This post is a summary of key insights from a recent series of blog posts by Siemens partner CSL exploring the technologies and strategies shaping the future of built environments. The global push for NetZero targets is reshaping the construction and building management industries at a rapid pace. According to recent studies, buildings currently account for roughly 40% of global energy consumption and nearly a quarter of greenhouse gas emissions. That level of environmental impact is driving innovation in how buildings are designed, built, and operated. Central to this transformation are smart systems powered by IoT, artificial intelligence (AI), and edge connectivity.
Smart Buildings Are Becoming the Norm
Globally, the smart building market is projected to grow from $108 billion in 2023 to $570 billion by 2030. That growth is driven not just by the energy efficiency imperative, but also by regulatory requirements, occupant expectations, and the digitalization of nearly every layer of operations.
Where traditional Building Management Systems (BMS) once focused on basic automation of HVAC or lighting, modern Building Energy Management Systems (BEMS) now integrate AI, machine learning (ML), reinforcement learning (RL), and deep learning (DL) models. These technologies allow systems to self-optimize — reducing energy waste, increasing resilience, and responding dynamically to internal and external conditions.
For example, advanced AI models can predict energy loads, adjust ventilation based on air quality and occupancy, or trigger alerts based on sensor-driven anomaly detection. Real-world results are significant: commercial buildings using AI-based HVAC systems have reported energy savings as high as 37%, while digital twins combined with AI have shown reductions of up to 50% in energy consumption.
The Role of IoT and Edge Connectivity
IoT-enabled devices, including smart thermostats, air quality monitors, and energy meters, form the foundation of today’s intelligent buildings. These devices gather real-time data on variables such as temperature, humidity, CO₂, particulate matter, and equipment performance.
Edge computing extends the value of these systems by enabling local, fast, and secure data processing. Instead of routing all data to the cloud, edge devices can respond instantly to changing conditions, trigger control systems, or feed AI models for predictive adjustments.
Crucially, these systems don’t just benefit new construction. Retrofitting legacy buildings with IoT and edge technologies allows building owners to unlock major efficiency gains even in stock built decades ago. With 75% of EU buildings predating modern energy standards, retrofits are essential to achieving emissions targets.
Making Buildings Safer and Healthier
Beyond energy savings, these technologies also play a critical role in supporting occupant comfort and safety. Sensors can track noise, air quality, temperature, VOCs, humidity, and radon, each of which has a direct impact on health and cognitive function.
AI and IoT systems dynamically adjust ventilation, heating, and lighting based on data insights. In studies, occupancy-aware systems not only lowered energy use but improved thermal comfort feedback by 43–73%. Smart building platforms also offer more responsive safety systems, using real-time alerts and condition monitoring to prevent hazards and reduce downtime.
Construction Sites Are Getting Smarter Too
Smart buildings begin with smarter construction practices. IoT sensors and wearable tech on construction sites monitor worker safety, track material usage, and streamline project timelines. Predictive maintenance, made possible by edge-connected analytics, extends the life of equipment and reduces delays.
Edge routers and resilient mobile networks enable on-site connectivity, even in remote locations. Meanwhile, platforms like Building Information Modelling (BIM) and digital twins provide virtual design environments that improve collaboration, reduce waste, and enable more accurate forecasting.
Challenges Remain But Progress Is Clear
Integrating smart systems isn’t without its challenges. Many older buildings lack the digital infrastructure needed to support predictive analytics. Cybersecurity, data privacy, and system interoperability are ongoing concerns. Scaling AI systems across diverse environments requires continued research into explainable models, standardization, and sustainable deployment methods.
Nonetheless, the gains are hard to ignore. Studies cited in the CSL white paper The Future of Construction: The Roles of IoT, Edge Technologies and Connectivity in Creating Energy-efficient and NetZero Compliant Buildings show that:
- IoT systems can reduce energy use by up to 30%
- AI-enabled analytics can increase energy savings to 50%
- Real-time monitoring improves thermal comfort by nearly 86%
As regulatory pressure increases and the cost of inaction mounts, the transition to smart, connected buildings is becoming less optional and more essential.
The Road Ahead: Toward a Smarter, Greener Built World
Smart buildings are no longer niche experiments. They are the future standard for how we live, work, and build. With every new sensor, edge processor, and AI model, the built environment becomes more dynamic, more efficient, and more aligned with sustainability goals.
For Siemens and other technology leaders, this transformation presents both an opportunity and a responsibility: to build ecosystems of interoperability, to lead with secure and scalable platforms, and to enable the digital backbone of a NetZero world.
Smart construction is a systemic technological shift that brings together energy innovation, human well-being, operational excellence, and climate action. The question is no longer if the industry will change, but how quickly we can accelerate it.
To explore these themes in more depth, download the full white paper:
“The Future of Construction: The Roles of IoT, Edge Technologies and Connectivity in Creating Energy-efficient and NetZero Compliant Buildings.” 
