Spending On Connected Worker Solutions Market Set To Reach $3.0 Billion By 2026 Driven By The Need To Tackle Labour Shortages At Industrial Facilities

Spending On Connected Worker Solutions Market Set To Reach $3.0 Billion By 2026 Driven By The Need To Tackle Labour Shortages At Industrial Facilities

The global market for connected worker solutions will grow from $1.35 billion in 2021 to reach $3.0 billion in 2026, according to the Verdantix connected worker solutions market size and forecast. The CAGR is 17.2% with growth driven by increasing awareness of the benefits of connected worker solutions. Spend on software will grow faster at a CAGR of 18.3% as compared to 15.7% for hardware. Despite high costs and inflationary pressures, companies seek connected worker technologies including mobile apps and wearables to improve worker retention, worker safety and streamline production operations.

Firms are investing heavily into software solutions for operational insights and work instructions offered by vendors such as Augmentir, Operations1 and Parsable, reflecting the typical deployment via smartphones and tablets and potential penetration across operations at enterprise-size firms. As a result, operational insights and work instructions will experience the highest growth out of the seven use cases for software, at a CAGR of 18.7% from 2021 to 2026, followed by spend on remote assistance use case offered by vendors such as AMA XpertEye, Kognitive Spark and Librestream. In terms of hardware spend, lone worker monitoring accounted for the highest share in 2021 due to firms viewing increasing worker engagement in safety as a high priority. #

The connected worker solution market size and forecast also analyses spending by region. In 2021, spend was concentrated in Europe and the US, attributable to greater digital maturity. The two regions made up 57% of total market spend, totalling $771 million. The analysis shows that they will continue to be the main regional players by maintaining their 57% market share into 2026. However, China, India and the Middle East will see the fastest growth, with CAGRs of 18.5%, 18.3% and 17.4% due to the projected digital transformation of these areas. 

Connecter worker solution providers are set to benefit from a growing market. However, inflation continues to rise which is increasing pricing pressures on providers, especially software providers. Therefore, successful firms will need to understand their cost to make strategic pricing decisions that will help them protect their margins. Vendors will also need to overcome the current concerns over data privacy and data sharing by providing full transparency on how they will handle, protect and store data generated by their solutions. 

To learn more about the Verdantix Market Size And Forecast: Connected Worker Solutions 2021-2026 (Global) read our report.