How to Drive Energy Efficiency in Smart Buildings
Published on : Friday 29-09-2023
Industrial Automation presents actionable strategies and cutting-edge technologies to drive energy efficiency and a greener future in smart buildings.

In today’s connected world, energy consumption is seeing a steep rise. This, in turn, is not only creating challenges for energy supply but also having an impact on the health of our planet. Reports suggest that buildings consume one-third of global energy, playing a critical role in meeting climate change ambitions. So, what’s the solution? As a business leader or an environmental aficionado, if you are also wondering how to drive and accomplish energy efficiency, this article is for you.
We will let you explore new opportunities, technologies, key takeaways, and more so that you can make decisions and utilise smart technologies to contribute to the reduction of global energy consumption.
Introduction to smart buildings
Smart buildings are emerging as a crucial element in efforts to combat climate change and lessen the carbon footprint. Considering the International Energy Agency (IEA) report, the digitalisation of buildings could lower total energy use in residential and commercial buildings by as much as 10% between 2017 and 2040. The report states that as energy-related CO2 emissions rose by 1.7% in 2018, the building sector recorded 28% of those emissions, two-thirds from rapidly growing electricity use.
However, it also shows that technology can minimise CO2 emissions from buildings while improving comfort and services. As smart buildings integrate advanced technologies and data-driven solutions, they can optimise energy consumption, cut waste, and contribute to a more sustainable environment.
When it comes to market size, the global smart building market accounted for US$69.80 billion in 2021 and is forecast to reach US$201.16 billion by 2031. The market is growing at a CAGR of 11.3% during the projected duration. The market is significantly driven by the surge in the adoption of smart buildings in multiple regions. The need for better resource management in urban environments and better utilisation of buildings (and building premises) are also contributing to the growth of the global smart buildings market.
Driving energy efficiency with smart technologies
There are a number of smart technologies that can improve building operations and reduce energy consumption across applications such as HVAC, lighting, and building automation. Below, we have mentioned some of the smart technologies that have the potential to drive energy efficiency in smart buildings.
Internet of Things (IoT) Sensors: To gather real-time information on energy use, occupant patterns, and environmental conditions, IoT sensors are installed all throughout the building. By utilising this information, energy use can then be optimised by precisely adjusting temperature, lighting, and other factors to the requirements of the building.
Smart Lighting: When used in conjunction with intelligent controls and sensors, LED lighting is a key component of energy efficiency. These systems reduce redundant energy use by adjusting lighting levels based on occupancy and the availability of natural light.
HVAC Systems: HVAC systems use a significant amount of energy in a building. HVAC systems that are energy-efficient use advanced controls and sensors to optimise performance, adjusting cooling and heating based on real-time data and occupancy patterns to reduce energy waste.
Building Energy Management Systems (BEMS): BEMS integrate a variety of technologies for the monitoring and management of building systems, including lighting, HVAC, and others.
Renewable Energy Integration: On-site production of clean energy is made possible by including renewable energy sources like solar cells or wind turbines in the building's energy mix.
Advanced Insulation and Building Materials: High-performance insulation and building materials can help minimise heat loss and gain, lowering the amount of energy required for heating and cooling.
Apart from these, plug loads, window shading or smart window systems, automated system optimisation, and distributed energy resources are some other smart technologies that can significantly improve building operations and reduce energy consumption.
Smart moves for smart buildings

A large number of companies and startups in India and around the world are moving towards smart buildings. Infogrid, an AI technology company, implements IoT sensors across buildings to help organisations gain real-time insight into energy consumption, air quality, pipe function, maintenance, cleanliness, and more. This significantly helps companies understand the health of their buildings instantly and remotely and immediately take action to make them more efficient.
Intel, in 2016, built its first IoT-enabled smart building in Bangalore, India. The company was looking to minimise resource usage, improve operational efficiency, and enhance occupant comfort. To address these, Intel used solutions such as advanced building analytics, space optimisation techniques, and machine learning algorithms. This resulted in energy and water savings, efficient office space, increased employee capacity, and a productive workforce.
IoT is considered crucial for the broader adoption of smart buildings around the world. To note Neil Strother, Navigant principal research analyst, "Connected or IoT devices in commercial buildings or homes enable a variety of applications and provide benefits related to automation, convenience, and, of course, energy efficiency, and these benefits are starting to resonate among building managers, homeowners, and even renters."
Given the proliferation of IoT sensors, it is estimated that revenue related to IoT-driven smart building technologies should grow in the near future. According to ABI Analyst Adarsh Krishnan, "IoT platforms such as GE’s Predix, IBM’s Watson, and SAP’s HANA, in collaboration with facility service providers like CBRE, ISS World, and ENGIE, are gradually creating inroads by integrating multiple building automation systems to deliver a unified facilities management solution."
In order for commercial buildings to respond more effectively to environmental cues or a company's energy efficiency policies, leading manufacturers are working diligently to instrument and automate their systems through IoT hardware and software.
Schneider Electric is one of the smart building solutions providers for Small to Medium-Sized Buildings (below 10,000 ft²) and large buildings (more than 10,000 ft²). To help businesses maximise building efficiency, optimise comfort and productivity, and increase building value, Schneider Electric’s EcoStruxure Smart Building solution securely connects hardware, software, and services over an Ethernet IP backbone.
The adoption of smart buildings across verticals
From smart homes and offices to smart buildings and cities, the transition to the dream of a sustainable future is now becoming true. With smart building technologies, companies across different industries are transforming themselves to reduce energy consumption and improve overall sustainability. Below, we have mentioned some of the industries where smart building technologies are being widely adopted.
Commercial Real Estate: In commercial real estate, including office buildings, malls, and mixed-use developments, smart building solutions are widely used. These technologies support occupant convenience and comfort, energy management, space optimisation, and preventive maintenance.
Among the leading players providing smart building solutions in commercial real estate are:
JLL, Schneider Electric, CBRE, Bosch, Honeywell Forge, and Propacity.
Healthcare: To improve patient care, maximise energy use, and ensure regulatory compliance, hospitals and other healthcare facilities are implementing smart building systems. IoT devices can be integrated into smart buildings in the healthcare industry to provide real-time monitoring, asset tracking, and intelligent lighting and temperature control to create a comfortable environment for patients and staff.
Some of the leading players providing smart building solutions in healthcare are: ABB, L&T Technology Services, Wipro, Cisco, Extreme Networks, and Eutech Cybernetic.
Education: To make learning environments more effective and comfortable, educational institutions like schools and universities use smart building technologies. These technologies help in the management of lighting, heating, and cooling systems, resulting in optimal learning conditions while reducing energy waste.

