What are smart buildings?

Relying on advancements in Internet of Things (IoT) and artificial intelligence (AI) technologies, smart building platforms automate manual processes, optimize building performance, increase comfort and help reduce energy costs.

The term “smart building” first began to appear in the 2000s to describe how the rise of networked infrastructure (and later, the use of IoT devices) was impacting commercial building design.

Although these technologies still underpin today’s smart buildings, they have evolved to take on new capabilities that are primarily associated with machine learning (ML) algorithms. ML algorithms are sets of rules that allow AI systems to recognize patterns in training data and use those patterns to make accurate predictions on new data.

As networking, IoT, AI and machine learning (ML) technologies continue to evolve, demand for smart buildings that can use the latest advancements continues to grow. According to a recent report, the smart building’s global market is forecast to increase by USD 76.8 billion over the next 5 years. This increase means a compound annual growth rate (CAGR) of 11.3%.¹

Smart buildings rely on a sophisticated network of devices and sensors that can automate manual tasks, streamline processes and help teams reduce energy usage and operational costs. Here’s a closer look at the components and design elements that underpin smart building functionality.

• Networks: Networks, also known as computer networks, enable the communication and data-sharing capabilities that smart buildings rely upon. Typically, smart buildings use a single, centralized network to move real-time data between systems, applications and devices like smartphones, PCs and building management systems.

• Building management systems (BMS): Building management systems (BMS) are control systems that centralize aspects of building management like lighting, maintenance, air conditioning and safety on a software platform. In smart buildings, BMS are crucial to the effective streamlining and automation of processes that make smart buildings so valuable. BMS help managers coordinate and control multiple subsystems in a building from one intuitive interface.

• Building automation systems (BAS): Building automation systems, known as BAS, are software platforms that are similar to BMS but more focused on the core capability of automation. Relying on advanced AI and ML capabilities, BAS are transforming traditional manual building operations processes like heating, maintenance and ventilation into fully automated, hyper-efficient tasks performed by software.

• Internet of Things (IoT) devices: IoT devices are physical devices, embedded with sensors, software and network connectivity, that can collect data and share it over the internet. In a smart building, IoT devices help software platforms like BMS and BAS monitor and control a range of conditions inside the building, such as temperature, occupancy, air quality and energy use.

• Machine learning algorithms: Machine learning algorithms automate trend analysis from building data and help managers make more informed decisions about energy use, occupancy and security.

• Cybersecurity tools: Smart buildings rely heavily on the internet and other networks to carry sensitive information, a characteristic that makes them attractive targets for cybercriminals. Today’s advanced smart building technologies deploy a range of cybersecurity tools, such as firewalls, intrusion detection and prevention systems (IDPS) and secure communication protocols (SCPs) to protect sensitive data.

Smart building architecture is a design practice that leverages interconnected systems (or layers) that share real-time data over networks in order to make modern buildings safer and more efficient. Smart building design incorporates five principal layers: Physical, network, data, application and user.

• Physical layer: The physical layer of a smart building is made up of physical components like walls, rooms, doors and mechanical and electrical systems. While the physical layer used to require manual input, modern smart buildings automate many of its aspects, such as control over HVAC systems, lighting and security monitoring.

• Network: The network layer of a smart building is made up of IT infrastructure components that enable the real-time sharing of data between users and devices. Examples include wired and wireless networking components like Ethernet cables, wifi routers and protocols that enhance network security.

• Data: The data layer in a smart building is where data is collected, stored, managed and processed. Edge computing practices allow data to be processed closer to its source rather than in a data center, meanwhile cloud-based platforms are used for storage and analysis.

• Application: The application layer supports key smart building functions like insight delivery, process enhancement and task automation. BMS and BAM functionality is integrated into the application layer, enabling capabilities like predictive maintenance, comfort control and real-time monitoring of building conditions.

• User interface: The user interface layer in a smart building is where building managers and operations teams track real-time data about energy use, air quality and space utilization. User interfaces are usually software platforms that display information on a dashboard and allow teams to choose which operational aspects of building management they want to automate.

Through their extensive use of IoT and automation technology, smart buildings help enterprises optimize processes, reduce energy usage and lower costs associated with building management. Here’s a look at some of the most important smart building benefits at an enterprise level.

Smart buildings increase energy efficiency for the businesses that operate them, helping optimize heating, lighting and air quality control. Through the connection of HVAC, lighting systems and occupancy sensors, smart building systems can automatically detect which spaces in a building are being used. They can also adjust the temperature and lighting in those rooms to conserve resources.

