Overview of the Methodology and Resulting Building and HVAC Trends

Trends are patterns or movements that indicate the direction in which industries, markets, or behaviors are evolving over time. They represent environmental, economic, societal, and technological changes, offering valuable insights into emerging opportunities and challenges. Understanding trends is essential for industries as they shape customer expectations, competitive dynamics, and regulatory landscapes. By identifying and analyzing trends, businesses can anticipate changes, innovate effectively, and stay relevant in a rapidly evolving world.

This document explores the key trends influencing the buildings and HVAC industries and their implications for the HVAC Building Automation and Control Systems (BACS) industry. Our approach began with identifying megatrends — large-scale transformative forces. From these megatrends, we derived specific building and HVAC trends that reflect developments in the built environment. For each building and HVAC trend, we have outlined corresponding implications for the HVAC BACS industry.

The megatrends shaping the building and HVAC industries include global warming, green technology, changing demographics, urbanization, health and well-being, safety, individualization, the rise of China and India, talent scarcity, artificial intelligence, digitalization and connectivity, and cybersecurity. For each trend, we have outlined the corresponding implications for the HVAC BACS industry.

The trends are categorized into four thematic sectors:

The Future of Environment highlights the relationship between buildings and the planet, emphasizing how environmental changes and sustainability shape the future.

The Future of Economy examines how economic shifts, regulations, and resource dynamics impact the building industry and its stakeholders.

The Future of Society addresses evolving human needs and expectations, focusing on building design and functionality.

The Future of Technology summarizes trends that explore the transformative effects of technological advancements on buildings and their operation.

Dive Deeper into How We Approach and Tackle These Challenges

  1. Climate-Adaptation-dark
    Future of Environment

    Climate Adaptation

    As temperatures rise, buildings will face increasing pressure to fulfill their core purpose: protecting occupants from extreme outdoor conditions. This change will impact the design of buildings and their surroundings, influence material selection for building envelopes, and increase the adoption of cooling systems.

    ClimateAdaptation

    Implications for HVAC BACS Industry

    • Integration with Other BACS Verticals
    • Higher Field Device Uptime Requirements
  2. Electrification_Energy_Optimization_Environment-dark
    Future of Environment

    Electrification and Energy Optimization

    About one-fourth of global CO2 emissions stem from building operations. Achieving net-zero by 2050 requires further decarbonizing fuels used by buildings and reducing energy intensity through optimization of how thermal energy is generated, recovered, stored, and consumed.

    ElectrificationEnergyOptimisation

    Implications for HVAC BACS Industry

    • Design for Retrofit
    • Thermal Storage and Load Control
    • District Energy Control
  3. Sustainable-Building-Materials-dark
    Future of Environment

    Sustainable Building Materials

    Almost 10% of CO2 emitted globally stems from building construction, maintenance, renovation, and deconstruction. Achieving net-zero requires cutting not only operational but also embodied emissions by using less new or reused material, shifting to bio-based materials, and improving conventional building materials.

    HealthyBuildings

    Implications for HVAC BACS Industry

    • Device Longevity
    • Eco-Friendly Materials
  4. Environmental_Regulations_Green_Certifications_Economy-dark
    Future of Economy

    Environmental Regulations and Declarations

    Governments are shifting from voluntary commitments under the Paris Agreement to binding energy codes targeting building CO2 emissions. While building codes to reduce operational emissions will tighten globally, regulations will also expand to address embodied carbon to provide transparent lifecycle data on construction materials.

    EnvironmentalRegulations

    Implications for HVAC BACS Industry

    • Energy-Efficient HVAC BACS Devices
    • Environmental Product Declarations (EPDs)
  5. Reporting-Requirements-and-Transparency-dark
    Future of Economy

    Reporting Requirements and Transparency

    The complex landscape of sustainability reporting poses harmonization challenges, but ESG reporting drives efficiency, reduces risks, and meets growing investor and customer expectations. Reliable aggregation of granular data will be key for reporting compliance and resource optimization.

