FM sector doubles down on smart tech to drive building performance

Facilities management (FM) is undergoing a rapid technological transformation, with near-universal investment in smart systems reshaping how office and workplace environments are operated, according to new research from FM specialist Bidvest Noonan.

The study, based on responses from 110 senior FM decision-makers across the UK and Ireland, found that 97% expect technology investment to increase over the next two years, with none anticipating a reduction. The findings point to a sector moving beyond experimentation and into large-scale deployment of data-driven building management tools.

At the core of this shift is a three-layered technology strategy centred on smart sensors, digital platforms and artificial intelligence. Internet of Things (IoT) sensors and building monitoring systems are being deployed to capture real-time data on occupancy, energy use and equipment performance, forming the foundation for more advanced analytics.

These systems are increasingly integrated into digital FM platforms, which act as centralised control hubs for building operations. The research shows that 52% of organisations now prioritise investment in such platforms, reflecting their role in coordinating maintenance, compliance and performance across complex estates.

Artificial intelligence is emerging as the next frontier. While adoption remains at an earlier stage, 95% of respondents expect AI to deliver productivity improvements of at least 10% by 2030, with more than half anticipating gains of 20% or higher. Applications include predictive maintenance, automated reporting and energy optimisation, enabling buildings to operate more efficiently and with greater resilience.

The impact is particularly evident across larger office portfolios. Among organisations managing estates over 500,000 sq ft, 68% expect significant increases in technology investment, driven by the need to manage complexity and improve operational performance at scale.

Automation is also gaining traction. Two-thirds of respondents are actively considering, piloting or deploying autonomous service robots for tasks such as cleaning and security, reflecting a broader move towards technology-assisted service delivery within commercial buildings.

However, the research highlights that technology alone is not enough to guarantee improved outcomes. Despite strong investment, many organisations continue to face challenges in implementation, particularly around system integration and internal capability.

A key finding is the gap between investment intent and operational impact. While leadership support and clear performance metrics are identified as critical success factors, inadequate staff training remains one of the most common causes of failure, cited by 64% of respondents.

This “training paradox” suggests that while organisations are prioritising technology acquisition, they are often underestimating the importance of workforce readiness and change management in delivering value from those systems.

The report also underscores the growing strategic role of FM within office environments. Technology investment is no longer driven solely by cost reduction, with service quality and user experience cited alongside efficiency as primary drivers. This reflects a broader shift towards workplaces that are responsive, data-led and aligned with evolving occupier expectations.

As office buildings become more complex and performance-driven, the integration of digital infrastructure is increasingly seen as essential. The research suggests that organisations able to effectively combine smart systems with operational expertise will be best positioned to deliver efficient, high-performing workplaces in the years ahead.