AI Drives Energy Efficiency in Commercial Buildings and Building Automation Market is Expected to Grow at CAGR of 8.71%

A recently published market research report by Technavio reveals that the global building automation and control systems market is expected to expand by €28 billion until 2028, driven by a compound annual growth rate (CAGR) of 8.71%. The report underscores the growing demand for energy-efficient solutions, particularly within the commercial sector, where automation systems are becoming essential to modern infrastructure.

“AI-driven energy management in commercial buildings tackles the most important issue – these buildings contribute to global emissions the most,” said Donatas Karčiauskas, CEO of Exergio, a company developing AI-based tools for energy performance in buildings. “Aside from global sustainability efforts, we aim to ensure that such AI solutions do not stop at optimizing operations. The goal is to provide predictive analytics that help address inefficiencies before they escalate.”

While the Technavio report emphasizes the role of building automation systems in enhancing building management, experts at Exergio believe that the future lies beyond simple automation.

“Automation is just the first, though inevitable and important, step,” Karčiauskas noted. “What truly sets AI apart is its ability to predict and take action. That is why our goal is to take a step further from automation. We can already anticipate and optimize energy use in real-time, which makes our platforms more advanced.”

The report highlights that commercial buildings represent almost half of the building automation market, driven by the need to comply with energy efficiency regulations and reduce operational costs. In this sector, reducing energy waste is essential to meet net-zero goals by 2050.

Gathering and interpreting real-time data is the only way to efficiently achieve net-zero goals. AI-based platforms can optimize energy use across heating, ventilation, air conditioning (HVAC), lighting, and other systems. It is particularly important in large office buildings, where thousands of data points are generated hourly, and even small efficiency gains can translate into financial savings.

“Our technology allows monitoring and adjusting energy consumption in real-time – meaning it already takes action when needed and makes that decision,” Karčiauskas added. “For instance, in one of our recent projects in Poland, an AI-driven system reduced energy waste by 20% in a large commercial buildings complex, saving over 80,000 EUR within nine months. This is the current level of impact that AI can achieve in the commercial sector, and it will inevitably grow.”

While the commercial sector is the primary focus, the Technavio report also notes significant growth in the residential segment, particularly with the rise of smart home technologies. However, the commercial sector remains the area where the most substantial gains in energy efficiency are expected, largely due to the scale of operations and the more stringent regulatory environment surrounding commercial properties.

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