Our Predictions for 2023
We predicted some pretty accurate trends last year, so we thought we’d have another go at being Mystic Meg and outline our predictions for 2023.
After speaking with stakeholders across the industry and listening to seminars at various industry events throughout the year, these are the top trends we think will grow in importance throughout 2023.
Circular Economy
We must transition to a circular economy and leave the take, make, waste mentality behind. This is true across all industries but is something we expect to see actioned further within the built space.
Buildings are assets, and we must extend their lifecycle, repurposing them rather than demolishing them and building new ones; we have the technology to achieve this; we just need attitudes to align. More legislation is being announced that forces change, but we need this change to be adopted with more haste and the consequences of not complying need to be harsher.
With the cost of living increasing and energy prices on the rise, many businesses are feeling the pinch. We must become more self-sufficient, and transitioning to renewable energy is a large part of that. This links to carbon reduction below.
Learn more about how lighting integration software can assist with circular economy efforts.
Carbon Reduction
Environmental, Social, and Governance (ESG) reporting is increasingly being made mandatory, and investors are now asking for this information before investing in businesses; if a company does not have a net zero strategy and a positive ESG score/improvement plan, it is not seen as an attractive opportunity to invest in.
When a small, mid-sized or large issuer understands the value of ESG data and reporting, investors' ability to see the full picture of their asset's performance and prospects is enhanced (LSEG 2020).
A 2021 study conducted by global strategy and pricing consultancy Simon-Kucher & Partners found that 61% of Americans rated sustainability as an important purchase criterion, with much higher percentages for Millennials and Gen Z (Horst Construction).
“49% of millennial millionaires make their investments based on social factors. Therefore, it is essential for VCs, startups and tech companies to anticipate the law” (PlanA).
There are, of course, a multitude of environmental building standards that owners and landlords can refer to when upgrading their portfolios, but it is legislation that is driving change (however, this may not be happening as quickly as we would like).
Ultimately, urban areas emit a lot more carbon than any other. The world's cities emit 70% of the world's carbon dioxide (National Geographic 2018), and buildings account for a large chunk of this. Therefore, it is important to understand how buildings are currently performing now and how they can be improved to become more sustainable. We expect (and hope) this to accelerate dramatically in 2023.
Learn how we can support the journey to net zero.
How Does ESG Impact Smart Buildings?
The True Value of Healthy Buildings
Cybersecurity
We are increasingly creating digitised, fully connected buildings which offer a wealth of benefits to owners, occupiers and the environment, but it does increase their risk of being targeted by a cyber attack. Therefore, cybersecurity has become even more important; it can be a huge barrier to the adoption and retrofit of smart buildings for IT departments if they are not consulted and able to gain an understanding of a solution’s cybersecurity credentials.
We expect to see a rise in secure DevOps, strengthening security measures and protecting data by acting as both a consultant and installers, ensuring organisations of all sizes are secure and risk is minimised.
Cybersecurity in Smart Buildings.
System Integration
Closely linked to cybersecurity, a lack of system integration creates technical complexity, such as data security issues, data theft, data redundancy, and backup issues. Old systems and data silos are useful to no one, so having the ability to unify these systems and send the data to a single source provides facility managers with data-driven insights which can be utilised to improve the performance of their buildings.
Connectivity throughout a building also improves desirability, asset value, efficiency, and it saves money in the long run as all systems can communicate, automation can be set up, or predictive maintenance implemented to create a more environmentally friendly, streamlined and secure building.
Learn more about lighting integration software.
The Value of Connectivity in Buildings.
Integrated Building Services Help To Achieve Net Zero.
We expect the role of system integrators and master system integrators to continue to grow in 2023; below are some key stats:
The infrastructure integration segment held the largest market share of 30% in 2021
The consulting segment is expected to grow at a CAGR of more than 10% during the forecast period
Source: Maximize Market Research
People-Centric Spaces
We have seen this trend grow over the last few years after COVID, and we are now in a situation where many employees work remotely or in a hybrid model; therefore, there is a surplus of ageing building stock. By prioritising occupants’ needs and creating human-centric spaces, it entices people into buildings such as offices and helps with tenant retention.
It has developed into a major design trend, creating versatile spaces that combine digital and physical worlds. IoT will help spaces adapt to suit specific tasks and user needs, whether that is working independently, in a group social or in a formal business meeting; technology will help to create flexible environments and act as an extension of businesses brands, reinforcing values and creating positive work culture for employees.
We already know that much of today’s existing building stock needs to be upgraded to make it more environmentally friendly and reduce operational carbon. Therefore, it makes sense to consider occupants in this plan, too, making buildings that are also healthy for them with a focus on automation, data insight, improved control, optimised lighting, heating/HVAC and air quality alongside breakout/mindful areas, collaborative space, gyms, cinemas and more. It has been coined hotelification, offering occupants added value and enjoyment, which in turn can lead to improved productivity, mood, reduced staff turnover/sick days and a positive culture which attracts talent.
How ‘WELL’ is lighting in buildings?
In summary
Many of the trends predicted above lead back to environmental performance. This is the number one priority for the industry in 2023, and we are excited to see the industry embrace this and make changes for the greater good of our planet.