Reducing operational costs has become the primary driver behind smart building investments, surpassing sustainability goals, according to new 2025 research from the Association for Smarter Homes & Buildings (ASHB) and Harbor Research. The Smart Building Trends & Technology Adoption study surveyed 308 commercial building stakeholders across the U.S. and Canada, revealing a rapidly evolving market centered on data-driven optimization, artificial intelligence, and cloud-based building management.

The research shows that 91% of organizations have already adopted smart building systems, with average annual investments surpassing $550,000. While HVAC and electrical systems are still the most prevalent, smarter capabilities are more advanced in areas such as lighting, fire/life safety, electrical distribution, and security systems.

Key priorities driving smart building technology adoption remain focused on:

• Reducing operating costs
• Enhancing sustainability
• Improving occupant experience

A major trend highlighted in the report is the move toward cloud-based Building Management Systems (BMS). Nearly 45% of respondents are considering or already transitioning to cloud platforms—motivated by the flexibility of subscription-based OpEx models, remote access, and advanced analytics. However, challenges such as integration complexity, cybersecurity, upfront costs, and lack of internal expertise still hinder broader adoption.

The report identifies six transformative trends shaping smart building investment strategies:

• Cloud-based BMS adoption
• Evolving smart building software ecosystems
• Sustainability and energy performance initiatives
• Use of digital twins for predictive insights
• Real-world AI applications with measurable ROI
• Monetization and subscription models for building services

Greg Walker, CEO of ASHB, emphasizes that “facility teams are being asked to do more with less,” and vendors must now focus on addressing ROI clarity, integration simplicity, and skill gaps to support the next phase of smart building growth.

The $80,000 research project was supported by industry leaders such as Honeywell, Siemens, Schneider Electric, Trane Technologies, Johnson Controls, and National Research Council Canada, among others.

An executive summary is available for free public download. Full findings, including detailed infographics and survey data, will be publicly available via the ASHB Shop in April 2026.

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