Skip

Efficient - Current - Personalized

Get a quick and up-to-date overview of the developments in the field of intelligent building technology. The content is customizable to your interests, presented in a neutral manner, and created by experts for experts.

Connected city

Intelligence at the Building Perimeter is Reshaping Property Technology

Beyond the Cloud

7 May 2025

There is a fundamental shift in how buildings operate, interact with occupants and manage resources. Most significantly, it signals a critical evolution in where building intelligence resides.

Reading time: 3 minutes

The commercial building sector stands at a pivotal technological inflection point. According to recent market research from Memoori, IoT deployments in commercial buildings are set to explode from approximately 2 billion devices today to around 4.12 billion by 2030—more than doubling the current installed base with a compound annual growth rate exceeding 13%.

This isn't merely a story about more sensors and connected devices. It represents a fundamental shift in how buildings operate, interact with their occupants and manage resources. Most significantly, it signals a critical evolution in where building intelligence resides.

The IoT Technology Stack

From Cloud to Edge: The Pendulum Swings

While cloud computing catalyzed the initial smart building revolution by democratizing access to advanced analytics without massive capital outlays, a countertrend is now emerging. Processing power is increasingly moving back to the building edge through next-generation devices and gateways.

IoT gateways serve as the critical intermediaries that aggregate, process, and transmit data across smart commercial buildings. These devices bridge communication gaps between various IoT sensors, control systems, and external networks, facilitating efficient data flow and interoperability.

This architectural shift delivers compelling advantages:

  • Real-time responsiveness: Critical decisions happen instantly, without cloud communication delays.
  • Bandwidth optimization: Only relevant, processed data needs transmission to cloud systems.
  • Operational resilience: Systems continue functioning during network disruptions.
  • Enhanced security: Sensitive data remains within the building perimeter.

 

Graphic: The Internet of Things in Smart Commercial Buildings

The AI Accelerator

Edge computing reaches its full potential when combined with artificial intelligence. The market for AI solutions in smart buildings is projected to grow at an impressive 25.5% CAGR, reaching $6.5 billion by 2028.

The impact is already measurable. One case study documented a 32-story office building where AI-enabled HVAC optimization delivered a 15.8% reduction in energy consumption over just 11 months—substantial savings that benefit both operating costs and sustainability targets.

Beyond energy management, Edge AI is transforming numerous building functions:

  • Predictive maintenance that identifies equipment issues before failures occur.
  • Real-time occupancy analytics for space optimization.
  • Environmental monitoring for optimal comfort and productivity.
  • Advanced security with anomaly detection capabilities.

Integration: The Persistent Challenge

Despite these technological advances, significant implementation barriers remain. The research reveals that 81% of organizations report IoT-related cybersecurity incidents, while a staggering 90% of sensor-generated data goes unutilized due to system fragmentation and organizational divides between IT and operations teams.

These statistics highlight that technology alone isn't sufficient—successful smart building implementations require:

  1. Comprehensive security frameworks based on standards like NIST and Zero Trust Architecture.
  2. Integration strategies that bridge traditionally siloed building systems.
  3. Organizational alignment between IT and facilities management.
  4. Data governance policies that transform raw information into actionable insights.

Standards Convergence Enabling Progress

A promising development is the growing collaboration between standards organizations. Project Haystack, Brick Schema, and RealEstateCore are developing unified data semantics through the ASHRAE 223P initiative, while wireless technologies continue gaining market share—projected to represent over 40% of all connections by 2030.

These efforts address one of the most persistent challenges in smart buildings: creating interoperability between historically isolated systems. As standards mature and gain adoption, deployment effectiveness will accelerate.

The Road Ahead

Looking ahead, several meta-trends will likely shape smart commercial buildings:

  • Grid-interactive buildings that dynamically adjust energy consumption based on utility signals.
  • Digital twins providing comprehensive virtual models for simulation and optimization.
  • Autonomous operations where AI systems handle increasingly complex decisions.
  • Tenant experience platforms that personalize environments based on occupant preferences.

For property owners, technology providers, and facility managers alike, the message is clear: the future of smart buildings will be distributed, intelligent, and increasingly autonomous—with processing power at both the edge and in the cloud working in concert to create truly responsive environments.

Those who understand and adapt to this edge evolution will be positioned to capture significant value in efficiency, sustainability, and occupant satisfaction as we move toward a 4-billion-device ecosystem by 2030.

More Content

01 / 04