Building Regulation and Technical Management: "The French market in 2025 and the outlook for 2026"

Market developments in 2025

This reflects a pragmatism among investors who primarily seek to equip themselves with standard BACS systems that allow them to gain in comfort and energy efficiency with a rapid return on investment.

In the service sector, growth remains strong at 5%. Current regulatory objectives in this area (BACS I & II Decrees and the Tertiary Eco-Energy Scheme) provide clear guidance, allowing for the gradual planning of work packages, initially focusing on quick-win actions such as the installation of standard BACS systems. For a large proportion of buildings already subject to the BACS decree, the replacement of existing BACS systems with new-generation systems represents the bulk of the market.

Given the budgetary constraints imposed by the difficult economic situation, investments are focused on the regulation of HVAC (Heating, Ventilation, Air Conditioning) systems, with particular attention to the hydraulic balancing of installations.

In the residential sector, the market is primarily driven by renovations, with clients seeking standardized heating system control solutions to achieve low-cost savings. Indeed, installing BACS (e.g., heating optimization, control, and programming devices) remains an effective and cost-efficient way to improve comfort while minimizing energy consumption in these buildings. In this area, the postponement of the Regulation decree's requirements until 2030 should help clarify the relevant technical solutions.

Presentation of the 2025 results

The regulation

The regulatory market is returning to growth: +1,9% to reach €218,5 million in 2025. This modest growth is nevertheless a welcome development in a sector that is generally in sharp decline.

Hot water heating

The hot water loop is more resistant to the decline in new construction with 2,9% growth in 2025. In this area we see particular progress in distribution regulation devices which notably improve hydraulic balancing functions.

Even though the deadlines for the "Regulation" Decree (Decree No. 2023-444 of June 7, 2023) have been postponed to 2030, the level of requirements is clear. As a reminder, this involves installing standard control devices to improve the performance of all heating and cooling systems (generator regulation and optimization, time-based programming, and "terminal" emission control), without necessarily waiting for generator replacement.

We will also note:

• Programmable room thermostats (+3,5%) continue to gradually replace non-programmable models.
• For terminal regulation, thermostatic radiator valves remain the most common and are declining less (-3,4%) than smart radiator solutions (-7,7%). Efforts to clarify regulatory requirements must continue here, with the goal of equipping all radiators with thermostatic radiator valves by 2030, as required by the "Regulation" decree. Smart radiator solutions, which allow for time-based programming in each room, going beyond the regulations, are still covered by a standardized operation that qualifies for Energy Savings Certificates (CEE) ("BAR-TH-173"). However, efforts by the industry to stabilize the system after the discovery of fraud have not been successful, despite promises from public authorities to support it.
• Regarding energy distribution regulation solutions, these were the most popular, regardless of the size and type of buildings involved. Dynamic balancing solutions are now more than ever recognized as essential for achieving performance and comfort objectives. Consequently, we are seeing a natural increase in PICV valves (+5,7%) and a significant jump in motorized 0-10V valve actuators (+35%).

Ventilation et climatisation

The ventilation and air conditioning market remains at a level equivalent to 2024 (+0,8%). Here, controllers for communicating HVAC terminals are experiencing varying trends depending on the protocols and are declining slightly overall (-0,4%). Unsurprisingly, proprietary protocols have virtually disappeared.

Building Technical Management

In 2025, the Building Management System (BMS) market continues to grow at +5% to reach 138,2 million euros.

The year 2025 marks both the entry into force of the BACS I Decree, which requires the installation of standard BACS (class C) in buildings equipped with HVAC systems exceeding 290kW by January 1st, and the postponement of the deadlines of the BACS II Decree, which pushes back to 2030 the obligation to install standard BACS for systems exceeding 70kW.

However, the clarity of regulatory requirements and associated support schemes, particularly BAT-TH-116 for the installation of higher-performance BACS (class A or B), remains, which helps to stimulate the market. Unfortunately, the discontinuation of the Energy Savings Certificates (CEE) bonus for these projects has significantly slowed the market.

Therefore, the majority of activity in the building management systems (BMS) market is driven by regulatory compliance operations, with a focus on HVAC, which involves upgrading existing installations with new, standardized solutions. We are also seeing a significant decrease (-70%) in multi-disciplinary control units, which address lighting and blinds in addition to HVAC.

In this area, the main focus remains achieving the performance targets of the Tertiary Eco-Energy Scheme. To this end, the ACR trade association emphasizes the crucial importance of implementing BACS (Building Automation and Control Systems) with open, standardized protocols (e.g., BACnet, KNX, etc.) to meet interoperability requirements and enable a gradual upgrade of installations to Class A or B systems while controlling costs through backward compatibility.

Services

The service market is returning to growth at 5,8% in 2025, reaching 67,4 million euros.

As a reminder, the services covered here include technical assistance, training, the supply of spare parts, troubleshooting, and maintenance contracts. Since the demand primarily concerns upgrades to existing installations, customers naturally turn to BACS manufacturers for these upgrades.

On the other hand, commissioning and preventive maintenance operations should help to reduce the gap that may exist between the design, installation and operation of high-performance "BMS and control systems".

Overall result 2025

Once again, BACS (Building Automation and Control Systems) are thriving in a growing market within a generally struggling sector. Indeed, BACS continue to establish themselves as effective and cost-efficient energy renovation solutions (see ROI of 3 to 5 years).

In a difficult economic context, renovation operations primarily concern standard renovation solutions for HVAC systems, particularly on the distribution part, i.e. hydraulic balancing.

To anticipate a successful upgrade of existing facilities, the use of industry fundamentals, particularly with the implementation of BACS with open standardized protocols, is more necessary than ever.

Outlook 2026

The BACS sector is maturing, and its stakeholders are optimistic about the coming years. BACS are widely recognized as effective and sustainable energy renovation solutions at controlled costs.

Gradually, new entrants to the market adopt the prevailing technical standards to protect themselves from major counter-references.

Thus, the momentum generated by the BACS ALLIANCE confirms that the alignment of BACS technical standards allows for stability of the regulatory framework and increased clarity of the issues.

The path of massive deployment of BACS to meet regulatory objectives therefore continues on its course.

Looking ahead, the technological challenge will be integrating cybersecurity requirements into buildings, with BACs (Building Access Control Systems) playing a central role. Manufacturers have anticipated these emerging constraints and are already offering equipment that implements cybersecurity standards such as BACnet/SC and KNX Secure.

By 2030, once buildings are equipped with minimum standard BACS, the market will be able to focus on the deployment of instruments for measuring actual energy consumption.

Illustrative image of the article via Depositphotos.com.