Q2 2026 at a glance

• Total market (products + installation + service): £225.9m; –3.8% QoQ, +10.4% YoY

• Rolling-year market: £878.2m; +6.9% vs previous 12 months

• Installed systems: £162.7m; –2.9% QoQ, +13.6% YoY

• Installation value added: £128.1m; +15.8% YoY; +7.1% rolling-year

• Products: £41.3m; –7.7% QoQ, +5.4% YoY; rolling-year £163.7m; +0.7%

• Service & maintenance: £56.5m; –4.9% QoQ, +2.9% YoY; rolling-year £232.1m; +11.1%

The UK building controls and Building Energy Management Systems (BEMS) market has remained in positive territory during Q2 2026, despite a moderation in activity following the particularly strong growth recorded in the first quarter, according to the latest Market Information Report from the Building Controls Industry Association (�鶹ԭ��).

Total industry revenues for Products, Installation Value Added and Service and Maintenance supplied into the UK market reached £225.9 million during Q2 2026. While this represents a 3.8% decrease compared with the previous quarter, revenues remained 10.4% higher than Q2 2025.

Total market revenues reached £878.2 million, 6.9% higher than the previous rolling-year. This compares with construction output across the key sectors relevant to the Controls and BEMS market, which fell by 0.4% during the quarter and 0.5% on a rolling-year basis.

Installed systems remain resilient

Installed Systems revenues reached £162.7 million during Q2. While this represented a 2.9% decrease from Q1, revenues were still 13.6% higher than Q2 2025.

Installation Value Added also performed strongly compared with the same quarter last year, rising by 15.8% to £128.1 million. On a rolling-year basis, Installed Systems revenues increased by 6.2%, while Installation Value Added was up 7.1%.

The proportion of value added within installed systems also increased highlighting the continued importance of engineering, commissioning and installation expertise in delivering building controls and BEMS solutions. That aligns with a broader shift toward optimising existing assets rather than wholesale replacement, as operators focus on energy performance and compliance.

Product demand remains ahead of last year

Product revenues moderated during Q2, decreasing by 7.7% to £41.3 million. However, revenues remained 5.4% higher than Q2 2025, while the rolling-year figure increased by 0.7% to £163.7 million.

While product demand has eased following the strong growth recorded at the start of the year, the market remains ahead of 2025 levels.

Service and maintenance shows continued strength

Service and Maintenance once again provided a stable revenue stream for the sector.

Revenues decreased by 4.9% during Q2 to £56.5 million but remained 2.9% higher than Q2 2025. The rolling-year figure increased by 11.1% to £232.1 million, continuing the strong longer-term performance seen in this part of the market. Strong service & maintenance growth reinforces the sector’s recurring-revenue model and the long-term role of controls in meeting net-zero and operational-performance targets.

Positive outlook for the year ahead

Overall, the Q2 2026 data suggests the market is experiencing a moderation in activity following a standout Q1.

While the three main market segments recorded quarter-on-quarter declines, revenues remained ahead of the same period last year and the rolling-year market continued to grow.

With regulation, net-zero targets and digitalisation driving building automation, the underlying demand for controls expertise and technology remains robust.

Ron Purcell, Vice President of the Building Controls Industry Association (�鶹ԭ��), said: “Some moderation in Q2 was perhaps to be expected after a very strong Q1. What is encouraging is that the market remains well ahead of last year, with the rolling-year figures continuing to show healthy growth.

“The continued strong performance of Installation Value Added and Service and Maintenance is particularly significant - it reflects the fact that building controls are not simply a one-off investment in technology; the expertise required to install, commission, optimise and maintain these systems is essential to ensuring buildings perform as they should over the long term.

“As buildings become increasingly sophisticated and the focus on energy efficiency and operational performance grows, the role of controls will only become more important. The latest figures suggest that, despite some short-term fluctuations, the underlying demand for the sector’s expertise and technology remains strong.”

The �鶹ԭ�� publishes its Market Information Report quarterly, providing detailed data on trends, revenues and growth opportunities across the BEMS sector.