Global Smart Office Market - 2023-2030

Overview

Global Smart Office Market reached US$ 32.3 billion in 2022 and is expected to reach US$ 90.4 billion by 2030, growing with a CAGR of 11.3% during the forecast period 2023-2030.

The Internet of Things plays a major role in smart offices. The proliferation of IoT devices and sensors has made it easier and more cost-effective to collect data and automate various office functions. Smart offices can significantly reduce operational costs through energy-efficient systems, optimized space utilization and predictive maintenance. Businesses are drawn to these potential cost savings.

Smart office technologies can streamline tasks, automate repetitive processes and provide employees with tools to work more efficiently and lead to increased productivity. Improving the work environment boosts employee morale and satisfaction. Smart offices often feature amenities like customizable lighting, comfortable temperature control and even wellness programs, which can attract and retain top talent. A Report by Cisco as 95% of companies say that they provide a good work environment with intelligent workplace technology.

During the forecast period, Asia-Pacific is expected to have the highest CAGR in the global smart office market covering less than 1/4th of the market. The region's countries are rapidly urbanising, which is increasing demand for office space. In densely crowded places, smart offices aid in the efficient use of space. As a major hub for technology the region witnessed innovations and manufacturing which fosters the growth and development in the market.

Dynamics

Rising Need for Safety & Security Systems

Maintaining employees well and secure is an important concern for companies. To safeguard workers from potential threats and incidents, smart office solutions may include a variety of safety measures like access control systems, security cameras and emergency response systems. Smart office systems help protect valuable assets, including equipment, data and intellectual property. Security measures like biometric access control and real-time asset tracking contribute to safeguarding assets against theft or damage.

According to Microsoft Security in 2023, Microsoft's Edge Secured-Core program is introduced as a device certification program that incorporates security principles into device requirements. It aims to make secure-by-design and secure-by-default practices more accessible to device manufacturers. Devices meeting Edge Secured-Core requirements can be found in the Azure Certified Device Catalog.

Microsoft promotes a Zero Trust approach to IoT security, which involves verifying every request and not trusting anything by default and this approach encompasses secure identity, endpoints, applications, data, infrastructure and networks.

Adoption of IoT Boost the Market

IoT devices and sensors in smart offices can automate routine tasks, optimize resource allocation and improve workflow efficiency and this leads to increased productivity and cost savings. IoT solutions help organizations reduce energy consumption, optimize space utilization and minimize operational expenses, this cost-effectiveness is a compelling factor for businesses looking to enhance their bottom line.

For instance, on 5 August 2020, Lenovo unveiled an end-to-end IoT Smart Building and Workplace Solution aimed at businesses in China and this solution is designed to assist companies in creating more intelligent and efficient workplaces by offering digital services such as customization, rapid deployment and comprehensive operation and maintenance. It addresses the evolving trends in office space utilization, including agile working and remote work and leverages technologies like 5G, big data and AI to enable smart office buildings.

Technology Advancement

AI-powered solutions are becoming more prevalent in smart offices. AI can enhance productivity through predictive analytics, automation and personalized user experiences. It can optimize energy consumption, automate routine tasks and provide insights from data. Edge computing complements cloud computing by processing data closer to the source and this reduces latency and enhances real-time decision-making, making it vital for applications like security and automation in smart offices.

For instance, on 29 August 2023, AIS and ZTE, a telecommunications equipment provider, conducted the world's first dynamic Reconfigurable Intelligent Surface (RIS) trial in a millimeter-wave (mmWave) network at the AZ center in Bangkok, Thailand. The collaboration between ZTE and AIS represents a milestone in millimeter-wave communication, with dynamic RIS technology expected to bring revolutionary changes to the global communication industry. It will establish a stronger network foundation for the development of smart cities, industrial IoT and other domains.

Cost Effectiveness and Regular Maintenance

Setting up a smart office infrastructure can be expensive. The cost of sensors, IoT devices, connectivity and software can be a significant upfront investment for businesses. Integrating various devices, systems and platforms can be complex. Ensuring compatibility and smooth communication between different technologies is a challenge. As more connected devices, smart offices become potential targets for cyberattacks.

The collection of data in smart offices raises privacy concerns among employees. Businesses must be transparent about data usage and comply with privacy regulations. Smart devices require regular maintenance and updates. Outdated technology lead to compatibility problems and security vulnerabilities. Employees need to be trained to use smart office technology effectively and this training can be time-consuming and may face resistance from some staff members.

Segment Analysis

The global smart office market is segmented based on offering, product, connectivity technology, end-user and region.

Rising Awareness of Energy Management

Energy management is expected to be the dominant segment with about 1/3rd of the global market in 2022. Given its improved focus and ease of use, Energy Management Systems are widely employed all over the world. Furthermore, their growing use for energy usage tracking is gaining acceptance in a variety of businesses. It contributes to increased productivity, convenience, and efficiency for both businesses and employees.

Edge AI has grown increasingly popular in both industrialised and developing countries, owing mostly to the onset of the COVID-19 pandemic. The popularity of flexible work environments and rotating class schedules aided the establishment of the intelligent building management movement. Edge AI has also highlighted building management systems (BMS) in order to improve occupant comfort, minimise energy consumption, and increase safety.

Furthermore, increased advancements by global technology leaders are expected to drive market expansion during the forecast period. For example, in April 2022, Samsung Electronics announced a collaboration with ABB to expand the use of Samsung SmartThings in homes and other structures.

