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The Smart Workplace Market size is estimated to grow by USD 28.66 billion at a Compound Annual Growth Rate (CAGR) of 12.12% between 2022 and 2027. The growth of the market depends on several factors, including the emergence of smart cities, the increased demand for seamless connectivity, and the need for energy conservation.
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One of the key factors driving the market growth is the need for energy conservation. There is increasing interest across sectors in how to change current energy usage as the UN set a target to keep the rise in temperature of Earth well below 2 degrees C above preindustrial levels within the Paris Agreement in order to help prevent damage to the environment. Additionally, due to the rapid economic development in both developed as well as developing countries, there is an increasing focus on the development of smart buildings.
Moreover, smart buildings, including smart workplaces, extensively use advanced engineering technologies, and systems that monitor and control daily energy consumption in real-time, which help in regulating daily power usage. This integration of the system environment in smart workplaces enables the achievement of energy-efficiency standards enforced in different countries. Hence, such factors are positively impacting the market. Therefore, it is expected to drive the market growth during the forecast period.
A key factor shaping the market growth is the high demand for touchless access control solutions. There is an increasing adoption of touchless access in critical utilities such as oil and gas, water treatment plants, and construction sites where individuals are exposed to dust. Hand geometry, when used with smart devices including tablets, laptops, and notebooks, enables the contactless approach without the requirement for additional hardware or sensors to recognize hand patterns.
Moreover, there is an increasing adoption of hand geometry to gain access to a number of financial organizations and to record the time and attendance of employees. Furthermore, there is a rising incorporation of the use of hand geometry biometrics for verification of the end-users. Hence, such factors are positively impacting the market which, in turn, will drive the market trends during the forecast period.
High initial investments associated with smart workplace solutions are one of the key challenges hindering growth. There is a huge investment associated with the setting up of a smart workplace in both new buildings and existing buildings. As smart workplaces involve technologically advanced equipment, the procurement and installation of this equipment can be costly for SMEs and large construction companies.
Moreover, the operation of this advanced equipment requires highly skilled and trained manpower, which is not easily available in all countries. Even though the overall operation of these workplaces is economical, there is a high cost associated with maintenance, repairs, and upgrades. Hence, such factors are negatively impacting the market which in turn will hinder the market growth during the forecast period.
The new buildings segment is estimated to witness significant growth during the forecast period. There has been a growing popularity for smart workplaces in new office buildings since 2022. As a result, there is increasing investment in the development of smart workplaces by several organizations due to the growing focus on attaining energy and operational efficiency.
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The new buildings segment was the largest segment and was valued at USD 18.52 billion in 2017. Some of the main investors in the development of smart workplaces are large Multinational Corporations (MNCs) and other organizations that have access to funds as it requires a substantial amount of investments. As a result, it helps enterprises to further strengthen their brand image and attract more employees. Additionally, the main advantage of these smart workplaces is that they are employee-friendly and facilitate the provision of a flexible working environment thereby increasing productivity. Hence, such factors are expected to fuel the growth of this segment which in turn will drive the market growth during the forecast period.
The numerous advantages of the solution segment will increase the market growth. The smart workplace solution segment comprises a wide range of advanced technologies that transform traditional work environments into dynamic and efficient spaces. Additionally, these solutions create intelligent ecosystems that adapt to the needs of modern businesses and their workforce by leveraging advanced technologies such as IoT devices, sensors, and automation systems. Factors such as the improvement in productivity, efficiency, and employee satisfaction while adapting to the evolving nature of work in the digital age are expected to fuel the growth of this segment which in turn will drive the market growth during the forecast period.
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North America is estimated to contribute 33% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Another region offering significant growth opportunities to vendors is Europe. Several rights and laws in Europe are highly employee-centered which mandates the organizations to offer a friendly, flexible, and overall favorable working environment for employees. Additionally, there is a growing popularity for smart workplaces in the region.
Besides offering an overall employee-friendly workplace, another significant factor fuelling the growth of the smart workplace market in Europe is the growing focus on energy efficiency and cutting down carbon footprints. Several enterprises in Europe are competing to achieve maximum energy-efficiency certifications which has led to the growing popularity of smart workplaces as it offers both a favorable working environment for employees and energy efficiency. Hence, such factors are driving the growth of the global market in Europe during the forecast period.
The market growth analysis report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market research and growth report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
ABB Ltd: The company offers smart workplace solutions such as ABB Ability for Workplace which provides integrated building automation and control systems for enhanced energy efficiency and occupant comfort.
Avnet Inc: The company offers smart workplace solutions such as IoTConnect, a cloud-based platform for seamless IoT device management and data analysis in the workplace.
Cisco Systems Inc: The company offers smart workplace solutions such as Cisco DNA Spaces, which is an AI-powered location analytics platform for workplace optimization and productivity.
The market growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The Smart Workplace Market is propelled by the adoption of artificial intelligence, fostering workplace flexibility and business agility. Smart lighting, security systems, and energy management systems optimize operations, reducing electricity costs and energy waste. Advanced sensors and motion detection enable efficient HVAC control, minimizing maintenance and replacement expenses. Communication technology, both wired and wireless, ensures reliable connectivity, enhancing employee productivity and workflow efficiency. Intelligent hardware and software facilitate seamless collaboration through video conferencing, instant messaging, and shared document platforms. Key players like IBM, Accenture, and Phillips Lighting Holding drive innovation, collaborating with organizations worldwide to offer cost-effective, sustainable solutions. With a focus on diversity and inclusion, the market is poised for growth, particularly in sectors like transportation, manufacturing, and renewable energy, aligning with sustainability and environmental impact goals.
The market forecasting report covers market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Smart Workplace Market Scope |
|
Market Report Coverage |
Details |
Page number |
165 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 12.12% |
Market growth 2023-2027 |
USD 28.66 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
12.1 |
Regional analysis |
Europe, North America, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 33% |
Key countries |
US, China, Japan, Germany, and Spain |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ABB Ltd., Avnet Inc., Cisco Systems Inc., Coor Service Management Holding AB, Crestron Electronics Inc., DEKOM AG, Develco Products AS, Eptura Inc., GoBright B V, Honeywell International Inc., Johnson Controls International Plc, Komstadt Systems Ltd., Konig Neurath AG, Koninklijke Philips N.V., Lutron Electronics Co. Inc., Martela Oyj, Schneider Electric SE, Siemens AG, Signify NV, and Verizon Communications Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
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