The world is demanding cleaner, smarter, and more sustainable structures where we can all live and work, but the journey from concept to reality remains a huge challenge.
Innovative new builds are expensive to equip with smart capabilities, meanwhile retrofitting existing structures can be even more costly and time-consuming. Connected buildings may be the future, but OEMs and developers just can’t bring them online fast and cheaply enough to move the environmental needle.
What are the problems smart buildings solve?
If we’re going to save the planet - while enhancing wellbeing, safety, and quality of life - we need to start interacting with our built environment in an entirely different way.
Occupants want healthier and more secure places to inhabit; planners want to ease the flow of people and services in the spaces they design to maximise efficiency.
Luckily, a new breed of architects, engineers, and OEMs are working together to design and fit-out buildings that actively solve for the multiple challenges of 21st Century life.
Underpinning all their work is a need for buildings that are value-engineered to be more efficient and carbon neutral, as we grapple with the spectre of global warming and wasted resource.
Through a convergence of mechatronic systems, real-time sensors, IoT, and AI-powered automation, the buildings they are bringing to life are shifting from passive shelters to active, life-enhancing ecosystems.
But is it happening fast enough?
How smart are our buildings?
According to the United Nations most recent report on the state of global construction, the built environment remains a major source of carbon emissions. Meanwhile, the World Health Organisation points out how many of our buildings are actually making us sick.
Smart buildings may be the answer to healthier, safer and happier living environments - but less than 2% of total global, building stock are now equipped with smart capabilities.
Where vision meets 'the wall': the smart building execution gap
For OEMs supplying smart building technologies, the problem isn’t lack of ambition—it’s execution. While digital twins, sensor arrays, and AI-driven automation are now technically feasible, OEMs face a tangled web of delivery constraints, customisation demands, and integration challenges.
Builders and developers want to make the most efficient constructions, but their timelines are tight, and their expectations are higher than ever.
IoT is the building's nervous system
Smart buildings rely on Internet of Things (IoT) systems to collect and act on data from their environments. This transforms a static space into a responsive, learning ecosystem. Core systems typically include:
- HVAC and climate control: Sensors detect occupancy and CO₂ levels to optimise comfort and efficiency.
- Lighting systems: Daylight harvesting automatically dims lights near windows.
- Security systems: Smart gates and access controls respond to individual user credentials including biometrics.
- Predictive Maintenance: Equipment health is continuously monitored to anticipate failures - particularly in a world of automated service
- Wellbeing Monitors: Air quality, temperature, and noise levels are managed for optimal occupant comfort.
Case studies: real world projects leading the way
There are many examples of connected building projects leading the way.
150 Holborn – A living lab for building intelligence
Sidara’s 150 Holborn headquarters showcases what's possible when smart systems are integrated holistically. The building’s proprietary digital twin, 'Para', acts as a central brain, learning from thousands of sensors:
- Air & Light Optimisation: Rooms adjust lighting and ventilation based on occupancy and air quality.
- Meeting Culture Enhancer: Lights dim to signal meetings ending; fresh air is pumped in between sessions.
- Daylight Harvesting & Shading: Natural light levels trigger automated adjustments in lighting and motorised blinds.
This setup earned the site BREEAM 'Outstanding', SmartScore Platinum, and WiredScore Platinum certifications—proof that the tech works when properly executed.
The Edge, Amsterdam – data-driven automation for energy and user control
Amsterdam’s The Edge is a flagship for responsive workplace automation. With 30,000+ IoT sensors and a central digital backbone, it continuously learns from its environment to drive operational performance:
- Personalised Work Zones: App-linked sensors adjust lighting, temperature, and ventilation based on individual preferences and real-time occupancy.
- Smart Energy Loops: Lighting, HVAC, and blinds integrate with a thermal aquifer system and rooftop PVs for demand-based optimisation.
- Dynamic Environmental Feedback: Humidity, CO₂, and motion sensors feed a centralised system that fine-tunes climate control minute by minute.
The system enables predictive energy use, ultra-low waste, and human-centric building flow—earning The Edge BREEAM ‘Outstanding’, WiredScore Platinum, and global recognition as a “smartest building” blueprint.
Pearl River Tower – performance in a subtropical climate
Guangzhou’s Pearl River Tower in China transforms building systems into active participants in environmental control. This 71-storey tower integrates passive design with embedded mechatronics for high-efficiency operation:
- Wind-fed turbine integration: Building-shape-directed airflow powers internal turbines, monitored and adjusted by onboard airflow sensors.
