Global Ambient Intelligence Market Size, Share & Industry Trends Analysis Report By Platform (Solution, and Services), By End User, By Technology, By Regional Outlook and Forecast, 2023 - 2029

Global Ambient Intelligence Market Size, Share & Industry Trends Analysis Report By Platform (Solution, and Services), By End User, By Technology, By Regional Outlook and Forecast, 2023 - 2029

The Global Ambient Intelligence Market size is expected to reach $77.2 billion by 2029, rising at a market growth of 24.1% CAGR during the forecast period.

The term ambient intelligence (AmI) in computing describes electronic settings that are perceptive to human presence and reacting to it. Ubiquitous communication, ubiquitous computing, and intelligent user interfaces are the three main technologies on which Ambient Intelligence is built. Some major drivers for expanding the ambient intelligence market size include embeddedness, context awareness, transparency, and machine learning.

Ambient Intelligence is a term used to describe a digital setting that proactively and intelligently assists users in their daily activities. The idea of Ambient Intelligence offers a vision of the information society where a focus is placed on improved user-friendliness, more effective service assistance, user empowerment, and support for human relationships. The environment may become intelligent enough to recognize human movement and react to its changing health requirements due to passive, contactless sensors integrated into it.

Smart homes can use ambient intelligence in various ways, which has become the primary driver of market expansion. Ambient Intelligence technology assists in improving performance and efficiency and restoring human-machine contact. For instance, Ambient Intelligence enabled systems to recognize when a user is absent, allowing power savings when unused.

The rise in smart cities & smart spaces due to the increased global population has increased energy and cost efficiency, which in turn has increased the market for ambient intelligence. In addition, the market is growing due to rising investments in ambient intelligence by developing countries and rising consumer adoption of nanotechnology, smart technology, and autonomous vehicles.

COVID-19 Impact Analysis

The COVID-19 pandemic's appearance had a beneficial impact on the market for ambient intelligence and ambient computing vendors. The worldwide lockdown and moving to a lifestyle of working from home are mostly responsible for it. The trend is still in place as businesses have expanded their work-from-home policies, people are still working from home, and they are looking for cutting-edge digital solutions to streamline their working lives. Additionally, the COVID-19 pandemic has altered consumer expectations as the market for ambient intelligence is being driven by both individual and industrial users leveraging IoT sensors to meet their exponentially growing need for digital experiences. Since COVID-19 widespread has spread widely, the ambient intelligence market has reaped tremendous benefits.

Market Growth Factor

Rising demand for smart devices

Unlike conventional electrical equipment, smart devices may connect, share, and communicate with users and other smart devices nearby. The rise in smart cities or smart spaces for cost- and energy-effectiveness has been accompanied by a growth in the global population, increasing the adoption of smart houses. Voice interaction, podcast streaming, music playback, playing audiobooks, delivering real-time information, and other uses are just a few ambient intelligence applications in smart homes. This is anticipated to fuel the market's revenue growth during the period. Due to these benefits, the adoption of smart devices is predicted to increase, thereby supporting the growth of the ambient intelligence market.

Rising demand for contactless shopping

Many of these crucial aspects of the customer experience, including the lack of fitting rooms, interactions with store employees, the acceptance of cash purchases, and in-store product testing, were put to the ultimate test during the Covid-19 pandemic and the ensuing social isolation. As a result, Radio-frequency identification (RFID) tags are now a key component of automated in-store checkout systems. RFID tags are very small metal strips that transmit data about the object to which they are attached using radio waves, as their name suggests. Due to the risk of virus transmission, contactless commerce has become more popular. This increased the need for Ambient Intelligence in the retail sector and helped the market grow.

Market Restraining Factor

Security and privacy concerns along with identity issues

The ambient intelligence market's revenue expansion is anticipated to be somewhat constrained over the forecast year by several important variables, including security, privacy, and identity concerns. Data theft is rising, and privacy & security issues are becoming more common in the virtual world. It would be challenging to build a legal framework or pass legislation that can guarantee users' data will be kept secure, but there have been some efforts made by governments in various nations to provide guidelines for safeguarding any privacy. The task would be to develop a technologically sophisticated system that can be used to verify the users' identities and enable auto-erase features to secure the users' personal data from malware.

