Moore’s Law Hauls The Real Estate Tech Industry Back From The Brink Of Obsolescence
In 1965, Intel co-founder Gordon Moore observed that the size of the transistors on computer chips were shrinking so fast that approximately every two years it was possible to double the number of transistors on a chip. This became known as Moore’s Law. This doubling of the power of chips has driven technological progress for the past five decades. While this has translated into ever more processing power enabling the development of new technologies such as artificial intelligence and smaller, more cost-efficient multivariable sensors – the up take within the real estate industry has been stubbornly slow. Do new scales of investment in disruptive real estate technologies indicate the status quo is now changing and will this upend the real estate and facilities management industries?
Most notable is the continuing rise of the Proptech investment asset class. Proptech software solutions leverage emerging technologies such as artificial intelligence and machine learning (PointGrab and LEVERTON), blockchain (ChromaWay and Midasium), augmented and virtual reality (IrisVR and Floored which was acquired by CBRE), and of course IoT-based solutions for increased building occupant engagement by firms such as Levaux and Wirepas. Proptech firms raised approximately $2 billion in funding through 2016.
In addition to the emergence of Proptech, Verdantix research into hardware and software solutions for facility operations has found that the next five years will be a pivotal time for the emergence of solutions aimed at driving increased facility optimization. We expect to see emerging hardware increasingly applied in the market, such as drones, augmented reality for facility operations and maintenance, OLED lighting, facility-level batteries, optical capture sensors and information beacons. These technologies are being developed by firms such as Acuity Brands, Aruba, IBM, Schneider Electric, Siemens, Skycatch, STEM, and VTT to help real estate owners and operators upgrade existing and new facilities to meet market demands for improved workspace performance.
Similarly, the next five years will also be pivotal for the advent of several facility optimization software solutions. Solution vendors are responding to facility owner demands for improved management of building operations and maintenance and greater insight into associated costs with software advancements to revolutionize operational monitoring and control of building portfolios. Verdantix research has found that the next five years will see significant advancements in solutions for self-learning buildings, IoT platforms for buildings, space management, predictive maintenance, virtual workplace assistants and facility optimization software solutions.
To hear more about emerging software technologies for optimizing building performance, sign up to attend the upcoming Verdantix webinar: New Facility Optimization Software Benchmark: How To Select The Best Fit Vendor.