To tackle today’s environmental challenges, there is a growing need to transform the way we design, construct and manage buildings. Discover how.
The report “Smart and Circular Buildings”, published by Intesa Sanpaolo Innovation Center in collaboration with Frost & Sullivan, provides an overview of emerging technologies in Smart Buildings and of the Circular Economy paradigm, highlighting how these can contribute to decarbonization and help trigger urban regeneration.
Smart Buildings are advanced structures that integrate interconnected systems, IoT sensors, and artificial intelligence. These technologies enable the optimization of occupant comfort, the reduction of energy consumption, and increased operational efficiency compared to traditional buildings.
The building sector accounts for 35% of global energy consumption and 40% of CO₂ emissions, according to Frost & Sullivan. Moreover, the European Commission reports that buildings in the EU consume around 40% of energy and produce 36% of greenhouse gas emissions.
In the context of Smart Cities, Smart Buildings represent a concrete response to the urgent environmental and climate-related challenges of sustainable construction. In this regard, the European EPBD (Energy Performance of Buildings Directive) aims to cut energy consumption by 11.7% by 2030, while also promoting energy efficiency and the integration of renewable sources in buildings.
Emerging technologies for intelligent buildings include Building Automation Systems (BAS), Building Information Modeling (BIM), digital twins, and artificial intelligence applied to predictive maintenance, all of which allow for more precise and proactive building management.
In addition, smart grids - intelligent electricity networks that collect real-time data - enable Smart Buildings to interact with the power grid, optimizing energy use and supporting the integration of renewable sources.
A key focus of the analysis is the role played by reurbanization, understood as a strategy to regenerate degraded urban areas and promote low-emission, resilient environments. In this context, the contribution of the SRM research center has been pivotal.
Through its study “The Construction Supply Chain: Innovation, Sustainability and Growth Prospects”, SRM has shown how urban regeneration can act as a lever for social transformation, particularly in marginalized areas of Southern Italy.
The report also highlights the role of the European “New European Bauhaus” (NEB) programme, which promotes the creation of sustainable, beautiful, and inclusive spaces.
The NEB Facility, active from 2025 to 2027, aims to transform European neighborhoods through funding and innovative operating models, with a focus on circular materials, community participation, and social inclusion.
To reinforce the circular vision of Smart Buildings, the Circular Economy Lab recommended including an excerpt from the study “Building Prosperity” by the Ellen MacArthur Foundation, a global reference think tank for the Circular Economy transition, with Intesa Sanpaolo as Strategic Financial Partner since 2016.
The study highlights the role and benefits the circular paradigm can bring to the construction sector. According to this analysis, a construction sector designed to be circular and nature-positive could generate up to €575 billion per year by 2035, creating value throughout the supply chain.
The multiple benefits include:
• €363 billion from optimized design and sourcing;
• €111 billion from integrating nature into cities;
• €101 billion from regenerating underutilized urban assets.
Furthermore, the adoption of circular strategies is estimated to reduce EU CO₂ emissions by 5%, lower urban temperatures by 1 to 3°C, and create up to 4 million new jobs by 2030.
In conclusion, the report “Smart & Circular Buildings” shows how the combination of technological innovation, sustainable planning strategies, and circular economy principles can guide the transformation of urban environments toward more resilient, efficient, and inclusive models.
The synergy between research, policy, and investment represents a concrete path toward shared prosperity and the ecological transition, as evidenced by SRM’s contribution and the forward-looking vision of the Ellen MacArthur Foundation.
The adoption of smart solutions for energy, air, acoustics, water and security is growing. Discover how smart building technologies improve efficiency, comfort and sustainability and how to manage the risks of digital transformation
Report by Intesa Sanpaolo Innovation Center - Innovation Intelligence
