Smart Space Market Size, Share & Industry Analysis, By Component (Solutions and Services), By Install Location (Residential and Commercial), By Application (Energy Management and Optimization, Emergency Management, Security Management, and Others), and Regional Forecast, 2024-2032

The global smart space market size was valued at USD 13.45 billion in 2023. The market is projected to be worth USD 15.11 billion in 2024 and reach USD 37.23 billion by 2032, exhibiting a CAGR of 11.9% during the forecast period. North America dominated the smart space market with a market share of 46.46% in 2023.

This market study considers Smart Space offered by market players, such as Oracle Corporation, Envoy, Vantiva, Getronics, ABB, Smarten Spaces, Smart Spaces, Adappt, Spacewell, and ICONICS, among others.

Smart spaces, also recognized as connected places, are physical locations connected with networked sensors that provide occupants, owners, and managers with improved information about the health and usage of these spaces. Smart space locations range from buildings with motion sensors and networked temperature to vehicles that constantly report their performance, location, and maintenance needs. The rising demand for Internet of Things (IoT) and growth in environmental concerns are some of the factors contributing to the market growth over the forecast period.

The COVID-19 pandemic highlighted the significance of intelligent spaces in safeguarding public safety and health. Occupancy monitoring, air quality management, and touchless technology, gained traction and accelerated the implementation of intelligent systems across industries.

Smart Space Market Trends

Growing Automation and Digitization is Considered an Emerging Market Trend 

Digitalization and automation are emerging trends, creating a positive impact in the market. Automation, fueled by advances in the Internet of Things and artificial intelligence, is revolutionizing the way physical spaces perform.  Smart spaces are automated and can self-regulate and adapt to shifting environments. For instance, automated systems in commercial buildings can optimize temperature, lighting, and consumption of energy based on residing patterns, delivering sustainability and affordability advantages. Integrated security systems, smart devices, and voice-activated assistants, are becoming increasingly common in homes, raising accessibility and safety for property owners.

Digitization is essential to enable the data exchange and connectivity of these spaces. Expanding devices, data analytics platforms, and sensors, enable real-time monitoring and govern several indoor systems. This data-centric approach allows estimated maintenance, enhanced user experience, and effective resource usage. The market is poised for significant growth as individuals and businesses realize the competency of digitalization and automation to improve quality of life, energy efficiency, and productivity. This trend is spreading across offices, smart homes, urban infrastructure, and healthcare facilities, changing the way we interact with physical environments by optimizing it.

Smart Space Market Growth Factors

Increased Advancement in Data Analytics and AI to Propel Market Growth

Rapid advancements in artificial intelligence and data analytics offer numerous market opportunities. The convergence of advanced data processing techniques and AI algorithms has unlocked the potential to make these spaces smarter, more responsive, and more efficient. These technologies allow intelligent spaces to collect and analyze large amounts of real-time data from devices, sensors, and user interactions. For instance, in smart buildings, AI-driven analytics can predict patterns and make data-driven adjustments to optimize energy consumption and reduce costs and environmental impact.

Similarly, AI-powered systems in smart cities can improve traffic management, waste management, and public safety by interpreting and processing data from a variety of sources. The ability to predict maintenance needs, automate decision-making, and improve user experience in commercial and residential environments ensures rapid deployment. As companies realize the transformative impact of AI and data analytics on operational efficiency and sustainability, the market is poised to sustainably expand and shape the future of how we live, work, and interact with the environment.

RESTRAINING FACTORS

High Initial Capital Expenditure to Hamper Market Growth

Smart space solutions and services are new to the market, and many companies are entering this market with innovative products and services. This is why early adopters are paying huge amounts of money to adopt this technology. Moreover, the government is also making further efforts to make rooms smarter with upcoming technologies. While the government has the need, vision, and clarity for such a transformation, the lack of budgetary allocation for large-scale implementation is directly or indirectly hindering the pace of the transformation process. Such large-scale investments can increase the financial burden on indebted governments and local governments, which may have a negative impact on overall future budgets and hinder the smart space market growth.

Smart Space Market Segmentation Analysis

By Component Analysis

Increased Use of Cloud-based Solutions to Dominate the Market Owing to Maintain Productivity

Based on component, the market is segmented into solutions and services.

The solutions dominated the market in 2023. The rising use of solutions for more digitally effective and connected employees and workforce, comfort, improved health and productivity, and a safe and reliable environment are driving the expansion of this sector. These solutions help increase efficiency, reduce operational costs, improve internal environmental management, and reduce a company's carbon footprint while achieving key business objectives. Cloud-based smart space solutions offer intelligent solution providers a cost-effective way to manage a user’s analytics needs. All analytics and data workloads are cloud-based, and the solution is delivered as SaaS via a cloud-based delivery architecture.

The services segment is expected to grow at the highest CAGR during the forecast period (2024-32). This is influenced by various factors such as technological advancement, increased connectivity through IoT, demand for efficient resource management, and the integration of AI and data analytics for optimization and automation.

