BACS market to reach $41.1bn by 2030
16th June 2026
UK: BSRIA reports the building automation and control systems (BACS) market grew by 7.6% in 2025 to reach US$7.75bn.
According to BSRIA, the report’s findings point to a market expanding on the back of regulation, net-zero targets and the steady migration of building operations onto digital platforms.
Including products, labour and margin, BSRIA predicts that the total installed BACS market will reach $41.1bn by 2030.
In 2025, field devices and controllers were 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 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.
In Europe and the Americas, growth is driven by the push to improve energy performance and indoor comfort. In Europe, climate policy and exposure to imported fossil fuels have reinforced regulation around building energy efficiency. In the US, environmental policy is now shaped more at the state and city levels than federally. Meanwhile, in developing markets, new construction remains the principal driver of BACS demand.
India is currently the fastest-growing BACS market worldwide. At $65m, it is still smaller than Belgium but is expanding at 10% CAGR. New construction dominates demand, with retrofit gaining ground as building owners recognise the role of controls in energy efficiency. In Poland, the market grew by 5.3% in 2025 to $80.6m, with refurbishment and replacement work the main driver, with demand concentrated in Warsaw and the larger regional cities.
Cloud adoption
Cloud-based software is now common to the BACS proposition for analytics, energy‑efficiency and building operational platforms, but take-up is described as uneven. In the US, close to half of these deployments used cloud-based software in 2025. In Spain, the figure was around 5%. Cultural factors, data sovereignty concerns and trust in cloud providers continue to shape adoption, even where the underlying technology is available.
While AI is widely discussed, it is being talked about more than it is being deployed. The report finds product-market fit, commercial models and integration with existing HVAC infrastructure are still being worked through.
BSRIA’s senior market intelligence consultant Jeremy Towler commented: “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 long-standing 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.
“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,” he added.
BSRIA’s Building Automation and Control Systems 2026 report is available here.
