Smart buildings at a crossroads: The evolution of building software-as-a-service

Elisa Rönkä
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Elisa Rönkä: Managing Director of Digital, Johnson Controls, Switzerland

Corporate Real Estate Journal, 2025, vol. 15, issue 1, 30-39

Abstract: The promise of smart buildings — structures that dynamically respond to the needs of occupants while optimising energy consumption and operational efficiency — has long been on the horizon. Yet, the industry finds itself at a crossroads: ripe for disruption, but seemingly stuck in a state of inertia. While initial enthusiasm, driven by the COVID-19 pandemic and the rise of environmental, social and governance (ESG) initiatives, spurred innovation, recent shifts in workplace dynamics and potential policy changes are creating both opportunities and challenges. This paper explores the evolving landscape of smart building technology, examining the factors influencing its adoption, the transformative potential of software-as-a-service (SaaS) models and the disruptive force of agentic artificial intelligence (AI). Furthermore, it addresses the persistent hurdles related to data management, the imperative for an ecosystem approach to value creation and the crucial role of interoperability in realising the full potential of intelligent, adaptive buildings. This article is also included in The Business & Management Collection which can be accessed at https://hstalks.com/business/.

Keywords: smart buildings; software-as-a-service (SaaS); agentic artificial intelligence (AI); data; technology trends (search for similar items in EconPapers)
JEL-codes: R3 (search for similar items in EconPapers)
Date: 2025
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