Occupancy Tracking Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

Occupancy Tracking Market Analysis

The Occupancy Tracking Market size is estimated at USD 1.21 billion in 2024, and is expected to reach USD 4.43 billion by 2029, growing at a CAGR of 29.80% during the forecast period (2024-2029).

The increasing need to monitor actual space usage and target reduction efforts to lower energy consumption as well as meet decarbonization and sustainability goals by various building owners drove market growth in the forecast period.

• The occupancy tracking technologies help businesses meet their ongoing goals of using only suitable building space to keep costs low and operate efficiently. Occupancy monitoring sensors are essential for anyone wanting to manage their buildings smartly and more efficiently.
• Many associations waste as much as half their space. In other words, their preservation potential is vast. According to a World Green Building Study, European businesses could save USD 243 billion by reducing wasted space in office buildings. In addition, businesses globally could realize savings of up to USD 1.5 trillion if workspaces were optimized. Other sources suggest that, on average, desks and offices sit unused about two-thirds of the time in North America. And a Herman Miller space utilization study found that, on average, assigned private offices are unoccupied 77% of the workday.
• The rising demand for energy-efficient devices will drive the studied market's growth. Occupancy tracking plays a vital role in reducing energy consumption. This is achieved through the occupancy sensors, which shut down devices and other equipment based on occupancy. These help reduce light pollution and can be used in indoor and outdoor spaces. For instance, in the US, lighting accounts for 11% of a building's overall energy use, with HVAC systems consuming 35%. US commercial buildings account for around 36% of all electricity use. This energy use is often considered an unavoidable expense. However, much of this energy is wasted every day. Countless businesses pay to heat, cool, and illuminate unoccupied rooms.
• The growing investment in developing smart houses, enterprise buildings, factories, and cities will drive the market forward in the forecasted period. As part of the Digital India initiative, the Indian government has planned to push IoT in the country. The government allocated an INR 7,000 crore fund to develop 100 smart cities powered by IoT appliances to control traffic, efficiently use power and water, and collect data using IoT sensors for healthcare and other services.
• Furthermore, the primary task of building management systems is to control active and passive strategies in buildings to optimize energy efficiency and maintain occupant comfort. However, most of these systems use a predefined configuration, which usually does not match the occupants preferences. Thus, occupancy tracking is imperative for energy use management, mainly in residential and industrial buildings.
• In a survey done in October 2022, 85% of customers of an occupancy technology company, Occuspace, reported using the data to gauge the use of their physical spaces. Further, Vanderbilt University reported an overwhelmingly positive response from students using the Waitz app to navigate busy times in the dining halls and libraries. In addition to Vanderbilt, Occuspace technology has recently been installed at Purdue, Columbia, UCLA, and several others.
• Although the pandemic drove a flurry of interest and investments in occupancy tracking in the near term, there were indications that the need for the technology would remain. Some of the regulations and guidelines are likely to endure in some form, as they have raised awareness about healthy spaces and safeguarded against future pandemics. Moreover, the shift to working from home and pandemic-driven financial headwinds have companies questioning the need for physical office space. Even before the pandemic, U.S. Commercial Real Estate Services estimated unused commercial property in the U.S. to be worth about USD 1 trillion.

Occupancy Tracking Market Trends

Increase in Office Building Space to Drive the Building Type Segment

Occupancy Tracking Industry Segmentation

Occupancy monitoring systems identify underutilized and overcrowded areas, inform better decisions regarding space allocation, and provide the actual data business decision-makers need when considering downsizing their premises. For example, to track how many people are in a building and where they are within the building.

The studied market is segmented by hardware, software, and service offering types among various building types such as office, retail, education, healthcare, hotels and restaurants, institutional/assembly, warehouse, and transport in multiple geographies. The impact of COVID-19 on the market and impacted segments is also covered under the scope of the study. Further, the disturbance of the factors affecting the market's expansion in the near future has been covered in the study regarding drivers and restraints. The market sizes and forecasts are provided in terms of value (USD) for all the above segments.