The global artificial intelligence (AI) in homes and buildings market will increase by 27.7% per annum between 2019 and 2020, according to Frost & Sullivan.
Revenue generation will increase from $610 million to $8.98 billion during the forecast period.
Growth opportunities for predictive maintenance and voice assistance AI application will increase significantly over the forecast period, predicts Frost & Sullivan.
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.
To take advantage of the market growth, vendors need to:
- Target firms that are committed to sustainability and circular economy.
- Target companies that have already incorporated building energy management system in their buildings.
- Reach a larger mass, AI-based home solution providers need to partner with utilities, telecommunications companies, and insurers.
- Have flexible business and payment models to maximise revenue potential.
Anirudh Bhaskaran, energy and environment senior industry analyst at Frost & Sullivan, adds: “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.
“Additionally, solution providers need to primarily focus on customers that are committed to sustainability and a circular economy.
“From the perspective of AI application areas, demand for predictive maintenance capabilities will increase significantly over the forecast period.
“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,” concludes Bhaskaran.
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