Among the leading players providing smart building solutions in education field are: Dahua Technology, Siemens, Extreme Networks, Johnson Controls, and Legrand.
Hospitality: Hotels and resorts use smart building technologies to improve visitor experiences, reduce energy use, and simplify facility management. Some of the essential elements of smart buildings in the hospitality sector include automated check-in systems, energy-efficient lighting, and temperature control systems.
Some of the leading players providing smart building solutions for the hospitality industry: Honeywell, ABB Group, Hoteliers India, Schneider Electric, and Buildings IoT.
Other industries where smart building solutions are widely being used include manufacturing and industrial facilities, retail, government and public sector companies, data centers, transportation and logistics, and utilities and energy management.
Other building solutions provider companies in India are: 75F India, Capita IT Enterprise Services, PEC Greening India, Kirby Building Systems India Pvt Ltd, Preca Solutions, NUOS Home Automation, Hochtief, Smarthome NX, HouseOme, Ezone Security Solutions, Foghorn Systems, HDL Automation, Hyperthings-IoT, SenZopt Technologies, and SharpNode Technologies Pvt Ltd.
The adoption of smart building technologies across these industries reflects a growing appreciation for the benefits they provide, such as energy savings, operational efficiency, sustainability, and improved user experiences. Smart buildings will play an increasingly important role in shaping the future of these industries as technology advances.
Latest trends and the future of smart buildings
In recent times, technology has made significant advances. With the rise of innovative technologies, sustainability has become a hot topic in companies’ boardrooms and has enabled companies to make the most of smart technologies to contribute to a sustainable environment.
As a smart building uses technology to enhance the way it functions and make it more energy-efficient, sustainable, and comfortable for occupants, it is good for the environment as well as for businesses. Here are some of the most exciting trends in smart buildings you must look out for to drive energy efficiency and sustainability:
Integration of AI and ML: In smart building technologies, AI and ML are expected to play a significant role. These technologies enable predictive analytics, energy optimisation, predictive maintenance, and enhanced automation for a variety of building systems.
Edge Computing for Real-Time Data Processing: Edge computing involves processing data closer to its source, which is especially useful for real-time analytics in smart buildings.
5G Connectivity for Enhanced IoT Integration: The introduction of 5G technology is expected to transform IoT integration in smart buildings. It enables IoT devices to communicate seamlessly and support bandwidth-intensive applications by providing faster and more reliable connectivity.
Digital Twins for Building Simulation and Monitoring: A digital twin helps in creating a virtual representation of a physical building. It enables comprehensive building performance monitoring, simulation, and analysis, which assist in predictive maintenance, energy efficiency, and overall optimisation.
Occupant-Centric Technologies: Technologies that improve building occupants' experiences and well-being are being prioritised more. This comprises customised settings, occupant tracking, and AI-enabled systems that modify the lighting, temperature, and other elements in accordance with user preferences and behaviour.
Conclusion
The concept of smart buildings has been around for quite some time. As it is a crucial enabler for driving sustainability and creating a sustainable environment, energy efficiency remains a top priority despite the rise of IoT-enabled smart building solutions. We, at Industrial Automation, believe smart buildings are not merely a technological pursuit but an indispensable step towards a sustainable and environmentally responsible future. By integrating cutting-edge technologies and data-driven solutions, smart buildings reduce operational costs while playing a pivotal role in mitigating climate change.
References
i. https://iea.blob.core.windows.net/assets/026bff1b-821d-48bc-8a0e-7c10280c62bc/Perspectives_for_the_Clean_Energy_Transition_2019.pdf
ii. https://www.aceee.org/sites/default/files/publications/researchreports/a1701.pdf
iii. https://www.infogrid.io/blog/how-to-achieve-energy-efficiency-in-smart-buildings
iv. https://www.futuremarketinsights.com/reports/smart-building-solutions-market
v. https://www.j2inn.com/blog/2023-trends-in-smart-building-smart-equipment-and-iot
vi. https://smartbuildingmag.com/market-overview/68658-energy-saving-in-smart-buildings