Top Building Automation Trends and Challenges Going Into 2025
Building automation technology is rapidly transforming how commercial buildings manage energy, security, and operations. Innovations like AI, IoT devices, and cloud-based systems are helping businesses improve efficiency while reducing energy costs and environmental impact.
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Key Takeaways
Building automation systems are becoming more advanced as technologies like artificial intelligence, IoT devices, and digital twins reshape building management. These systems help businesses improve energy efficiency, automate operations, enhance occupant comfort, and reduce operating costs while introducing new challenges related to cybersecurity, data privacy, and implementation costs.
AI and IoT power modern building automation
Smart HVAC systems improve energy efficiency
Digital twins enable predictive maintenance
Cloud systems allow remote building management
Automation enhances occupant comfort and safety
Cybersecurity remains a key implementation challenge
AI and other technology innovations continue to revolutionize building automation systems, thanks to real-time decision-making and adaptive learning. For example, AI-powered HVAC systems that help support efficient utility resource management are a boon for residential property owners and property management teams.
These automation trends aren’t slowing down, either. The total global revenue for the building automation market in 2023 was around $273 billion. From 2020 through 2023, global revenues in the industry steadily increased, with expectations to continue throughout the near future. AI’s potential to create self-learning buildings that adjust to user behavior, business needs and external factors will drastically impact building design. Not only will this change modern architecture, but it also revolutionizes the property management industry and potentially future policymaking.
The Role of IOT in Advanced Automation Systems
The use of smart buildings and IoT devices is a common building automation system example. Most people are familiar with the concept of smart HVAC systems. They can be programmed to respond to environmental conditions for more proactive energy management, for example. In this case, the HVAC unit could automatically adjust settings based on outdoor conditions. Alternatively, residents, business owners, or property managers can also operate the HVAC system remotely using their smartphone.
However, the role of IoT in advanced automation systems goes beyond this level of functionality. For example, advanced automation could manage appliances and lighting based on occupancy patterns. It could also support security via smart locks and security cameras, or create convenience through smart refrigerators and other appliances.
Unfortunately, these benefits don’t come without some unique challenges. Advanced automation can make properties much more attractive for businesses or residential tenants. However, those individuals may also have concerns about privacy or the security of their personal data. Additionally, implementing advanced automation is an expensive investment, so building designers and property managers must carefully calculate their ROI.
Cybersecurity for Smart Buildings: A Growing Concern
Anything that connects to the internet can be up for grabs in hacker schemes, and smart building technology is no exception. Cybercriminals target commercial buildings with this type of technology. Hackers may attempt to impede functionality or hold data ransom to seek payouts from the building owners or businesses.
If you’re going to invest in IoT and smart building devices, you must be cognizant of the security required to protect your systems, your tenants, and everyone’s data. This can include:
- – Cloud-based management that ensures redundancy and keeps integral components of the network off the premises
- – Biometric access credentials and two-step authentication requirements to ensure tenants, property managers, vendors, and others can safely access necessary functions while protecting networks from intruders
- – Technical teams and vendors that can support integration and interoperability between all required systems
Sustainability and Energy Efficiency in Building Automation
The commercial building automation market in the United States is expected to experience a compound annual growth rate of 6.31% through 2026. One reason for the bright future of building automation is that it substantially improves sustainability and energy efficiency in all types of properties when done well.
Building automation helps reduce electricity and natural gas consumption, reducing costs and carbon footprints for properties. Some examples include:
- – Occupancy sensors. Sensors in common spaces, such as public restrooms, ensure lights are only used in occupied rooms. However, smart automation goes beyond sensor-based on-and-off toggles. AI allows building automation programs to learn occupancy patterns to make smarter choices overall. Some self-learning automations include turning off unnecessary appliances, leaving emergency lights on in common spaces, or adjusting lighting levels to balance illumination with cost efficiency.
- – Smart HVAC controls. Smart HVAC controls use machine learning to achieve the same results. Automated HVACs learn to adjust heating and cooling to meet the needs of patrons, employees, or residents without human interference.
