Urban sustainability is gaining momentum worldwide, driven by the rapid adoption of smart building technologies and district heating and cooling (DHC) systems. According to the Xylem Vue report, integrated digital platforms are playing a central role in managing these technologies and improving energy efficiency across urban environments.
The global market for smart buildings is expected to grow significantly in 2025, with estimates ranging between US$117 billion and US$252 billion. This growth is supported by a compound annual growth rate of between 21.8% and 29.7%, particularly in segments such as energy management and security (Fortune Business Insights).
Smart buildings rely on information and communication technology-based systems to manage and monitor assets in real time. These include lighting, air conditioning, parking, and energy use. Integrated platforms incorporating artificial intelligence, the Internet of Things (IoT), and data analytics allow facility managers to increase operational efficiency and reduce waste.
“Combining data via integrated platforms is transforming energy efficiency and paving the way for sustainable cities,” said Beatriz Bolonio, solutions selling buildings & industry at Xylem Vue.
Emerging tools such as digital twins and energy management systems support predictive maintenance and optimal resource allocation. In the commercial building sector, which is projected to lead the smart building market with a 53% share in 2025, these innovations are key to reducing energy consumption and lowering operational costs.
Digital platforms enable more efficient thermal networks
Beyond individual buildings, DHC networks are being recognised as critical infrastructure for smart cities. These systems distribute thermal energy efficiently and can integrate various renewable sources. Digital platforms enhance their performance by continuously monitoring energy flow and adapting operations in real time to meet varying demand.
“Platforms are constantly monitored to optimise energy flow, improve operational efficiency, and ensure a rapid response to fluctuations in demand,” according to Xylem Vue.
The report also highlights the environmental advantages of DHC networks, which support circular economy models by incorporating waste energy recovery and reducing reliance on fossil fuels. Their relatively small operational footprint and lower maintenance costs make them a practical solution for future-ready urban planning.
As cities look to decarbonise and manage energy more intelligently, the role of integrated data platforms in both smart buildings and district energy systems is set to grow.
