Smart Office Market size is anticipated to grow significantly attributed to the increase in the demand for automation of all processes to improve the work efficiency and boost the productivity. There is an increase in the demand for improved commercial infrastructure that uses sensors, wireless systems, and advanced communication technologies. These solutions provide the organization with advantages such as precise time and schedule management, enhanced communication, high return on investment, identity and risk management, cloud storage, and connected integrated systems. The rise in the demand for enhancing the working environment in offices is expected to propel the smart office market growth.
The rise in the demand for enhanced security solutions in offices is projected to fuel the smart office market growth. These solutions deploy automated systems, wireless data transfers, and centralized control for data analysis and monitoring. Stringent government regulations pertaining to worker safety are being implemented in many countries. Implementing intelligent workplaces will lead to enhanced document security and improved worker productivity. Stringent government regulations such as OSHA and ANSI that support worker safety are further projected to propel the smart office market growth. Increasing need for the incorporation of security devices such as electronic locks and cameras into workplaces is providing ample opportunities for the smart office market growth.
The proliferation of the Internet of Things (IoT) in industries is anticipated to boost the smart office market growth. IoT facilitates an enhanced internetworking of physical devices that increase the flexibility of work atmosphere through improved connectivity. Enhanced connectivity systems offer VR speakers, cameras, and IoT furniture, improving the work efficiency. Remote management of connected devices can be implemented in a digital office environment. Government initiatives such as Digital India supporting the technologies including IoT and artificial intelligence will boost the smart office market over the forecast timespan.
Intelligent systems handle sensitive data pertaining to workers and crucial documents. Risks related to cybersecurity breaches and malicious software attacks are key factors hindering the smart office market growth. High installation and maintenance costs of these systems are also expected to hamper the industry growth. Lack of awareness of these technologically-advanced systems in underdeveloped countries will also limit the smart office market growth in these regions.
The energy management systems segment is expected to grow at a fast rate. Intelligent solutions include energy management systems that can be used to track the energy utilization, thereby allowing organizations to mitigate energy losses. A rise in the trend of adopting energy-saving solutions to increase profits is projected to fuel the smart office market growth. There is an increasing demand for energy-efficient solutions that are environment-friendly and increase the profit margins. Intelligent systems enable the easy analysis of energy data for accurate decision making. Rising concerns about environmental safety are forcing governments to draft energy regulations to control the energy consumption. Workplaces are switching over to intelligent energy management systems and this is expected to fuel the smart office market growth.
Smart office market for the services segment is projected to grow at a rapid rate over the forecast timespan. There is a rise in the demand for installation & support services, and advisory & consulting services for the efficient management of smart systems. Services enable transforming a workplace by implementing advanced technologies. Rapid technological advancements in IoT, AI, machine learning, and hardware pertaining to smart offices are boosting the services segment of the industry. Rising demand for services that optimize the network performance and reduce the operational expenditures is expected to fuel the industry growth for the segment.
The smart office market for the new construction offices sector is expected to grow at a fast rate over the coming years. A retrofit office can impose restrictions for new system implementations or modifications. A newly constructed workplace provides the flexibility for implementation of new systems. Smart office systems can be inbuilt in new construction offices, thereby reducing the overall expenditure of renovating the entire system in a traditional office.
The Asia Pacific smart office market is projected to grow at a high rate owing to the rapid industrialization and urbanization in countries including India, Japan, and China. Increasing number of industries focusing on implementing IoT in their systems will boost the industry growth. Improved standard of living in countries including India is forcing offices to refurbish and modernize the existing infrastructure. The expansion of the IT sector in the region is a key factor contributing to the industry growth. Government organizations in countries including Singapore and India are supporting digitization, which will propel the industry growth.
Key players in the smart office market include ABB Ltd., Siemens AG, Cisco Systems, Inc., Johnson Controls International PLC, Honeywell International, Inc., Crestron Electronics, Inc., United Technologies Corporation, and Lutron Electronics Co., Inc. Key players are focusing on entering into strategic partnerships to offer enhanced digital solutions. Major players are expanding their market presence to strengthen the market position. Increasing competition among key players is expected to drive the smart office market over the forecast timespan.