This blog is based on our analysis – Top 10 Strategic Imperatives in Smart Buildings, 2025, authored by Frost & Sullivan’s Growth Expert, Melvin Leong, from the Homes & Buildings team.
The global smart buildings industry is experiencing rapid transformation as sustainability, digitalization, and advanced technologies reshape the built environment. Rising demand for energy efficiency, carbon neutrality, and enhanced occupant experiences is prompting building operators to rethink traditional practices. At the same time, companies face challenges around data security, digital adoption, and cost pressures while striving to meet global sustainability objectives. So, how will your organization stay resilient and competitive in this shifting landscape?
Frost & Sullivan outlined 10 strategic imperatives driving transformation in oil and gas industry.
View the key insights here
To remain competitive amid emerging smart buildings industry megatrends, solution providers should adapt to these 10 strategic imperatives redefining building operations and performance:
- Transformative Megatrends
Driving Net-zero Buildings with Localized Power Generation: Buildings are increasingly adopting decentralized energy systems that generate and manage their own power, reducing reliance on traditional grids. By integrating distributed energy resource systems (DERS), operators cut emissions while boosting resilience and operational efficiency. This momentum toward localized generation is aligning with net-zero goals and future-proof energy management.
- Innovative Business Models
Optimizing Operations with Intelligent Predictive Systems: AI-powered maintenance solutions process real-time data from Internet of Things (IoT) devices, equipment logs, and sensors to anticipate failures before they occur. This approach minimizes downtime, lowers costs, and enhances reliability across HVAC (heating, ventilation, and air conditioning), lighting, and elevator systems. In response, service providers are expanding predictive analytics from pilot programs to enterprise-wide deployment, delivering measurable operational benefits.
Is your team exploring innovative business models to drive growth in the smart buildings industry?
- Value Chain Compression
Enhancing User Control with Mobile-first Building Management: Smart building operators are adopting intuitive mobile platforms that allow users to oversee HVAC, lighting, and security systems from anywhere. By providing real-time monitoring and control, these applications simplify operations and enhance user engagement. This requires designing seamless mobile-first solutions that integrate multiple systems, empowering both occupants and operators with greater visibility and control.
- Industry Convergence
Unlocking Growth Through Collaborative Ecosystems: Technology, energy, and construction sectors are increasingly partnering to accelerate building automation capabilities. Such partnerships enable cost efficiencies, shared R&D risks, and access to new funding streams, creating synergies that no single sector can achieve alone. As a result, organizations are recognizing the strategic importance of forging alliances to stay ahead in the rapidly evolving smart buildings landscape.
How is your organization leveraging industry convergence to gain a competitive edge in building operations?
- Internal Challenges
Overcoming Cultural Barriers to Smart Adoption: Despite clear benefits, digital transformation in buildings often faces cultural and organizational resistance. Legacy workflows, hierarchical decision-making, and cost concerns can slow adoption of innovative solutions. This is prompting providers to address resistance through structured training, phased rollouts, and clear ROI communication that help customers embrace smarter, more efficient systems.
- Disruptive Technologies
Transforming Building Management with Immersive Training: Augmented reality (AR) is enhancing building automation systems by providing immersive training and real-time troubleshooting tools for technicians. AR reduces errors, improves efficiency, and optimizes energy usage by guiding users through complex maintenance tasks. This is pushing solution providers to embed AR into workflows, building a future-ready workforce while strengthening operational performance.
Is your team actively integrating disruptive technologies to enhance operational efficiency?
- Competitive Intensity
Redefining the Industry Through AI-powered Innovation: AI-driven start-ups are reshaping energy management and building automation with advanced analytics, unified platforms, and agile business models. Their disruptive approaches are intensifying competition, pushing traditional providers to accelerate innovation, form partnerships, and explore acquisitions to remain competitive in the fast-changing smart buildings landscape.
- Internal Challenges
Safeguarding Smart Buildings in the Age of IoT: The explosion of IoT-connected devices has created massive volumes of sensitive operational and occupant data. Protecting this information is essential to maintaining both system performance and user trust. As a result, service providers are implementing multi-layered cybersecurity frameworks to ensure resilience, reliability, and efficiency in smart building operations.
How is your organization tackling internal challenges to improve smart building performance?
- Transformative Megatrends
Aligning Building Operations with Global Sustainability Goals: Carbon-neutral practices are now central to the smart buildings agenda, from integrating renewable sources to adopting energy-efficient materials and insulation. Digital tools and analytics further enable continuous performance improvements that reinforce sustainability objectives. This is prompting companies to embed carbon-neutral strategies throughout design, construction, and operations, positioning themselves as leaders in the net-zero transition.
- Geopolitical Chaos
Building Future-ready Infrastructure Amid Rising Risks: Natural disasters, trade disruptions, and political instability are increasing risks for the building industry, often leading to cost overruns and project delays. Operators are responding by embracing resilient designs and adaptive systems that maintain safety and functionality under stress. Consequently, organizations prioritize technology-enabled infrastructure capable of withstanding environmental threats and global volatility.
How is your team navigating and adapting to geopolitical chaos to ensure stability in the building industry?
Aligning with Strategic Imperatives to Capture Growth Opportunities
From decentralized energy and AI-driven predictive maintenance to cross-industry partnerships and resilient infrastructure, these ten strategic imperatives are shaping next generation green buildings. Organizations that embrace these transformations will not only optimize energy efficiency and operational performance but also deliver superior occupant experiences and lead the transition toward smarter, agile, and more connected buildings.
What steps is your team taking to capitalize on the emerging growth opportunities in the rapidly evolving smart buildings ecosystem?
Connect with our Homes & Buildings Growth Experts for tailored insights to guide your strategy.
