The role of digitalization in realizing smart buildings
In global infrastructure’s transition toward net zero goals, buildings are becoming increasingly recognized as critical assets in the movement. As such, it is a key subject in Siemens’s Infrastructure Transition Monitor (ITM) for 2025. The report is based on a survey of 1,400 executives and in-depth interviews with experts and aims to help organizations understand the current state of infrastructure transition and identify next steps.
Some of the results are mixed. According to the report, despite gains made in decarbonizing strategies and technologies, efforts to retrofit buildings for net zero goals have been uneven, and concerns about costs and access to such technologies have increased. However, there is still hope to be found in ITM 2025. Despite the setbacks, more organizations are prioritizing energy efficiency in buildings, and much like the situation with energy infrastructure, digitalization and artificial intelligence (AI) are seen as the keys to creating smart buildings for a greener future.
The journey to energy efficiency
Since the last ITM report in 2023, there have been some impressive advancements in infrastructure transition goals. ITM 2025 reports 41 percent of respondents stating maturation in on-site renewable energy production compared to 29 percent in 2023, while 39 percent declare mature heating and cooling electrification compared to a previous 30 percent. The stalling of momentum appears with energy efficiency in buildings, with only 39 percent of respondents reporting maturation from a previous 37 percent.
Energy efficiency is an important factor in the movement to decarbonize. The more one can do with less energy, the less resources they need to expend. Yet increasing a building’s energy efficiency is a complex matter, incorporating the building’s construction materials, systems, and many other design features, as well as how effectively governments enforce new building codes. Furthermore, the costs of energy efficiency also worry organizations, with concerns about energy pricing, equipment costs, and lack of capital increasing the most among respondents in the new report.
However, there is still room for optimism. Despite the aforementioned concerns, ITM 2025 respondents ranked improving energy efficiency as their top priority to overcome. Over half (57 percent) of respondents state plans to improve energy efficiency, marking a clear directive among organizations to make the journey to decarbonize.
Harnessing data with digitalization
How do organizations plan to achieve this energy efficiency? The answer, according to the report, is by leveraging digital technology and make buildings smart, with 56 percent and 55 percent of respondents claiming digitalization can reduce costs and improve energy efficiency, respectively.
One of the biggest challenges in carrying out any transformation strategy is having the data about the emissions and energy of a building and its systems to begin with. Only 50 percent of respondents say they have such data on hand. Digital control systems help organize data so organizations better grasp how their buildings run, the models of their equipment, firmware versions, appliance conditions, and more. This can significantly improve building efficiency, as well as unlock entirely new operation models such as predictive maintenance and autonomous optimization.
Another benefit of digitalization is how it can increase transparency and integrate ecosystems of providers and solutions. Digital building platforms can provide a single intelligent interface that incorporates a building’s disparate systems, workflows, and data sources all in one place. Such capabilities of smart buildings are expected to revolutionize energy management and achieve ample returns on investment.
AI-driven automation
Perhaps unsurprisingly, AI is estimated to play a significant role in the digitalization of buildings. Among all the digital technologies expected to have the largest impact on decarbonization, the top three chosen by respondents were powered by AI. These technologies highlighted AI’s capabilities in data analysis, predication, and enabling intelligent, autonomous, infrastructure.
Autonomous buildings are especially intriguing among respondents. Unlike previous generations of intelligent automation, autonomous technology driven by AI are seen as more capable, with the ability to learn on its own and use new data to inform its additions. This kind of technology can be applied to entire systems, such as HVAC or security, or to subsystems and even small devices. In short, AI can make smart buildings smarter.
Some respondents (34 percent) do express concern about cybersecurity risks, but such risks are not enough to deter most. Among the benefits expected from autonomous buildings, lower operating costs were seen as the largest, which is probably why over half (54) of respondents declare readiness to implement autonomous systems in buildings.
Despite some obstacles and concerns, ITM 2025 demonstrates how organizations are ready and willing to use digitalization and AI to overcome them, creating smart buildings that can autonomously manage energy systems and efficiency. With digital technology, the transformation of building infrastructure for a decarbonized future becomes ever closer.
Learn more about the infrastructure transition by downloading the ITM 2025 report, which also includes specific case studies and interviews from industry experts.
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