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Smart Office Market Size Worth $57.05 Billion By 2025 | CAGR: 13.2%


The global smart office market size is expected to reach USD 57.05 billion by 2025, according to a new report by Grand View Research, Inc., registering a CAGR of 13.2% over the forecast period. Organizations are constantly evolving due to changing workforce demographics and technological expectations of modern employees and employers. As a result, a large number of organizations across the globe are anticipated to shift toward smart offices. Rising concerns regarding energy consumption are also likely to augment the market.
Growing adoption of Internet of Things (IoT) is estimated to stoke the growth of the market as IoT enables inter-networking of physical devices through actuators, sensors, network connectivity, and software. Employers are able to improve employee productivity while increasing flexibility of work environment with better connectivity. However, concerns associated with privacyandmalicious attacks are poised to inhibit the growth of the market.
Energy management systems (EMS) offer advantages such as measuring energy efficiency improvements, analyzing energy data for better decision-making, and optimization of energy consumption. Audio-video conferencing systems help reduce travelling time and costs by providing a platform to share and collaborate ideas from remote locations. Surging demand for these hardware systems is projected to provide a fillip to the overall market.
Rising popularity of smart office technology is motivating manufacturers to invest in research and development activities for creating cost-effective, reliable, and improved products. Manufacturers are pouring substantial funds into development of new products for providing better user experience, which is expected to trigger the growth of the market.
Further key findings from the study suggest:
·         Smart office technology enhances experience of employees in terms of integration, intelligence, and intuitiveness
·         By component, the service segment is likely to post the highest CAGR of 15.0% over the forecast period
·         The retrofit segment dominated the market in 2016, with a valuation of USD 14.30 billion. The segment will retain its lead position through 2025
·         The North American region accounted for the largest share of just over 55 % in 2016
·         Key industry participants include ABB Ltd. (Switzerland); Honeywell International, Inc. (U.S.); Johnson Controls (U.S.); Schneider Electric (France); and Siemens AG (Germany).
Grand View Research has segmented the global smart office market based on component, office type, and region:
Smart Office Component Outlook (Revenue, USD Million, 2014 - 2025)
·         Hardware
o    Security Systems & Controls
o    Smart Lighting & Controls
o    Energy Management Systems
o    HVAC Control Systems
o    Audio-Video Conferencing Systems
·         Software
·         Service
Smart Office Type Outlook (Revenue, USD Million, 2014 - 2025)
·         Retrofit
·         New Construction
Smart Office Regional Outlook (Revenue, USD Million, 2014 - 2025)
·         North America
o    U.S.
o    Canada
o    Mexico
·         Europe
o    Germany
o    U.K.
·         Asia Pacific
o    China
o    Japan
o    India
·         South America
o    Brazil
·         Middle East & Africa

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