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The smart space market is expected to grow at a CAGR of 18.4% over the forecast period (2019-2024).
Smart space allows users or organizations to attain revenue growth by allowing them to set a strategy and helps in improved decision making, a better understanding of demand patterns and business trends and improve efficiency and financial results through higher conversion and better space utilization.
- The increasing demand for IoT coupled with the increase in the environmental concerns are some of the factors contributing to the growth of the smart space market over the forecast period.
- For instance, in September 2018, Microsoft announced Azure Digital Twins that allows the user with the help of the cloud, AI and IoT to Create digital replicas of spaces and infrastructure.
- With benefits such as flexibility, scalability being the core of the smart space solution offered by the providers, it is expected to fuel the growth for the smart space market throughout the forecast period.
- The rapid increase in the urbanization coupled with the advent of new technologies like 5G is expected to augment the growth for the smart space market over the forecast period.
- IBM's cognitive building solutions gives the real estate and facilities management professionals with required tools necessary for the reduction of operating costs, better management of energy, optimizing space, simplifying the real estate planning and management.
- However, the high initial capital investment required could act as the restraining factor in the growth of the smart space market.
Major Market Trends
Commercial Segment Estimated to Hold the Largest Market Share
- The commercial segment comprises of office spaces, hotels, hospitals, malls, shopping complexes, restaurants and many more. These organizations with the help of smart space solutions can monitor costs and revenue, develop business plans and redefine financial goals.
- For instance, Adappt with the help of its solutions is able to redefine the way organizations their workplace assets by using an integrated systems approach, the Adappt Cognitive Premise solution provides analytics, control, applications, and optimization to tailor each organization workplace according to its unique personality.
- The companies looking forward to expanding their business footprint across different geographies is one of the major factors contributing to the growth of the smart space market over the forecast period.
- For instance, in May 2019, Mitsubishi Electric Corporation announced a 100% acquisition of ICONICS, Inc. in a move that would allow Mitsubishi to strengthen its software portfolio and technology.
Europe is Expected to Hold a Significant Market Share
- The North Western European region faces a great challenge of shifting towards an economy which has a low carbon footprint. With Municipalities accounting for 70% of the NWE energy consumption and CO2 emission as well as standard public street lighting accounts for approximately 30% of municipalities total electricity consumption Smart Space solutions.
- Smart space aims promote the usage of smart lighting in small/mid-size municipalities along with the sensors attached to light poles, energy efficiency can be enhanced, CO2 emissions can be reduced and street lighting can be adjusted as per the requirements. This could augment the growth of the smart space market across the entire region.
- With European cities on the driver's seat to become SMART is one of the driving factors that could boost the smart space market over the forecast period. For instance, The European Smart Space project aims at increasing the innovation capabilities of industrial SMEs by exploiting the potential of intelligent and digital technologies.
The smart space market remains fairly competitive for the vendors owing to the presence of some key players such as ABB Ltd., Siemens AG and many more. Due to their ability to continually innovate their products and a good supply chain presence, has allowed the players in the market to gain a competitive advantage over their competitors. Hefty investments in research and developments, strategic partnerships have allowed the players to gain a strong foothold in the market.
- May 2019—Spacewell released a new service app, Work Assistant for cleaning, which is a mobile touchpoint of its Cobundu smart building platform. Work Assistant supports service providers to deliver activity-based services, based on live IoT-data. Work orders can be created in a variety of ways, for example, through sensor triggers, user feedback, help desk tickets, and service scheduling.
- April 2019—DVI Communications partnered with Spacewell to offer advanced Smart Building services to the US market.