The Internet of Things (IoT) is redefining how we think about buildings. Those times of very high costs associated with complex Building Automation Systems (BAS) are already behind us. IoT allows for retrofitting existing structures with affordable, wireless devices to monitor and control critical systems like HVAC highly efficiently. It’s not just about fancy tech; it’s about solving everyday problems that matter to your enterprise. Looking ahead to 2025, IoT will be the engine of smart building development. From cost savings to healthier interiors, IoT technology uncovers the game-changing IoT smart building trends for 2025, poised to shape the future.
1. Energy efficiency as the IoT advantage
Energy management is one of the most important aspects of IoT for smart buildings, and we are still only scratching the surface of its potential. Today, a comparatively small number of buildings have access to real-time energy reporting, and many still rely on outdated manual meter readings. This gap presents an enormous opportunity for IoT-driven smart building solutions to transform energy management. IoT enables property managers to monitor the main meters, additional measures, and electricity, water, and gas consumption levels in real-time – wireless sub-metering. For example, a hotel chain may employ IoT for submetering guest rooms and other areas – this way, energy usage will be identified, and energy-saving approaches can be targeted at different areas.
Access to structured, real-time smart energy metering data can uncover inefficiencies even without advanced analytics. For instance, even without advanced analytics, IoT sensors might reveal that a retail store’s lighting consumes excessive energy after hours or that a data center’s cooling systems are overactive during low-usage periods. These insights allow businesses to implement quick fixes that significantly reduce energy waste. Real-world examples, such as smart thermostats in office buildings or automated irrigation systems for water conservation, demonstrate how IoT can optimize energy use. Provided that businesses increasingly prioritize sustainability, IoT will remain at the forefront of energy efficiency strategies.
2. Artificial intelligence (AI) and big data in smart buildings
The IoT systems using affordable wireless sensors accumulate large quantities of current data. However, data collection is not the goal. It is valuable to analyze this data and turn it into information that can fuel improved decision-making. AI, with the help of Machine Learning, Anomaly Detection, Fault Detection and Diagnostics (FDD), and Predictive Maintenance, significantly changes the concept of building management. Imagine AI constantly monitoring the performance of your HVAC system, and when a rooftop unit (RTU) starts performing sub-optimally based on specific parameters, the system will notify the administrator. These kinds of insights may assist you in avoiding small performance issues progressing into large failure, not to mention the cost in energy, repair and the company’s reputation.
The impact is not limited to HVAC systems and sub-systems, however. AI applications can promote security, optimize lighting and comfort, and reduce the building's operation costs, among other factors. Both facility managers, landlords, and tenants benefit enormously from these insights. However, data is the key to the success of AI. If the IoT continuously does not feed big data with more richness, the AI systems will stop getting the food they need to cook. The combination of IoT and AI is a force to reckon with, whereby IoT offers the raw material, and AI adds substantial value through intelligent information analysis.
3. Indoor air quality (IAQ) monitoring
IAQ is no longer a luxury but a necessity in today’s indoor environments. The numerous studies show that increased concentrations of CO2 have a detrimental effect on mental abilities, which means that IAQ is essential for companies concerned with workers’ productivity and health. IoT makes a timely and inexpensive way to update the property's IAQ monitoring capabilities to real time. Traditional Building Automation Systems (BAS), including enhanced versions, are not enough to imply present day IAQ standards. IoT solutions, on the other hand, efficiently treat pollutants such as Particulate Matter (PM) and Volatile Organic Compounds (VOCs) while providing actionable insights for maintaining healthy indoor environments.
Current global certification standards, including WELL, and other initiatives such as Fitwel and RESET are establishing the evidence-based benchmarks for IAQ. Their guidelines emphasize reducing pollution and enhancing air quality to enhance people’s health. By pursuing these standards, companies design safer environments for all and strengthen their image of modern and considerate employers. As IoT integration deepens in the Smart Building market, IAQ monitoring will be a key focus area that is taking center stage. Boosting cognitive performance and ensuring compliance with global guidelines – smart investments in IoT IAQ are in the interest of tenants, employees, or facility managers.
4. Elevating smart buildings with real-time cloud visualizations
In an age where real-time access is standard, smart building technology must rise to meet modern expectations. The cloud now delivers real-time products and services seamlessly, yet many building visualization systems remain tethered to on-premises access – a relic of outdated business models. Thanks to IoT, the digitalization of assets enables applying real-time visualizations in the cloud to the last extent. In such platforms, engineers and property managers can monitor systems, receive alerts, and analyze the insights conveniently. Just imagine that you can estimate the critical operations of a building – for example, how well the heating/cooling system is working or how much electricity is being used – while not actually in the building.
