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Infrastructure Transition Monitor Report

Inside smarter buildings

How innovations are saving costs and cutting emissions

Global insights for a sustainable future

Based on a global survey of 1,400 executives and supplemented with in-depth expert interviews, the Siemens Infrastructure Transition Monitor 2025 provides comprehensive insights into the global transformation of infrastructure. This study examines, in three distinct reports, the interconnected pillars of change:

  • How the evolution of energy infrastructure - enabled by digital technologies - is driving progress toward a net zero future
  • The progress, priorities, and issues in the decarbonization of buildings
  • The industrial sector's progress toward sustainability
Key findings

Start by using less: Toward more efficient buildings

Progress on buildings-related infrastructure transition goals remains mixed. Onsite renewables and electrified heating have advanced, but energy efficiency and material reuse have stalled. Energy-efficient design and retrofitting face cost and policy barriers, with real estate respondents citing high expense and limited access to finance. The good news is that energy efficiency is now the top priority, and investment is rising. Models like Energy-as-a-Service (EaaS) offer a way to decarbonize without tying up capital, enabling faster progress.

Redefining building performance

Most respondents say digitalization has strong or transformational potential to reduce costs and improve energy efficiency. Digital building technologies deliver real-time performance data, automate energy management decisions, predictive maintenance and, eventually, autonomous optimization. However, only 50% say their organization has the data they need to make decarbonization decisions. This is why transparency is a crucial benefit of smart building technologies, helping organizations cut energy use by identifying high-energy assets and usage patterns.

AI will reveal entirely new ways to think about energy management. But it doesn’t replace the need to get the basics right, like choosing efficient equipment, passive design measures, smart buildings, and strong appliance standards.
Brian Motherway, Head Energy Efficiency and Inclusive Transition, International Energy Agency

Moving toward autonomous buildings

AI is seen as key to decarbonization. In fact, the top three digital technologies respondents expect to have the biggest impact on decarbonization are all AI-driven. Grid-interactive buildings are one example: these are already able to adjust energy use in real time, based on price or carbon signals, improving efficiency and cutting costs. The next step is implementing autonomous systems which are self-optimizing with self-healing capabilities, using AI to make better informed decisions. While cybersecurity is a concern, most organizations feel prepared, with 54% ready to adopt autonomous systems and only 27% avoiding digital tools due to security risks.

59% of respondents agree:

The benefits of autonomous systems in buildings outweigh the costs

54% of respondents agree:

My organization is ready to adopt autonomous systems in buildings

51% of respondents agree:

to invest significantly in autonomous systems in the year ahead

Partner Insight

Why building regulations are a critical driver

By Cristina Gamboa, CEO, World Green Building Council

A group of people standing in front of a building with a banner that reads

Constructing or retrofitting buildings to be energy efficient is increasingly seen by world leaders and intergovernmental organisations as the most immediate and cost-effective decarbonisation lever. A recent UN report highlights that the sector has the potential to cut 11% of global emissions by 2035 — equivalent to taking one billion cars off the road for a year.
A recent UN report highlights that the sector has the potential to cut 11% of global emissions by 2035 — equivalent to taking one billion cars off the road for a year.

As such, building regulations have become a critical driver of decarbonisation, with countries across the globe introducing regulations that target both operational and embodied carbon (associated with construction and transportation). However, despite this progress, according to a 2024 IEA report over 50% of new global construction is not covered by building codes.

National climate action plans often fail to adequately support the implementation of these regulations. Under the Paris Agreement, each country submits Nationally Determined Contributions (NDCs) — or national climate action plans — to outline their strategy to reduce greenhouse gases. While the vast majority (84%) of NDCs reference the buildings sector, less than 10% provide any in-depth detail on buildings, and only a small majority (54%) mention energy efficiency in buildings at all.

We believe governments should integrate the buildings sector into NDCs. This can be supported by tools such as our NDC Scorecard for Sustainable Buildings. This digital tool that helps governments and wider stakeholders to identify best practice policy measures that should be contained within a country’s climate action plan and their national policy framework.

Current NDC commitments leave us well short of the goal to keep global warming close to 1.5ºC. Being bold on buildings offer us the opportunity to get much closer to that goal, but only if they do not remain a blind spot in our climate response.

Get full insights on building infrastructure

How innovations are saving costs and cutting emissions

About the research

The Siemens Infrastructure Transition Monitor (ITM) is a biennial research study launched in 2023. Now in its second edition, the ITM tracks the evolving state of the world's transition toward net zero over time, highlighting the most urgent priorities and the path ahead for businesses and governments. The ITM is based on a global survey of 1,400 leaders and senior executives from both the private and public sector. In 2025, survey respondents were drawn from 19 countries and 37 sectors (grouped into eight major industry segments for reporting purposes). The research also draws on insights from in-depth interviews with a select group of leaders and experts.

  • Dr. G Ganesh Das, Chief, Collaboration and Innovation, Tata Power Company
  • Sabine Erlinghagen, CEO Grid Software, Siemens Smart Infrastructure
  • Jan Fassbender, Head of Global Facilities and Engineering, One Human Pharma, Boehringer Ingelheim
  • Edmund Fowles, Founding Director, Feilden Fowles Architects
  • Daniela Haldy-Sellmann, SVP and General Manager Energy and Natural Resources Industries, SAP
  • Thomas Kiessling, Chief Technology Officer, Siemens Smart Infrastructure
  • Brian Motherway, Head of Energy Efficiency and Inclusive Transitions, International Energy Agency
  • Andreas Schumacher, Executive Vice-President Strategy, Mergers & Acquisitions, Infineon Technologies
  • Susanne Seitz, CEO Buildings, Siemens Smart Infrastructure
  • Dr. Sean Woolen, Assistant Professor, Department of Radiology and Biomedical Imaging, University of California