Manufacturers and distributors talk much about AI and how they are using, or planning to use, it within their business workflows to improve sales processes, customer service, deliver analytics, improve warehouse automation, pricing, and more. Trane Technologies is taking AI the next step and seeking to integrate it into its products.
According to the Financial Post, in an article out of Ireland, Trane completed its acquisition of Montreal-based Brainbox AI.
The press release states:
“ Trane Technologies, a global climate innovator, announced that it has completed the acquisition of BrainBox AI, a pioneer in autonomous HVAC controls and generative Artificial Intelligence (AI) building technology. The acquisition was previously announced in a press release on December 18, 2024.
Some input from the initial press release announcing the acquisition:
- “BrainBox AI uses advanced deep learning algorithms to predict building energy needs, automate HVAC systems, reduce energy consumption by up to 25% and reduce GHG emissions by up to 40%. BrainBox AI’s proven technology is deployed across more than 14,000 commercial buildings globally, including airports, complexes, office buildings, hotels, commercial retail and more.
- The companies have partnered over the past two years to help customers reduce their carbon footprint and meet business goals. Trane® Autonomous Control couples Trane’s cloud-based building automation system with BrainBox AI technology to analyze live data from multiple sources; accurately predict zone temperature and energy loads; and perform system improvements 24/7 to optimize energy usage.
- BrainBox AI employs 190 people. The business will continue to be led by its management team of Sam Ramadori (CEO) and Jean-Simon Venne (co-founder and CTO).
- BrainBox AI’s recently launched ARIA platform (Artificial Responsive Intelligent Agent) was selected as one of TIME’s Best Inventions of 2024. ARIA, the world’s first virtual building engineer, delivers precise and accurate data visualization, sound reasoning, and informed actions for facility management professionals.
This bolt-on acquisition follows Trane Technologies’ proven model of adding leading technologies that augment its core business and scaling them to deliver strong returns over time.
Trane + BrainBox AI Thoughts
This acquisition highlights the desire of manufacturers to:
- Pursue service businesses that generate higher margins and create tighter connectivity with end-users.
- Highlights the importance of gathering information which can provide analytics to customers and potentially generate additional opportunities with the information.
- It is interesting that Trane and BrainBox AI have been working together for 10 years and have such an installed base. The “AI” element of the name provides added cache.
- It will be interesting to see how BrainBox AI’s go-to-market strategy will evolve. The company has three OEM partners (Trane, ABB, and KMC Controls) and has a strategic partner strategy and an integrator partner strategy. Will this continue? Will Trane distributors have the opportunity to represent, or at least selected ones based upon an authorization strategy / BrainBox AI specialist? Will it be a different path to market?
- And while the offering focuses on the commercial segment today, what could be conceived, refined, developed for the residential market (or multi-family) and then what service offering is developed or integration with utilities to support enhanced utility rebate models or demand management models?
Congratulations to Trane and BrainBox AI on the acquisition and the foresight to merge equipment and technology for an expanded offering.
