The world is changing dramatically and the buildings we live and work in need to change too. Buildings are active systems shaping how we consume energy, how we connect with technology and how we respond to the defining challenges of our time. Mike Mustapha, President of ABB Smart Buildings, explores the five powerful global megatrends which are converging to reshape what buildings must do and what they must become.
Take a moment to look around – whether you are in an office, airport, hotel, hospital or your own home – the building you are in is no longer just a backdrop to daily life. It is part of something much bigger. We spend 90% of our lives inside spaces like these, and yet, they are under more pressure than ever to do more – and do it better.
We live in a world where climate goals are tightening. Cities are swelling in size. Expectations for comfort, safety and sustainability are growing. Energy demand is surging while infrastructure struggles to keep up. AI is transforming how we live and work, but labour shortages and an ageing population mean fewer people to build or maintain the spaces we rely on.
By 2035, 5.6 billion people will live in cities. By 2050, 80% of building energy could come from electricity – most of it renewable sources. Meanwhile, 75% of construction firms have concerns around finding enough skilled people to keep up with demand.
The result? We are building more, but we need to build better, faster, smarter.
Buildings are no longer passive structures. They are active systems shaping how we consume energy, how we connect with technology and how we respond to the defining challenges of our time.
At ABB, we believe five powerful global megatrends are converging to reshape what buildings must do and what they must become.
The leaders in this space will not be the ones playing catch-up. They will be the ones who anticipate, collaborate and design for what’s next, not what’s already behind us.
1. Urbanisation: More people, less space, higher expectations
By 2035, more than 60% of the global population will live in cities. That is the equivalent of adding almost a billion people into our densest environments in just a decade.
As cities grow upward and outward, demand is rising not just for more or taller buildings, but for better ones which are safer, smarter, more efficient and more adaptable.
We are seeing mixed-use developments across Asia that respond dynamically to energy demand. In Sweden, Brobyholm – a blueprint for the smart community of the future – is setting a new standard for integrated, connected living. In Latin America, electrified housing programmes are helping reduce emissions while increasing access to energy. And, in Africa, distributed energy and automation are supporting rapid urban growth with local resilience in mind.
Urbanisation goes beyond volume and density to designing spaces that respond to the people inside them.
2. Electrification of buildings: From passive buildings to active energy systems
Buildings are responsible for 26% of global energy-related CO₂ emissions and more than 30 percent of total energy use. To meet net zero goals, up to 80% of building energy could – and must – come from electricity by 2050.
This calls for a shift in both what powers buildings and how they think. A move from systems that burn fossil fuels to systems that learn. From passive consumption to active energy management.
This is a global mission which requires intelligent energy infrastructure: smart distribution, protection, automation and integration with renewables and Electric Vehicle (EV) charging.
You can see this in action in very different environments across the world. In Vietnam, digital distribution systems are supporting high-tech campuses. In Lapland, adaptive automation keeps glass igloos comfortable in extreme, shifting conditions, from polar nights to midday sunlight. In India, smart electrification is reshaping hospitals and commercial hubs. Meanwhile in China, open standards are redefining the future of sustainable comfort for travellers at international airports.
Wherever the project, the principle is the same: ‘clean’ electrification is the foundation which makes it possible.
3. Energy efficiency & sustainability: Smarter use, better results
Electrification alone is not enough. To truly move forward, buildings need to use energy wisely, not wastefully.
From intelligent lighting and Heating Ventilation & Air Conditioning (HVAC) systems to real-time energy metering and demand management, these systems reduce usage and emissions while improving performance and comfort. In fact, the IEA states that AI and digital automation are delivering energy savings of up to 40% in modern buildings.
And this technology is being supported by regulation.
From LEED in the US to BREEAM in Europe, Green Star in Australia and Estidama in the Middle East, global frameworks are raising the bar for performance. In many regions, high-efficiency ratings are becoming the norm, rather than the exception. A recent report by the UN revealed more than 20% of new commercial buildings in developed countries were green-certified in 2023 – up from just 15% three years earlier.
All over the world, from government buildings to data centres and universities, these standards are pushing buildings to do more with less.
The result? Lower emissions, yes, but also lower operating costs, stronger asset value and more resilient portfolios.
Today, a building that performs well is good for people, the environment and business.
4. AI & digitalisation: Buildings that think for themselves
With smart systems, buildings can now:
- Detect faults before they happen
- Adjust to user behaviour in real-time
- Track carbon usage down to the socket
- Automate lighting, blinds, temperature and access from anywhere
Examples all over the world showcase what leading buildings are doing today, to deliver better outcomes for owners, operators, and occupants alike.
At the Living Tomorrow innovation campus in Belgium, our systems support predictive maintenance and personalised environments. A showcase of how buildings can meet the needs of tomorrow’s users today, it’s a blueprint for a new era of building design.
And across Southeast Asia’s hospitality facilities, buildings are using digital tools to optimise comfort, safety and efficiency, all while reporting in real-time on ESG performance and energy use.
5. Labour shortages & ageing populations: Simpler, smarter, safer
The average age of workers is rising. At the same time, populations are ageing, placing new demands on building access, usability and safety.
Buildings need to be simpler to build and easier to live in.
Across Europe, North America and the Middle East, we’re seeing growing demand for prefabricated, modular systems. Touch-free controls, personalised environments and simplified automation interfaces are helping support comfort and safety for everyone – from elderly residents in care homes to maintenance teams in complex commercial buildings.
Whether in homes or hospitals, buildings must now adapt to the people inside them – not the other way around.
So, what does it all mean?
Today, buildings are active energy systems, digital platforms and human-centred experiences rolled into one.
These five megatrends are signals that the old ways of designing, building and managing space are no longer enough. Those who lead in this new era will think differently. They’ll collaborate more. Automate more. And invest in technologies that do more than just meet standards – they will also meet people’s expectations.
Perhaps there’s no such thing as a ‘perfect’ building. But the closest thing to it will be one that gets these five things right: It will be Connected. Electrified. Efficient. Predictive. Inclusive.
Final word: Don’t just build for today, build for what’s coming
At ABB Smart Buildings, we don’t just watch the trends, we build for them. With our partners, we’re delivering intelligent buildings across the globe that cut energy use, reduce emissions, adapt to users and unlock long-term value.
The future is not next. It is here now, in the systems we build and the choices we make. So, look around again at the building you are in. Is it ready for what comes next?
