1Q 2021

Ecosystem Strategy for Networked Buildings: Business Model Innovation Beyond the Status Quo

Ecosystem Strategies Report

The global built environment is facing strains on resilience as a result of natural disasters, public health crises such as the coronavirus pandemic, and social unrest. As the need for energy efficient, smart, and resilient infrastructure increases to address these and other unprecedented events, the role of technology to aid in this transformation is becoming paramount. Hardware, software, and service providers looking to expand and grow offerings within the networked buildings ecosystem need to evolve to address the changing needs of customers.

Emerging business models can help meet these needs by creating ongoing trusted relationships between providers and customers and shifting the burden of capital investment. Evolving business models that shift the burden of CAPEX to OPEX are providing opportunities to transform the built environment, creating energy efficient, digital infrastructure. No single provider is positioned to meet all customer needs, and networked building partnerships allow for tailored solutions for customers while opening the door to recurring revenue opportunities for providers.

This Guidehouse Insights report outlines the shifting landscape of product offerings toward holistic solutions and new customer demands. This report highlights how innovative business models can address the need for sustainable, resilient, digital infrastructure; the challenges new business models can create; how a new sales approach is needed with new stakeholder alignment; and key recommendations for providers.

Pages 14
Tables | Charts | Figures 5
  • How is the building technology landscape shifting?
  • What does the transformation from smart systems to a networked building ecosystem look like?
  • What are evolving business models?
  • What role do partnerships play in innovative business models?
  • What are challenges of new business models?
  • What are benefits of service-focused business models?
  • Building automation and controls vendors
  • ESCOs
  • Utilities
  • Building system manufacturers
  • Real estate owners
  • Investor community

Executive Summary

Shifting Landscape of Product Offerings

From Smart Systems to a Networked Building Ecosystem

Evolving Business Models

Shifting Competitive Landscape

Transitions to XaaS

Challenges of New Business Models

Benefits of Service-Focused Business Models

Success Potential through Service Business Models

Redefine the Sales Approach

Key Recommendations


  • Shifting Landscape of Product Offerings
  • Shifting Competitive Landscape
  • New Business Model Vendor Roadmap
  • EaaS Financing Revenue by Region, World Markets: 2020-2029
  • Redefine the Sales Approach