The smart office market is expected to grow at a CAGR of 12.94% during the forecast period
The smart office market is expected to be valued at USD 46.11 billion by 2023, at a CAGR of 12.94% between 2017 and 2023. The growth of the market is driven by various factors, such as increase in demand for smart office solutions and sensor networks for energy efficiency, advancement of IoT in smart office offerings, growing need for safety and security systems at the workplace, and favorable government regulations in several countries. However, integration of real-time streaming analytics capabilities into smart solution hinders the market growth.
The energy management systems segment is expected to witness the highest growth rate during the forecast period
The market for the energy management system (EMS) segment is expected to grow at the highest CAGR between 2017 and 2023. EMS is widely used to improve the energy efficiency and also to reduce the energy cost. It monitors the real-time energy consumption data, spending trend, and the amount of energy wasted, thus resulting in the high adoption of these products in the smart office market.
Service segment is expected to witness the highest growth rate during the forecast period
The smart office-related services such as advisory and consulting services, installation and support services, and managed services, contributed to the overall high-performance system that enables efficient processes, intelligent networks. The services provide recommendations on implementing newer technologies to transform a conventional workplace into a smart workplace. This service helps in implementing automated systems, enhancing security, saving energy, reducing greenhouse gas emissions, and lowering energy consumption, thus resulting in the high adoption of these services in the smart office market.
The Americas is expected to dominate the smart office market for product segment, while APAC is expected to grow at the highest rate during the forecast period
The Americas held the largest share for product segment in the smart office market in 2016 owing to the presence of major smart office vendors and the growing number of smart commercial building projects in the region. The market in APAC is expected to grow at the highest CAGR between 2017 and 2023. The rapid modernization and increase in adoption of modern technology in APAC have accelerated the growth of automatic centralized control of the HVAC systems installed in commercial buildings in this region. Also, the energy management solution to reduce the associated cost and the implementation of security and lighting management solution in workplaces ultimately leads to the growth for the product segment in the smart office market in APAC.
Given below is the breakdown of the profile of the primary participants in terms of different parameters considered:
- By Company Type: Tier 1 = 25%, Tier 2 = 40%, and Tier 3 = 35%
- By Designation Level: C-Level Executives = 50%, Directors = 32%, and Others = 18%
- By Region: Americas = 32%, Europe = 30%, APAC = 24%, and Middle East & Africa = 14%
The key players operating in the smart office market include ABB, Cisco Systems, Crestron Electronics, Honeywell, Johnson Controls, Philips Lighting, Lutron Electronics, Schneider Electric, Siemens, and United Technologies Corporation.