Global Smart & Connected Offices Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented by Offering (Hardware, Software, Service,), By Product Type (Smart Lighting, Intelligent Security Systems, Energy Management Systems, Network Management Systems, Audio-Video Conferencing Systems, Others), By End-User Verticals (Telecommunication Service Providers, Enterprises, Data Center Operators, Government and Public Sector), By Region, Competition 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 56.15 Billion
CAGR (2026-2031)	14.18%
Fastest Growing Segment	Enterprises
Largest Market	North America
Market Size (2031)	USD 124.42 Billion

Market Overview

The Global Smart & Connected Offices Market will grow from USD 56.15 Billion in 2025 to USD 124.42 Billion by 2031 at a 14.18% CAGR. Smart and connected offices utilize Internet of Things sensors, advanced automation systems, and unified network infrastructures to optimize building operations, enhance occupant productivity, and maximize energy efficiency. The market is primarily propelled by the critical need for operational cost reduction and the growing emphasis on sustainable, human-centric workspaces that support hybrid working models. According to the Association for Smarter Homes & Buildings, in 2024, 55% of organizations adopting smart technology identified improving operational efficiency and reducing costs as a top priority. This data underscores the pivotal role of financial and functional optimization in driving the adoption of intelligent building solutions across the commercial sector.

Despite this robust growth trajectory, the market faces a significant impediment regarding the interoperability of disparate technology systems. The challenge of integrating legacy infrastructure with modern smart devices often leads to fragmented data silos and increased complexity for facility managers, potentially stalling widespread implementation.

Key Market Drivers

Transition to hybrid work models requiring optimized space utilization is a primary force accelerating the Global Smart & Connected Offices Market. As organizations navigate the shift from static seating to flexible environments, there is a critical reliance on intelligent technologies such as desk-booking systems, occupancy sensors, and utilization analytics to manage fluctuating attendance. This structural transformation is quantifying the need for office upgrades; according to Cisco, March 2024, in the 'Hybrid Work Study', 81% of employers have already or are planning on redesigning office space to better support these new operational realities. Consequently, facility managers are prioritizing connected infrastructures that not only track usage patterns but also enhance the collaborative experience for a distributed workforce, ensuring that physical assets align with the dynamic needs of modern employees.

Simultaneously, the increasing demand for energy efficiency and sustainable building solutions is reshaping investment strategies within the sector. Stringent government mandates and corporate net-zero goals are compelling landlords to adopt smart building management systems that dynamically adjust HVAC and lighting based on real-time data to minimize waste. This financial commitment is evident as, according to JLL, September 2024, in the 'Future of Work Survey', 77% of respondents anticipate increased spending on sustainability initiatives through 2030. Furthermore, the supply side of the market mirrors this trend; according to Honeywell, in 2024, more than 60% of its new product research and development investment was directed specifically toward sustainability-oriented outcomes, ensuring a robust pipeline of eco-centric innovations.

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Key Market Challenges

The primary obstacle impeding the expansion of the Global Smart & Connected Offices Market is the critical lack of interoperability between disparate technology systems. As commercial facilities attempt to layer modern IoT devices and automation software over existing legacy infrastructure, they frequently encounter significant integration barriers. This fragmentation results in data silos where information cannot flow seamlessly between essential functions such as HVAC, lighting, and security. Consequently, facility managers are forced to navigate complex, disjointed interfaces rather than a unified operational platform. This technical friction increases the complexity of deployment and obscures the potential return on investment, causing many organizations to delay or scale back their smart building initiatives.

The financial implications of these integration challenges directly negatively impact market adoption rates. When systems cannot communicate effectively, the cost of operations rises significantly rather than falling. According to the International Facility Management Association (IFMA), in 2025, operations bore a staggering 68% of the costs associated with poor data interoperability in the Architecture, Engineering, Construction, and Operations industry. This financial burden indicates that a significant portion of the budget intended for innovation is instead consumed by the inefficiencies of managing unconnected systems. As a result, the high expense of rectifying these compatibility issues creates a substantial barrier to entry, deterring stakeholders from fully investing in intelligent office solutions.

Key Market Trends

The integration of AI-driven predictive building analytics is fundamentally altering facility management by shifting operations from reactive repairs to proactive asset preservation. Rather than simply adjusting environmental settings for comfort, these advanced algorithms analyze vast datasets from equipment sensors to identify anomalies and predict failures before they occur, thereby ensuring business continuity and extending equipment lifecycles. This technological evolution is rapidly gaining traction among stakeholders seeking to minimize downtime; according to Honeywell, February 2025, in the 'AI in Buildings' study, 84% of commercial building decision-makers plan to increase their use of AI in the next year to help them improve security, streamline energy management, and integrate predictive maintenance.

