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.

The Growth of IoT Devices in Buildings and Their Hurdles

Today, there are approximately 2 billion Internet of Things (IoT) devices installed in buildings, a number expected to grow by 13.7% annually going forward (69). IoT devices in buildings are networks of interconnected sensors, systems, and equipment that collect and exchange data to optimize operations, improve energy efficiency, and enhance occupant comfort and security. Examples include connected security and access control systems, HVAC and building energy management systems, workplace management systems, smart lighting systems, escalators and elevators, parking systems, fire and safety systems, and indoor environmental quality monitors. A single building housing tens of thousands of IoT devices is one of the most complex controlled systems in the world — even more complex than autonomous vehicles or industrial robots.

While integrating IoT devices in buildings offers substantial opportunities, several challenges currently limit their full potential. A primary obstacle is interoperability, as many IoT devices rely on proprietary protocols, complicating the integration of systems across different building automation verticals and obstructing seamless operation. Scalability remains another significant hurdle, as managing expanding IoT networks becomes increasingly complex without IoT devices that can automatically recognize and coordinate with other IoT devices. Additionally, upgradability is critical, as IoT device firmware often becomes outdated much more rapidly than the hardware due to advancing technology, requiring frequent updates to ensure efficient and secure operation.

There are about 2 billion Internet of Things (IoT) devices installed in buildings in 2024 — a number expected to grow by 13.7% annually

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Unlocking the Full Potential of Connected Buildings

Seamless integration across building automation domains will not only unlock new potential in more efficient energy management and further cost reduction but also introduce new use cases, providing a step change in user experience. For instance, HVAC systems can dynamically adjust temperatures and ventilation in offices and conference rooms based on expected occupancy, forecasted weather, and individual preferences. Smart lighting systems can adapt brightness to sunlight levels, mimicking natural daylight changes to support circadian rhythms. Additionally, intelligent infrastructure can enable location-aware interactions, personalized signage for events and visitors, real-time workspace and meeting room availability, and automatic release of unoccupied reserved spaces (70). To enable these advancements, the current barriers of interoperability, scalability, upgradability, and data overload must be overcome.

Interoperability challenges can be addressed by adopting IP-based communication protocols, enabling seamless interaction between IoT devices from various manufacturers. A unified IPbased infrastructure simplifies network management, reduces costs associated with proprietary solutions, and allows diverse building systems to share data over a single IP backbone (71). However, this shift will require greater involvement from IT management teams in the design, commissioning, and decision-making processes of building automation systems.

Overcoming scalability challenges will necessitate the adoption of semantic domain models, which define relationships between components, systems, and data flows in the building automation domain. These models provide data context, enabling complex systems to self-configure.

Lastly, automated upgradability of IoT devices will also be essential to address security concerns, as manually patching thousands of devices in a building is impractical. Secure, over-the-network updates will depend on resolving interoperability challenges as a prerequisite.