Platform Outlook

By Platform, the ambient intelligence market is segmented into solution and services. In 2022, the solution segment held the highest revenue share in the ambient intelligence market. The increased development of smart gadgets to offer a better virtual experience for everyday chores is what is driving the category growth. Hardware and software are both included in the solution section. Hardware refers to the presence of particular sensors and parts in the device, whilst software enables pairing and control between different smart devices.

End Use Outlook

On the basis of end-use, the ambient intelligence market is bifurcated into IT & telecom, healthcare, retail, residential, manufacturing, automotive, education and others. The retail segment acquired a substantial revenue share in the ambient intelligence market in 2022. Businesses tag various items and keep track of them during the manufacturing and commercialization processes utilizing RFID sensors, which are employed in Ambient Intelligence technology. The sensor makes it possible to trace a product's journey from production to consumer and helps gather useful data that the producer can use to respond to market failure and demand for a product.

Technology Outlook

Based on technology, the ambient intelligence market is fragmented into Bluetooth Low Energy, RFID, ambient light sensor, software agents, affective computing, biometrics and others. The RFID segment garnered a significant revenue share in the ambient intelligence market in 2022. RFID is being utilized more frequently in supply chain management to monitor the flow of commodities from manufacture to delivery. As a result, businesses may establish more cost-effective, responsive, and efficient supply chains, increasing customer satisfaction while lowering expenses by integrating RFID into ambient computing systems.

Regional Outlook

Region wise, the ambient intelligence market is analysed across North America, Europe, Asia Pacific and LAMEA. The North America region led the ambient intelligence market by generating the highest revenue share in 2022. This results from the industry's presence of significant companies, rapid adoption of cutting-edge technology, and high degrees of digitalization throughout many industries. The move toward automation has opened up significant economic prospects for US corporations and their competitors. In addition, the COVID-19 pandemic has increased awareness of and use of ambient intelligence in the US, where it is being utilized to increase efficiency, support the healthcare sector, and decrease manual labor.

The market research report covers the analysis of key stakeholders of the market. Key companies profiled in the report include Johnson Controls International PLC, Siemens AG, Honeywell International, Inc. (Honeywell Commercial Security), Nuance Communications, Inc. (Microsoft Corporation), Zippin, Ambient AI, Inc., Noonum, LLC, Infosys Limited, Eleos Health, Inc. and Eyeris Technologies, Inc.

Strategies deployed in Ambient Intelligence Market

Apr-2023: Siemens collaborated with Microsoft following which Microsoft’s Collaboration platform Teams and the language models in Azure OpenAI Service as well as other Azure AI capabilities have been combined with Siemens’ Teamcenter software for product lifecycle management (PLM). The integration would enable industrial companies to drive innovation and efficiency throughout the design, engineering, manufacturing, and operational lifecycle of products. This would help industrial organizations in simplifying workflows, overcoming silos, and collaborating in more ways that speed up customer-centric innovation.

Sep-2022: Honeywell signed a Memorandum of Understanding with the University Hospital Brno. The MoU includes testing skin patches for monitoring the vital functions of patients in real-time and making the data available through the mobile app. In the future, Honeywell is in talks to install its touchscreen and smart speech nurse call system at the Department of Internal Cardiology as part of a thorough hospital information system update.

Jul-2022: Zippin partnered with Logicalis, an information and communication technology solutions and services company, for deploying and developing solutions for checkout-free stores in Brazil. It leverages AI for eliminating checkout and creating the best customer experience, a strategy aligned with Logicalis' offerings.

Mar-2022: Eleos Health announced its partnership with Palo Alto University (PAU) for implementing Eleos' voice-based AI in the PAU clinic. Following this partnership, eClinic students can utilize Eleos Health's proprietary AI model for providing their sessions, implementing measurement-based care practices, and getting on-time feedback on the client's progress and therapist in training.

