Recent advances in the technologies behind smart buildings, such as IoT sensors, AI and ML, edge computing, and 5G networking, have made building intelligence a more affordable and practical investment. As such, the industry is starting to boom. Precedence Research reports that the global intelligent building market rose to $90 billion in 2023, and some estimates predict the market share could grow to upwards of $500 billion by 2032.
Enterprise leaders are just beginning to realize the many benefits of smart buildings (even though the concept of building intelligence has existed since the 1980s). Research indicates that average whole-building energy use can be reduced by 18%. In some instances, savings can reach as much as 70% over the course of three years.
Additionally, this focus on sustainability is a vital recruiting tool, as more than half of Gen Zs (55%) and millennials (54%) examine a brand’s environmental impact before accepting job offers.
Lastly, organizations realize that IoT devices and integrated buildings are a means of achieving sustainability and carbon net zero goals. An IBM survey reveals that 76% of executives believe sustainability is fundamental to their business. However, nearly half (47%) report difficulties securing funding for sustainability initiatives.
Intelligent buildings may kill three birds with one stone by prioritizing digital transformation, operational efficiency, and sustainability in one initiative.
The need for smart buildings
Buildings are responsible for an estimated 30% of all carbon emissions, with some estimates climbing as high as 40%. Optimizing energy usage and HVAC can substantially cut down on emissions.
Additionally, IoT devices are a tool for building out or retrofitting spaces to work in a hybrid work environment. For example, workers can connect to a building app to determine where to park and which hot desk area to reserve.
Smart buildings will both drive and aid the adoption of AI. AI and machine learning in intelligent building workflows monitor thousands of data inputs from across a building and, in some cases, can act autonomously to lower temperatures or take other actions. The fast, low-latency networks required to make a building intelligent are also necessary to deploy AI in a variety of workloads.
Also read: ITAD’s Role in Sustainability, Profitability, and ESG Initiatives
The critical technologies behind building intelligence
In recent years, several key technologies have achieved a critical mass that eases the transition from “connected buildings” to “intelligent buildings.” They include:
IoT sensors: Collect environmental data to optimize energy usage based on current requirements or external temperatures, reducing costs and waste.
AI/ML: Autonomous buildings leverage AI for increased efficiency, improved user experience, and advancements in sustainability. Convert real-time data from IoT sensors into actionable insights, optimizing building performance and informing future projects. Smart buildings learn from this data to improve user experience continually.
Power over Ethernet (PoE): PoE delivers electrical power and data through Ethernet cables, enabling energy-efficient, intelligent building solutions and seamlessly supporting connected devices.
Edge computing: Data processing at the IoT device level enhances system responsiveness, reduces latency, improves bandwidth efficiency, and strengthens security against external threats.
5G connectivity: Enhance connectivity with high-speed communication for data-intensive applications and real-time analytics while supporting more devices seamlessly.
AR and digital twinning: Provide virtual replicas of physical buildings for simulation, optimization, and predictive analysis, enhancing planning and efficiency. Integrate with Building Information Modeling (BIM) tools for faster maintenance, immersive staff training, and design visualization to preview changes before implementation.
Applications of building intelligence
Let’s walk through “a day in the life” of Sally, a sales rep for a healthcare company with an intelligent building.
- Sally uses a connected building app from her phone to reserve a desk and find a parking spot.
- When Sally walks to her desk, the lights automatically brighten to accommodate her, and the temperature adjusts to her previously recorded preferences. The phone at the desk recalls her speed dial contacts, and she logs into her account from the desktop.
- As the day progresses, smart shades lower to keep the sun out of Sally’s eyes.
- Sally leaves for a client meeting at a nearby coffee shop. To comply with HIPAA rules, her laptop detects that this location is not secure and blocks her access to restricted files.
- Sally returns to the office, and her laptop has its permissions restored.
- When she leaves for the day, the lights dim, and the temperature lowers to accommodate her absence.
- As the building empties for the day, relevant IT switches, HVAC, and other systems shut down or go into low-power mode.
This example shows that an intelligent building saves on costs by turning off relevant systems when not in use and increases user productivity by remembering Sally’s preferences. It also helps the organization stay compliant with HIPAA rules.
Also read: Return-to-Office Initiatives Won’t Work with Yesterday’s IT Strategies
The current market challenges
The above example is no longer hypothetical. Thousands of actual employees and their organizations now enjoy the perks of smart buildings. However, building intelligence still has its challenges.
In “The Morning Show” TV program, threat actors employed by a foreign nation portray a hack of an intelligent building. In the show, the characters lose control of broadcasting equipment, HVAC, elevators, and even door locks.
This fictional scenario demonstrates the double-edged sword of modern connectivity. With exceptional user experiences also comes an unprecedented level of risk. Many IoT devices cannot change passwords at the user level, and disparate systems from multiple vendors can present visibility challenges.
Unifying and securing these disparate systems are the primary challenges of the current state of building intelligence.
How Pomeroy makes your building smarter
Our approach begins with a thorough understanding of your objectives, whether starting with a new building design or planning a retrofit. We engage in meaningful discussions to ascertain specific needs, assess current standing, and perform a gap analysis. This analysis enables us to develop a clear pathway to help you transition from your present situation to your desired outcomes. Finally, we address the financial implications involved in implementing these solutions.
Our collaboration with partners like Cisco enables us to provide a fully integrated, seamless system managed through a single dashboard.
Implementing a robust network access control system is essential. This control allows us to permit devices onto the network while regulating their communications capabilities back to core systems, such as HVAC systems, which typically have limited access controls.
For our network deployments, we leverage solutions like Cisco Identity Services Engine (ISE) and Fortinet’s Network Access Control (NAC), among others. We collaborate with diverse vendors to ensure that all devices, including those with lower security profiles, are effectively managed and segmented, enhancing overall network security.
The future of smart buildings
An estimated 18.8 billion IoT devices were deployed in 2024. The next phase of building intelligence will involve integrating and securing those devices into cohesive systems that do not expose organizations to security backdoors for threat actors.
In the coming years, sustainability will likely continue to be a key driver, with organizations taking energy efficiency a step further, driven by AI’s energy needs, by becoming self-sufficient through green energy sources like solar panels, wind energy, and even modular nuclear power. Smart buildings may grow into larger ecosystems of intelligent neighborhoods and smart cities.
Whatever the future holds, Pomeroy is here to assist your organization in planning for, retrofitting, and adopting intelligent building technology. Get in touch to learn more.
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