Smart Space Global Market Report 2025

Smart spaces refer to facilities or public areas equipped with sensors to collect data, providing insights into the environment, services, and interactions of occupants with their surroundings. These insights, obtained in real-time or from historical data, can be utilized to enhance safety, operations, and the overall user experience. Smart spaces are instrumental in collecting data and generating insights about environmental conditions.

The primary types of smart space components include hardware, software, and services. Software encompasses a set of programs, procedures, and routines related to the operation of a computer system, facilitating a range of activities in and around the building through mobile devices. Different types of smart spaces include smart indoor spaces and smart outdoor spaces, utilized across various industries such as banking, financial services and insurance (BFSI), retail and e-commerce, government, media and entertainment, food and beverages, healthcare, automotive, and others. Various applications of smart spaces include energy management and optimization, layout and space management, emergency and disaster management, security management, and more.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The sharp rise in U.S. tariffs and the ensuing trade tensions in spring 2025 are having a significant impact on the information technology sector, especially in hardware manufacturing, data infrastructure, and software deployment. Increased duties on imported semiconductors, circuit boards, and networking equipment have driven up production and operating costs for tech companies, cloud service providers, and data centers. Firms that depend on globally sourced components for laptops, servers, and consumer electronics are grappling with extended lead times and mounting pricing pressures. At the same time, tariffs on specialized software and retaliatory actions by key international markets have disrupted global IT supply chains and dampened foreign demand for U.S.-made technologies. In response, the sector is ramping up investments in domestic chip production, broadening its supplier network, and leveraging AI-powered automation to improve resilience and manage costs more effectively.

The smart space market research report is one of a series of new reports from The Business Research Company that provides smart space market statistics, including smart space industry global market size, regional shares, competitors with a smart space market share, detailed smart space market segments, market trends and opportunities, and any further data you may need to thrive in the smart space industry. This smart space market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The smart space market size has grown rapidly in recent years. It will grow from $20.59 billion in 2024 to $22.65 billion in 2025 at a compound annual growth rate (CAGR) of 10.0%. The growth in the historic period can be attributed to wireless connectivity advances, automation and efficiency, urbanization and smart cities, occupancy analytics for space optimization, smart infrastructure investments.

The smart space market size is expected to see rapid growth in the next few years. It will grow to $38.03 billion in 2029 at a compound annual growth rate (CAGR) of 13.8%. The growth in the forecast period can be attributed to enhanced cybersecurity measures, health and safety prioritization, human-centric design, smart retail innovations, economic incentives and policies, data privacy and ethical considerations. Major trends in the forecast period include sensor proliferation for environmental monitoring, smart lighting systems for energy efficiency, smart cities and urban planning, edge computing for real-time processing, collaboration spaces in smart offices, smart retail spaces and customer engagement, blockchain for security and trust.

The forecast of 13.8% growth over the next five years reflects a modest reduction of 0.7% from the previous estimate for this market. This reduction is primarily due to the impact of tariffs between the US and other countries. Tariffs on globally sourced occupancy sensors, environmental monitors, and AI analytics tools may raise costs for smart workspace implementation, affecting offices, retail, and residential environments. The effect will also be felt more widely due to reciprocal tariffs and the negative effect on the global economy and trade due to increased trade tensions and restrictions.

The growth of the smart space market is expected to be fueled by green building initiatives and environmental concerns. Sustainable or green buildings, designed to maintain or enhance the local environment's quality of life, integrate smart technology throughout the system to improve building performance and functionality. These technologies not only store data but also analyze it, providing relevant results. For instance, the green building market in India is projected to double by 2022, reaching 10 billion square feet with a value of USD 35-50 billion, according to Financial Express. Thus, the impetus from green building initiatives and environmental concerns is steering the growth of the smart space market.

The smart space market is anticipated to grow further due to the increase in urbanization. Urbanization, characterized by a rising population concentration in urban areas, poses challenges in efficiently managing resources, infrastructure, and services. Smart spaces, leveraging technologies such as IoT sensors, data analytics, and automation, contribute to enhancing the quality of life for urban residents. They optimize resource usage and improve sustainability, offering solutions for transportation systems, energy efficiency, waste management, public safety, and urban planning. According to DataReportal, as of October 2022, 5. 07 billion people worldwide used the internet, equivalent to 63. 5% of the global population. The increase in urbanization is a driving force behind the growth of the smart space market.

Major companies in the smart space market are leveraging IoT technology. The incorporation of IoT in smart spaces facilitates real-time data collection and analysis, optimizing and automating processes, improving user experiences, and enhancing resource management in diverse environments such as homes, offices, and cities. For example, in September 2023, Vantiva SA launched Vantiva Smart Storage, an end-to-end IoT SaaS solution transforming self-storage facilities into smart spaces. The technology aims to boost productivity, open up new revenue opportunities, and provide a risk-free investment with a predictable return on investment.

