Smart Space Market Expected to Reach $107.42 Billion by 2030

According to a recent report published by Allied Market Research, titled, “Smart Space Market By Component, Space Type, Application, End User, and Region: Global Opportunity Analysis and Industry Forecast, 2021-2030,” The global smart space market was valued at $30.53 billion in 2020, and is projected to reach $107.42 billion by 2030, registering a CAGR of 13.4%.

Proliferation of advanced technologies such as Internet of Things (IoT) and artificial intelligence (AI) drives the growth of smart space market size. In addition, rise in Greenfield projects and increase in environmental concerns across the globe are also expected to boost the market growth. However, high initial capital expenditure required for connected devices & other hardware, and rise in privacy concerns pertaining to information manipulation are expected to impede the market growth during the forecast period. Furthermore, increase in smart city initiatives across all the regions and emergence of 5G technology are expected to provide major growth opportunities for smart space market in upcoming years.

In 2020, on the basis of end user, the commercial segment dominated growth in the smart space market share in 2020, and is expected to maintain its dominance in the upcoming years. Smart space platforms are helping commercial sector in automating their business and operations. For instance, smart spaces in hospitals, hotels, and malls sense people in the premise and store their movements, which helps in contextualizing and adapting with users need. It further helps retailers to gather more customer base by bringing new strategies and innovative ideas.

By space type, the smart indoor spaces segment dominated the growth in the smart space market in 2020, and is expected to maintain its dominance in the upcoming years. Increase in trend of making homes, buildings, and other indoor spaces smart is the major factor that drives the adoption of smart space platform in this segment. Moreover, a recent report published by the British Council for Offices (BCO) on “Improving Productivity in the Workplace” stated that indoor environments have a significant effect on an actual workplace productivity, which indicates that workplaces need to be smart and modern.

The current estimation of 2030 is projected to be higher than pre-COVID-19 estimates. The COVID-19 pandemic has significantly fostered the growth rate of the market owing to the increased shift toward creation of safe smart spaces and significant increase in the IoT deployment. In addition to this, the proliferation of smart buildings driven by pandemic is impacting positively on the market. Smart buildings offer functions such as social distancing, occupancy tracking/monitoring, ventilation and air-conditioning (HVAC) systems, smart heating, and stricter cleaning requirements.

Key Findings of the Study

• By component, in 2020 the hardware dominated the smart space market size. However, the services segment is expected to exhibit significant growth during smart space market forecast period.
• Depending on space type, the smart indoor space segment generated the highest revenue in 2020. However, the smart outdoor space segment is expected to exhibit significant growth during the forecast period.
• Depending on application, the energy management and optimization segment generated the highest revenue in 2020. However, the emergency and disaster management segment is expected to exhibit significant growth during the forecast period.
• Region wise, the smart space industry was dominated by North America region. However, Asia-Pacific is expected to witness significant growth in the upcoming years.

Some of the key smart space industry players profiled in the report include Cisco Systems, Inc., Eutech Cybernetic Pte. Ltd., Hitachi Vantara Corporation, Huawei Technologies Co., Ltd., International Business Machines Corporation (IBM), Schneider Electric SE, Siemens AG, SmartSpace Software Plc, Spacewell, and others. This study includes market trends, smart space market analysis, and future estimations to determine the imminent investment pockets