Smart Workplace Market - Size, Share, Industry Trends, and Forecasts (2025 - 2032)

By Component:

Based on the component, the market is segmented into hardware, software, and service.

Trends in the Component:

• Increasing adoption of AI-powered virtual meet is driving the smart workplace market trend.
• Increasing focus on sustainability and green building is driving the need for the digital workplace.

Hardware accounted for the largest revenue share of 47.12% in the year 2024.

• The hardware components involved in the market include IoT sensors, security devices, smart office infrastructure, network devices, HVAC systems, and others.
• Further, the business leverages the benefits of various hardware devices to help reduce costs, increase efficiency, and experience high-quality service to employees in turn driving the hardware component.
• Furthermore, the rising adoption of various IoT sensors and devices has significantly reduced the overall operational cost and in turn fueled the smart workplace market size.
• For instance, in August 2020, Lenovo launched an end-to-end IoT Smart Building and Workplace Solution. The offering includes smart access, smart workspace management, and smart meeting solutions.
• Thus, the rising adoption of IoT sensors and devices as well as the business leverage benefits of various hardware devices is driving the hardware component of the market.

Service is anticipated to register the fastest CAGR during the forecast period.

• The service components involved in the market include facility management, space management, IoT device management, network security management, maintenance service, installation service, and others.
• Further, the service component aims to deliver seamless efficient smart ecosystems that enable businesses to achieve goals, improve productivity, and in turn drive the market.
• For instance, Aviniti is a leading digital workplace service provider and offers services such as room booking, desk booking, digital reception, parking and catering service, smart floor mapping, and digital signage services for modern offices.
• Therefore, the ability to seamless efficient smart ecosystems is anticipated to boost the market during the forecast period.

By Product:

Based on the product, the market is segmented into IT facilities, smart lighting, HVAC systems, security systems, energy management, and others.

Trends in the Product:

• Increasing focus on energy efficiency and air quality control is driving the demand for HVAC systems in modern workplaces.
• Smart lighting is integrated with IoT sensors for remote management of lighting systems driving the market.

Smart lighting accounted for the largest revenue share in the year 2024.

• The primary role of smart lighting is to reduce eye strain and headaches as well as improve productivity in the office space.
• Further, smart lighting control systems also make use of biodynamic lighting which mimics the dynamic variations of daylight and sunlight driving the adoption in the digital workplace.
• Furthermore, smart lighting uses artificial intelligence and machine learning to store personal user preferences to create automations that react to changing requirements in turn driving the market.
• For instance, in August 2024, Signify launched a new range of WiZ products which include smart lighting designed to improve comfort and convenience.
• Thus, the technological advancement with the adoption of AI and ML into smart lighting is driving the market.

IT Facility is anticipated to register the fastest CAGR during the forecast period.

• The IT facility comprises sensors, devices, computers, laptops security systems and more collectively working together to boost the smart workplace industry.
• Further, the increasing adoption of workplace management systems to manage IT systems, Data centers, and others is driving the market.
• Furthermore, the rising need for centralized building management systems is fueling the IT facility which in turn propels the market progress.
• For instance, Schneider Electric provides smart facility management including lighting management, temperature management, equipment failure management, and others.
• Therefore, as per the market analysis, increasing adoption of workplace management systems to manage IT systems is anticipated to boost the growth of the market during the forecast period.

By Deployment:

Based on the deployment, the market is bifurcated into On-Premise and Cloud.

Trends in the Deployment:

• The increasing adoption of subscription-based models is fueling the smart workplace market.
• The increasing adoption of on-premise deployment in banking, government, and others is fueling the smart workplace market trend.

On-premise deployment accounted for the largest revenue share in the year 2024.

