Building Analytics Market Trends

Growth Drivers

• Energy benchmarking compliance driving adoption: A significant catalyst of the building analytics market is the push by regulatory compliance. In 2023, multiple jurisdictions, such as Local Law 97 of New York City, the Minimum Energy Efficiency Standards (MEES) of the UK, and the EU’s updated Energy Performance Buildings Directive (EPBD), mandated commercial buildings to report energy consumption annually. Additionally, the metrics underscoring measurable growth are to be highlighted via MEES's enforcement, leading to the increasing compliance rates in the U.K. The market is projected to leverage these trends and maintain its expansion by the end of 2035. In May 2024, the updated Energy Performance of Buildings Directive (EPBD) (EU/2024/1275) set stronger rules for new buildings to save energy and to be zero-emission by 2030.
• Real-time detection bolstered by edge computing improving operational resilience: The rapid advancements in edge computing, converging with the advent of AI algorithms, have enabled improved fault detection and predictive maintenance in building systems. This creates a favorable ecosystem for the heightened adoption of building analytics. The shift is particularly impacted by the rising IoT sensor deployment, and to avoid the surging cost of downtime in critical commercial infrastructures such as hospitals. The convergence of analytics improvements driven by technological advancements and the rising connectivity across the world is poised to ensure that the market's momentum remains prolific throughout the forecast timeline.
• Technological trends: The global market is evolving due to technological advancements driving improvements in analytics platforms.  Another major advancement has been the proliferation of digital twins, which has significantly bolstered predictive maintenance. Due to the convergence of AI and ML, product development has been bolstered within the global market. In May 6, 2025, Kyvos Insights launched Kyvos Dialogs, a new AI-powered tool for analyzing data. This tool lets business users ask questions in everyday language to quickly get accurate and relevant insights from all their company data. Thus, the major companies in the market are leveraging AI-driven simulations to accelerate design cycles.

Challenges

• Fragmented data ecosystem hindering integrated analytics delivery: The building analytics market suffers due to the fragmented nature of the data sources and regulatory standards. The diversity of heterogeneous datasets has exacerbated the impediments to integration. This leads to increased downtimes impacting various facets of the market, from the consumer to the operator. Additionally, the market’s reliance on multiple vendors void of unified data protocols compounds the challenge.
• High deployment and integration costs: High upfront deployment and integration costs are a prime barrier to market growth. This factor is mainly reported in developing markets and among small to mid-sized facility owners. Implementing advanced building analytics requires high capex, which is not readily available to small companies. Thus, developing markets often show complex results for investors.