Smart Office Market Size, Share Global Analysis Report, 2023 – 2030

Industry Insights

[218+ Pages Report] According to Facts and Factors, the global smart office market size was valued at USD 37.48 billion in 2022 and is anticipated to grow to USD 90.41 billion by the end of 2030. The global smart office market is anticipated to grow with a CAGR of 11.73% during the forecast period.

The market report is an in-depth study of the smart office industry focusing on growth drivers and upcoming industry trends. Also, the report offers comprehensive insights into the geographical and competitive marketplace.

Market Overview

A smart office refers to an organization with a technologically advanced and integrated workspace. Smart offices include automation, internet of Things devices, data analytics, and several other advanced features to enhance productivity, efficiency, and overall work experience. It offers a productive and convenient environment for the employees of the organization, along with optimizing their operation cost and resource usage.

Key Insights

• As per the analysis shared by our research analyst, the global smart office market size is estimated to grow annually at a CAGR of around 11.73% over the forecast period (2023-2030).
• In terms of revenue, the global smart office market size was valued at around 37.48 billion in 2022 and is projected to reach 90.41 billion by 2030.
• High demand for smart office solutions is likely to drive the growth of the global smart office market.
• Based on the office type, the new construction office segment is likely to dominate the global market.           
• Based on the component, the software segment is likely to dominate the global market.
• Based on the product, the energy management system segment is expected to register a high growth rate in the global market.
• Based on communication technology, the wireless segment accounts for the largest share of the global market.
• Based on region, North America is expected to dominate the global market during the forecast period.           

Growth Drivers

• High demand for smart office solutions is expected to boost the growth of the global market.

The demand for a smart office is rising significantly all across the globe. Its high demand is due to the increasing concerns regarding energy-efficient solutions to reduce the overall cost and utility bills. However, smart office solutions are crucial to optimize energy consumption in organizations.

The HVAC and lighting system can save up to 30% of the overall energy consumption in the offices. Smart solutions aid in diagnosing the operational issues with the organization's equipment, thereby helping in unexpected breakdowns and huge losses. Additionally, the requirement to adopt various security devices like electronic locks and cameras within the organization has significantly widened the scope of growth opportunities in the global smart office market.

Moreover, the rising concept of smart cities marked a huge opportunity for the industry. Governments of all regions are spending heavily on the global smart city project, which is expected to further accentuate the market's growth. For instance, Siemens Germany in May 2018 acquired J2 Innovations to strengthen its position in the smart office market. J2 Innovations is a leading provider of building automation and IoT.

Restraints

• Complexity in upgrading the existing system is expected to restrain the growth of the global market.

Smart office solutions integrate various technology elements like the network, software, and hardware which include network switches, relays, thermostats, smart meters, proximity sensors, and others are quite a complex process. Reconfiguring the old legacy infrastructure requires a skilled workforce and advanced devices, which further raises the overall cost of labor, thereby limiting the growth of the smart office industry.

Opportunities

• Increasing cloud-based solutions and the proliferation of IoT devices are expected to offer lucrative growth opportunities in the global market.

IoT technology helps in analyzing, managing, and storing real-time data. Also, cloud computing platforms help eliminate the requirements of on-premise data centers. Therefore, both technologies help in the functioning of connected devices and thereby manage a large amount of data.

However, these cloud computing technologies are offering smart solution vendors impressive opportunities in the smart office industry. For instance, Johnson Controls Inc. collaborated with Evotec in May 2019 to come up with an innovative AI platform that offers end-to-end integration for smart building by working on combined capabilities.

Challenges

• Interoperability issues and high implementation costs are big challenges in the global market.

Ensuring seamless interoperability and compatibility between the vendors and systems is a big challenge in the global smart office market. A large number of available smart devices require a unified smart office ecosystem, but integrating all the smart devices is quite complex. Therefore, these integration issues create conflicts between the different systems and vendors.

Segmentation Analysis

The global smart office market can be segmented into office type, component, product, communication technology, and others.

By office type, the market can be segmented into new construction offices and retrofit offices. The new construction office segment is likely to grow immediately in the global smart office market. The growth can be attributed to the demand for smart infrastructure in the new office construction. The rise of smart technologies and the Internet of Things (IoT) is expected to foster developments in the segment. Smart offices provide better security, enhanced energy efficiency, better employee comfort, and high automation.

