Smart workplace is a workspace in which employees are able to perform their tasks or work more efficiently by using smart devices. The major benefits of smart workplace is that it helps in minimising the wastages of business resources such as paper, raw material, lighting cost, others. Adoption of various technologies such as iOffice work place software, assets management software, and cloud technology, AI among others solutions help in creating predictive maintenance models and identify trends in data, which help employees to analyse faster, in order to improve decision making in real time. Thus, these solutions are expected to increase productivity of the business and helps in automating work processes.
Increasing adoption of advanced technology and change in work culture of enterprises are key factors driving growth of the smart workplace market
Increasing adoption of cloud computing, artificial intelligence (AI), IoT, and automation are helping organizations to increase their productivity and enterprises mobility, which is expected to support growth of the smart workplace market worldwide. For instance, in July 2016, the Johnson & Johnson Group announced that the company had transfer more than 500 terabytes of data to the Amazon Web Services (AWS), which proportionally helped the company in saving resources of the company such infrastructure cost and administrative cost of the organisation. Moreover, in September 2016, Amazon announced that from Amazon Echo devices, which is AI-based voice controller, it had generated sales of US$ 1.3 billion in 2016 and it is increased to US$ 2.2 billion in 2017. This echo device can be used in e-Commerce sector to get update of the store including number of sales, requirement for stock refilling, sales data, details of unfulfilled orders, and bestselling products. Thus, the usage of echo device helps to quickly execute a task just by using voice. Moreover, this device also helps in streamlining their tasks such as timely fulfilling the customers’ orders. Furthermore, in June 2017, Amazon Whole Food, which is a segment of the company that delivers both natural and organic food to customers, adopted IoT solutions, in order to increase revenue regeneration. For instance, Amazon Fresh segment generated US$ 40 billion revenue in 2017, which exhibited an increase from US$ 32.6 in 2016. Additionally, the adoption of IoT helps in delivering high quality of packaged food as IoT reduces the down time of manufacturing process and tracks the performance, conditions, and maintenances of various machines in the processes.
Hence, adoption of these smart solutions help in transforming workplaces by integrating smart devices and solutions in the workplace, which in turn helps in increasing the productivity of the employee by enhancing transparency in communication, and helps in better decision making, consequently helping the organisation to respond to customer effectively. Hence, these factors are expected to propel growth of the smart workplace market.
Lack of awareness in the SMEs is one of the major factor hindering growth of the market.
Lack of awareness among SMEs is one of the major factors hampering growth of the market. Another factor is lack of skilled workforce and lack of financial support in SMEs, which is a factor negatively impacting growth of the smart workplace market.
Global Smart Workplace Market: Regional Insights
North America accounted for the largest market share in 2017 and is expected to remain the largest market throughout the forecast period. The U.S. and Canada are some of the major economies driving growth of the market in this region. The region is early adopter of advanced technologies such as cloud-based technology, IoT, and AI and this is major factor driving growth of the market in this region. For instance, according to Coherent Market Insights Analysis, by 2017, around 75% of North American retailers had invested in IoT technologies such as automated inventory verification and sensors on shelves. The benefits of integrating IoT with retailing helps in improving customer experience by keeping them updated and sending regular updated information about delivery, For instance, in 2014, Macy Inc. installed 4,000 becons in the 700 departmental store which, inadvertently helped it to gain competitive edge in the market. Moreover, it helps in securing products, improve inventory management, and deliver personalized promotions. Hence, the adoption of IoT has revolutionised the retail sector.
Global Smart Workplace Market: Competitive Insights
Key players operating in the smart workplace market are Carrier Corporations, Daikin Industries, Ltd, Siemens AG., Johnson Controls Inc., LG Electronics, Inc., Crestron Electronics, Inc., General Electric, Inc., Honeywell International, OSRAM Licht AG, Philips Lumileds Holdings B.V., and Schneider Electric SE. Major players in the market such as Johnson Controls, Carrier Corporation, and LG Electronics are adopting mergers and acquisitions strategy, in order gain competitive edge in the market. For instance, in September 2015, Johnson Controls completed acquisition of CBRE Group, Inc. The objective of this acquisition strategy is to expand the workplace solutions across various verticals such as in financial services, healthcare, industrial/manufacturing, life sciences, technology, and telecommunications. Therefore, this acquisition helped the organisation to strengthen their foothold in the market.
Smart Workplace Market: Taxonomy
By Communication Technology
By Product Type