The smart office market is expected to grow at a compound annual growth rate of 13.58% over the forecast period to reach a market size of US$61.744 billion in 2026 from US$25.321 billion in 2019.
A smart office is a smart workplace that typically merges a number of data-driven and digitally-enabled services and solutions to other things to improve employee experience and efficiency, achieve cost and energy savings, and add value to the office (building) via applications for various stakeholders.
The rise in the demand for sensor networks for energy efficiency and the development of IoT in smart office solutions are two major factors predicted to drive the growth of the smart office market during the forecast period. Furthermore, the rise in demand for workplace safety and security solutions is expected to fuel the expansion of the smart office market. Various government restrictions in multiple countries are expected to cushion the expansion of the smart office market. The effort to update or replace the existing system, on the other hand, is expected to hinder the growth of the smart office market.
Additionally, the expanding cloud-based environment of IoT platforms will present further prospects for smart office market growth in the subsequent years. The incorporation of real-time streaming analytics capabilities into smart solutions, on the other hand, may provide a further barrier to the growth of the smart office market in the near future.
With rising global concerns regarding energy-efficient technologies to minimize electricity bills and overhead expenses, there is a growing demand for smart offices. Smart office solutions play an essential role in optimising energy use and, thus, lowering power bills. Lighting and HVAC systems are two of the most energy-intensive components in office buildings. Workspace automation can assist automate the HVAC and lighting systems, saving 5–30% of the office's total energy use. Furthermore, smart office solutions aid in the early detection of operational issues linked with different equipment. This reduces maintenance costs and helps to avoid losses due to unexpected breakdowns.
A smart office solution combines different technical aspects such as hardware (proximity sensors, smart metres, smart thermostats, relays, network switches and gateways, and actuators), software, and network elements, which can be challenging to deploy over older system frameworks. Due to protocol problems, outdated systems are unable to integrate efficiently with next-generation smart devices. The challenges of integration are anticipated to hinder market expansion in the coming years. Furthermore, IT and network security constraints to prevent privacy incursion and data breaches are expected to be a key impediment to the growth of smart office projects.
Impact of Covid-19:
The COVID-19 outbreak is anticipated to have a detrimental influence on the growth of the smart office market since the pandemic affected distribution networks and industrial operations all over the world. As a result, manufacturing production and supply of smart offices would be reduced, which is projected to impede the market growth.
|Market size value in 2019||US$25.321 billion|
|Market size value in 2026||US$61.744 billion|
|Growth Rate||CAGR of 13.58% from 2019 to 2026|
|Forecast Unit (Value)||USD Billion|
|Segments covered||Product, Type of Building, End-User Industry, And Geography|
|Regions covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies covered||Schneider Electric SA, Koninklijke Philips N.V., Crestron Electronics, Honeywell Internarnational, Inc., Johnson Controls, Inc., Siemens AG, Cisco Systems, Inc., Smart Office Solution, Inc., Sony Mobile Communications, Inc., Secure Smart Office, Inc.|
|Customization scope||Free report customization with purchase|
Frequently Asked Questions (FAQs)
Q1. What are the growth prospects for the smart office market?
A1. The global smart office market is expected to grow at a CAGR of 13.58% over the forecast period.
Q2. What will be the smart office market size by 2026?
A2. The smart office market is expected to reach a total market size of US$61.744 billion in 2026.
Q3. What is the size of the global smart office market?
A3. Smart Office Market was valued at US$25.321 billion in 2019.
Q4. How is the global smart office market segmented?
A4. The global smart office market has been segmented by product, type of building, end-user industry, and geography.
Q5. What factors are anticipated to drive the smart office market growth?
A5. The need for integrated security and safety systems in enterprises is contributing to the growth of the smart office market.
Schneider Electric SA
Koninklijke Philips N.V.
Honeywell Internarnational, Inc.
Johnson Controls, Inc.
Cisco Systems, Inc.
Smart Office Solution, Inc.
Sony Mobile Communications, Inc.
Secure Smart Office, Inc.
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