Therefore, people are more interested in constructing new offices with smart infrastructure. However, the retrofit offices segment is also likely to grow steadily in the industry due to the growing modernization of existing infrastructure. Retrofitting helps in building upgraded offices, which holds the capability to enhance the overall functionality and appeal of the infrastructure with smart features.

By component, the market can be segmented into software and solutions. The software segment is likely to dominate the smart office industry in the forthcoming years. Smart office architecture needs several advanced software like video editing software, video monitoring software, mapping & analytics software building, energy, management software, modeling, and simulation software, etc.

Such software helps organizations control the installed devices, smart appliances, and others in their workplace. HVAC control, access control, lighting control, and all others can be easily accessed by anyone in the organization via laptop, computer, tablet, smartphone, and others. The major aim of the software-integrated office system is to transmit, monitor, track, and control the data of electric devices within the organization.

By product, the market can be segmented into smart vents, pumps & fans, actuators, dampers, heating & cooling coils, control valves, HVAC control systems, energy management systems, security systems, smart lighting, and others. The energy management system segment is expected to register a high growth rate in the forthcoming years due to the increasing number of commercial facilities. Energy management systems are highly utilized in commercial facilities to reduce overall energy consumption and also help in adopting energy-saving technologies.

By communication technology, the market can be segmented into wired technology and wireless technology. Wireless segment accounts for the largest share of the global smart office industry. Organizations are incorporating wireless technology within their workplaces due to the numerous advantages offered by smart office solutions.

Wireless solutions provide better flexibility by helping reposition office layouts and allowing devices to be easily moved from one place to another. Also, wireless technology offers scalability, thereby permitting businesses to incorporate new devices.

Report Scope

Regional Analysis

• North America to lead the global market with a considerable share

North America is expected to grow rapidly in the global smart office market during the forecast period due to the constantly increasing sales of smart devices like smart software, smart communication devices, IoT solutions, smart lighting, and several others in the region.

Also, the fast-growing construction sector in the region is another major reason accentuating the growth of the regional market. The growing real estate sector is significantly propelling the construction of smart infrastructure in a cost-effective and innovative way, thereby creating vast opportunities in the regional market during the predicted period.

For instance, Lutron Electronics Co. Inc. diversified its business in September 2019 by inaugurating its commercial experience in New York.

Asia Pacific is also expected to grow steadily in the forthcoming years due to the presence of developing economies in the region. Additionally, the increasing urbanization, employment rates, and smart offices in the region are further likely to widen the scope of the smart office industry in the region.

Several organizations in the region are increasingly adopting the energy management solution to lower the overall cost of operations. Also, the construction industry in the region is further anticipated to grow significantly in the forthcoming years, which in turn will also offer a supportive growth trajectory to the industry.

Competitive Analysis

The key players in the global smart office market include:

• HCL Technologies Ltd. 
• Tuya Smart 
• Enlighted Inc. 
• Teem 
• Sensory Inc. 
• Comfy 
• Ingersoll Rand Inc. 
• Control4 Corporation 
• ABB Group 
• Philips Lighting 
• Lutron Electronics Co. Inc. 
• Crestron Electronics Inc. 
• Johnson Controls International plc 
• Honeywell International Inc. 
• Schneider Electric SE 
• Siemens AG 
• IBM Corporation 
• Cisco Systems 
• Amazon 
• Microsoft 
• Google

For instance, United Technologies, in September 2017, successfully took over Rockwell Collins to diversify its existing profile. This acquisition aims to improve integrated digital offerings and innovative system capabilities.

The global smart office market is segmented as follows:

By Office Type Segment Analysis

• New Construction Offices
• Retrofit Offices

By Component Segment Analysis

• Software
• Solutions

By Product Segment Analysis

• Smart Vents
• Pumps & Fans
• Actuators
• Dampers
• Heating & Cooling Coils
• Control Valves
• HVAC Control Systems
• Energy Management Systems
• Security Systems
• Smart Lighting
• Others

By Communication Technology Segment Analysis

• Wired Technology
• Wireless Technology

By Regional Segment Analysis

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America