Data centres have emerged as a primary growth driver in the global Building Automation and Control Systems (BACS) market, according to the latest BSRIA report. The World Building Automation and Control Systems (BACS) 2025 study provides an extensive analysis of 16 countries and regional groupings, including the USA, Canada, Scandinavia, Spain, Saudi Arabia, Australia, China, and South East Asia.
Following a post-COVID surge, most markets have stabilised, but some regions continue to expand at a faster pace. Asia Pacific, particularly South East Asia, has seen double-digit growth in 2024, partially due to price inflation and the backlog of delayed projects. In Malaysia and Indonesia, data centres represent a significant portion of the construction pipeline. The recovery of commercial sectors such as offices, hotels, and retail is also contributing to growth. However, software adoption in South East Asia remains slow due to factors like low energy prices, high cloud hosting costs, and limited access to skilled labour.
In Australia, the BACS market contracted in 2021 but has recently surpassed 2020 levels. Here too, data centres are a key growth area. The Australian National Construction Code and initiatives like the NABERS rating system are pushing for higher energy efficiency, encouraging the adoption of advanced automation solutions. Increasing digitalisation and demand for cloud-based services are also shaping the market.
Saudi Arabia is undergoing a transformation in its BACS sector, driven by government initiatives and a focus on energy efficiency. The country’s Vision 2030 plan is accelerating investment in smart infrastructure, with major projects such as NEOM, Mukaab “Cube,” Qiddiya, and The Red Sea tourism development requiring advanced building automation. Cloud-based solutions for remote monitoring, predictive maintenance, and energy optimisation are becoming essential in the region.
Scandinavia, one of the most mature BACS markets, has limited room for expansion due to high penetration in commercial buildings. However, data centres remain a key growth sector, supported by low energy costs and a favourable climate. Governments in the region continue to enforce strict energy and building regulations in line with European standards.
A global challenge for the BACS industry is the shortage of skilled labour. To address this, companies are investing in engineering efficiency programs and artificial intelligence to maintain productivity with existing workforce levels. Additionally, the demand for building energy efficiency software, cloud-based monitoring, and analytics solutions is growing faster than the overall market.
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