- Sensor-controlled radiant cooling: Embedded climate panels react to occupancy and indoor heat loads, eliminating traditional forced-air HVAC.
- Façade automation: Double-skin curtain walls house motorised blinds that self-adjust to solar gain and daylight intensity.
Combining passive aerodynamics with active systems control, the tower reduces mechanical load while maintaining comfort, securing its place as a pioneer in sensor-led supertall sustainability.
But retrofitting remains a challenge
These trailblazers show how new buildings can tackle the most pressing problems of urban development, but managing the footprint of ageing and existing buildings still represent the biggest challenge for the built environment.
The Empire State Building - a smart refit for a heritage icon
New York’s iconic Empire State Building proves that legacy structures can be transformed into models of high-performance sustainability. Through a groundbreaking deep energy retrofit, this 1930s skyscraper integrated smart technology into its existing infrastructure, creating a powerful blueprint for modernising our built environment.
- Elevator energy regeneration: The building's 68 elevators were retrofitted with regenerative braking systems. These Otis ReGen™ drives capture energy during braking, converting momentum into electricity that is fed back into the building’s power grid, reducing the elevators' net energy consumption by over 30%.
- Sensor-led climate automation: A wireless network of sensors provides real-time data on occupancy, temperature, and CO2 levels. This information feeds an intelligent building management system that precisely optimises heating and cooling delivery on a zone-by-zone basis, eliminating energy waste.
By layering advanced mechatronic controls onto its core infrastructure, the project slashed energy use by nearly 40% and achieved LEED Gold certification.
But these kind of ground breaking projects are the exception rather the rule. Retrofitting old and inefficient building with smart functionality is adding to the complexity of responsible, urban planning in the 21st Century.
7 challenges for smart building technology: what’s holding back deployment?
While the technology exists, OEMs in the smart building sector face a daunting array of operational challenges that slow down deployment:
1. Builders won’t wait
OEMs are under pressure to deliver faster, with ready-to-install systems that are field-tested and variant-flexible. Fragmented supply chains often cause delays that clash with aggressive construction schedules.
OEMs need partners who can match construction pace with rapid prototyping, modular design, and dependable lead times - every time.
2. Customisation is the new normal
No two smart building projects are alike. OEMs are expected to:
- Adapt enclosures and interfaces quickly
- Support various smart ecosystem protocols
- Comply with differing regulations globally
Without agile design and production processes, opportunities slip through the cracks.
3. Innovation bottlenecks
Developers want cutting-edge tech - but many OEMs are resource-stretched. Running parallel design iterations and integrating advanced features without inflating costs or timelines is a tall order.
Too often, innovation gets throttled by lack of engineering bandwidth or poor DFM and value engineering support from manufacturing partners.
Find a partner who can co-engineer at pace - providing guidance on materials, manufacturability, and cost optimisation without slowing down your roadmap.
4. Testing electromechanical assemblies
Smart systems blend precision hardware with responsive software. But when mechanical and electronic components are tested in silos, errors slip through.
OEMs need holistic testing frameworks that validate full system behaviour - under stress, across environments, and through thousands of cycles.
Choose a partner who offers full-stack test benches, real-world simulations, and feedback loops between QA and design teams.
5. Developing sensors
From occupancy detection to air quality control, smart buildings depend on reliable sensor integration. Yet many OEMs struggle to design and build sensors tailored to their specific mechanical systems.
Use a partner who can help you design and build the sensors and microcontrollers you need to power your mechanical intelligence - optimised for cost, space, and performance.
6. Complex logistics
OEMs must balance global demand variability, stock control, and site coordination. Without scalable logistics capabilities, even small disruptions lead to missed milestones and cost overruns.
The complexity of mechatronic logistics is often overlooked—delicate electronics, bulky mechanicals, and strict installation sequences don’t tolerate delays or damage.
Here’s what you need to know about shipping mechatronics: precision kitting, protective packaging, local warehousing, and just-in-time site delivery aren't nice-to-haves—they’re non-negotiable.
Why OEMs need a new kind of manufacturing partner
In the new world of complex mechatronics and rapid innovation, the traditional, siloed approach to manufacturing is no longer fit for purpose. To stay competitive, Original Equipment Manufacturers (OEMs) need partners who can integrate design, quality, and supply chain management under one roof. This holistic model directly addresses the key operational challenges that can throttle growth and delay deployment.
Conclusion: The future is smart, if we build it right
Smart buildings represent the future of sustainable urban development. But turning architectural ambition into operational reality depends on execution. OEMs need not just component suppliers, but full-lifecycle manufacturing partners who can carry the complexity.