    ReportingRequirements

    Implications for HVAC BACS Industry

    • Granular Energy Monitoring
    • Certified Metering
  6. Skilled-Trades-Talent-dark
    Future of Economy

    Skilled-Trades Talent Scarcity

    The construction industry faces a significant skilled labor shortage, amplified by a retiring workforce — an issue even more acute in the HVAC sector. To address this, the construction industry will invest in its image, scale training of skilled-trades talent, and leverage technology.

    SkilledTrade

    Implications for HVAC BACS Industry

    • Design for Easy Installation
    • Prefab
    • Product Training
  7. Safe-Buildings-dark
    Future of Society

    Safe Buildings

    Buildings form the backbone of modern life, providing stable environments for living, working, and recreation. However, four critical factors — extreme weather events, urbanization, cyber threats, and emerging building technologies — underscore the pressing need to enhance building safety to better protect occupants.

    SafeBuildings

    Implications for HVAC BACS Industry

    • Automated Fire Safety Systems
    • Secure Building Automation Protocols
    • Specialty Gas Sensors
  8. Healthy_Indoor-Spaces-dark
    Future of Society

    Healthy Indoor Spaces

    People spend nearly 90% of their time indoors, with rising post-pandemic awareness for healthy indoor spaces, a need further accelerated by air pollution and growing investor and tenant expectations. This will shape the design of new buildings and retrofits to prioritize occupant well-being, focusing more on thermal comfort, air quality, acoustic comfort, and optimal lighting.

    HealthyBuildings

    Implications for HVAC BACS Industry

    • Ubiquitous IAQ Monitoring and Control
    • Multi-Parameter Sensors
    • Acoustic Optimization
  9. Mixed-Use-Flex-Spaces-dark
    Future of Society

    Mixed-Use and Flexible Spaces

    The pandemic has swiftly transformed daily life by emptying offices and malls and turning homes into workplaces. This will leave a lasting impact, changing a long-standing paradigm, where spaces are no longer fixed in form and function, but dynamic to meet evolving demands.

    WFlexibleSpaces_1

    Implications for HVAC BACS Industry

    • Adjustable Zone Control
    • Wireless / Power-over-Ethernet (PoE)
    • Automatic Balancing
  10. Connected-Buildings-dark
    Future of Technology

    Connected Buildings

    The number of IoT-enabled devices in buildings is rapidly increasing, but several challenges, such as limited interoperability and scalability, lack of upgradability, and data overload, still prevent their full potential from unfolding. IP-based communication protocols, semantic domain models, and secure over-the-network updates will help overcome those hurdles and unlock new use cases.

    ConnectedBuildings

    Implications for HVAC BACS Industry

    • IP-Based Communication Standards
    • Semantic Domain Models
  11. Integrated-Planning-dark
    Future of Technology

    Integrated Planning, Installation, and Commissioning

    Global construction labor productivity lags other industries due to fragmented planning, execution and operation, limited data exchange, and outdated progress monitoring methods. Innovative approaches such as integrated project delivery, advanced digital planning, and digital workflow management will help to streamline project execution, reducing costly rework and project delays.

    BuildingAutomation

    Implications for HVAC BACS Industry

    • Seamless Integration into Design and Operating Tools
    • Plug-and-Play / Self-Commissioning
    • Digital Twin
  12. Next-Generation-Building-dark
    Future of Technology

    Next-Generation Building Automation

    The global building automation control systems (BACS) market is growing rapidly, but current systems struggle with fragmented operations and inefficiencies. Next-generation BACS will combine deeper integration with decentralized intelligence, flatter architectures, and AI-driven capabilities to enhance energy efficiency, occupant comfort, and operational resilience.

    NextGenBuildings

    Implications for HVAC BACS Industry

    • Decentralized Solutions
    • Self-Learning and Optimization

The Future Starts Here