Smart Workplace Market Size, Share Global Analysis Report, 2023 – 2030

Industry Insights

[210+ Pages Report] According to Facts and Factors, the global smart workplace market size was around USD 37.42 billion in 2022 and is anticipated to reach USD 81.48 billion by the end of 2030. The smart workplace market is expected to grow with a CAGR of 10.11% between 2023 and 2030.

The market report offers detailed analytical insights into the top companies in the smart workplace industry. The report is a mix of both deep primary and secondary research dedicated to discovering the upcoming market trends, growth restraining factors, and opportunities. The reports include the latest tech developments, innovations, product launches, and more exhaustive information on market diversification.

Market Overview

A smart workplace refers to a workplace that integrates modern technology with advanced solutions to help people work faster, better, and smarter. The major aim of a smart workplace is to optimize resource utilization, streamline operations, and enhance the employee experience.

Automation is the basic principle of a smart workplace. Different tasks like equipment management, climate regulation, lighting control, and a few others can be automated to work smoothly with each other. Also, smart workplaces gather data via various devices and sensors to offer intelligent insights into various metrics like employee behavior, energy consumption, space utilization, and others.

Key Insights

• As per the analysis shared by our research analyst, the global smart workplace market size is estimated to grow annually at a CAGR of around 10.11% over the forecast period (2023-2030).
• In terms of revenue, the global smart workplace market size was valued at around USD 37.42 billion in 2022 and is projected to reach USD 81.48 billion by 2030.
• The wide adoption of artificial intelligence in smart workplaces is likely to drive the growth of the global smart workplace market.
• Based on the industrial vertical, the IT and telecom sectors swiped the largest share of the industry.
• Based on the organization size, the offline segment is expected to dominate the global market.
• Based on communication technology, the large enterprise segment accounts for the largest share of the global market.
• Based on the product, the smart lighting segment is expected to generate the highest revenue in the industry.
• Based on the component, the solution segment is expected to dominate the global market.
• Based on region, North America is expected to dominate the market during the forecast period.  

Growth Drivers

• Wide adoption of artificial intelligence in smart workplaces is expected to boost the growth of the global market.

The wide-scale adoption of artificial intelligence is one of the major reasons for the growth of the global smart workplace market. AI-powered virtual assistants, data analytics, and predictive maintenance systems contribute heavily towards offering a proactive workplace environment. Also, the government is taking several initiatives to drive people's interest in the smart workplace system, thereby attracting huge investments in the global industry.

Additionally, continuous technological advancements like augmented reality applications and smart wearable devices in the smart workplace domain are further expected to promote the growth of the global market in the forthcoming years. For instance, Infogain, in June 2020, launched Azure Digital Twins to innovate a virtual representation of the physical environment. The company is a US-based firm dealing in designing smart workplace solutions.

Restraints

• High implementation cost is expected to restrict the growth of the global market.

Initial investments in setting up the smart workplace environment are quite high, which is expected to slow down the growth of the global smart workplace industry. Smart technologies like sensors, IoT devices, advanced infrastructures, and several others are high-budget tech. Therefore, it limits the growth of the global market.

Opportunities

• Surging trend of focusing on employee experience is expected to offer lucrative opportunities in the global market.

Organizations are increasingly realizing the importance of employee satisfaction and their overall well-being. Therefore, companies are coming up with smart workplace solutions like temperature control, smart lighting, and personalized workspaces to create a productive and more comfortable environment for employees.

However, such a landscape is expected to offer lucrative growth opportunities in the global smart workplace market in the forthcoming years. For instance, Atos signed an agreement with a German pharmaceutical and life science company, Bayer, in October 2019. Atos is an IT service and consulting company.

Challenges

• Data security and cyber-attacks are the major challenges in the global market.

Privacy concerns and data security issues are some of the major issues related to smart workplace technology. Organizations have to invest in additional cyber security solutions to protect their organization from potential security breaches and cyber threats. However, such a landscape is expected to hamper the growth of the smart workplace industry.

Segmentation Analysis

The global smart workplace market can be segmented into industrial vertical, organization size, communication technology, product, component, and region.

By industrial vertical, the market can be segmented into media & entertainment, consumer goods & retail manufacturing, government & public sector, telecommunication & IT, healthcare & pharmaceuticals, BFSI, and others. The IT and telecom sectors swiped the largest share of the smart workplace industry. The surging trend of remote working in countries like the USA, China, Australia, Canada, and India has led to an increase in the adoption of digital workplace solutions.