By Install Location Analysis

Increasing Demand for Modern Living and Working Environments Contributing to Commercial Segment’s Growth

Based on install location, the market is divided into residential and commercial.

The commercial install location held the major share in 2023. Commercial property owners and managers are under constant pressure to reduce energy consumption and costs while meeting the increasing demand for more modern living and working environments. In the U.S., commercial buildings consume 36.0% of all electricity and generate 18.0% of the country's carbon dioxide emissions. The commercial sector includes hotels, office space, hospitals, shopping centers, retail parks, and restaurants. Smart space technology allows these organizations to monitor expenses and revenue, develop business strategies, and set financial goals.

The residential segment will grow at the highest rate during the forecast period (2024-32) as there is growing demand for home automation and energy efficiency solutions, which smart space services can provide.

By Application Analysis

Energy Management and Optimization Segment’s Growth Driven by Government Regulations and Initiatives in Major Countries

Based on application, the market is studied in terms of energy management and optimization, emergency management, security management, and others.

The energy management and optimization dominated the market in 2023. Government regulations and initiatives promoting energy efficiency encourage the adoption of smart energy solutions in buildings and infrastructure. Integration with smart grid infrastructure allows for better coordination of energy consumption, generation, and distribution, enhancing overall energy efficiency and reliability.

The security management is expected to grow at the highest CAGR during the forecast period (2024-32). Concerns about data privacy and the protection of personally identifiable information necessitate security measures to ensure compliance with privacy regulations and maintain consumer trust.

REGIONAL INSIGHTS

Geographically, the market is divided into five key regions: North America, Europe, Asia Pacific, the Middle East & Africa, and South America. They are further categorized into countries.

North America is expected to hold a significant smart space market share. Governments of the U.S. and Canada are rapidly implementing intelligent space solutions and services to improve working conditions. Additionally, the government is encouraging commercial enterprises to use smart space solutions that enable more efficient workspaces and environments. These factors are expected to increase the adoption of these solutions and services among regional companies, thereby driving market revenue growth.

The market is expected to grow significantly in Europe due to the growing demand for flexible workspaces in secondary cities. In this region, the use of intelligent workspace solutions to optimize co-working spaces is expected to drive market growth during the forecast period 2024-2032. Additionally, Europe is estimated to have a rich supply of commercial real estate for co-working spaces.

Asia Pacific is expected to witness the highest market growth. APAC is witnessing a dynamic shift in the adoption of advanced and innovative business-related technologies and home automation. India, China, Australia, and Singapore are already witnessing significant growth in the market. China is APAC's largest market due to its broad customer base and changing end-user purchasing preferences. Furthermore, the adoption of smart space solutions is expected to gain momentum as governments ease lockdown regulations in countries.

The increasing demand for IoT and the increase in environmental concerns are some of the factors contributing to the Middle East & Africa and South America’s growth. This demand would be witnessed in Saudi Arabia, the United Arab Emirates (UAE), South Africa, Brazil, Argentina, and Chile, with increasing adoption among enterprises.

List of Key Companies in Smart Space Market

Key Players to Emphasize on Smart Technologies to Strengthen Their Positions

The prominent players in the market, such as Oracle Corporation, Envoy, Vantiva, Getronics, ABB, Smarten Spaces, and Smart Spaces are expected to dominate the market. These players are focused on offering smart-space solution options to cater to the changing user requirements. Similarly, these players are adopting various strategies, such as product launches and partnerships, to continue their dominance in the upcoming years.

List of Key Companies Profiled:

• Oracle Corporation (U.S.)


• Envoy (U.S.)


• Vantiva (France)


• Getronics (Netherlands)


• ABB Ltd (Switzerland)


• Smarten Spaces (India)


• Smart Spaces (U.K.)


• Adappt (India)


• Spacewell (Belgium)


• ICONICS (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• May 2023: Smart partnered with BlockchainSpace for the Creator Circle program. The partnership helped to launch the Creator Circle program, which onboards content creators to web3 technology.


• November 2021: Smart Spaces partnered with Siemens to expand its operations in the Middle East and higher education markets. The partnership will transform the University of Birmingham in Dubai through the integration of the smart building platform Smart Spaces.


• October 2020: Huawei introduced a scenario-aware connectivity solution. These solutions consist of intelligent distributed access solutions for student residences, intelligent premium leased lines, intelligent campus networks, and intelligent cloud network solutions.


• September 2020: ABB launched its first virtual innovation exhibition series for smart buildings. The event will feature a panel of ABB experts and give attendees a comprehensive virtual architectural space experience for designing smart, energy-efficient homes and buildings.

REPORT COVERAGE

The study on the market includes prominent areas across the world to help the user get a better knowledge of the industry. Furthermore, the research provides insights into the most recent market trends and an analysis of technologies that are being adopted quickly across the world. It also emphasizes some of the growth-stimulating factors and restrictions, allowing the reader to obtain a thorough understanding of the market.

REPORT SCOPE & SEGMENTATION