The global smart office market size was valued at USD 18.46 billion in 2016 and is expected to grow significantly over the forecast period, owing to rising need for effective and optimal utilization of IT resources and infrastructure. Furthermore, increasing need for incorporating security devices, such as cameras and electronic locks, in offices has opened doors for numerous growth opportunities in the market.
Smart office technology delivers notable results in terms of efficiency, as it enables digitization and automation of systems and products. For instance, with the help of beacons, an employee can be automatically detected and clock-in and clock-out timings can be registered in a time and attendance system when employees enter or leave office premises, respectively.
The working environment in an office is expected to improve in terms of occupant comfort and efficient use of energy due to increasing adoption of smart office. Smart features, such as continuous monitoring and controlling of temperature, humidity, and light, facilitate improved management of smart devices and offer a connected experience to employers, which is expected to drive employee satisfaction.
Moreover, employers have an opportunity to optimize their operation and focus more on employee health and productivity, owing to better connectivity and the amount of data generated by IoT-enabled offices. Advancement of Internet accessibility and growing adoption of connected devices are all propelling the growth of IoT-enabled offices.
Based on component, the market has been segmented into hardware, software, and service. The hardware segment dominated the smart office market in 2016 and is anticipated to continue its lead from 2017 to 2025, owing to continuous technological advancements in the field. The segment is further categorized into security systems and controls, smart lighting and controls, energy management systems, HVAC control systems, and audio-video conferencing systems. The service segment is expected to witness a notable shift in its growth with a CAGR of 15% over the forecast period. This can be attributed to increasing deployment of cloud-based solutions and need for domain expertise and quality services.
Energy Management Systems (EMSs) are being increasingly adopted as they provide numerous advantages such as convenience and improved focus. EMSs can be used to track energy usage, which allows organizations to control energy losses, thus, leading to increase in profit margins. They also enable employers and employees to enhance productivity, efficiency, and comfort.
The emergence of audio-video conferencing systems, such as telepresence, which connects geographically distant individuals, is further expected to propel market growth. Need to travel, for being physically present at a given location, is also eliminated and hence, expenditure on travel is reduced drastically.
Based on office type, the market has been segmented into retrofit and new construction. The retrofit segment is anticipated to generate the highest revenue by 2025. Growth of the segment can be attributed to rising need to adopt energy-saving technologies in retrofit offices.
The new construction segment is anticipated to witness significant growth over the forecast period. A retrofit office may pose limitations for modifications or new system implementations. However, new construction provides ample flexibility to implement new systems.
The North American region is expected to dominate the market over the next eight years, owing to the presence of a large customer base and well-established manufacturers. The region generated the highest revenue in 2016 and is expected to exhibit a CAGR of more than 10% from 2017 to 2025.
The Asia Pacific region is anticipated to witness a notable shift in its growth, recording a CAGR of above 19% over the forecast period, owing to the presence of growing economies such as China and India. Growth of the service sector in these economies is anticipated to lead to an increase in number of offices in the region and this is expected to create the need for the establishment of smart offices over the forecast period.
The South American market is also expected to witness significant growth over the forecast period. Various factors such as increasing penetration of Internet and wireless networks are anticipated to drive the regional market for smart offices.
Key industry participants in the market include ABB Ltd. (Switzerland); Cisco Systems, Inc. (U.S.); Crestron Electronics, Inc. (U.S.); Honeywell International, Inc. (U.S.); Johnson Controls (U.S.); Lutron Electronics Co., Inc. (U.S.); Philips Lighting Holding B.V. (Netherlands); Schneider Electric (France); Siemens AG (Germany); and United Technologies Corporation (U.S.).
These companies are engaged in adopting strategic initiatives such as new product development and acquisition, which are intended to augment growth, expand businesses through introduction of new technologies and products, and enhance geographical reach. For instance, in September 2017, Carrier Corporation introduced new digital solutions for commercial HVAC systems. The solutions include a new equipment dashboard and mobile application that help customers gain visibility into their systems’ performances.
Report Attribute |
Details |
Market size value in 2020 |
USD 31.7 billion |
Revenue forecast in 2025 |
USD 57.0 billion |
Growth Rate |
CAGR of 13.2% from 2017 to 2025 |
Base year for estimation |
2016 |
Historical data |
2014 - 2015 |
Forecast period |
2017 - 2025 |
Quantitative units |
Revenue in USD billion and CAGR from 2017 to 2025 |
Report coverage |
Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
Segments covered |
Component, office type, and region. |
Regional scope |
North America; Europe; Asia Pacific; Latin America; MEA |
Country scope |
U.S.; Canada; Mexico; U.K.; Germany; China; India; Japan; Brazil |
Key companies profiled |
ABB Ltd.; Cisco Systems, Inc.; Crestron Electronics, Inc.; Honeywell International, Inc.; Johnson Controls; Lutron Electronics Co., Inc.; Philips Lighting Holding B.V.; Schneider Electric; and Siemens AG. |
Customization scope |
Free report customization (equivalent up to 8 analysts’ working days) with purchase. Addition or alteration to country, regional & segment scope. |
Pricing and purchase options |
Avail customized purchase options to meet your exact research needs. Explore purchase options |
This report provides forecasts for revenue growth at the global, regional, and country levels and analyses of the latest industry trends and opportunities in each sub-segment from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the smart office market report based on component, office type, and region:
Component Outlook (Revenue, USD Million, 2014 - 2025)
Hardware
Security Systems & Controls
Smart Lighting & Controls
Energy Management Systems
HVAC Control Systems
Audio-Video Conferencing Systems
Software
Service
Office Type Outlook (Revenue, USD Million, 2014 - 2025)
Retrofit
New Construction
Regional Outlook (Revenue, USD Million, 2014 - 2025)
North America
The U.S.
Canada
Mexico
Europe
The U.K.
Germany
France
Asia Pacific
China
Japan
India
South America
Brazil
MEA
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