Also, the emergence of software as a service (SaaS) and BYOD solutions are further strengthening the capabilities of the IT and telecom sectors. Large organizations are heavily investing in digital solutions to establish resilience in unprecedented pandemic shutdowns.

The healthcare and pharmaceutical segment is also expected to grow significantly during the forecast period as healthcare centers are increasingly embracing digital solutions. This high demand is due to substantial savings, paperwork reduction, and centralized information access. A digital workplace offers improved communication and better collaborations.

By organization size, the market can be segmented into large enterprises and small-medium size enterprises. The large enterprise segment accounts for the largest share of the global smart workplace market. The high growth rate can be attributed to the increasing adoption of cloud technology and advanced tech by big organizations. Digital workplace solutions offer real-time dashboards to large enterprises which provide intelligent reporting and help users with advanced technologies like cognitive automation, virtual reality, and augmented reality.

However, the small-medium enterprise segment is also projected to grow steadily during the forecast period due to the various advantages offered by digital workplace services like business efficiency, increased work productivity, mobile test-based operation, better customer experience, lower cost, and a shorter time to market. Additionally, SMEs are also embracing digital offices because of their high scalability, less capital expenditure, and no requirement for hardware maintenance.

By product, the market can be segmented into HVAC control systems, energy management, system security system, and smart lighting. The smart lighting segment is expected to generate the highest revenue in the smart workplace industry. Smart lighting includes various elements like motion detection, automation, advanced sensors, etc., which offer lower energy usage and thereby make this lighting more attractive. Also, smart lighting systems hold the potential to save money by consuming less energy which in turn will also reduce the maintenance and replacement cost.

By component, the market can be segmented into service and solution. The solution segment is expected to dominate the global smart workplace market due to the wide adoption rate of workplace solutions like content management systems, cloud storage tools, and social & collaborative tools to improve resource productivity and usage. It further supports social media networks, helps in building teams within the organization, and fosters profitable collaborations. It improves the self-service capabilities of the IT sector.

However, the service segment is also expected to witness a high growth rate in the forthcoming years. It offers integration and implementation services, training support & maintenance services, and other consulting Services. These services enable businesses to meet the digital workplace efficiently and effectively.

Report Scope

Regional Analysis

• North America accounts for the largest share of the global market.

North America accounts for the largest share of the global smart workplace market due to the growing adoption of emerging technologies like BYOD, AI, and others. The wide availability of high-speed internet is another reason facilitating the wide adoption of smart technology in workplaces. The advent of Covid-19 has propelled the hybrid work models and remote work operation, which is further moving forward in the region.

However, the hybrid work models require robust smart solutions to support remote monitoring, communication, and seamless collaboration in the workplace environment, thereby widening the scope of the smart workplace industry in the region. Data analytics and artificial intelligence play a very important role in a smart workplace environment. These latest techs offer data-driven decision-making, predictive maintenance, and collection of valuable insights, which is very crucial for the organization.

Asia Pacific is expected to witness significant advancements in the smart workplace industry due to growing urbanization. Increasing urbanization is boosting the demand for smart solutions to optimize infrastructure management, optimization of energy efficiency, and space utilization in urban workspaces.

The government is taking several steps to actively encourage the wide-scale adoption of smart technologies as a part of its smart city initiatives. The emergence of mobile and remote workers is further expected to boost the growth of the regional market in the forthcoming years.

For instance, the Indian Institute of Technology (IIT) developed a smart monitoring system in February 2022 to lower road accidents. This system helps in recognizing and warning the worker regarding the red alerts while working at heights.

Competitive Analysis

The key leaders in the global smart workplace market include:

• Mphasis 
• Tech Mahindra Limited 
• Tata Consultancy Services Limited 
• Infosys Limited 
• HCL Technologies Limited 
• Capgemini 
• Trianz 
• Atos SE 
• Accenture plc 
• IBM

For instance, IBM came up with IBM Talent & Transformation in May 2020. Such a business solution utilizes AI to assist human resources in filling up their skill gap. This business framework helps marketing, finance, legal, HR, etc, to adopt digital technology.

The global smart workplace market is segmented as follows:

By Industrial Vertical Segment Analysis

• Media & Entertainment
• Consumer Goods & Retail Manufacturing
• Government And Public sector
• Telecommunication & IT
• Healthcare & Pharmaceuticals
• BFSI
• Others

By Organization Size Segment Analysis

• Large Enterprises
• Small-Medium Size Enterprises

By Product Segment Analysis

• HVAC Control System
• Energy Management
• System Security System
• Smart Lightings

By Component Segment Analysis

• Service
• Solution

By Regional Segment Analysis

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America