As facility managers look to meet climate goals, reduce operational costs, and improve occupant experiences, smart building technologies are front and center. Amid this technological transformation, strategic alliances and renewed investment in existing infrastructure are on the rise. According to ABI Research, the push for digital innovation is not only reshaping technology portfolios, but also expanding smart building use cases across a wider range of sectors and geographies.
Smart Building Technology Trends
Several trends are converging to create strong demand for smart building technologies:
- Cybersecurity Takes Center Stage: With more connected systems in play, cybersecurity is now a critical design consideration for facility managers. Vendors, architects, and technology integrators are working together earlier in the product lifecycle to protect building data and digital assets from evolving threats.
- Interoperability Becomes a Must-Have: Facility managers want unified control and visibility across all systems. Seamless integration between Building Management Systems (BMSs), Information Technology (IT) infrastructure, and facility tools is eliminating data silos and enabling greater building automation.
- Digital Tools Solve Labor Gaps: Technologies like digital twins, smart dashboards, and remote diagnostics are helping offset the shortage of experienced facility managers, offering centralized control and predictive maintenance from a distance.
- Regulations and Retrofits Go Hand-in-Hand: European efforts such as BREEAM-C and building passport programs are pushing stakeholders toward more sustainable construction and renovation practices. With 80% of the world’s building stock already built, the retrofit market is where much of the smart building technology innovation will happen.
- Smart Homes Are Catching Up: In the residential segment, Original Equipment Manufacturers (OEMs) are working with utilities and homebuilders to incorporate smart devices into Multi-Dwelling Units (MDUs). These efforts, especially in Europe, are encouraged by policy incentives and evolving consumer preferences.
Partnerships Drive Smart Building Technology Innovation
Industry leaders are no longer scaling technology alone. The smart building ecosystem is undergoing a wave of strategic partnerships, mergers, and acquisitions that aim to deliver comprehensive, interoperable, and secure solutions for commercial real estate, education, healthcare, and more. Major technology vendors like Bosch, Siemens, Honeywell, and Schneider Electric are expanding their capabilities and geographic reach through targeted acquisitions and cross-sector alliances.
For example, Siemens recently acquired Danfoss Fire Safety to strengthen its smart building offerings for data centers. In another instance, Siemens, Enlighted, and Zumtobel have partnered to bring smart Internet of Things (IoT) lighting and occupancy solutions to hospitals, hospitality venues, and higher education properties across Europe and North America.
These moves reflect a broader industry trend: technological scale through collaboration. By aligning with partners that have complementary expertise, technology vendors are better equipped to tailor smart building solutions to regional requirements, meet sustainability benchmarks, and simplify the buying process for facility managers.
Repurposing Aging Urban Infrastructure
Aging commercial buildings in dense urban areas offer a significant opportunity for smart building technologies. Financial services firm Moody’s Corporation reports that more than 20% of office buildings in the United States sat vacant in 2024. Instead of letting these assets sit idle, city planners are repurposing them into residential spaces, mixed-use developments, and even experience centers. Smart building technologies—such as real-time monitoring tools, energy-efficient systems, and automation platforms—are proving essential to unlocking new functionality.
Adaptive reuse and mixed-use development strategies are gaining traction across facility management stakeholders. By combining commercial and residential functions within the same building, they can deliver flexible, efficient spaces while maximizing property value. ABI Research’s market data indicates that mixed-use buildings now account for 50% to 70% of total development activity, underscoring their growing role in revitalizing cities.
Making Schools Smarter and More Sustainable
Globally, fewer than 10% of educational buildings have adopted smart technologies. However, as outlined in a recent ABI Insight, change is underway. School districts and universities are increasingly partnering with building technology vendors to modernize infrastructure, improve sustainability, and enhance learning environments. These upgrades are often supported by government grants, energy performance contracts, or public-private financing models.
Smart campus initiatives incorporate modular energy platforms, automation software, and predictive maintenance tools to reduce costs and carbon emissions. These digital upgrades also improve comfort, security, and air quality, all of which help draw the attention of the top students. Companies like Schneider Electric, Johnson Controls, and Siemens are leading these efforts, helping managers at educational institutions future-proof their operations and boost the long-term value of their facilities.
Looking Ahead
As technologies evolve and use cases expand, smart building innovation is becoming more strategic, integrated, and essential. The industry is shifting away from isolated deployments toward end-to-end platforms supported by robust partner ecosystems. Retrofitting older buildings and scaling into new verticals—from campuses to hospitals—will be key to achieving sustainability goals and operational excellence in 2025 and beyond.
To explore ABI Research’s full set of recommendations and data insights into how smart building technologies are scaling across industries and regions, download the free whitepaper, The State Of The Smart Buildings Market In 2025.