Oliver (pictured above) remains chairman and CEO of Johnson Controls until a successor is named. Moreover, he will remain board chair once the new CEO is named to "allow for a smooth management transition," the company said.
Patrick Decker joins Johnson Controls board
Johnson Controls has hired an executive search firm to help evaluate internal and external CEO candidates. The company did not disclose a timeframe for naming Oliver's successor. Also, the search firm's name was not disclosed.
Johnson Controls Business Evolution
Oliver has been Johnson Controls' chairman and CEO since 2017. In recent years, he has sharpened the company's focus on smart commercial buildings, data centers, and associated sustainability strategies.
The journey involved exiting multiple markets. Recent moves include:
Smart Building Technologies: AI, IoT and OpenBlue Software
For a closer look at the overall business strategy, rewind to a December 2023 earnings call with Wall Street analysts. On that call, Oliver explained how the company was betting its business on smart building technologies that align with customers' energy efficiency, sustainability and decarbonization goals.
The strategy leans heavily on artificial intelligence (AI), Internet of Things (IoT) and cloud computing services that save energy and reduce emissions, while improving the overall building occupant experience, the company has emphasized.
Related Podcast: Johnson Controls CTO Vijay Sankaran describes AI's role in smart buildings
Johnson Controls' data-gathering technology, known as OpenBlue, brings both IT and OT (operational technology) data together from across a building's ecosystem. The software can "break down silos" between third-party equipment, Oliver pointed out.
Commercial Smart Buildings: The Sustainability Opportunity
Cities and countries worldwide are launching regulations that will force building owners and real estate investors to decarbonize their commercial and residential assets.
Demand for building energy management systems appears steady to strong, depending on which market forecast you potentially believe. For instance:
The global building automation and control system market will reach $168.8 billion by 2031, up from $87.3 billion in 2022, Transparency Market Research forecast. That's a compound annual growth rate (CAGR) of 7.9%, the firm said.
Spending on building management systems is expected to reach $19.25 billion in 2023, up from $6.65 billion in 2016. That's a 16.7% compound annual growth rate (CAGR) during the forecast period, according to MarketsAndMarkets.Â
Amid those trends, Johnson Controls is striving to accelerate organic business growth. But the effort remains a work in process. Indeed, the company announced sales of $7.2 billion in Q3 of 2024 -- up 1% compared to Q3 of 2023.
We'll take a closer look at the financial results within the next 24 hours or so. Stay tuned for potential article updates by August 1, 2024.
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