It is also worth noting that building automation controls products sold to the light commercial building segment are expected to grow at a higher rate than the overall BACS market, particularly in 2024 and 2025 with 11% and 13% respectively. Most of the European economies showed good economic growth in 2021, but Russia's invasion of Ukraine is increasingly impacting economies in 2022.
On the positive side, the European Energy Performance of Buildings Directive (EPBD) drives the adoption of BACS to optimise energy use through better automation, control, and monitoring. In December 2021, the European Commission proposed a new directive that states that non-residential buildings will have to be renovated and improved to at least energy performance grade F by 2027 and grade E by 2030, as part of European Union’s net zero-emission strategy.
Over half the sales are accounted for by controllers and hardware, followed by field devices, and then software.