AI in homes, buildings gaining rapid momentum
The study finds that the deployment of AI in the homes and buildings space is gaining rapid momentum across the globe as the industry is estimated to witness an approximate 15-fold increase by 2030. Increasing at a compound annual growth rate of 27.7%, says the firm, the industry is likely to garner revenues of $8.98 billion by 2030, compared to $610.2 million in 2019.
“Demand for value-driven solutions and cost reduction due to increased operational efficiency are prominent market drivers of AI in the homes and buildings industry,” says Anirudh Bhaskaran, Energy and Environment Senior Industry Analyst at Frost & Sullivan. “Additionally, AI solution providers need to primarily focus on customers that are committed to sustainability and a circular economy.”
COVID-19 uncertainty, says the firm, is forcing building owners and managers to rethink their investment strategies as the crisis has propelled the need for AI-driven solutions more than ever before.
“From the perspective of AI application areas, demand for predictive maintenance capabilities will increase significantly over the forecast period,” says Bhaskaran. “This is because building owners and managers aim to reduce the downtime of building systems and increase their lifetime. Further, virtual voice assistance is another AI application that will be massively used for home automation and control.”
According to the firm, to tap into the growth prospects created by the use of AI in homes and buildings, technology vendors should focus on the following:
- AI participants should target firms that are committed to sustainability and circular economy.
- AI vendors need to target companies that have already incorporated building energy management system (BEMS) in their buildings.
- To reach a larger mass, AI-based home solution providers need to partner with utilities, telecommunications companies, and insurers.
- AI solution providers should have flexible business and payment models to maximize revenue potential.
The study identifies the top AI applications in the homes and buildings industry offering growth opportunities to participants in different verticals and countries. It also highlights the top AI solution providers that contribute more than 95% of the market revenue and the companies to watch that have the potential to change the industry dynamics going forward.
For more, see “Artificial Intelligence in the Global Homes & Buildings Industry, Forecast to 2030.”
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