Integrated Workplace Management System Market Size, Share & Trends Analysis Report By Solution, By Service, By Deployment, By Enterprise Size, By End-use, By Region, And Segment Forecasts, 2021 - 2027

Report Overview

The global integrated workplace management system market size was valued at USD 3.42 billion in 2020. It is expected to expand at a compound annual growth rate (CAGR) of 12.8% from 2021 to 2027. The continuous adoption of digital workplace solutions and automation of facility management processes are expected to drive market growth. Organizations are increasingly shunning conventional approaches and switching to digital solutions for activities such as lease management, facilities and space management, asset and maintenance management, and project management. Along with this, the rising demand for efficient and improved operational solutions, which is leading to the increased sophistication of solutions and services, is anticipated to drive the demand for integrated workplace management systems (IWMSs). Furthermore, advantages offered by these systems, such as integrated processes, real-time tracking, less energy consumption, disaster recovery, safety and security, and data center consolidation, are anticipated to drive the market over the forecast period.

The adoption of technologies such as advanced analytics, advanced sensors, Software as a Service (SaaS), and mobility is gaining momentum across the globe, driving the demand for enterprise integration. This, in turn, is leading to the increased deployment of IWMS across organizations. Organizations across the globe lack transparency and insight in their facilities and corporate processes as well as the related data. Deployment of an IWMS offers organizations transparency across all relevant aspects by forming a structured and standardized data repository for all corporate processes. As organizations become more aware of the several benefits of IWMS, their demand is further anticipated to rise over the forecast period.

Intense competition across several industries has necessitated that businesses make quick and right decisions to stay competitive. Mergers and acquisitions, budget constraints, reorganizations, and other economic factors put pressure on businesses. This increases the demand for integrated and reliable management information to support decision-making processes. An IWMS supports strategic, tactical, and operational decision-making with analysis, reports, and dashboards, and allows businesses to create specific analysis or output based on historical trends and future forecasts.

IWMS vendors are facing challenges in the wake of the COVID-19 pandemic. The pandemic has compelled organizations across several industries to temporarily stop spending on new automation initiatives. However, this spending is expected to accelerate from 2021 onwards. Additionally, market players are expected to witness a significant decline in their revenues in 2020, which is likely to put additional pressure on them to reduce costs. Moreover, the market is likely to benefit from the potential increase in the demand for advanced IWMS solutions with social distancing benefits and risk management capabilities, best suited to new regulations and guidelines regarding workforce safety, post the pandemic.

However, lack of awareness about IWMS and its importance in organizations is anticipated to hamper the market growth to a certain extent. Furthermore, myths such as high implementation costs and the requirement of extensive training for the implementation of IWMS are also restricting the market growth. Several IWMS vendors license software and technologies from third-party providers. These third-party providers may not continue to partner on commercially reasonable terms, thus software and technologies may not be appropriately maintained or supported by the licensors, which may result in delays in the development process.

Integrated Workplace Management System Market Trends

The demand for corporate integration is growing as enhanced sensors, advanced analytics, Software as a Service (SaaS), and other technologies gain traction globally, as a result, the deployment of IWMS across companies has increased. Many companies lack insight into their services, corporate developments and the related data. The COVID-19 pandemic is expected to remain crucial in regulating the adoption of AI and cloud computing to cope with work-from-home operations. As such, vendors in the market are striving to introduce the latest solutions and services that can help their respective client organizations to manage their operations.

The market's expansion can be ascribed to boost demand for more effective solutions, which are essential to a higher level of sophistication in services and solutions. In addition, the increasing adoption of the Internet of Things (IoT) and big data across various industry verticals, such as BFSI, manufacturing, IT & telecom, and real estate, is also anticipated to drive the market growth over the forecast period. Moreover, enterprises across the globe are focused on increasing their business operations to cater to a larger market, which is driving the need for integrated workplace management systems in enterprises. Enterprises are increasingly adopting latest technologies such as cloud computing and mobile computing, which is projected to drive the demand for cloud based IWMS. The high level of scalability and flexibility and cost advantages offered by cloud computing are also encouraging the migration to cloud platforms.

