Market Trends of Occupancy Tracking Industry
Increase in Office Building Space to Drive the Building Type Segment
- Occupancy tracking sensors are deployed in reception areas, meeting rooms, shop floors, or an entire office complex. Occupancy tracking systems provide valuable insight into how spaces are used. This insight enables better decision-making regarding the distribution of space, staff, and resources, helping companies run more efficiently and safely.
- In addition, these sensors are used in offices to efficiently manage space utilization, meeting room efficiency, and desk hoteling, among many others, by installing them in multiple strategic locations to detect motion in high-traffic areas.
- Many occupancy sensor manufacturers are actively pursuing strategic alliances to improve the user experience. In January 2022, Sensative, a Sweden-based global IoT solutions provider, and Actility, a significantly low-power wide area network connectivity solutions provider for IoTs, entered into a collaborative relationship. Along with joint work with WMW. The former has launched an integrated LoRaWAN-enabled IoT desk occupancy monitoring solution through this collaboration. To monitor desks, this solution employs an active infrared sensor.
- Increasing office space across regions may further propel the demand for occupancy tracking solutions in the market. According to the Office for National Statistics (UK), the value of new office building construction orders in the first quarter of 2023 was over USD 2.6 billion for both public and private offices combined.
- In addition, according to Colliers International, in the second quarter of 2022, the Northeast region held the most office space under construction in the United States. There were around 30 million square feet of office space under construction in the Northeast region.
- In the post-COVID-19 era, many Fortune 100 companies adopted the hybrid work model, which became commonplace across different industries. But as of March 2023, tech giants like Amazon and Apple have announced policies that require their employees to come into the office three times a week. This was an expected push for a great return to the office. Due to such dynamic changes, office occupancy rates fluctuated every week, while in those workplaces with a hot desk system, desk occupancy rates may even change daily. Such cases may further create demand for occupancy tracking in office areas.
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Asia-Pacific to Experience Significant Market Growth
- Asia-Pacific is expected to have significant growth in occupancy tracking solutions during the forecast period due to the increased construction activity in the region. According to IBEF, the Dubai government and India recently signed a contract to construct infrastructure in Jammu and Kashmir, including industrial parks, IT towers, multipurpose towers, logistics centers, medical colleges, and specialized hospitals.
- Additionally, according to the National Bureau of Statistics of China, recently there were over 27,700 hotel enterprises in China, which was a boost of nearly 2,500 enterprises compared to the previous year. The number of large hotel groups in China has grown immensely in the past three years. Such developments in hotels and restaurants may further create demand in the studied market.
- The region includes significant countries such as India and China, which have the majority of energy-consuming countries worldwide. According to BP plc, China is the world's largest consumer of primary energy. The primary energy consumption of China amounted to some 157.7 exajoules recently, an increase of nearly 7% compared to the previous year.
- Furthermore, the Ministry of Land, Infrastructure, and Transport of the South Korean government announced its initiative to develop smart city platforms across 64 selected medium- and small-sized cities by 2022 through a state project worth USD 25 million. Similar outcomes being deployed in other parts of the world are increasing the demand for the occupancy tracking sensor.
- According to the smart city mission rules, the Central Government is expected to contribute INR 48,000 crore in funding over five years to assist the mission's implementation, or an average of INR 100 crore per year for each city.
- Moreover, in 2022, the room occupancy rate of accommodation facilities in Japan amounted to 46.5%, as per MLIT (Japan). The figure recovered compared to the previous years but was strongly impacted by the COVID-19 pandemic, which was recorded at 34.3%. Further, the southwestern city of Mumbai had the highest occupancy rate of about 60% in India, followed by the capital city of New Delhi in 2022. Such developments may further drive the demand for occupancy tracking systems to properly monitor hotel space and customers.
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