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Building automation is becoming mandatory: what it means for sales in Austria

The technology has been around for years, and now the legal obligation is arriving. Why building automation still won't sell itself.

By Wolfgang BriemAbout 5 minutes to read
DEEN

“The technologies for digitalised building automation are all available.” That is how Markus Hettig, Vice President Buildings DACH at Schneider Electric, put it in early 2024, when his company backed the German VDMA industry initiative on building automation.[1] He is right. What is new is something else: a recommendation is turning into an obligation, and Austria is late in writing it into law.

26 %of global energy-related CO₂ emissions come from operating buildingsIEA [3]
up to 25 %electricity and over 40 % heat can be saved by retrofitting commercial and industrial buildingsVDMA [2]
70 kWNon-residential buildings above this heating or cooling output need building automation by the end of 2029EU directive [4]

From recommendation to obligation

The recast EU Energy Performance of Buildings Directive requires non-residential buildings to be equipped with building automation and control systems where this is technically and economically feasible. For buildings with more than 290 kW of rated output for heating, air conditioning or ventilation, this already applied by the end of 2024. By the end of 2029, the threshold drops to 70 kW.[4]

In Austria, building regulations are a matter for the nine federal states. They are harmonised through the OIB guidelines of the Austrian Institute of Construction Engineering, and guidelines 6 and 7 are the vehicle for the directive. Transposition was due by the end of May 2026. The drafts of the 2027 edition are only now open for public consultation, until 30 September 2026. The electrical industry is worried that the nine states will interpret the rules differently.[5]

The numbers are convincing

According to the International Energy Agency, operating buildings accounts for around 26 % of global energy-related emissions.[3] The VDMA association puts the average savings from retrofitting commercial and industrial buildings at over 40 % for heat and up to 25 % for electricity. A study by Waide Strategic Efficiency, cited by the association, estimates 14 % less primary energy per year across Europe's non-residential buildings if the 2018 requirements were implemented.[2]

Schneider Electric demonstrated this at its own plant in Le Vaudreuil, France: with 160 data points, energy consumption fell from 11,361 to 8,039 MWh, almost 30 %, and CO₂ emissions by more than 30 %. About half of the site's consumption was for running the building.[1]

Why an obligation still doesn't sell itself

An obligation sounds like easy business. I expect something different: many owners will buy exactly what is required and not a euro more. The standard EN ISO 52120-1 sorts building automation into efficiency classes A to D. Class D counts as not energy efficient, class C is the standard.[6] The difference between “meets the rules” and “actually saves energy” lies in the classes above that, and that is where the margin is.

What I would recommend to suppliers

1. Start with existing buildings

With the 70 kW threshold, far more buildings fall under the obligation than before, including mid-sized offices and commercial properties. Many of them have heating controls, but no system that brings heating, ventilation, lighting and shading together. Suppliers who identify these buildings now will be talking to the customer before the wave of tenders.

2. Sell operations, not compliance

“You have to” wins the contract on price. “This is what you will save in this building” wins it on value. That works best when building automation is linked to energy management: metering consumption per installation, cutting peak loads, making good use of solar power. More on this in my article on warehouse automation.

3. Know the buying center

In rented properties, the owner invests while the tenant saves on energy costs. Add facility management, building services engineers and often the financing side. Talking to only one of these roles means losing to the cheapest bid. Account-based marketing helps to make the right business case for each role.

The consultation on the OIB guidelines runs until the end of September. Anyone selling building automation in Austria should use the time until the rules take effect to prepare their sales approach. If you would like to talk it through, get in touch.

Building managementEnergy managementEU buildings directive
Wolfgang Briem
Wolfgang Briem

Sales and marketing consultant based in Vienna. Previously Sales Director IoT & Energy Management DACH at Schneider Electric and Head of Enterprise Sales at Drei (Hutchison Drei Austria), among other roles.

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