Smart Space Market - Forecasts from 2023 to 2028

The smart space market was evaluated at US$738.553 billion in 2022 and will grow at a CAGR of 18.81% to be worth US$2,077.069 billion by 2028.

The term "smart space" refers to the combination of cutting-edge technology that provides connected, intelligent, and responsive surroundings. Smart spaces use the Internet of Things (IoT) to link objects and facilitate easy data exchange and communication. In addition, smart spaces are a revolutionary paradigm that combines technology to create settings that are not just linked but also adaptive and intelligent. These spaces prioritise energy efficiency, security, and ease.

Smart space market growth factors

The smart space market is being fueled by the increasing trends of automation and digitalization, which are transforming industrial facilities into linked factories that enable seamless information exchange between people, machines, and sensors. Additionally, the creation of smart city spaces has received funding from various governmental organizations, which influences the smart space market.

Rising use of smart homes and smart gadgets

In the contemporary environment, smart homes' significance and acceptance have gained considerable popularity. Consumer awareness, shifting customer needs, acceptance and usage of cutting-edge technology, and a rise in investments are a few factors that contribute to the growing demand for the adoption of smart homes. The integration of smart devices and the need for high levels of security in residential and commercial spaces are all aspects that have an impact on the adoption of smart homes and devices. Globally, smart technology used in public spaces has also considerably increased. One of the important elements that turn a public space into a smart environment is the presence of smart kiosks at parks, transit hubs, medical institutions, athletic arenas, and eateries.

Environmental issues and green construction projects

The smart space market growth is further expanding due to sustainable green construction projects brought on by environmental concerns and the pervasiveness of technology in daily life. Green buildings place a strong emphasis on the effectiveness of the building's lifetime, performance, and efficiency. Smart technologies, which are integrated throughout the system to improve the performance and functions of the building, are necessary for these structures. A building's foundational communications and control systems open the door to many innovations as they advance in sophisticated technologies.

Emergency management  is anticipated to drive market growth

To increase the security of any institution, gadgets like smart cameras with enhanced image sensors keep an eye on the remote corners 24 hours a day, which is anticipated to fuel the market due to growing consumer preference for safety. Similar to this, an ultrasonic location monitoring system in a research facility, a power plant, or any highly protected sector quickly identifies individuals by recording their movements and whereabouts. In addition, the systems have a storage option for temporarily storing the data, which can also be utilized for future reference.

Advancing technologies are further fueling the market

Technological advancement is an important trend that is gaining popularity in the smart space industry. Businesses in the smart space market are gathering insights and data using IoT & digital twin technologies to improve building efficiency and tenant wellbeing. Smart houses and gadgets are increasingly relying on the Internet of Things. The effective linking and control of several devices for monitoring and regulatory purposes is made feasible by the use of technology. Technology has made it easier to use gadgets and programs which has increased demand in the smart spaces market.

Emerging 5G technology to enhance connectivity

5G transmits and receives speech and data through radio frequency which influences the smart space market growth. These frequencies have a huge capacity for data transfer but cover a much smaller area than their 4G predecessors. They also have trouble navigating past obstacles like buildings and walls. It can instantaneously link billions of devices with zero latency, opening up previously unimagined prospects for new applications, services, and businesses.

Substantial growth is anticipated in North American region

The development of the smart space industry in the North American region is attributed to several factors, such as considerable government investment in cutting-edge and intelligent technologies, a surge in IoT devices, and a strong technological base. The United States and Canada play a vital role in the development of the smart space industry because of their lengthy histories of economic power. North America is the most advanced region when it comes to the development of smart spaces. The majority of the countries in the area are among the first to employ artificial intelligence, machine learning, and other smart space technology.

Asia Pacific is predicted to hold a significant market share

Asia-Pacific is predicted to have a significant smart space market growth rate during the forecast period. The growth of smart city initiatives in China and India is anticipated to fuel market expansion. Asia-Pacific is expected to exhibit the quickest smart space market growth rate throughout the projection period as a result of the proliferation of connected systems backed by the ongoing trend of smart workplaces and residences in the area, as well as government-driven infrastructure projects.

Market Key Developments

• In December 2022, MTS, the top mobile network operator, partnered with Huawei and implemented the first commercial use of Smart 8T8R in Moscow. The Smart 8T8R solution was built using software-defined antennas (SDAs), FDD dual-band 8T8R RRUs, and Huawei's proprietary algorithms.
• In November 2022, Schneider partnered with the software provider Planon. The partnership's objective was to create the next wave of OT/IT solutions for use across the building life cycle. To assist businesses with their digital transformation of the building lifecycle, the firms worked together, creating a clear synergy and value. 

Segmentation:

By Component

• Hardware
• Software
• Services

By Application

• Energy Management and Optimization
• Emergency Management
• Security Management
• Others

By End-User

• Commercial
• Residential

By Geography

• North America
• United States
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• United Kingdom
• Germany
• France
• Spain
• Others
• Middle East and Africa
• Saudi Arabia
• UAE
• Israel
• Others
• Asia Pacific
• Japan
• China
• India
• South Korea
• Indonesia
• Thailand
• Others