Unfortunately, many existing buildings lack the sensor infrastructure to support real-time cloud visualizations. Data remains trapped within the physical premises, limiting its utility. IoT platforms, however, are bridging this gap, enabling retrofitted systems to integrate with robust cloud infrastructures. Failing to adopt real-time cloud capabilities risks rendering a building’s technology obsolete. Modern consumers, including tenants, landlords, and service providers, demand a streamlined cloud delivery mechanism. Along with convenience, these visualizations improve operational efficiency, reduce alert response times, and empower proactive management. Â
5. Transforming commercial real estate (CRE) with asset digitization
Today, consuming real-time information is second nature. Nevertheless, CRE operations have not been as efficient in this aspect, they tend to employ low-transparent and outdated procedures. Asset digitization, powered by IoT, is bridging this gap. IoT enables asset digitization at both the building-wide and individual asset levels. Take, for instance, Asset Condition Monitoring (ACM). Many organizations lack visibility into the operational health of critical HVAC assets like chillers, cooling towers, and rooftop units (RTUs). While they might track monthly energy bills, real-time data on these systems’ performance is often nonexistent. Assets consuming significant electricity and water are core components of building operations. IoT changes the game by collecting granular, real-time data from critical assets. Metrics such as supply and return temperatures, fan speeds, vibration levels, flow rates, compressor run times, and energy consumption can now be monitored continuously. These insights allow facility managers to assess performance, identify inefficiencies, and predict failures before they occur.
6. Maximizing ROI with IoT workspace and workforce management
Even though IoT is widely recognized for its ability to generate ROI through optimizing energy costs, its impact goes much further into workspace and workforce management, where the size of the savings opportunity is even greater. IoT sensors provide valuable insights into how employees use office space. For instance, occupancy sensors embedded in wireless lighting systems can track workspace utilization at a granular level. Such findings help organizations redesign space arrangements, minimize unnecessary desk usage, and adapt common areas based on employees' behavior. The result? This will lead to lower lease costs, boosting employee efficiency and promoting tenant satisfaction. Also, companies can make smarter decisions about expansion, downsizing, or hybrid work strategies by understanding peak occupancy patterns and identifying underutilized areas.
7. Modernizing building management for all with virtual BAS
For older buildings with outdated Building Automation Systems (BAS) or small to medium-sized facilities lacking a BAS altogether, IoT offers a transformative solution: the Virtual BAS. As a cloud-based solution, this control technology delivers new levels of HV AC and lighting control to commercial buildings that were outside the reach of traditional systems. Virtual BAS includes IoT sensors primarily measuring temperature and humidity as well as IAQ in the areas where heating and cooling are applied. They allow real-time, cloud-based configurability that is not usually represented by a simple on / off switch. Buildings can have preschedules for weekends and holidays, as well as self-controlled energy management depending on the occupation, and various specialized ritualized plans needed for building requirements at minimum BAS installation cost.
There are numerous opportunities with regard to energy savings. HVAC maintenance and lighting account for the majority of electricity consumption in commercial buildings, making them prime targets for efficiency improvements. Virtual BAS technology allows building operators to reduce energy waste, lower operational costs, and improve tenant satisfaction. Best of all, the lightweight, cost-effective nature of Virtual BAS ensures accessibility for buildings of all sizes and ages. Whether it’s retrofitting a decades-old facility or equipping a small business with modern capabilities, Virtual BAS ensures no building is left behind in the quest for smarter, greener operations. The future of building management is virtual – and it’s here today.
The bottom line
Looking into the future of 2025, it is obvious that IoT is more than just one instrument for smart building management. From enabling Artificial Intelligence and Big Data analytics to delivering real-time cloud visualizations, IoT is reshaping the way buildings operate. It’s about redefining efficiency, sustainability, and functionality across the board. The trends we’ve considered – asset digitization, IoT energy management, virtual BAS, and workforce management, among others – highlight IoT’s immense potential. Yet, the true power of IoT lies in its ability to integrate seamlessly into existing systems, making it accessible to all buildings, old and new. In 2025, these innovations will continue to turn properties into smarter, more sustainable spaces that adapt to ever-changing demands.