As the workforce continues to get tech-savvy, the demand for solutions based on the modern and latest technologies is also growing. Having realized that the work environment can significantly influence the employees' performance and engagement, organizations are aggressively deploying solutions based on the latest technologies, such as Internet of Things (IoT) and artificial intelligence (AI), at the workplace to improve work efficiency and enhance employee satisfaction. At the same time, IT professionals are increasingly collaborating with their colleagues in facilities and real estate management to develop inspiring workplaces. Although cost containment has been the primary motivator for adopting an IWMS solution conventionally, the growing competitiveness and changing workforce dynamics are emerging as the latest drivers prompting organizations to deploy IWMS solutions.

Solution Insights

The facilities and space management segment dominated in 2020 and accounted for over 29% of the market. This can be attributed to the growing demand for upgrades and maintenance of existing solutions, which helps increase the efficiency of decision-making processes. Moreover, facility and space management solutions help in the proper alignment of administrative and infrastructural support functions to fulfill the core objective of businesses. Based on solution, the market is segmented into real estate and lease management, facilities and space management, asset and maintenance management, project management, and environment management.

Amid the COVID-19 pandemic, work-from-home practices massively replaced desk jobs. It is estimated that work from home practices will be adopted more in near future irrespective of any pandemic or any similar situation. In a work-from-home scenario, meeting room bookings and hot-desking functionality need to be more streamlined and automated. This is anticipated to drive the demand for facilities and space management solutions for booking meeting rooms. Facilities and space management solutions allow businesses to track space utilization across all areas, resulting in savings across equipment maintenance and replacement costs by altering operational parameters such as lighting operational hours, set temperatures, and fresh-air intake. These factors are further expected to boost the growth of the segment over the forecast period.

Service Insights

The professional services segment dominated the market in 2020 and accounted for a share of over 65%. This can be attributed to the rising complexities in business operations and the growing adoption of IWMS solutions. IWMS vendors offer industry-oriented professional services, including consulting, software implementations, and training. Based on service, the market is segmented into professional services and managed services.

Vendors also offer training programs to client employees to help improve effectiveness and efficiency in handling IWMS solutions. For instance, Accruent, a provider of intelligent and cloud-based solutions, offers progressive training programs through its professional services, which allow clients to improve the effectiveness of their employees. Furthermore, with every implementation, the company offers product and process training, including key application usage and function guidelines for each solution with industry and business needs. Moreover, the growing demand for third-party support and maintenance services, owing to cost-effectiveness and experienced and well-trained technicians are anticipated to drive the growth of the professional services segment.

Deployment Insights

The on-premise segment dominated the market in 2020 and accounted for a share of over 50%. On-premise is a secured form of deployment model, which increases its demand in the market. Furthermore, on-premise IWMS solutions are mostly adopted by large enterprises with established physical servers, sufficient budgets, and expert technicians. Based on deployment, the market is segmented into on-premise and cloud.

Moreover, on-premise deployment allows client organizations to scale functionalities and manage and upgrade the solutions with ease. Furthermore, organizations across end-use industries such as BFSI and healthcare prefer the on-premises deployment of IWMS solutions as security is a critical concern in these industries. The cloud segment is anticipated to register significant growth over the forecast period. The demand for cloud-based IWMS solutions has increased owing to its benefits such as minimum Total Cost of Ownership (TCO), scalability, and flexibility.

Enterprise Size Insights

The large enterprises' segment dominated the market in 2020 with a share of over 60%. Large enterprises implement IWMS solutions to simplify their complex work environments. Such enterprises demand robust monitoring solutions and automation capabilities for tasks such as resource allocation and strategic decision-making. The segment is likely to expand at a promising pace over the forecast period as well. Based on enterprise size, the market is segmented into large enterprises and small and medium enterprises.

Opening of offices post the COVID-19 pandemic, organizations are likely to adopt transitional measures such as workplace distancing to ensure no further spread of the viral disease. This is expected to increase the demand for IWMS software to efficiently manage the floorspace and employee health. For instance, in June 2020, International Business Machines Corporation introduced a workplace management solution, Watson Works which incorporates Watson AI models. Watson Works offers various applications to address the potential workplace requirements post the pandemic, including facilities management, space allocation, prioritizing employee health, contact tracing & care management, and workplace re-entry.

End-use Insights

The manufacturing segment dominated the market in 2020 and accounted for a share of over 20%. Rapid technology implementation across the manufacturing vertical has significantly increased the degree of competitiveness among organizations. Thus, organizations are keen to adopt efficient workplace solutions in their manufacturing facilities. This is anticipated to drive the demand for IWMS solutions over the forecast period. Based on end use, the IWMS market is segmented into the public sector, IT and telecom, manufacturing, BFSI, real estate and construction, retail, healthcare, and others.

