The Construction Sector’s Energy and Emissions Impact
Globally, the construction and building sectors account for 30–40% of total energy use and approximately 24.5% of GHG emissions (Farghali, et al., 2023; Khan, et al., 2024; Ma, et al., 2024). Across the EU, building stocks account for 40% of energy consumption. Indeed, operational carbon emissions from buildings alone (10Gt) match the total emissions of China, underscoring the sector’s significant environmental footprint (Ma, et al., 2024). In the UK, construction and its supporting overseas supply chain activities produce 36 million metric tons of CO2 equivalent annually, comparable to the emissions from half of the country’s cars. These figures highlight the urgent need for sustainable practices and technologies to mitigate the sector’s impact.
Smart Buildings: A Growing Market
The global smart building market, valued at $108 billion in 2023, is projected to grow at a compound annual growth rate (CAGR) of 26.8%, reaching $570 billion by 2030. This growth is driven by the increasing adoption of IoT, Artificial Intelligence (AI), and edge connectivity technologies that enable buildings to become more responsive, resource-efficient, and automated. By integrating sensors, data analytics, and machine learning, smart buildings can optimise energy use, reduce waste, and enhance occupant comfort.
Key Benefits of Smart Building Technologies
Smart buildings leverage IoT and edge connectivity to manage critical systems such as lighting, heating, ventilation, air conditioning (HVAC), and security. These technologies enable real-time monitoring and control, improving energy efficiency and reducing operational costs. Research shows that connected digital technologies can reduce energy usage in buildings by 30–50% by 2040 (Hernández, et al., 2024). For example, integrating renewable energy sources (RES), smart grids (SG), and energy-efficient systems can cut energy consumption by 10–40% (Farghali, et al., 2023).
AI plays a pivotal role in enhancing building efficiency. Deep neural networks can predict occupancy levels, allowing automated systems to adjust lighting and HVAC settings based on real-time needs. This reduces energy wastage and extends equipment lifespan. Additionally, AI can incorporate advanced weather predictions and proactive maintenance schedules, further optimising building performance.
Challenges and Opportunities in Retrofitting Existing Buildings
One of the major challenges in achieving NetZero targets is the inefficiency of existing building stock (Hernández, et al., 2024). In the EU, 75% of buildings were constructed before modern energy standards, and only 3% currently meet these standards (ibid). Retrofitting and renovating these structures is essential to reduce emissions and improve energy efficiency. In the UK, 85% of buildings expected to be in use by 2050 have already been built, highlighting the importance of retrofitting.
Digital technologies such as Building Information Modelling (BIM) and Digital Twins (DT) are crucial for planning and executing retrofits. These tools enable better resource management, collaboration, and integration of energy-efficient systems. For example, smart energy storage systems (ESS), heat pumps, and EV charging units can be incorporated into retrofitted buildings to enhance their sustainability.
Sustainable Materials and Embedded Carbon
The construction industry’s reliance on traditional materials contributes significantly to its carbon footprint. Conventional materials have a higher embedded carbon content, with emissions of 171.93 kg CO2e per m² compared to 62.25 kg CO2e per m² for sustainable alternatives (Arenas & Shafique, 2024). Using low-carbon materials can reduce embodied emissions by 40% and transportation-based emissions by 39% (Myint & Shafique, 2024). However, these materials often come with higher costs, increasing construction expenses by approximately 6.7%.
Despite the initial cost, energy-efficient buildings offer long-term financial benefits through reduced energy bills and higher property values. Sustainable materials also enable better integration of smart building systems, making properties more attractive to buyers, renters, and operators (Baharetha, et al., 2024).
Regulatory Frameworks and Incentives
Governments play a critical role in driving the adoption of sustainable practices in construction. The EU’s updated Energy Performance of Buildings Directive mandates zero emissions for all new public buildings by 2026 and all other new buildings by 2028. In the UK, improved building designs and resource reuse could reduce construction emissions by 40%.
Financial incentives and stricter building codes are encouraging firms to invest in sustainable technologies. For example, initiatives like the Clean Cooling Collaborative and the SEAD (Super-Efficient Equipment and Appliances Deployment) aim to increase the adoption of energy-efficient appliances such as air conditioners, refrigerators, and lighting.
The Role of IoT and Edge Connectivity
IoT and edge connectivity are transforming the construction and building sectors by enabling smarter, more efficient operations. IoT devices collect and analyse data from sensors embedded in buildings, providing insights into energy usage, air quality, and system performance. Edge connectivity ensures secure and fast communication between devices, allowing for real-time decision-making and automation.
These technologies are particularly valuable in managing legacy systems and older equipment, which often lack connectivity. By integrating IoT solutions, building operators can oversee complex operations, enhance occupant health and comfort, and reduce environmental impact.
Future Outlook: Smart Buildings and NetZero Goals
The smart building sector is poised for significant growth, driven by advancements in digital technologies and increasing regulatory pressures. By 2050, the number of households using smart technologies is expected to rise from 225 million to 478 million globally (Hernández, et al., 2024). These buildings will feature greater technological capabilities, including self-generating and energy-storing systems.
To achieve NetZero targets, smart buildings must be interconnected with local and grid-level energy systems. This includes integrating EV chargers, Vehicle-to-Grid (V2G) technologies, and smart grids. Secure connectivity and adaptable designs will be essential to create dynamic, user-centric environments that promote sustainability.
Conclusion
The construction industry’s transition to NetZero is both a challenge and an opportunity. Smart buildings, powered by IoT and edge connectivity, offer a transformative solution to reduce energy consumption, enhance efficiency, and support sustainability goals. By embracing digital technologies, sustainable materials, and innovative practices, the sector can play a pivotal role in creating a greener, more sustainable future. Governments, industry stakeholders, and communities must collaborate to drive this transformation, ensuring that smart buildings become the standard for modern construction and building operations.