Feb-2022: Honeywell released the Indoor Air Quality Monitor that alerts the building operators and owners about the prospective issues for proactively upgrading indoor air quality. This would reduce the possible transmitting airborne contaminants risks.

Jan-2022: Johnson Controls acquired FogHorn, the foremost developer of Edge AI software. This acquisition would boost Johnson Controls' innovation and imagination for Smart Autonomous Buildings by seamlessly combining Foghorn's industry-leading Edge AI platform with OpenBlue.

Dec-2021: Honeywell took over US Digital Designs, an Arizona-based company. With this acquisition, the company aimed to expand its range of public safety communication solutions to offer better situational awareness for building emergencies along with enhanced life safety.

Oct-2021: Siemens took over French startup Wattsense, a hardware and software company offering a plug-and-play IoT management system. This acquisition aimed to expand its building automation products offerings apart from the massive corporate real estate market.

Jun-2021: Eyeris came into partnership with STMicroelectronics, one of the leading semiconductor companies engaged in serving customers across electronics applications. The partnership broadened Eyeris' advanced portfolio of Deep Neural Networks with ST's global-shutter sensor to in-cabin sensing applications for a comprehensive visuospatial understanding of the complete interior of a vehicle. This advanced perception supports convenience and safety features comprising Occupant Monitoring Systems (OMS), Driver Monitoring Systems (DMS), object recognition, child presence detection, activity prediction, and gesture control.

May-2021: Siemens launched the new KNX Touch Control TC5 room operator unit. The new solution makes passive buildings adaptive, bolstering smart building technologies' evolution. Moreover, the new solution encompasses all applications, such as switching, color, dimming, and color temperature control, virtually. Furthermore, the new solution can also control HVAC operations, like air conditioning and ventilation.

Dec-2020: Johnson Controls teamed up with Microsoft and the National University of Singapore (NUS). Together, the companies would help the University to combine its systems and make a more sustainable campus. It improves building management capabilities in a unique way that offers better visibility, more real-time monitoring, and modeling of how a building operates.

Aug-2020: Johnson Controls unveiled OpenBlue, a complete portfolio of connected solutions and services. This suite of solutions provides unimaginable outcomes by integrating building to the unique software capabilities, offering insights to give high customer value.

Jun-2020: Johnson Controls signed an agreement with the Singapore Economic Development Board, following which Johnson Controls aims to establish an innovation lab. The lab would pioneer a new branch of digital technology that combines spatial, building, and behavioral data with machine learning and analytics. Singapore Economic Development Board would provide financial support to the company by making investments.

Jun-2020: Siemens came into a partnership with Salesforce, an American cloud-based software company. This partnership would integrate Salesforce’s Work.com, powered by Customer 360, and Siemens’ Smart Infrastructure solutions, including Enlighted and Comfy, to orchestrate the procedure, things, and people that are important to creating connected, safe workplaces in the near future. Moreover, together both companies would be the first to deploy new solutions in office spaces as well as in Salesforce Tower in San Francisco, and Siemens Smart Infrastructure headquarters in Zug, Switzerland.

Scope of the Study

Market Segments covered in the Report:

By Platform

Solution
Services
By End Use

Healthcare
Telecom & IT
Retail
Manufacturing
Automotive
Residential
Education
Others
By Technology

Affective Computing
Bluetooth Low Energy
Ambient Light Sensor
Software Agents
RFID
Biometrics
Others
By Geography

North America
US
Canada
Mexico
Rest of North America
Europe
Germany
UK
France
Russia
Spain
Italy
Rest of Europe
Asia Pacific
China
Japan
India
South Korea
Singapore
Malaysia
Rest of Asia Pacific
LAMEA
Brazil
Argentina
UAE
Saudi Arabia
South Africa
Nigeria
Rest of LAMEA
Companies Profiled

Johnson Controls International PLC
Siemens AG
Honeywell International, Inc. (Honeywell Commercial Security)
Nuance Communications, Inc. (Microsoft Corporation)
Zippin
Ambient AI, Inc.
Noonum, LLC
Infosys Limited
Eleos Health, Inc.
Eyeris Technologies, Inc.
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