Major companies in the smart space market are adopting a strategic partnership approach to expand their operations. Strategic partnerships involve companies leveraging each other's strengths and resources to achieve mutual benefits and success. For example, in July 2024, UL Solutions, a US-based applied safety science organization, formed a partnership with Siemens AG, a Germany-based provider of smart building technologies. This collaboration centers around the SPIRE qualification program, which aims to improve access to expert resources and assist the smart building industry in meeting the increasing demand for building assessments. Under the SPIRE qualification program, Siemens assessors will perform SPIRE Smart Building Assessments and submit their results for independent review by UL Solutions. If a building meets the established criteria, UL Solutions will grant a UL Verified Mark and a SPIRE Smart Building Rating, signifying that the building has attained UL Marketing Claim Verification. To qualify as assessors, Siemens candidates must meet all requirements and complete training with UL Solutions.

In January 2022, Planon, a Netherlands-based smart building management software company, acquired COOR GmbH for an undisclosed amount. This acquisition provides Planon customers with best-in-class opportunities to address real estate challenges throughout the building lifecycle and at various levels of maturity and complexity. COOR GmbH, an Austria-based company specializing in IoT-based smart spaces for indoor environments and office spaces, complements Planon's capabilities.

Major companies operating in the smart space market include Cisco Systems Inc., Microsoft Corporation, 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, ABB Ltd., Adappt Intelligence Inc., Ubisense Limited, Smarten Spaces INC, Avnet Inc. (Softweb Solutions Inc), ICONICS Inc., Metrikus Ltd., Capmo GmbH, Honeywell International Inc., Johnson Controls International plc, Legrand SA, Coor Service Management Oy, Silvan Innovation Labs Pvt. Ltd., Noknox Sense Labs Inc., Igloohome Pte. Ltd., SpaceOS Limited, Spaceflow, Mitsubishi Electric Corporation, Hewlett Packard Enterprise Development LP, Juniper Networks Inc.

North America was the largest region in the smart space market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the smart space market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa

The countries covered in the smart space market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Canada, Spain.

The smart spaces market includes revenues earned by entities by providing services such as speed control, lane positioning, and communication. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

Smart Space Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.

This report focuses on smart space market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.

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Where is the largest and fastest growing market for smart space ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The smart space market global report from the Business Research Company answers all these questions and many more.

The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.

• The market characteristics section of the report defines and explains the market.
• The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
• The forecasts are made after considering the major factors currently impacting the market. These include:

The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.

• Market segmentations break down the market into sub markets.
• The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth.
• The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
• The trends and strategies section analyses the shape of the market as it emerges from the crisis and suggests how companies can grow as the market recovers.

Scope

• Markets Covered:1) By Component: Hardware; Software; Services
• 2) By Space Type: Smart Indoor Space; Smart Outdoor Space
• 3) By Application: Energy Management And Optimization; Layout And Space management; Emergency And Disaster Management; Security Management; Other Applications
• 4) By Industry: Banking, Financial Services And Insurance (BFSI); Retail And E-Commerce; Government; Media And Entertainment; Food And Beverages; Healthcare; Automotive; Other Industries
• Subsegments:
• 1) By Hardware: IoT Devices And Sensors; Smart Lighting Systems; Smart Thermostats; Security Cameras And Systems; Networking Equipment
• 2) By Software: Management Platforms; Data Analytics Software; Security Software; User Interface Applications; Integration Solutions
• 3) By Services: Consulting Services; Installation And Deployment Services; Maintenance And Support Services; Managed Services; Training And Education Services
• Companies Mentioned: Cisco Systems Inc.; Microsoft Corporation; 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; ABB Ltd.; Adappt Intelligence Inc.; Ubisense Limited; Smarten Spaces INC; Avnet Inc. (Softweb Solutions Inc); ICONICS Inc.; Metrikus Ltd.; Capmo GmbH; Honeywell International Inc.; Johnson Controls International plc; Legrand SA; Coor Service Management Oy; Silvan Innovation Labs Pvt. Ltd.; Noknox Sense Labs Inc.; Igloohome Pte. Ltd.; SpaceOS Limited; Spaceflow; Mitsubishi Electric Corporation; Hewlett Packard Enterprise Development LP; Juniper Networks Inc.
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Russia; South Korea; UK; USA; Canada; Italy; Spain
• Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
• Time Series: Five years historic and ten years forecast.
• Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
• Data Segmentations: country and regional historic and forecast data, market share of competitors, market segments.
• Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
• Delivery Format: PDF, Word and Excel Data Dashboard.