Market Trends: Building System Verticals Entering The Platform Arena

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Executive Summary

As digital platforms increasingly proliferate across the real estate and built environment software market, vendors within traditional operational technology (OT) silos – or systems that previously existed in their own vertical ecosystems – have begun the process of digitizing and creating their own platforms. Firms operating within the largest of these building verticals, namely security, lighting and HVAC, are considering whether they should pursue a further digital shift. These verticals – with their systems already deeply embedded within building infrastructure, comprising dispersed hardware such as cameras, lights, sensors and control systems – have the potential to evolve beyond their traditional roles, becoming data-rich platforms that enable centralized data collection and analysis. This report provides essential value for building operators seeking to centralize operations by identifying platform strategies that can be layered onto existing infrastructure or embedded into new construction and retrofit projects. It also delivers strategic insights for systems integrators and product owners looking to evolve their offerings, equipping them with a clear understanding of cross-vertical dynamics, emerging integration opportunities and the competitive trajectory of platform development across the built environment.
Summary for decision-makers
Digitization is transforming the industry, with its impact infiltrating building system verticals
Digital platform players fall into three strategic categories, each defined by distinct roles and perspectives
Despite progress, historical barriers and ongoing challenges continue to impede interoperability
Increased digitization is evident in lighting, HVAC and security verticals
Lighting vendors have long believed in their ability to create lighting-centric digital platforms, achieving varying degrees of success
HVAC vendors have embraced integration with other building systems, but mechanical complexity and stewardship prove challenging
Security systems champion data collection and analytics, but regulatory restrictions constrain growth
Other verticals could create their own digital platforms, but are unlikely to do so
Figure 1. Examples of different terminology for building system verticals 
Figure 2. Data flow of smart lighting technology 
Figure 3. Data flow of smart HVAC technology 
Figure 4. Data flow for centralized security technology
Figure 5. The evolution of these verticals has been shaped by unique priorities and specifications
Figure 6. Data flow of a lighting-based digital platform
Figure 7. Use cases of modern lighting solutions
Figure 8. Data flow of an HVAC-based digital platform
Figure 9. Use cases of modern HVAC solutions
Figure 10. Data flow of a security-based digital platform
Figure 11. Use cases of modern security solutions
Figure 12. An example of how a vertical-centric entrant can reshape the market map of digital platforms

About the Authors

Cara Haring

Cara Haring

Senior Analyst

Cara is a Senior Analyst at Verdantix, specializing in digital platforms and operational technology for the built environment. Her research helps real estate owners, occupiers…

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Claire Stephens

Claire Stephens

Research Director

Claire Stephens is a Research Director at Verdantix, leading research into technologies and services shaping the real estate and the built environment, encompassing …

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