Smart Space Market Size, Share & Trends Analysis Report By Type (Smart Indoor Space, Smart Outdoor Space), By Component (Solutions, Services), By Application (Energy Management and Optimization, Emergency Management, Security Management, Layout and Space Management), By End-Use (Residential, Commercial, Utility, Transportation & Logistic, Retail, Manufacturing, Government, Healthcare) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Market Overview

The global smart space market size was valued at USD 10.32 billion in 2022 and is projected to reach USD 26.28 billion by 2031, with a CAGR of 9.8% during the forecast period 2023–2031.

Smart spaces, also known as linked places, are physical environments outfitted with advanced technologies, such as network temperature and motion sensors, to improve the interaction between individuals, processes, and services. They save energy expenditures by adjusting real-time heating, cooling, and lighting in response to weather and occupancy changes. They can be remotely monitored and changed, which reduces carbon footprints. In addition, they are equipped with monitoring and security technologies to enhance the tenants' experience and create a safe, secure environment in which to live and work. Globally, retail, cities, manufacturing, campuses, and transportation are transforming into smart environments to enhance health, safety, operations, and the consumer experience.

Smart spaces are environments decked out with technology along with monitors and sensors, enabling seamless interaction between humans and integrated technological systems. Such technological integrations into physical environments such as smart homes, buildings, commercial spaces, and others enhance personal and professional productivity, facilitate energy efficiency, and streamline complex processes, thus potentially making daily activities more manageable. Homes, offices, community apartments, hotels, shopping centers, libraries, schools, and transportation portals such as airports, among others, are different types of smart spaces.

Market Dynamics

What are the Driving Factors for The Global Smart Space Market?

As a result of environmental concerns and the pervasiveness of technology in our daily lives, there is a rise in the growth rate of adoption of sustainable green construction efforts. Green buildings prioritize the building's efficiency, effective lifetime, and performance. These buildings rely on intelligent technology, which is incorporated into the entire system to improve the building's functionality and performance. These systems store valuable data, evaluate them and deliver relevant inputs to the appropriate personnel. When increasingly complex communications and control technologies are integrated into a structure from the outset, the door is opened to limitless creativity. When included in construction operations and during a building's existence, energy consumption is reduced, and the environment is preserved more effectively. Through intelligent construction, it is possible to create a more comfortable constructed environment while simultaneously decreasing a site's carbon footprint. Self-sustaining buildings will be the greatest way to fulfill the ever-increasing technology and energy demand, as well as the declared ambitions of many nations to become independent of carbon-based energy sources.

What are the Challenges for The Global Smart Space Market?

Smart space solutions and services are new to the industry, and numerous companies are introducing unique goods and services to this market. Due to this, early adopters pay a substantial amount of money to incorporate this technology. In addition, governments are making more attempts to make spaces smarter with emerging technologies. Even though governments possess the need, vision, and clarity for such reforms, the lack of budgetary allocations for any large-scale implementations directly or indirectly slows down the transformation process. Such substantial investments may also add to the economic burden of debt-ridden governments or local municipal authorities, so negatively impacting future general budgets. However, there are several use scenarios in which the initial expense is justified over time due to reduced bills, efforts, time, and energy. For instance, when General Electric Company (GE) established its state-of-the-art automated dishwasher factory, it first justified the expenses based on savings over time; nonetheless, the plant experienced unexpected returns from the investment. The product's quality increased, the decrease in manufacturing costs led to an increase in market share, and the factory proved capable of producing new items. Each time managers demonstrate such a typical advantage, they make it simpler to justify investments of a similar nature in the future.

What are the Future Opportunities for Global Smart Space Market?

5G is the next generation of broadband technology. It employs radio frequency for voice and data transmission and reception. These frequencies can quickly transport a large amount of data, but they cover far less distance than their predecessor, 4G. In addition, they have trouble maneuvering past walls and structures. These deficiencies can be remedied by installing small antennas everywhere. However, once correctly implemented, it can greatly benefit the community. It will instantaneously connect billions of devices with low latency, enabling never-before-seen applications, services, and commercial opportunities. Massive machine-to-machine communication would no longer be a challenge, which would transform the operation of several industries, such as manufacturing, agriculture, and mining. With extremely low connection latency, it will significantly improve the real-time control of mission-critical distant equipment, industrial robotics, autonomous cars, and safety systems.9.8

Regional Analysis

The global market for Smart Spacehas been segmented based on geography into North America, Europe, Asia Pacific, and LAMEA.

During the projection period, the Asia-Pacific smart space market is anticipated to account for the biggest revenue share compared to other regional markets. Increasing use of new and more complex business-related technologies and home automation are anticipated to be important growth drivers for the market. The growth of the smart space market in this region is anticipated to be fueled by an increase in the demand for linking remote areas and rural communities to the national grid, as well as the urgent need to recover from power outages.

North America is anticipated to account for a significant revenue share during the projected period. Governments such as those of the United States and Canada are rapidly adopting smart space solutions and services to improve working environments. In addition, governments encourage commercial companies to embrace smart space solutions for more efficient work locations and settings. These factors are anticipated to increase the acceptance rate of these solutions and services among enterprises based in the region's countries, hence boosting the market's revenue growth.