Geographical Penetration

Rise in Technology Innovation for Smart Office in North America

North America is the dominant growing region in the global smart office market covering more than 1/3rd of the market during the forecast period. The region is a hub for technology innovation, with many leading tech companies headquartered here. The environment fosters the development and adoption of cutting-edge smart office technologies and these factors boosts the growth of the market.

For instance, on 29 Wednesday 2022, in London UK Huawei is set to launch its new HUAWEI Matebook and Smart Office. As a leading global provider of information and communications technology infrastructure and smart devices, Huawei continues to innovate in the tech industry. The MateBook range will introduce two new products aimed at providing users with enhanced capabilities for expressing their ideas.

Competitive Landscape

The major global players in the market include: ABB Ltd., Harvatek Corporation, Cisco Systems Inc., Honeywell International Inc., Legrand SA, Johnson Controls International Plc, Lutron Electronics Co. Inc., Siemens AG, Philips Lighting Holding B.V. (Signify Holding) and Schneider Electric S.E.

COVID-19 Impact Analysis

The pandemic forced many businesses to rapidly adopt remote work and digital solutions to ensure business continuity and this accelerated digital transformation efforts, including the adoption of smart office technologies, to support remote collaboration and communication. Smart offices, equipped with technologies like video conferencing, cloud-based collaboration tools and IoT devices, became essential to enable remote work and maintain productivity.

The pandemic highlighted the importance of employee health and safety in the workplace. Smart offices incorporated features such as touchless access control, occupancy monitoring and air quality sensors to create safer and healthier work environments. As businesses adapted to remote work, they reconsidered their office space needs. Many adopted flexible office arrangements, including hot-desking and hoteling, which were facilitated by smart office solutions for space management and desk booking.

The use of IoT sensors for monitoring occupancy, temperature and air quality in smart offices became critical for ensuring compliance with health guidelines and these sensors also provided valuable data for optimizing office resources. The economic impact of the pandemic led to cost-cutting measures and energy efficiency became a priority. Smart offices integrated energy management systems to reduce energy consumption and operating costs.

AI Impact

AI-powered automation streamlines routine tasks, such as scheduling meetings, managing emails and controlling environmental systems like lighting and HVAC and this efficiency frees up employees to focus on higher-value tasks, ultimately increasing productivity. Automation and optimization of energy consumption, resource allocation and maintenance tasks can lead to substantial cost savings for businesses. AI-driven predictive maintenance can reduce downtime and extend the lifespan of office equipment.

AI-driven personalization can customize office environments for individual employees, optimizing factors like lighting, temperature and workspace arrangements and this enhances comfort and overall job satisfaction. AI collects and analyzes data from various sensors and devices within the smart office environment, this data-driven approach provides valuable insights that can inform strategic decisions about workspace design, resource allocation and employee well-being.

According to a report from Spiceworks, in June 2023, MLOps uses AI to automate procedures, increase productivity and minimize human error. Retail, logistics, financial services and healthcare are represented by some of the domains where it is used. By increasing productivity and cost-effectiveness, hyper-automation elevates automation to a new level. While integration of tools plays a major role for connecting different devices within organizations.

Russia- Ukraine War Impact

The war can disrupt supply chains, leading to fluctuations in the availability and cost of hardware components and data storage and this could affect the implementation and maintenance of Smart Office solutions. In regions directly affected by the conflict, data collection and reporting may be disrupted. Smart Office relies on high-quality data, so any disruptions can hinder insights generation.

During times of geopolitical instability, there is often an uptick in cyberattacks and espionage. Smart Office platforms may need to strengthen their security measures to protect sensitive data. Organizations and governments may prioritize resources for immediate humanitarian and security needs, potentially diverting investments away from AI and analytics initiatives, including Smart Office.

By Offering

• Hardware
• Software
• Services

By Product

• Smart Lighting
• Intelligent Security Systems
• Energy Management Systems
• Network Management Systems
• Audio-Video Conferencing Systems
• Others

By Connectivity Technology

• Wireless Technologies
• Wired Technologies

By End-User

• Commercial
• Residential
• Industrial

By Region

• North America
  • U.S.
  • Canada
  • Mexico

• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Rest of Europe

• South America
  • Brazil
  • Argentina
  • Rest of South America

• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific

• Middle East and Africa

Key Developments

• On 24 January 2023, Arthur, a prominent virtual reality (VR) office provider, unveiled its 'New Realities' update to its virtual office platform as this upgrade introduced the first generation of Mixed Reality (MR) capabilities to Arthur's virtual workplaces and these new features allow users to bring their physical desk and computer into the VR environment and utilize global passthrough functionality.
• On 14 September 2022, TD SYNNEX launched Iaconnects MobiusFlow Click-to-Run on Azure, a solution aimed at simplifying the configuration of smart building management systems. Developed by the TD SYNNEX Solutions Factory, this Internet of Things (IoT) solution helps partners efficiently implement and manage smart building architecture. It is a cloud-based solution that enables quick visualization of data and the creation of customized dashboards on IoT Central, Microsoft Azure's IoT platform.
• On 7 July 2022, Logitech and Tencent Meeting jointly launched a comprehensive smart office solution aimed at addressing the evolving needs of mixed office environments in Chinese enterprises. The solution, developed as part of their collaboration, covers various usage scenarios, including personal collaboration and various sizes of conference rooms.

Why Purchase the Report?

• To visualize the global smart office market segmentation based on offering, product, connectivity technology, end-user and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of smart office market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global smart office market report would provide approximately 69 tables, 69 figures and 201 pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies