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.
According to a new report from ABI Research, the smart home and connected
equipment market across the smart hospitality and coworking space will see
connected shipments rise from 6.8 million devices shipped this year to 19.7
million in 2027, a CAGR of 23.5%.
Examining three market segments – Smart Hotel Rooms, Short-Term Rentals (STR),
and Coworking Spaces – embedded connectivity, combined with networked
management, enables new opportunities for service and hospitality providers in
each segment. “Service flexibility, cost savings, and meeting changing customer
expectations is driving investment in connected technology,” says Jonathan
Collins, Smart Home and Buildings Research Director at ABI Research. “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
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, broader smart home players, from Amazon and Google to
Alarm.com and Assay Abloy, have offerings supporting deployment across the three
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 short-term rental opportunity offers the most
significant potential, especially to existing smart home players. By 2027, STR
will command more than 11 million smart device shipments, up 22% on 2022 levels.
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. “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,” Collins explains.