Memoori estimates that the market for AI & Machine Learning in Smart Commercial buildings generated total revenues of $1.11 billion in 2020, and predicts that it will grow by 24.3% CAGR through to 2025 nearly tripling in value to approx. $3.3 billion by 2025.

AI to displace older generation devices

While organic sales growth of new AI powered solutions will be responsible for the majority of the expected growth in the market, the analysts believe it will also be driven, in part, by AI taking responsibility for an ever-greater proportion of existing building systems already in operation. AI devices will increasingly displace older generations of edge devices, and AI powered analytics will displace some more traditional forms of software analytics being sold today.

Hardware a solid proportion

The majority of hardware revenues are from edge devices, particularly the various kinds of AI enabled camera devices. Other market analysis dedicated to the wider market for AI solutions show a much heavier weighting towards software generated revenues, but the relative importance of computer vision solutions for the smart buildings market means hardware revenues constitute a solid proportion of the market and will continue to do so going forward.  Memoori analysts estimate that hardware revenues currently make up 35.5% of the market.

AI attracts significant investment

According to the research, the global AI industry is attracting significant investment and this trend also applies to those with solutions for the Smart Building market.  Almost half of the firms in the study are cited as having received some form of declared equity investment. Of these, 111 have received $1 million or more in declared funding with the median total amount of funding received running at $12 million across all of the companies on the list. Memoori's analysis also indicates that Chinese firms are in receipt of the largest amount of total funding since 2010, with over $6.3 billion, compared to $3.9 billion for US firms.