- – Appliance management. Automation can also help improve the performance of other appliances. For example, programming copy machines to turn on 15 minutes before the office workday begins makes sure they’re ready for the workday. It would also automatically shut down copiers or printers at the end of the day. Coffee machines in hospitality locations can be programmed to brew fresh coffee based on occupancy data. This data-driven approach avoids preconceived notions about when patrons may drink the most coffee, reducing energy and food waste overall.
- – Maximizing renewable energy use. When buildings have integrated solar panels or other energy sources, AI can support maximum use of those resources. Smart building systems automatically balance daily renewable energy generation with necessary draw from the grid.
- – Malfunction detection. Real-time access to building functionality data allows AI to alert property managers about potential malfunctions that are driving up energy consumption. For example, if a smart water heater is suddenly drawing 50% more energy, it might be an indication of a leak.
Digital Twins and Predictive Maintenance
Among exciting automation industry trends is the concept of digital twins. A digital twin is a digital model of an existing process, space, or entity. In building automation, this means creating a digital twin of a building, home, room, or other space and feeding the digital model all the data about the space you have. You can then use the digital twin to run scenarios and draw conclusions about building management.
Many professionals are already familiar with the basic concept of digital twins in property management due to 3D modeling and virtual tours. Prospective tenants can tour apartments or homes virtually due to very basic digital twin models. But the use cases for this technology go far beyond visual tours. For example, with an advanced digital twin of a commercial space, property managers could stage virtual what-if scenarios for better decision-making. If your model has enough data, you can ask it questions. Examples include: how much gas or electricity is required to support different numbers of tenants, or how often does flooring need to be replaced given certain occupant traffic.
Cloud-Based Building Management Systems
Cloud remains the king among many technical products, including building automation solutions. Cloud-based systems make it easy to scale your technology solutions to meet multiple needs. That could mean supporting more people in one location or branching out to multiple buildings or even cities. Data centralization makes it easy to access necessary data and manage buildings remotely. For example, a property management company that oversees multiple properties throughout a state can manage energy use, security, and property functionality without someone being present.
Cloud-based building management systems are critical to optimizing IoT and other automation systems. However, you do need to understand the risks and invest in strong security to protect data, your property, and users. You can improve data privacy when leveraging cloud-based automation through strategies such as:
- – Strong password protocols and biometric use
- – Training staff on cybersecurity best practices
- – Leveraging high-quality encryption whenever possible
- – Requiring tenants, vendors, and others to sign security agreements, holding them accountable for adhering to security best practices
Occupant Wellness and Experience: The New Focus of Automation
One of the main focuses of automation and smart building systems in 2024 and beyond is supporting better experiences for occupants. The implementations of these systems often focus on keeping occupants comfortable and safe. Some examples include:
- – Smart locks and automated security systems designed to protect occupants and their belongings
- – AI-driven air quality systems that help reduce air pollutants to support respiratory health
- – Automated HVAC systems can be programmed to prioritize occupant comfort while also reducing energy use and costs
- – Automated lighting that ensures halls, stairwells, and other common areas are well-lit to help keep occupants safe and confident
This attention to detail and occupant experience leads to increased productivity, customer satisfaction, and tenant loyalty. All of results are equally beneficial for property management companies and their bottom lines.
Data-Backed Projects for the Future
The building automation market will continue growing steadily for the next few years. As automation becomes the default expectation across all daily tasks, these innovations will become commonplace among homes and businesses in every industry. The beauty of AI, IoT, and building automation is that they can improve any type of building, creating better quality of life.
Hurdles to widespread adoption of building automation does exist. The biggest obstacle to overcome is the cost of installation. While implementing basic automation, like smart thermostats, is affordable, advanced automation tools can be prohibitively expensive. Building designers may need to start with small upgrades or make intelligent and data-backed cases for long-term cost savings to get approval from property managers, buyers, and other stakeholders.
Regulatory issues could also slow the rate of adoption in some areas of the country. Federal and State Governments are increasingly considering the privacy risks associated with IoT, AI, and other technologies. Builders and property managers need to ensure their upgrades and installations adhere to local, state, and national security requirements.
Despite these challenges, the future of building design and management is definitively linked to smart automation. By learning more about these options and investing in them now, you achieve long-term cost savings and future revenue.
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About the Author 
Kat Garside