• The on-premise solution offers better control over infrastructure and data which in turn drives the need for the on-premise digital workplace.
• Further, stringent rules and regulations as well as compliance are boosting the need for on-premise deployment.
• For instance, in May 2021, Infosys teamed up with RXR Realty and deployed a smart building solution running on Microsoft Azure. The solution enabled approximately 1,000 businesses and 70,000 employees to return to work by placing the system in 26 smart workplaces in New York City.
• Thus, as per the market analysis, stringent rules and regulations are driving the on-premise deployment.

Cloud deployment is anticipated to register the fastest CAGR during the forecast period.

• The rise of hybrid and remote work models requires cloud services and digital workplace services for effective communication between teams.
• Furthermore, the evolution of AI and IoT is leveraging cloud platforms for improving real-time analysis, monitoring, and control over devices in turn boosting the cloud deployment.
• For instance, in March 2022, NEC Corporation of America deployed Univerge Blue Cloud services, which is a comprehensive suite of workplace management solutions. The solution is designed for workforce well-being, convenience, safety, and seamless collaboration.
• Therefore, as per the market analysis, the growth of AI and IoT as well as the rise of hybrid and remote work models are anticipated to boost the progress of smart workplace market share during the forecast period.

By Enterprise Size:

Based on the enterprise size, the market is bifurcated into Small & Medium Enterprise and Large Enterprise.

Trends in the Enterprise Size:

• The increasing focus on sustainability and employee experience is boosting the market progress in large enterprises.
• Smart energy management systems are increasingly being adopted in small & medium size enterprises to achieve net-zero carbon targets.

Large Enterprise accounted for the largest revenue share in the year 2024.

• Large Enterprise consists of complex lighting systems, energy management systems, and IoT sensors which in turn require a higher budget for the deployment of digital workplace systems.
• Further, the increasing complexity of managing large enterprises is driving the demand for the market.
• Furthermore, the rising hybrid work model is boosting the market demand.
• For instance, in September 2020, Phunware, Inc. deployed a Smart Workplace solution at Cisco Meraki. The solution aims to increase employee productivity and satisfaction and enhance brand experiences for guests and visitors.
• Thus, according to the smart workplace market analysis, the rising hybrid work model and increasing complexity in managing large enterprises are driving the need for the digital workplace in large enterprises.

Small & Medium Size Enterprise is anticipated to register the fastest CAGR during the forecast period.

• Small and medium-sized enterprises utilize cloud-based models and software as a service model which is affordable for startups and is made available by digital workplace solution providers.
• Further, the evolving startup ecosystems are driving the need for modern workplaces in small and medium-sized enterprises.
• Furthermore, government support offering grants and subsidies driving digital growth is fueling small and medium-sized enterprises.
• For instance, in March 2021, Plume launched WorkPass, which is a suite of intelligent services and management tools for small businesses. Also, Plume is deployed in 180 communications service providers globally.
• Therefore, as per the market analysis, government support and evolving startup ecosystems are anticipated to boost the market during the forecast period.

By End-User:

Based on the end-user, the market is segmented intohealthcare, BFSI, government, manufacturing, IT & telecommunication, consumer goods & retail, and others.

Trends in the end-user:

• The need for real-time monitoring and patient management in hospitals is driving the need for digital workplace systems.
• Increasing focus on security systems and energy management systems in the BFSI sector is driving the market.

IT & Telecommunication accounted for the largest revenue share in the year 2024 and is anticipated to register the fastest CAGR during the forecast period.

• IT & telecommunication companies are leveraging IoT, AI, and ML technologies to enhance workplace efficiency which in turn increases the productivity of employees.
• Further, the development of the IT & telecommunication sector as well as the growing hybrid work model in the industry is fueling the need for a modern workplace market
• For instance, in October 2022, Total IT Global launched a smart kiosk, which is a unique solution for IT asset and peripheral management designed for IT and telecommunication companies. The solution eliminates the need for upfront investment in warehousing, storage, and inventory management tools and resources.
• Thus, according to the smart workplace market analysis, the evolution of the IT & telecommunication sector as well as the growing hybrid work model is driving the smart workplace market share in the It & telecommunication sector.