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- The future of Home Services; Top Tech Trends for 2025 and beyond.
The future of Home Services; Top Tech Trends for 2025 and beyond.
How AI and other tech advancements will shape the home services industry.
Home services businesses play a pivotal role in our lives, they help us maintain the living standards in our homes and their surroundings. These businesses for long operated in a very traditional way and still are but with the current technological advancements things will change rapidly, AI, automations, AI agents, IoT, etc. will disrupt the industry like never before. The global home services market is anticipated to expand by USD 1.03 trillion between 2025 and 2029, accelerating at a Compound Annual Growth Rate (CAGR) of 10.5%.
Today we will discuss about some tech trends in the home services space and how they will impact these businesses. Now it’s about embracing the wave and building the right leverage with the help of these tech innovations to be able to drive growth, meet the changing demands of customers, provide a better customer experience and make the teams more efficient by automating the manual repetitive tasks that take much of their time and resources.
The home services industry is facing a significant dynamic change due to increasing urbanisation and rise of technological adoption in other sectors shaped customer expectations towards home services business also; today's consumers demand faster response times, real-time updates, personalised interactions and offers. Failure to meet these expectations can lead to customer dissatisfaction and loss of business.
So let’s see what are the trends that will shape the home services industry.
🧠 AI Integration
More and more home service companies will adopt AI in different parts of their operations like automated job assignment, scheduling, optimizing routes for the technicians which will lead to saving costs on trips to the customers job site and back. Even though for many it's still early to look into AI as they don't yet have the processes and the clean data in place to make it work but at least we will see more efforts done in this direction.
For businesses in home services industry, adopting AI is not just about catching another trend, it’s more about boosting productivity of the existent workforce because of the shortage of skilled labor overall in the industry and optimise resource allocation accordingly across the company.
An area where we will see more an more AI use it will be in assisting project managers to better allocate resources and make better decisions in this area. By analyzing job requirements, technician skill sets, certifications, and availability, AI ensures the right technician is assigned to the right job. It also helps guarantee that necessary parts and materials are available for specific projects, integrating with inventory management systems.
Another area where we will see more and more usage of AI in home services industry is in data analysis. AI will be bale to analyse operational data to identify inefficiencies, benchmark performance, and forecast demand. They can also perform competitive analysis by scanning competitors' digital presence, reviews, and content strategies to identify various opportunities and channels. We will also see more usage of AI can in customer inquiry analysis and feedback to understand common questions and pain points to give insights on development or expansion of service offerings that can open up new revenue streams.
🛰️ Smart Home Services
The increase in smart home devices will also increase, as the homes will become more and more connected to the technology this opens up a lot of opportunities for home service companies to offer new services and offerings for their customers which means more work as these technologies will require rigorous installation, maintenance and security.
Predictive maintenance will gain more and more popularity in home services industry. AI and IoT devices will monitor appliances and home systems which will be able to provide historical data on maintenance and services of these home systems or appliances and with the help of AI predict potential breakdowns and when maintenance is needed.
🤳 Digital Customer Experience
Home service companies will start to look more into adopting digital platforms to improve the customer experience and they will become very essential in their work (online scheduling systems, AI assistants that guide the customers during the whole process starting from scheduling service appointments to sending automated updates about the progress of the jobs to making payments and also assist in this process the team with all back-office work required during the work with the customers.
Another area of customer experince that will gain more and more momentum and will play a big part will be in analyzing customer history, service records, and even demographic data and AI will identify opportunities for personalized service recommendations or relevant upsells. For example, AI might suggest upgrading to a smart thermostat based on past HVAC usage or recommend a preventative maintenance plan based on appliance age and type.
🤿 VR/AR Training
Another trend that will only increase is demand of highly skilled labour. Not only technicians will need to know how to do their core job but also be technologically proficient with AI and other digital platforms that will penetrate the industry. Home service companies will also need to step up their game in terms of training programs for their teams to constantly develop their skills and level of competence. A trend that will pick up in training technicians in home services industry will be VR (Virtual Reality) /AR (Augmented Reality) technologies that can provide a more interactive and real learning experience that will be able to simulate real life customer service requests and this will help home services companies offer high level quality and services to their customers because they have better prepared people to handle their requests.
⚙️ Workflow and Process Automation
It already happens to a certain degree but we will see it happening even more across the board. Home services companies will automate more and more administrative tasks and workflows because most of the times they are the cause of employee burnout, mistakes, delays and low job satisfaction among back-office team and the field team.
The primary goal of automation is to take over repetitive, manual, and time consuming tasks that affect the efficiency and productivity of both field and back-office operations. This focus on automating workflows aims to boost productivity, reduce errors, cut operational costs, and free up resources for more strategic and revenue generrating activities.
Automations will also play a huge role in customer interaction, systems will automatically send appointment confirmations, reminders , real-time "on-my-way" notifications with technician tracking links, post-service follow-up messages requesting feedback or reviews, and reminders for outstanding payments. the consistent and timely communication improves customer experience as more and more customers are appreciating speed of delivery and response to their requests.
Automation will also transform how home services companies approach inventory management from a manual redundant process into an efficient, data driven operation. Based on predefined thresholds, the automations will trigger order alerts to the right person in the company or even generate purchase orders by itself and send it to the vendor or supplier. Automation can match supplier invoices to purchase orders and delivery receipts (three-way matching), streamlining the accounting and compliance process. This will minimize the risk of overstocking or early stockouts leading to improved accuracy in the inventory operations, improved cash flow, and more efficient use of storage space.
For home service business to navigate the fast changing landscape and environment they should focus on a couple of things.
🎯 Assess current state and identify the pain points
🎯 Prioritize integrated and connected systems and tools (this will save you a lot of manual work).
🎯 Start Small, Scale Smart and Improve when deploying a new digital tool or automating manual work processes
🎯 Make sure you organise your data and information properly
🎯 Improve the learning and onboarding experience of new and existing employees
🎯 Think always about the customer experience and how each tech implementation can affect it.