The Smart Building Revolution: Necessity, Drivers, and Deployment

The built environment is undergoing a fundamental transformation. Advancements in digital technologies, evolving occupant expectations, and the need to maximize long-term value have made smart building intelligence a core necessity. Today’s commercial buildings must mitigate risk, and create dynamic, future-ready workspaces that support sustainability.

Going Mainstream: The New Standard for the Built Environment

Smart buildings are defined as environments that leverage converged systems and sensor data to automate management and enable data-driven decisions, optimizing efficiency while enhancing occupant safety, health, and well-being.

The idea of smart buildings began to gain momentum in the early 2000s, riding the wave of internet connectivity and open protocols that enabled more sophisticated, building management.

By the mid-2010s, rising operational costs and a growing talent shortage, combined with the rapid maturation of IoT, wireless technologies, and data analytics, compelled wider adoption of enabling technologies. Owners and operators were no longer just looking to save energy; they were seeking greater insights and dynamic control to improve operational efficiencies and create productive, engaging spaces. In 2020, the pandemic triggered an unprecedented transformation in the way people work, placing a heightened emphasis on health, safety, and well-being. This shift accelerated the adoption of occupant-centric approaches in building design and firmly established the importance of smart building technologies.

The combination of widespread digitalization, more affordable IoT technology, and the need to create efficient, healthy, and attractive spaces has now propelled smart building technologies into the mainstream. Smart, adaptive environments have become the standard for both new construction and major renovation projects. In fact, a recent survey reports that 90% of respondents now have smart capabilities in their buildings. The use cases are extensive and growing:

• Energy Savings: Adjust lighting and HVAC based on occupancy and daylight, and track energy consumption to identify and address areas of high consumption.
• Space Optimization: Efficiently and strategically allocate space and design layouts based on occupancy, workflow, and traffic patterns.
• Improved Safety and Security: Monitor spaces using IP-based video surveillance, access control, intrusion detection, and life safety systems to identify risks and automate response.
• Enhanced Occupant Wellbeing and Experience: Optimize comfort and productivity through smart lighting, temperature control, while monitoring indoor air quality for healthier environments.
• Sustainability: Track and report on key factors like emissions, energy/water usage, waste, and occupational health and safety to meet goals and comply with sustainability standards and regulations.

Market Momentum: ROI and AI Are Fueling Growth

The adoption of smart building technologies is accelerating as owners and operators are increasingly aware of the quantifiable ROI, lower energy usage, lower maintenance costs, higher property values, and lower employee turnover. The financial impact is reflected in the market’s explosive growth. The global smart building market, valued at about $117 billion in 2024, is now projected to reach nearly $550 billion by 2032.[i]

The convergence of AI, IoT, and cloud computing is unlocking new smart building capabilities that will accelerate growth. AI can process vast amounts of historical and real-time data, powering advanced edge- and cloud-based platforms that help enterprises optimize security, energy efficiency, and space utilization. Edge-based platforms enable on-site, low-latency adjustments at the building level, while cloud-based platforms deliver large-scale data analysis for complex system integration and portfolio-wide optimization.

The potential for AI-driven building intelligence is immense. A 2025 study found that 84% of commercial building decision-makers plan to increase AI use within the next year to improve security, streamline energy management, and enable predictive maintenance. AI depends on massive datasets from sensors and devices measuring temperature, humidity, light levels, air quality, energy and water consumption, occupancy patterns, and even video footage. This reliance on data is fueling rapid IoT growth. While digitalization has already created billions of connected devices, AI is expected to accelerate adoption with the number of connected devices forecast to more than double from 19.8 billion in 2025 to over forty billion by 2034.

The Critical Lifeline: Power over Ethernet (PoE)

At the heart of digitalized smart buildings and campuses lies high-performance, low-voltage connectivity. It is the robust, reliable foundation that supports the ever-growing number of networked devices, systems, and IoT sensors, driving efficiency, adaptability, and intelligence. At the same time, connected devices and sensors are being deployed in more remote locations that often reach beyond the standard 100-meter distance.

The same critical infrastructure that transmits vital data to and from edge devices also delivers efficient, low-voltage DC power via Power over Ethernet (PoE). PoE is more than just a convenience; it is the lifeline for a vast array of building devices, from wireless access points and distributed antennas to security cameras, access control systems, LED lights, building management sensors and controls, and more.

Over the years, PoE technology has advanced to meet increasing power demands from Type 1 PoE delivering 15.4W over 2-pairs now up to Type 4 PoE delivering a maximum of 90 W over 4-pairs.

As buildings and campuses embrace digitalization, adoption of PoE is soaring due to its cost-saving benefits and superior power-delivery efficiency. Recent reports project the PoE market to grow at an aggressive 22.8% annual rate from 2024 to 2032.[ii]

However, to realize this vision, building owners and operators must address the inherent technical challenges posed by PoE:

• Heat Rise: PoE applications cause heat rise in copper cabling systems, which can adversely impact network performance and limit the effective transmission distances.
• Connector Degradation: Unplugging a PoE-powered device while it’s still under load can cause electrical arcing in the connector. Over time, this can erode jack and plug contacts, leading to unreliable network performance, increased bit error rates, and even link failure.

Achieving long-term, seamless power and data performance requires connectivity solutions engineered and third-party verified to exceed standards, delivering extended reach, thermal resilience, and protection against harmful arcing. For example, cables should be rated for higher operating temperatures to perform reliably up to 75°C. At the same time, connectors should meet industry standards such as IEC 60512-99-002, which ensure reliability even after 100 insertion and removal cycles under PoE load. At the same time, smart buildings and campuses demand well-specified networks that are designed, delivered, and deployed to support current applications, ensure scalability to meet future demands, and simultaneously optimize costs for peace of mind.

Beyond Products: Choosing the Right Partner for Success

High-performance connectivity is essential, but successful smart building projects also depend on selecting the right partner. The ideal partner offers more than products. They provide expert guidance, application support, and design tools that simplify planning and prevent costly mistakes.

Look for partners with proven responsiveness, supply-chain agility, and a global footprint to keep projects on schedule and within budget. Choosing partners who prioritize sustainability can also yield significant environmental, economic, and social benefits. Solutions backed by Health Product Declarations (HPDs), Environmental Product Declarations (EPDs), and sustainable packaging can help projects meet environmental goals, adhere to sustainability regulations and qualify for certifications like LEED, BREEAM, LBC, and WELL.

References

[i] Smart Building Market Size, Fortune Business Insights, October 2025

[ii] Power Over Ethernet Market Research Report, Market Research Future, May 2025