more_work]]		[[Category:Articles_needing_more_work]]

Editor: Created page with "The Building Automation and Control Systems (BACS) industry first emerged in the Western Hemisphere, and the leading incumbents are the same companies that established themselves..."

2025-07-30T04:10:12Z

Created page with "The Building Automation and Control Systems (BACS) industry first emerged in the Western Hemisphere, and the leading incumbents are the same companies that established themselves..."

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The Building Automation and Control Systems (BACS) industry first emerged in the Western Hemisphere, and the leading incumbents are the same companies that established themselves early-on in those markets. Today, four companies account for around 54% of the world market – adding a fifth company takes it to just over 60%. Of those, three were founded in the USA, and two were founded in Europe – one German and one French.

Western countries mostly still account for the lion’s share of the world market too. In 2023, the USA was the largest single market, representing around one third, Germany ranked second at almost 10%, and China a distant third at less than half the size of the German market. Meanwhile, due to a serious contraction of the Chinese market in 2024, France and Canada have edged ahead into third and fourth positions respectively, and China has fallen back to fifth position.

From a regional perspective, the Americas and Europe are practically identical in size in 2024 at around 38% each. The Middle East and Africa take less than 5%, however Asia & Oceania have grown incrementally over the years and now account for around one fifth of the world market.

So far, the emergence of new country markets to represent any significant scale, has been slow, and (with the exception of the rather insular Japanese market) most of the expertise for product innovation and market growth has remained in the West. However, countries such as China and India have the manpower and demand from major metropolitan conurbations to potentially develop their own BACS products in future, arguably at lower costs than their Western competition, thereby opening up BACS to buildings that in the past could not have afforded it. Indeed, BSRIA research has revealed that steps have already been taken, with the development and production of field devices, such as valves and actuators in these countries.

BSRIA bases its five-year forecasts on a combination of projections of GDP, new construction/refurbishment, major project plans (such as Olympic Games, Football World cup etc.), legislation and market-player sentiment. What cannot be foreseen are natural catastrophes or pandemics, and the outbreak (or cessation) of wars and conflicts is hard to predict.

Forecasts in the latest BSRIA World BACS study were formulated largely based on data produced prior to the new USA Administration. Due to a range of factors, such as buoyant economic forecasts and legislation mandating the use of BACS in many commercial buildings, these suggest that by 2029, the USA will actually have increased its share by about 1.5 percentage points, whilst the shares of Germany and France remain broadly steady. Such was the fall in the Chinese market in 2024, that forecasts have suggested it will remain in fifth position up to 2029.

But as political and economic tectonic plates shift, is the status-quo about to be disrupted any time soon? Will the recent imposition of steep tariffs by the USA on its trading partners force those countries to focus their efforts elsewhere? Will those countries strengthen legislation on emissions and energy conservation, and ramp-up investment at home and in emerging markets in Asia and Africa? Many of these markets are very populous and theoretically offer enormous potential. And will it hasten the development of home-grown BACS products and solutions? If these trends gain traction, then the share taken by niche and emerging markets may quickly grow beyond the approximately 25% they represent today.

On the other hand, does size alone matter? Another way to analyse country performance and potential, is to compare the total BACS spend as a proportion of non-residential (NR) construction output. In this analysis, China stands alone in that, despite spending USD 3.5 billion on NR construction in 2024, it spent just 0.004% of this value on BACS. By contrast, India spent the same proportion even though its NR construction output was more than five times smaller. US NR construction output was less than half that of China, but it spent 0.108% of this value on BACS, confirming it as a much more mature market. Nevertheless, the Netherlands spent the same proportion on BACS as the USA, despite US NR construction spend being 16 times greater.

Germany, France and the UK are each of a similar magnitude in terms of NR construction output and yet France is spending a notably higher proportion on BACS than the UK, and Germany spends far and away the greatest proportion globally (0.173%), which is a reflection of the high sophistication of its solutions and the high value placed on building automation and controls in general.

There is yet, another way of assessing the BACS market is to posit that the “richer” a country is in terms of GDP (per capita), the higher the spend per capita on BACS is likely to be. Analysis of the BACS markets recently surveyed does indeed suggest that there is a strong correlation (using NR construction produces a similar conclusion). Countries such as the USA, The Netherlands, Germany and the United Arab Emirates, which have a high average per capita GDP, have a high spend per head on BACS. Conversely, countries like China, India and Mexico have a lower per capita GDP and a much lower per capita spend on BACS.

This provides us with a useful metric to identify those markets which are relatively “mature” in that they have a high BACS spend relative to their GDP, and those which can potentially be seen as underdeveloped. The “mature” markets would include The Netherlands, Germany, The United Arab Emirates and Saudi Arabia. It suggests that the markets with a disproportionately low spend are under-developed markets. These include China, Spain, the UK, Australia and the USA.

Given that the USA is by a large margin, the largest BACS market in the world, this might seem surprising, particularly as the USA has the highest per capita GDP of any major economic power, but it shows that the country still has a lot of room for growth. There are clear opportunities in the lower income countries of China, India and South America, particularly in larger cities, where the demand for commercial real estate is highest.

[[Category:Articles_needing_more_work]]