This approach helps large enterprises become more energy efficient and reduce costs and waste so they can achieve their sustainability goals. According to a recent report, buildings account for 30% of global energy consumption and more than half of the electricity used.² Smart building design helps mitigate this problem.

With automated heating, cooling and air quality systems, smart buildings help create a comfortable work environment for all employees. Modern smart building platforms allow users to personalize their preferences in terms of temperature, lighting and air flow within an individual room. This highly customizable approach allows room conditions to be changed according to the needs of occupants. 

By leveraging real-time data, some of the more advanced smart building systems can adjust airflow and filtration systems to keep CO2 and particulate levels healthy. These systems can also adjust lighting in rooms so that it mimics natural light in a way that supports a user’s circadian rhythm.

Smart buildings give facility managers a unified view of building operations, allowing them to spot problems and address them proactively. In the past, facility managers practiced reactive maintenance, allowing components to fail before they were repaired. But with the real-time data and automated monitoring capabilities of modern smart building platforms, they practice predictive maintenance.

Predictive maintenance, the use of real-time data to spot and address maintenance issues before components fail, increases asset lifecycles and helps organizations avoid costly downtime.

The automation capabilities of today’s smart building platforms help organizations reduce energy and operational costs and spot opportunities to improve processes. Building and energy management systems collect and analyze historical data so managers can optimize energy usage based on time of year or day, occupancy and other factors.

Automated systems control lighting and HVAC systems that reduce energy waste when spaces are unoccupied, the need for manual labor and the overall cost of maintenance procedures.

Smart buildings help organizations closely monitor emissions and energy usage so they can track progress toward sustainability goals. By analyzing data gathered by IoT devices like smart thermostats and HVAC systems, BMS and BAS give stakeholders a real-time picture of how their buildings are performing. Real-time data provided by IoT systems helps stakeholders make critical choices about retrofitting existing buildings with more energy-efficient components and processes.

Also, for global organizations that need to comply with regulations in more than one territory, smart buildings automate compliance through data collection and monitoring. Furthermore, they can even generate reports.

At the enterprise level, smart building technology is transforming how businesses manage their commercial buildings and other facilities. Here are five smart building use cases to consider when assessing the technology for business need.

1. Operations analysis: Smart building platforms can analyze building data and help enterprises improve their core operational processes. Gathering and analyzing volumes of data collected by IoT devices helps speed insights into how BMS and BAS are functioning and uncover opportunities for improvement.
2. Safety and security: BMS, BAS and other smart building systems help organizations enhance the safety and security measures that protect their buildings. Deeply integrated, intelligent systems monitor and adjust access controls, ensuring only authorized individuals gain access. And AI security systems monitor and detect potential threats and can even automate emergency responses.
3. Real-time energy usage monitoring: Advanced smart buildings and the systems that power them can automate many aspects of energy usage. Automated demand response capabilities can even reduce energy loads during peak usage times and provision renewable energy sources to reduce climate impact.
4. Occupancy management: Many organizations that own and operate smart buildings equip them with occupancy sensors, which are IoT devices that provide a real-time picture of where people are located in a building. This process allows facility managers to make more informed decisions about how to allocate resources and gain valuable insights into how occupants are interacting with the spaces they manage.
5. Air quality monitoring: Air quality sensors in smart buildings help supervisors monitor and adjust air quality based on occupancy and need. Advanced systems can even make correlations between these factors, informing how and when to maintain HVAC systems whose maintenance is vital to air quality.

Advancements in AI and IoT have made smart buildings more autonomous and streamlined, a trend that shows no indication of slowing. The growth of edge computing, robotics and IoT networks have added new capabilities, making smart building platforms some of the most advanced applications available.

Here’s a look at three areas that are going to be critical to the industry’s continued development.

The development of AI systems continues to have a profound impact on smart building technology. It does that by transforming these systems—from simple machines capable of performing a single task into advanced, multi-faceted platforms that can take on multiple tasks in pursuit of a single goal.

As AI systems grow more autonomous, the tasks they can take become more complex, further reducing the need for manual labor in building operations.

Not only are buildings becoming smarter because of technological advancements, but so are entire cities. As this evolution continues, expect commercial districts in urban areas to share networks and resources and become even more deeply integrated than they currently are.

It is likely that soon, multiple smart buildings are going to share a unified, digital infrastructure that can be controlled from a single platform to optimize processes, reduce energy and lower costs.

Advancements in technological capabilities come with increased risks along with the potential rewards: As buildings become more reliant on digital technologies, they also become more vulnerable to cyberattacks.

Cybersecurity, the practice of protecting people, systems and data from cyberattacks, is most likely going to become even more of a priority than it is now for organizations investing in smart buildings.