Smart Space Market

Smart Space Market Overview 2024 to 2034

The market for smart space is estimated to be valued at USD 15,459.8 million in 2024. The pace of progress for the market from 2024 to 2034 is expected to be extraordinary, with a CAGR of 16.2%. By the end of the forecast period, the smart space market value is slated to move to USD 69,125.6 million.

Smart Space Market Analysis

• Rising government initiatives for the building of smart cities and offices, and the integration of AI technology into public and private sectors to optimize energy and reduce carbon footprint boost the market growth.
• Technological advances in home appliances, entertainment, lighting, and security post-pandemic have increased the scope of the market.
• Smart voice commands in the home, such as Alexa and Siri, are further making life easier and backing the expansion of the market.

Attributes	Details
Smart Space Market Value for 2024	USD 15,459.8 million
Projected Market Value for 2034	USD 69,125.6 million
Value-based CAGR of Market for 2024 to 2034	16.2%

Smart Space Market Trends

• Urban population is increasing, and local bodies must plan smartly to ensure cities remain clean, safe, and livable. Smart spaces are one way through which local bodies are making cities better places to live in.
• While smart spaces are generally considered the domain of developed countries, there have been efforts to bring them to emerging areas. Thus, geographical expansion is being targeted by companies in the market.
• Businesses are leveraging smart spaces to increase revenue and make operations smoother. Leveraging effective data management and supply chain operations, commercial enterprises are becoming more open to smart spaces.
• Smart space firms are offering solutions tailored to the individual needs of an organization, and thus, smart spaces are becoming increasingly varied.
• Working from home was a common concern during the pandemic. Therefore, working professionals optimized residential spaces to suit their needs. As many professionals still work from home, they are adapting smart spaces to make residential spaces more conducive to working.
• Smart space adoption is rising as emphasis is being put on security. With devices like smart security cameras, alarm systems, and more, smart spaces are being sought after for disaster and emergency management.
• Building and planning smart spaces requires a significant amount of capital. While venture capitalists and governments are pouring money into smart space projects, the high cost still acts as a restraint for the market.

Category-wise Outlook

Smart space objectives can be achieved in varied ways, but it is through tangible hardware that smart spaces are widely defined. Of the various functions of smart spaces, it is energy management & optimization that is the reason smart spaces are often sought.

Smart Space Workings are Often Achieved Through Hardware

Hardware is expected to account for 45.3% of the market share in 2024 by component. Factors driving the growth of hardware in the smart space industry are:

• While digital smart spaces are becoming more popular, through means of digital replicas, AR, and VR, there is still a lack of awareness among people about them. People are comfortable with hardware as a technology and are still using it, even in smart spaces.
• Manufacturers are concentrating on making hardware that is easier to handle, compact, and furnished with sleek looks, which is helping the adoption of the product in smart spaces.

Attributes	Details
Top Component	Hardware
Market Share in 2024	45.3%

Concerns Related to Compliance Drive the Incorporation of Energy Management and Optimization in Smart Spaces

Energy management & optimization systems are expected to contribute to 23.9% of the market share in 2024 by application. Some of the factors for the growth of the product are:

• As governments and regulatory bodies clamp down on energy consumption, businesses and residential buildings feel the need for solutions that help them ensure compliance. Energy management and optimization systems are helping in that matter, helping buildings to save on energy consumption, thereby also cutting costs.
• Smart spaces are incorporating sustainability as one of their guidelines, and energy management and optimization systems are aiding in that objective.

Attributes	Details
Top Application	Energy Management and Optimization
Market Share in 2024	23.9%

Country-wise Analysis

The affluence and the technological development of the region make sure that Europe and North America are bastions of the market. With a demand for optimal working and living conditions, the market is expected to continue progressing positively in the regions.

However, the Asia Pacific and Oceania are emerging as prominent regions of growth. The boom in the industrial sector is expected to drive the stellar growth of the market in the regions.

Countries	CAGR (2024 to 2034)
United States	13.0%
Australia	19.7%
Germany	15.6%
Japan	17.4%
China	16.7%

Commitment to Sustainability Sees Increasing Adoption of Green Smart Spaces in Australia

The market is anticipated to register a CAGR of 19.7% in Australia for the forecast period. Some of the factors driving the incredible growth of the market in the country are:

• In the wake of natural disasters linked to global warming, Australia’s industrial sector is shifting toward sustainable solutions. Green smart spaces are one way through which the commercial sector is reaffirming its commitment to sustainability.
• The government in Australia is encouraging the use of green technologies, which is benefitting the smart space market in the country.

