Growth opportunities for predictive maintenance and voice assistance AI application will increase significantly over the forecast period, predicts Frost & Sullivan
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 approximately 15-fold increase by 2030. Increasing at a compound annual growth rate of 27.7%, 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,” said 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.”
However, with COVID-19 uncertainty, building owners and managers are compelled 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,” 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.”
Incorporating AI in homes & buildings will add significant value for customers and enhance their experience. 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 systems (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.
