The market for artificial intelligence and machine learning in smart commercial buildings is expected to generate revenues of $3.3 billion by 2025, according to a recent study by Swedish smart building research firm Memoori.
According to the report, this market is forecast to expand at a CAGR of 24.3% during the 2020-2025 period.
Memoori said that the global market for AI and ML in smart commercial buildings had generated revenues of $1.11 billion in 2020.
“AI is now starting to deliver on its long-promised potential and its benefits for businesses are becoming a reality, proving its value and becoming increasingly embedded into day-to-day processes and solutions,” Memoori said. “The application of machine learning for smart buildings is an area generating a significant amount of research, with thousands of papers published each year since 2017. But AI is also graduating from being a purely academic discipline, with a cluster of solutions emerging from the lab and progressing into commercialization for several smart building applications.”
While COVID-19 has gripped the world for the past 18 months, driving down building occupancy and challenging almost every company in the world, Memoori noted that its recent research has found that the pandemic has actually accelerated the path towards AI-enabled commercial spaces. In fact, AI is already demonstrating its potential as an invaluable tool to support the safe and healthy return of employees to the physical workplace, the Swedish firm said.
“Virtually every AI company we have assessed during our research for this report has adapted their offerings in some way to respond to the behavioral and market changes brought about by the COVID-19 pandemic. Some have invested in new technologies and developed brand new targeted offerings, while others have sought to rebrand or tweak existing offerings to better serve changing market demands,” the new report explains. “Solutions are branded with monikers such as ‘COVID safe’, ‘New Normal’, and ‘Return to Work’. They typically bundle together a series of offerings, … many of which are enabled or can be enhanced through AI or machine learning.”
“While the market for AI in smart buildings is really starting to take off, our interviews with key industry stakeholders as well as published indicators demonstrate that the technology is yet to become truly mainstream,” Memoori’s report stated. “Where there is more near-term potential, however, is in the scaling of AI enabled solutions beyond individual buildings, particularly in the field of building energy management. Here credible research is being undertaken to enable a kind of swarm or hive intelligence over a portfolio of buildings and at an urban scale.”