The Proliferation of Smart Homes Ramped Up the Demand for Smart Spaces in Japan

Japan is set to record a promising CAGR of 17.4%. Prominent factors driving the growth of the market are:

• Japan is seeing increasing adoption of smart homes, especially because of the significant geriatric population of the country. Smart homes are also aiding the at-home working professionals in the country. Thus, the residential sector is helping the market in Japan.
• Smart spaces in Japan are incorporating telehealth services and advanced healthcare solutions in their workings.

Increasing Urbanization Fuels the Need for Smart Spaces in China

The smart space industry is expected to register a CAGR of 16.7% in China. Some of the factors driving the growth of the market in China are:

• Increasing urbanization trends in China are making Chinese authorities incorporate cities into smart spaces. Developing water supply, transportation, and other infrastructure services are aimed at smart space integration.
• Chinese smart space builders are taking the help of City Information Modeling (CIM) to create smart spaces and cities. CIM makes use of various technologies like building information modeling (BIM) and geographic information systems (GIS) to create a 3D model that helps plan out smart spaces in a city.

Smart Spaces are Adopting an All-inclusive Approach in Germany

The market is set to progress at a CAGR of 15.6% in Germany. Factors influencing its growth in Germany include:

• Smart space builders are collaborating from the government and businessmen to citizens in Germany for certain effective changes. For example, the SMART SPACE Hardenbergplatz pilot project is taking input from the local body, businesses, and citizens to make the area in front of the Bahnhof Zoologischer Garten in Berlin into a smart space by 2026.
• Germany often finds itself at the forefront of technological launches as a result of the significant tech companies and outlets in the country, and thus, upgrades in technology have become second nature to German citizens. As a result, the technologically-proficient German people are increasing the acceptance of smart spaces.

Implementation of IOT in the United States Smart City Plans

The industry is expected to register a CAGR of 13.0% in the United States. Some of the reasons for the growth of smart spaces in the country are:

• Smart city developers in the United States are taking the help of IOT to design advanced cities and spaces. For example, Intel is helping the city of San Jose with its IoT Smart City Demonstration Platform to develop greener smart spaces.
• American offices are taking pains to ensure working places are as comfortable as can be for employees. Smart working spaces ensure the employees’ comfort is increasing.

Competitive Landscape in the Smart Space Market

As smart spaces are often part-and-parcel of smart cities, market players are partnering with governments and local authorities. Industry experts are also taking part in smart city initiatives by making their technologies available to local bodies. For the development of residential and office smart spaces, collaborations with interior design firms are common.

The market is highly competitive, with giant players tussling it out with smaller-scale companies for a piece of the pie. Startup culture is also prominent, with the uniqueness of technology being a primary factor that helps newer entrants distinguish themselves.

Recent Developments in the Smart Space Market

• In January 2024, the King Abdullah Financial District Development and Management Co. and the Saudi Co. for Artificial Intelligence signed a partnership deal for smart traffic and mobility solutions in Riyadh.
• In November 2023, it was announced that Thales Alenia Space, a collaboration between Thales and Leonardo, was investing USD 107.15 million to open a smart factory in Rome at the Tecnopolo Tiburtino hub.
• The Greater Visakhapatnam Municipal Corporation (GVMC) has set a target date of June 2024 for the completion of its smart city project in Visakhapatnam, India.

Key Companies in the Smart Space Market

• Cisco
• Siemens
• Huawei Technologies
• IBM
• Schneider Electric

Key Segments

By Component:

• Hardware
• Software
• Solutions

By Application:

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

By Premises Type:

• Commercial
• Residential
• Others

By Region:

• North America
• Latin America
• Europe
• South Asia
• East Asia
• Oceania
• The Middle East and Africa (MEA)

Frequently Asked Questions

How Big is the Smart Space Market?

The size of the smart space market is estimated to be USD 15,459.8 million in 2024.

What are the Key Companies in the Smart Space Market?

Cisco, Siemens, Huawei Technologies, and IBM are some of the key companies in the smart space market.

How Much Will the Smart Space Market Be Worth by 2034?

The smart space market is expected to reach a valuation of USD 69,125.6 million by 2034.

Which Component of Smart Spaces is Widely Adopted in the Market?

Hardware is the component often sought after in smart spaces, with an expected market share of 45.3% in 2024.

What are the Trends in the Smart Space Market?

Urban city planning, including provisions for smart spaces and geared toward at-home working professionals, are some of the trends in the market.