The real estate and construction segment is anticipated to register considerable growth over the forecast period. The rising demand for effectively managing all major aspects of a real estate project by minimizing operational costs is anticipated to propel the demand for IWMS solutions within the real estate and construction segment. Furthermore, vendors in the market are capitalizing on this opportunity and introducing IWMS solutions tailored to the specific needs of companies operating in the real estate and construction vertical. For instance, in May 2020, Trimble Inc. introduced ManhattanONE, a software suite for centralizing portfolio, workplace, building, and finance lease information, which enables data monitoring of real-estate data and facilitates the evidence-based decision-making process. The suite also aims to address the back-to-work challenges posed by the COVID-19 pandemic.

Regional Insights

North America dominated the Integrated Workplace Management System (IWMS) market and accounted for the largest revenue share of 32.7% in 2019. North America is at the forefront in terms of deploying the latest and innovative technologies. The vendors have been innovative and competitive toward different technologies to boost productivity and enhance customer experience. Thus, the region has been a key player in adopting integrated workplace management systems (IWMS) in various industries and companies.

In the U.S., the demand for IWMS solutions is increasing due to growing developments in smart building projects for asset & maintenance management, space management, and real estate and lease management. Furthermore, innovative developments, increase in the number of industries, and technological advancements in industrial products are expected to boost the market growth in the U.S.

Due to the increased usage of IoT, the Asia Pacific IWMS market is witnessing a disruptive boom in efficient technological products, prompting enterprises in the region to incorporate IWMS solutions to streamline operations. The adoption of IWMS systems in the Asia Pacific region is likely to grow as corporate and government networks expand, cloud services proliferate, and businesses and operations increase.

Cloud computing and IoT are becoming increasingly popular in China for various business uses. Simultaneously, the government is encouraging companies to use integrated workplace management systems for faster content delivery and high-speed network infrastructure through digitization. Furthermore, the rapid growth in the number of Small and Mid-Sized Businesses (SMBs) in India and their increased focus on incorporating new products and services to boost the business on regional and global levels are expected to advance the development of integrated workplace management systems in the country over the forecast period.

Key Companies & Market Share Insights

The market is highly fragmented owing to the presence of a large number of market players across the globe. Major vendors in the market are engaging in new product development, mergers and acquisitions, and partnerships to stay competitive in the market. For instance, In June 2020, SAP SE entered into a partnership with Honeywell International Inc. to jointly create cloud-based a solution to improve smart building operations. The solution is based on Honeywell Forge and SAP Cloud Platform to combine and streamline business and operational data for better decision-making.

Market vendors are heavily investing in the development of new and improved versions of solutions, which may help them maintain their competitive position in the market. For instance, in 2019 Trimble Inc. invested USD 469.7 million in R&D activities. Companies are focusing on the introduction of new products, including software and services that are integrated with upgraded features and functionality, economical, and offer better performance. Some of the prominent players operating in the integrated workplace management system market are:

• Accruent

• ARCHIBUS, Inc.

• FM:Systems

• FSI (FM Solutions) Limited

• International Business Machines Corporation

• MRI Software LLC

• Nemetschek Group (Spacewell)

• Planon

• SAP SE

• Trimble Inc.

Integrated Workplace Management System Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For this study, Grand View Research has segmented the global integrated workplace management system market based on solution, service, deployment, enterprise size, end-use, and region:

• Solution Outlook (Revenue, USD Million, 2016 - 2027)

  • Real Estate & Lease Management

  • Facilities & Space Management

  • Asset & Maintenance Management

  • Project Management

  • Environment Management

• Service Outlook (Revenue, USD Million, 2016 - 2027)

  • Professional Services

  • Managed Services

• Deployment Outlook (Revenue, USD Million, 2016 - 2027)

  • On-premise

  • Cloud

• Enterprise Size Outlook (Revenue, USD Million, 2016 - 2027)

  • Large Enterprises

  • Small & Medium Enterprises

• End-use Outlook (Revenue, USD Million, 2016 - 2027)

  • Public Sector

  • IT & Telecom

  • Manufacturing

  • BFSI

  • Real Estate & Construction

  • Retail

  • Healthcare

  • Others

• Regional Outlook (Revenue, USD Million, 2016 - 2027)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

  • Middle East & Africa (MEA)