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Smart home, commercial building technology suppliers seen unifying

Jan. 26, 2023
New data from ABI Research sees the market for hospitality and coworking space shipments for smart home and connected home devices expanding at a 23.5% CAGR through 2027.

According to a new report from global technology intelligence firm ABI Research, the smart home and connected equipment market across the smart hospitality and coworking segments will see shipments rise from 6.8 million devices shipped this year to 19.7 million in 2027, at a CAGR of 23.5%.

The new research discerns how "changing consumer expectations, operational efficiencies, and a travel market in flux" are increasingly unifying smart home players and commercial building technology suppliers as they look to support new experiences and working environments.

Examining three market segments for Smart Hotel Rooms, Short-Term Rentals (STR), and Coworking Spaces, the new report examines how embedded connectivity, combined with networked management, enables new opportunities for service and hospitality providers in each segment.

ABI Research says the opportunity is driving investment from established commercial building players including Honeywell, Schneider Electric and Siemens in the smart hotel room space, as well as smaller, dedicated players such as Minut in the STR market.

Meanwhile, the research finds broader smart home players, from Amazon and Google to Alarm.com and Assay Abloy, all have offerings supporting deployment across the three market segments.

Jonathan Collins, Smart Home and Buildings Research Director at ABI Research, remarked: "Service flexibility, cost savings, and meeting changing customer expectations is driving investment in connected technology. Some dedicated offerings address just one segment of the market. But now, offerings are increasingly being adopted that address the broader smart homes and smart building markets."

The new report states that smart-enabled capabilities such as smart locks for access control, smart thermostats for energy management, sensors to support maintenance demands, and even voice control all have significant potential. "But smart home device and service providers will have to understand and meet the shared and distinct opportunities across these market segments," Collins points out.

While the smart hotel rooms market will see significant adoption and growth over the forecast period, the researcher says the short-term rentals opportunity offers the most significant potential, contends the research, especially to existing smart home players. By 2027, the STR segment is forecast command more than 11 million smart device shipments, up 22% from 2022 levels.

For its part, while the coworking space outpaces the other sectors, with shipment growth at 33.8% CAGR over the forecast period, "it is an opportunity of a significant but different scale," according to the report's summary. "As a market built upon smart device support from the outset, penetration is already high," Collins explains. "Growth will flow from total market growth without the benefits of the retrofit potential offered in the Smart Hotel Room space and the greater need and simplicity of STR deployment."

The report's findings are from ABI Research's Smart Hospitality and Coworking Spaces application analysis report, which is part of the analyst's Smart Homes and Buildings research service, which includes research, data, and analyst insights. 

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