AI in homes & buildings estimated to garner revenues of US$9B by 2030
Growth opportunities for predictive maintenance and voice assistance AI application will increase significantly, predicts Frost & Sullivan
SANTA CLARA, Calif. – Frost & Sullivan’s recent analysis, Artificial Intelligence in the Global Homes & Buildings Industry, Forecast to 2030, finds that the deployment of artificial intelligence (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%, the industry is likely to garner revenues of US$8.98 billion by 2030, compared to US$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,” said Anirudh Bhaskaran, energy and environment senior industry analyst at Frost & Sullivan, in a prepared statement. “Additionally, AI solution providers need to primarily focus on customers that are committed to sustainability and a circular economy.”
However, with COVID-19 uncertainty, building owners and managers are rethinking their investment strategies as the crisis has propelled the need for AI-driven solutions.
“From the perspective of AI application areas, demand for predictive maintenance capabilities will increase significantly over the forecast period,” Bhaskaran said. “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.”
To tap into the growth prospects created by the use of AI in homes & 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.