Simultaneously, the convergence of Information and Operational Technology networks is dismantling the traditional silos between physical security, building automation, and IT infrastructure. This trend towards unified platforms allows disparate systems—such as access control, video surveillance, and HVAC—to communicate seamlessly, providing a holistic view of building performance and enabling more sophisticated automated responses. The push for this architectural synergy is evident in recent adoption patterns; according to Genetec, December 2025, in the 'State of Physical Security Report', more than 70% of respondents are now using unified or integrated systems to enhance operational awareness and decision-making capabilities.

Segmental Insights

The Enterprises segment is poised to register the fastest growth within the Global Smart & Connected Offices Market, primarily driven by the substantial financial capacity of large organizations to invest in comprehensive digital infrastructure. These entities are aggressively adopting Internet of Things (IoT) solutions and automation to streamline complex hybrid work environments and optimize energy consumption. This surge is further compelled by the necessity to comply with stringent environmental standards and corporate sustainability goals. Consequently, the pursuit of operational efficiency and seamless connectivity establishes enterprises as the primary engine of market expansion.

Regional Insights

North America maintains a leading position in the Global Smart & Connected Offices market due to the extensive adoption of Internet of Things technologies and building automation systems. This dominance is reinforced by stringent energy efficiency initiatives promoted by institutions such as the U.S. Green Building Council, which drives the implementation of intelligent monitoring solutions. Additionally, the region benefits from a high concentration of technology vendors, accelerating the integration of security and connectivity infrastructure. The continuous demand for modernizing commercial spaces to support hybrid work models further secures North America's status as the primary regional market.

Recent Developments

• In November 2024, Microsoft officially launched Microsoft Places, a connected workplace application designed to coordinate flexible work schedules and optimize office usage. The solution utilizes artificial intelligence to suggest the best days for employees to come into the office based on the planned attendance of their colleagues and scheduled meetings. It also provides facility managers with detailed space analytics to monitor occupancy trends and manage real estate portfolios more effectively. A General Manager at Microsoft described the application as a tool to harmonize physical and digital spaces, ensuring that in-person time is purposeful and that commercial real estate assets are utilized efficiently.
• In April 2024, Zoom Video Communications introduced Zoom Workplace, an artificial intelligence-powered platform that consolidates communication tools with essential smart office functionalities. The solution featured a new Workspaces tab, which allowed employees to reserve desks and meeting rooms, and included wayfinding capabilities to help users navigate complex office layouts. Additionally, the platform offered Visitor Management tools to streamline guest check-ins at physical locations. The Chief Product Officer at Zoom explained that the platform was designed to reimagine teamwork by integrating collaboration software directly with the physical office experience, thereby helping organizations improve productivity and space utilization.
• In March 2024, Cisco unveiled a new range of multifunctional collaboration devices specifically designed to support permanent hybrid work models in smart office environments. The product launch included the Cisco Board Pro G2, a touch-enabled collaboration display featuring artificial intelligence capabilities, and the Cisco Desk Phone 9800 Series, which transforms shared desks into personalized workspaces. These solutions were engineered to address the disconnect between remote and in-office experiences by providing high-quality audio and video interoperability. The Executive Vice President of Cisco Security and Collaboration stated that these innovations would deliver seamless modern experiences to every corner of the office, from individual workstations to large meeting rooms.
• In January 2024, Honeywell announced a strategic partnership with Analog Devices to advance the digitization of building management systems within the Global Smart & Connected Offices Market. The collaboration focused on integrating single-pair Ethernet and software-configurable input/output technologies to upgrade existing infrastructure without the need for extensive rewiring. This initiative aimed to bring modern connectivity to legacy commercial buildings, enabling real-time data acquisition and improved energy management. The Chief Technology Officer of Honeywell noted that this alliance would provide building owners with a cost-effective path to modernize their assets, thereby enhancing operational efficiency and reducing environmental impact.

Key Market Players

• Harris Corporation
• Fujitsu Ltd.
• Microsoft Corporation
• Cisco System
• Lutron Electronics
• IBM ltd
• Schneider Electric
• Honeywell International
• Johnson Controls International
• United Technologies Corporation

By Product Type	By End-User Verticals	By Region
Smart Lighting Intelligent Security Systems Energy Management Systems Network Management Systems Audio-Video Conferencing Systems Others	Telecommunication Service Providers Enterprises Data Center Operators Government and Public Sector	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Smart & Connected Offices Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Smart & Connected Offices Market, By Product Type:

• Smart Lighting
• Intelligent Security Systems
• Energy Management Systems
• Network Management Systems
• Audio-Video Conferencing Systems
• Others

• Smart & Connected Offices Market, By End-User Verticals:

• Telecommunication Service Providers
• Enterprises
• Data Center Operators
• Government and Public Sector

• Smart & Connected Offices Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE