The Smart Space Market in Korea is projected to witness remarkable growth between 2025 and 2035, fueled by the nation’s rapid urbanization and increasing investment in intelligent infrastructure.
The market is forecasted to be valued at USD 253.5 million in 2025 and is expected to reach USD 1,197.7 million by 2035, reflecting a compound annual growth rate (CAGR) of 16.8% over the assessment period.
A primary driver of this market expansion is the growing emphasis on energy efficiency and sustainability in urban planning and commercial infrastructure. As Korea positions itself at the forefront of smart city development, the integration of intelligent technologies to monitor, manage, and optimize space usage particularly in residential complexes, corporate offices, and public venues is gaining traction.
Government-led initiatives, along with rising demand from the private sector for automation and digitalization, are propelling adoption across both new constructions and retrofitted facilities. Smart spaces in Korea are increasingly incorporating AI, IoT, and sensor-based platforms to improve environmental control, reduce operational costs, and enhance occupant experience.
| Metric | Value |
|---|---|
| Industry Size (2025E) | USD 253.5 million |
| Industry Value (2035F) | USD 1,197.7 million |
| CAGR (2025 to 2035) | 16.8% |
The Solution segment continues to capture the largest share in the market in Korea smart space market due to greater penetration of fully integrated software and hardware platforms in order to control lighting, temperature, air quality and occupancy in real-time.
Solutions are tailored for commercial buildings, hospitals and transportation facilities where space utilization matters. Services, including consulting, implementation, and maintenance, is also growing dramatically as organizations outsourcing the design and operational management of smart environments to ensure smooth functionality while keeping pace with evolving smart city standards.
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The Smart Space also complements the national innovation ecosystem for the technology of alone Korea with the biggest growth in the district. Smart homes and intelligent building systems are being adopted in residential and commercial property developments, with a highly competitive market being driven by some sizeable population potential and high-income families.
In recently built houses and office complexes in the cities of Seoul, Incheon and Gyeonggi-do, smart technologies such as automated lighting, HVAC systems, smart security and energy-saving appliances are being applied. The commercial real estate world is also following suit, leveraging smart building solutions for more effective operations, reduced energy consumption, and an improved user experience.
With further increasing focus on sustaining energy and saving power in the region, there is a rise in demand for smart space which is providing both convenience along with environmental value. Furthermore, smart space aggressively expands in the capital area through government-wise commercial adoption between IoT and 5G technology in urban spaces.
The Busan-Ulsan-Gyeongnam region, which specializes in maritime and industrial activities, is gradually introducing leading smart technologies in both residential areas and smart commercial places. Busan is Korea's second-largest city and Busan is also leading the smart city of the future, with a focus on digital urban infrastructure using high-end IoT solutions.
With smart logistics and automation gaining prominence, the applications of smart spaces in the industry are increasing, particularly in warehouses, distribution centers, and seaports. There is also strong demand in this market for smart factory solutions that help deliver greater manufacturing and operational efficiency.
Also to make customers at hotels, resorts, and entertainment facilities satisfied, the Busan hospitality industry is adapting smart technology. It has also seen a new trend with the use of smart hotel technology, which involves features such as keyless entry, request controls to conserve energy within a room and enhanced services based on guest preferences, proving to be popular for their convenience and cost mindfulness.
The textile and manufacturing industry that the Daegu-Gyeongbuk region has traditionally had is becoming a distant memory and is replaced by smart city and smart house projects. Daegu, a city known for technology and innovation, is pushing the development of smart spaces in residential and commercial buildings.
In this regard, special focus is on the integration of smart technologies, which not only save energy and improve the comfort of residents, but also increase public safety. Tech-savvy consumers are also picking up smart appliances, home automation systems, and energy management solutions.
Its strong manufacturing sector is also fueling the demand for smart factory solutions to improve production efficiency and reduce operating costs. When green building codes are more significant, developers in Daegu have been integrating smart technologies into projects to achieve sustainability goals.
the Daejeon-Chungcheong region is becoming the potential leader of smart spaces. Daejeon, the "Silicon Valley of Korea," is a key region for the development of smart technology with many technology research centers and startups working on its foundation. This means we are witnessing several smart office complexes, R&D facilities, and residential towers with the latest IoT solutions in the area.
With property owners and developers trying to reduce carbon footprints and energy use, there is swelling demand for sustainable building solutions and integrated energy management systems. With the rise in the number of IoT devices, the demand for smart farming solutions is also growing, with farming technologies enabled through IoT coming to the aid of farmers in rural communities in terms of maximizing crop yields and effective resource management.
The Jeolla (Honam) region, located in the southwest, with its agricultural and cultural heritage, is slowly moving towards smart city and smart farm solutions. Despite being less urbanized than other regions of Korea, a growing interest in those smart technologies for application in rural and suburban regions has begun.
Smart farms, which utilize IoT and automation to monitor crop health, optimize water use and improve productivity, is gaining popularity in urban areas like Gwangju and Jeonju. Further, there is a growing adoption of smart home technology in new apartments to enable easier and energy-saving living conditions.
While adoption of smart space is still at an early stage in the Jeolla region compared to the capital region, the demand for green and technology-advanced homes is on the rise as younger, tech-oriented homeowners search for new, sustainable living environments.
High Initial Investment Costs
The Smart Space industry in Korea faces the biggest challenge of the high upfront investment to install smart technologies. The amalgamation of smart home appliances, advance IoT devices, energy-efficient systems, and automation technology tends to be high-end after installation; it is often difficult for some homeowners and businesses to implement such solutions. As good as long-term cost savings and energy efficiency are, the upfront cost remains a barrier, for some consumers and developers.
Integration with Legacy Infrastructure
Many buildings and homes in Korea are still reliant on traditional infrastructure that is not designed to support modern smart technologies. Retrofitting older buildings with smart systems can be complex and costly, particularly in the case of large commercial buildings or older residential properties. There is a need for seamless integration between legacy systems and new smart solutions, which can present technical challenges for property owners and developers.
Data Privacy and Security Concerns
With smart spaces depending more on IoT devices and cloud platforms to gather and process data, data privacy and security issues are also on the rise. There is a threat of sensitive consumer data being hacked or exposed, especially with more and more devices becoming internet-connected.
Personal data protection and secure communication among devices are major issues for the Smart Space industry. Moreover, increasing usage of AI and data analytics in smart systems means fewer people know what is being done with their data, how it is used, and whether proper means are being taken to avoid misuse.
Regulatory Challenges
The Smart Space market is under the purview of various regulations concerning data privacy, energy efficiency, and building standards. Regulators have to adapt as the market expands, keeping pace with quick-evolving technologies.
This involves promulgating norms for safe and ethical use of IoT devices, with energy-efficient standards, and facilitating innovation while safeguarding consumer rights. Adherence to these regulations may be expensive and time-consuming for companies, slowing the mass deployment of smart space solutions.
Government Support for Smart City Initiatives
Smart city projects have received considerable encouragement from the South Korean government, particularly in major cities like Seoul and Busan. The Smart Space industry is an intriguing prospect where economies of scale are encouraged through the latest state-backed smart city initiatives whose target is to tailor urban lifestyles as using the harmony of the next vision is all about IoT, energy management technologies, and data-intensive infrastructure.
They inject capital support, incentives, and regulatory sponsorship into the sector, creating a complementary backdrop for the growth of smart spaces and enabling technologies. Demand for smart space solutions of the future in residential and commercial spaces will be driven primarily by smart city projects in the Seoul Capital Area and Busan.
Growing Demand for Energy-Efficient and Sustainable Solutions
As Korea pursues increased sustainability and carbon emissions reduction, the demand for smart solutions that can reduce energy consumption and improve environmental performance is also rising. In particular, smart energy management systems, smart lighting and automated temperature control solutions are in high demand for new construction adhering to energy-efficient building codes. This demand allows the Smart Space industry to take a proactive approach that promotes energy efficiency, waste reduction, and helps property owners earn green building certifications.
Increasing Interest in Smart Homes and IoT-enabled Devices
The rise of IoT capable devices and smart home technology is a huge exciting opportunity for the Smart Space business in Korea. To create more convenience and comfort this at home, consumers are turning to a number of smart devices from smart thermostats, security systems, appliances to lighting.
As more consumers embrace the conveniences of connected living, the demand for simple control and automation of these end-to-end solutions has exploded. The increasing demand for smart homes provides an opportunity for the industry to expand its product offering and provide end-to-end solutions across both new and legacy homes.
Advancements in AI and Automation Technologies
Advancements in artificial intelligence (AI) and automation technologies present fascinating potentialities in the Smart Space market. Open systems have the ability to learn from user behaviors and likes, and AI-powered smart systems can provide personalized experiences, further enhancing spaces to be able to assimilate themselves to user preferences and even engage users through AI-powered bots.
Automation is taking over with robotic cleaners, security and maintenance solutions flood in residential and commercial markets. Automation technologies represent an additional growth catalyst for smart spaces as an attractive addressable market for solution providers.
The Korean Smart Space market grew exponentially between 2020 to 2024, mainly driven by advancements in Internet of Things (IoT) technologies, artificial intelligence (AI), and increasing demand for automation and sustainability in homes and buildings.
Smart home appliances, including voice-controlled devices, automated lighting, and smart thermostats, are taking off with Korean consumers seeking convenience, energy savings, and better living experiences. In addition, the COVID-19 pandemic accelerated the shift to contactless technologies, causing an increased demand for smart devices to monitor and control spaces from outside.
Due to the introduction of AI, 5G, and next-generation IoT-related technologies, Korea's Smart Space market will undergo new changes periods ranging from 2025 to 2035 years. More buildings will be equipped with sensors and smart systems capable of centralizing and processing data in real time to reduce their energy consumption, improve air quality or increase security.
Smart Cities will drive more investments in smart spaces, especially in cities with government push and new-age technology been developed. Green technology adopting, such as usage of energy-saving /energy-efficient systems and green building materials in intelligent spaces, to promote sustainability and eco-friendliness. Further advancements in personal experiences will increase the demand for adaptive intelligent environments that are capable of sensing the needs and preferences of the citizens.
Market Shifts: A Comparative Analysis 2020 to 2024 vs. 2025 to 2035
| Market Shift | 2020 to 2024 |
|---|---|
| Regulatory Landscape | Growing support from the South Korean government for smart city development and the integration of IoT in urban infrastructure. Increased regulations around data privacy and security. |
| Technology Adoption | Increased deployment of IoT devices such as smart thermostats, automated lighting systems, and AI-powered home assistants. Wider adoption of 5G networks to support connected devices. |
| Consumer Preferences | Rising consumer demand for connected homes that provide convenience, energy savings, and enhanced comfort. Contactless and touchless technologies gained momentum due to the pandemic. |
| Market Focus | Focus on consumer-facing smart home products like voice assistants, smart lighting, and security systems, primarily targeting middle to upper-income households. |
| Technology & Manufacturing Innovations | Early adoption of 5G-enabled IoT devices, AI-driven home automation, and advanced sensors for environment monitoring. |
| Sustainability & Circular Economy | Sustainable building materials, energy-efficient appliances, and solutions aimed at reducing electricity consumption in smart homes gained popularity. |
| Commercial & Hospitality Sector Impact | Commercial spaces increasingly adopted smart office technologies such as automated lighting, climate control, and remote monitoring. Focus on employee well-being and energy savings. |
| Market Growth Drivers | Growth fueled by the increasing adoption of IoT devices in consumer homes and growing interest in smart homes. A strong push from the government for smart city initiatives. |
| Market Shift | 2025 to 2035 |
|---|---|
| Regulatory Landscape | Stricter regulations governing energy efficiency standards, building codes, and cybersecurity for smart devices. Government incentives will encourage the adoption of smart technologies in both residential and commercial buildings. |
| Technology Adoption | Widespread integration of AI and machine learning in smart spaces for predictive analytics and real-time decision-making. Growth in the use of augmented reality (AR) and virtual reality (VR) for personalized space configurations. |
| Consumer Preferences | Consumers will increasingly demand highly personalized and adaptive environments, such as homes and offices that can dynamically adjust lighting, temperature, and ambiance based on individual preferences or health metrics. |
| Market Focus | A broader focus on both residential and commercial sectors, with an emphasis on creating smart spaces that enhance productivity, sustainability, and security. Growth in large-scale smart city projects will also drive demand. |
| Technology & Manufacturing Innovations | Development of more sophisticated AI-powered building management systems (BMS) and the integration of 5G for seamless, high-speed communication between smart devices in smart spaces. Growth in energy-efficient smart appliances. |
| Sustainability & Circular Economy | Greater emphasis on environmental sustainability, with smart spaces incorporating renewable energy sources (e.g., solar panels, smart grids), waste reduction technologies, and green building certifications (e.g., LEED). |
| Commercial & Hospitality Sector Impact | Widespread adoption of smart spaces in commercial and hospitality sectors to enhance operational efficiency, improve customer experiences, and support sustainability goals. More smart offices and hotels with dynamic, personalized settings. |
| Market Growth Drivers | Driven by advances in AI, IoT , 5G, and machine learning, alongside consumer demand for personalization, energy savings, and sustainability. Continued government support for smart city development and private sector investment in smart technologies. |
Smart Space market was dominated by Seoul, the capital, and largest metropolis of South Korea, owing to its greater focus on digitalization and smart city development. Demand for smart homes, office spaces, and public areas in the city comes from the sustainability drive in the city along with high population.
As a result, AI, IoT and data analytics smart technologies are being employed in residential as well as commercial properties to improve energy efficiency, convenience and security. The city's "Smart Seoul 2030" scheme will likely accelerate the transition to smart space solutions across various industries from real estate to transport.
| Sub-region | CAGR (2025 to 2035) |
|---|---|
| Seoul Special City | 17.2% |
Seongnam, which is close to Seoul, has emerged as a tech city with an emphasis on new-age smart space solutions. It has several tech startups, especially in AI and IoT, which form the core of intelligent building development.
Seongnam's geographical closeness to Seoul, and in addition to this, its own infrastructure development plans, make it a major area for innovation of smart spaces. Commercial as well as residential space within the city is more and more using smart technologies in order to increase efficiency and sustainability.
| Sub-region | CAGR (2025 to 2035) |
|---|---|
| Seongnam City ( Gyeonggi -do) | 16.5% |
As South Korea's second-largest city and a major port hub, Busan is rapidly integrating smart technologies into its infrastructure. The city is focusing on both smart city initiatives and innovative smart spaces, including residential and office buildings that use IoT and AI technologies for improved management. Busan’s commitment to sustainability and urban development further supports the growth of the smart space market, especially in commercial and public spaces.
| Sub-region | CAGR (2025 to 2035) |
|---|---|
| Busan Metropolitan City | 16.8% |
Daejeon, with its strong presence in research and development, is becoming a key player in the smart space market. The city’s focus on advanced technologies and sustainable urban planning makes it a suitable location for the integration of smart space solutions. With ongoing innovation in building management systems, energy-efficient technologies, and smart public infrastructure, Daejeon is positioning itself as a leader in smart space adoption.
| Sub-region | CAGR (2025 to 2035) |
|---|---|
| Daejeon Metropolitan City | 16.2% |
Jeonju is emerging as a key market for smart spaces due to its regional focus on innovation and sustainability. While not as large as other cities like Seoul or Busan, Jeonju’s investment in smart infrastructure, especially in residential and public spaces, is driving demand for intelligent building technologies. The city’s focus on energy-efficient solutions and sustainable urban living aligns with broader national trends toward smart space development.
| Sub-region | CAGR (2025 to 2035) |
|---|---|
| Jeonju City (North Jeolla Province) | 16.0% |
The solution component holds the largest share in Korea’s smart space industry. This is primarily due to the growing demand for comprehensive, integrated platforms that provide centralized control over various smart systems within spaces.
Solutions like energy management systems, building automation platforms, and security monitoring integrate different technologies, offering efficiencies, ease of management, and enhanced user experiences. As businesses and residential complexes in Korea increasingly embrace digital transformation, there is a growing preference for unified solutions that can be seamlessly integrated into existing infrastructure.