Europe is expected to observe a significant growth rate in the smart space market on account of the rising demand for flexible workspaces in secondary cities. In the region, the deployment of smart workspace solutions to optimize the coworking space is foreseen to impel the market growth during the forecast period 2023–2031. Besides, it is estimated that Europe is set to witness the abundant availability of commercial properties dedicated to coworking spaces.

LAMEA is expected to witness considerable growth in the smart space market on account of the rising smart city initiatives. According to Inter-American Dialogue, 80% of the Latin American population resides in urban areas. This results in the region having potential benefits from using data and communications technology to improve the citizens' quality of life.

Segmental Analysis

The global market for Smart Spaceis categorized by Type, Component, Application, and End-use.

The smart space market is categorized based on type into smart indoor space and smart outdoor space. During the projected period, the smart indoor space category is anticipated to account for the largest revenue share. Indoor sensors are developed for specific activities such as lighting control and conference room reservation, but once installed, they can serve various functions. Smart buildings are assets that can, among other things, boost personal performance and productivity, increase staff attendance, and improve occupant wellness.

The market for smart space is split by components into solutions and services. Between 2023 and 2031, the solution segment is predicted to expand at a quick CAGR. Increasing use of smart space solutions for a more digitally-effective and connected workforce and employees, improved health, comfort, and productivity, and a safe and dependable environment are drivers driving the segment's expansion. These solutions aid in cutting operational expenses, increasing efficiency, enhancing internal environment management and reducing a company's carbon footprint, all while achieving crucial business objectives. Cloud-based smart space solutions provide smart solution providers with a cost-effective and efficient method for managing all their analytics requirements. All data and analytics workloads are cloud-based, and the smart space solution is delivered as Software-as-a-Service (SaaS) via a cloud-based deployment architecture.

The smart space market is divided based on application into energy management and optimization, emergency management, security management, layout and space management, and others. In 2021, the emergency management category accounted for the biggest market revenue share. The emergency management segment is anticipated to account for a relatively bigger revenue share during the projected period. With the help of smart technology installed in a smart home, factory, or piece of furniture, residents may limit potential harm during any disaster if they have the necessary expertise and sufficient time. Smart cameras with enhanced image sensors can remain linked and functioning in all areas 24 hours a day, seven days a week, boosting the security of any institution, business, etc. In addition, emergency management systems can quickly detect the residents' locations, actions, and directions, as an ultrasonic location tracking system is utilized in power plants, research institutions, and other highly secured facilities.

The smart space market is divided into residential and commercial segments based on end-use. The commercial section is subdivided further into utility, transportation and logistics, retail, manufacturing, healthcare, education, and others. During the forecast period, the commercial sector is anticipated to account for the biggest revenue share in the global market. Owners and managers of commercial real estate are under constant pressure to reduce energy use and expenses while meeting the rising demand for a more contemporary living and working environment. In the United States, commercial buildings utilize 36.0% of all electricity and produce 18.0% of the nation's carbon dioxide emissions. Office spaces, hotels, hospitals, retail centers, shopping malls, and restaurants are included in the commercial sector. With smart space technology, these organizations may monitor expenses and income, develop business strategies, and define financial goals.

Impact of covid-19

Unlike all other industries that had adverse effects of the Covid-19 pandemic, the IR camera market has seen significant growth in the said period. The growth was due to the increased use of thermal imaging devices to scan for elevated body temperatures of people during the Covid times.

In mid-2020, Infrared cameras Inc. (ICI) announced that the thermal imaging system that utilizes IR cameras is the best and safer way to get highly accurate data regarding surveillance and the temperature checks of a person for elevated body temperature. This is the only market segment that has been on the positive quadrant of the graph, even in the toughest time for the entire world. The major use of these IR cameras was made in the medical and healthcare industry during the Covid times, which contributed to a significant revenue generation.

Recent Developments

• In October 2020, Huawei introduced scenario-aware connectivity solutions. These solutions consist of intelligent distributed access solutions for residences, intelligent campus networks, intelligent premium private lines, and intelligent enterprise cloud network solutions. 
• In September 2020, ABB started its first series of Virtual Innovation Shows for smart buildings. The events will feature a panel of ABB experts, and participants will receive a fully immersive experience of virtual building space for designing intelligent and energy-efficient homes and structures. 
• In July 2020, Cisco purchased Modcam, a developer of intelligent camera solutions specializing in video analytics. This acquisition enables the Cisco Meraki MV smart camera to incorporate micro-level data regarding motion detection and ML-based object detection, allowing numerous cameras to create a macro-level view of the real world.
• In June 2020, Siemens collaborated with Salesforce, a supplier of customer relationship management services, to develop a new workplace technology suite aimed at promoting a safer work environment. This agreement will bring together Siemens' Smart Infrastructure Solutions and Salesforce's Work.com to provide touchless workplace solutions.
• In June 2020, IBM introduced Watson Works, a curated collection of products that incorporate Watson Al models and apps to aid enterprises in addressing return-to-workplace difficulties posed by the lockdown imposed to halt the spread of Covid-19. Watson Works enables organizations to manage buildings, optimize space allocation, prioritize employee wellness, connect with employees, vendors, and stakeholders, and maximize contact tracing efficiency.