The global smart space market size is expected to grow at a CAGR of 19.1% during the forecast period, 2019–2029. Smart spaces are environments decked out with technology along with monitors and sensors, enabling seamless interaction between human and integrated technological systems. Such technological integrations into the physical environments such as smart homes, buildings, commercial spaces, and others enhance personal and professional productivity, facilitate energy efficiency, 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.
Factors such as green building initiatives involve processes that are environmentally-friendly and resource-efficient throughout the building lifecycle; from design, construction, operation, maintenance, renovation to deconstruction. Such initiatives pedal the growth of the smart space market. The Environmental Protection Agency (EPA) and the Department of Energy (DOE) launched a joint program in May 2011 called “ENERGY STAR,” aiming to increase market awareness and promote innovation by identifying energy-efficient products for homes and buildings. Besides, the growing focus toward reducing carbon emissions through sustainable buildings is expected to positively influence the smart space market growth during the forecast period, 2019–2029.
The solution segment is expected to hold the largest share in the smart space market on account of organizations seeking to monitor costs and revenue, develop business plans, and integrate physical and digital infrastructure. In August 2019, Infosys joined forces with Microsoft and Johnson Controls to deliver smart buildings and space solutions, thereby strengthening the confluence of physical and digital infrastructure. A comprehensive approach in developing smart buildings and spaces enables companies to forge value for its customers aided by the Microsoft Azure platform. In March 2019, MeetingPackage and IDeaS Revenue Solutions announced a partnership that will allow IDeaS Smart Space users to capitalize on revenue management software to optimize the sale price of meetings and events space online through MeetingPackage Distribution Network. This partnership will allow users of both platforms to push minimum revenue pricing and optimum delegate pricing into the MeetingPackage platform.
Emergency Management Segment to Observe a High Growth Rate as it Provides Crucial Support During Crisis
The emergency management segment is anticipated to register a high growth rate, owing to an increase in demand for home monitoring, security system solutions, and live home alert systems. In July 2019, Notion announced a strategic partnership with Noonlight to launch NotionPro, a 24/7 professional monitoring extension to the smart home system. With this partnership, the companies integrate the products, offering property owners to monitor all aspects of space involving alerts such as text messaging, phone calls, and emergency service dispatch with safety and security. The reinforcement of emergency alert systems aided by leading-edge technologies such as AI, IoT, and others, to fuel the smart space market growth. Two Houston schools to implement ActiveShield — IoT enabled platform offering public safety created by Insight Enterprises, which integrates a building safety platform by BeSafe Technologies to facilitate critical and real-time information sharing during emergencies.
North America is expected to grow exponentially in the smart space market due to the presence of notable market players such as IBM, Cisco, and Hitachi, among others. These players are striving to transform the workplace into connected spaces. In June 2018, IBM confirmed that several clients are deploying trailblazing smart building solutions built on IBM cloud to transform the buildings to connected workspaces using IoT technologies. In May 2019, Osram joined forces with Facility Solutions Group (FSG) to offer smart building IoT solutions to the commercial, industrial, and retail industries. Through this partnership, FSG will provide the Encelium Light Management System and fixture-integrated sensors, controls, and components developed by Osram to end customers.
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, 2019–2029. Besides, it is estimated that Europe is set to witness the abundant availability of commercial properties dedicated to coworking spaces. In May 2019, Arm announced the deployment of space analytics as part of Pelion Smart Spaces solutions to upgrade coworking spaces in Ireland. The company aims to deliver its solutions to property managers of hotels, coworking spaces, and commercial buildings to analyze when, where, and how building spaces are to be utilized. On the other hand, on account of the increasing number of self-employees and startups seeking cost-saving and flexibility, Ireland’s Dogpatch Labs incorporated Space Analytics for its Dublin Docklands startup hub to facilitate dynamic management of spaces across its facilities.
Asia-Pacific is expected to witness an accelerated growth rate for the smart space market due to the prevalence of digital technologies empowering every aspect of life, including workplaces. In February 2018, Ricoh Co., Ltd announced a strategic partnership with Cisco Systems G.K. to provide cloud solutions for digital workplaces delivering productivity in a more secure environment. Correspondingly, the companies will jointly develop solutions to provide simpler and secure environments consisting of three layers — cloud, network, and device.
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. Thus, resulting in the region having potential benefits from using, data, and communications technology to improve the quality life of the citizens.
Some of the prominent players in the global smart space market are ABB, Adappt, Cisco, Coor, Eutech Cybernetic, Hitachi Vantara, Huawei, IBM, Iconics, Schneider Electric, Siemens, Smarten Spaces, Smartspace Software PLC, Spacewell, and Ubisense.
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