These solutions are highly attractive because they not only offer scalability but also the ability to support a variety of applications, ranging from energy optimization to advanced security features.
Additionally, with the rise of IoT and AI technologies, solutions in the smart space market can provide predictive analytics, remote monitoring, and enhanced automation, which further boosts their popularity in Korea. This demand is being further amplified by the push for sustainability and energy efficiency in commercial and residential buildings.
Energy management and optimization is the dominant application within the smart space market in Korea. The country's commitment to sustainability, coupled with government incentives and policies promoting energy efficiency, drives significant demand for energy optimization technologies. These systems help building owners and operators reduce energy consumption, lower operational costs, and meet environmental regulations.
Energy management systems that optimize heating, cooling, and lighting based on real-time data and predictive algorithms are particularly popular in commercial buildings and industrial spaces. Additionally, the rapid adoption of renewable energy sources in Korea further fuels the need for solutions that can balance energy loads, store excess power, and reduce dependency on non-renewable sources, making energy management a top priority in smart spaces.
The Smart Space industry in Korea is evolving rapidly, driven by the growing adoption of IoT (Internet of Things) technologies, AI (artificial intelligence), and automation across residential, commercial, and industrial applications. Smart spaces encompass a variety of technologies that integrate sensors, data analytics, and connected devices to optimize environments for energy efficiency, security, and convenience.
As a result, companies in this market are focusing on developing smart building solutions, home automation, energy management systems, and advanced security features to cater to the growing demand for connected living and workspaces. The market is further shaped by technological advancements in AI, machine learning, and data analytics, which enable more personalized and efficient smart space experiences.
Market Share Analysis by Company
| Company Name | Estimated Market Share (%) |
|---|---|
| Samsung Electronics | 25-30% |
| LG Electronics | 20-25% |
| SK Telecom | 12-15% |
| Hyundai Electronics | 8-10% |
| Kakao Corporation | 6-8% |
| Other Companies (combined) | 20-25% |
| Company Name | Key Offerings/Activities |
|---|---|
| Samsung Electronics | Develops and manufactures a wide range of smart home products, including smart appliances, lighting systems, and integrated security solutions. Samsung's SmartThings platform enables seamless integration of IoT devices for home and office automation. |
| LG Electronics | Offers smart home technologies including smart TVs, home appliances, and energy-efficient solutions. LG’s ThinQ AI technology powers its smart devices, allowing users to control and automate their homes via voice and mobile apps. |
| SK Telecom | Provides smart city and smart home solutions with a focus on IoT connectivity, data analytics, and AI-driven services. SK Telecom’s platform integrates security, energy management, and automation services for both residential and commercial spaces. |
| Hyundai Electronics | Focuses on developing smart building solutions for commercial buildings, offering energy-efficient and automated systems for lighting, climate control, and security. Hyundai also works on integrating these solutions with IoT and AI technology. |
| Kakao Corporation | Known for its smart living platform Kakao Home, Kakao focuses on integrating AI, voice recognition, and smart devices into residential environments for a more personalized user experience. The company is expanding its smart city infrastructure and connected solutions. |
The overall market size for the Smart Space Industry Analysis in Korea was USD 253.5 Million in 2025.
The Smart Space Industry Analysis in Korea is expected to reach USD 1,197.7 Million in 2035.
The nation’s rapid urbanization and increasing investment in intelligent infrastructure will drive demand for Smart Space Industry Analysis in Korea.
The top 5 sub-regions driving the development of the Smart Space Industry Analysis in Korea are Seoul Special City, Seongnam City (Gyeonggi-do), Busan Metropolitan City, Daejeon Metropolitan City, Jeonju City (North Jeolla Province), owing to the strong presence of automotive and manufacturing industries.
Solution and Energy management and optimization are expected to command a significant share over the assessment period.
On the basis of component, the Smart Space Industry Analysis in Korea is categorized into Solution and Services.
On the basis of application, the Smart Space Industry Analysis in Korea is categorized into Energy Management and Optimization, Emergency Management, Security Management and Others.
On the basis of premises type, the Smart Space Industry Analysis in Korea is categorized into Commercial, Residential and Others
Smart Space Market in Korea
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