Serviced Office Global Market Opportunities And Strategies To 2031

This report describes and explains the serviced office market and covers 2016-2021, termed the historic period, and 2021-2026 termed the forecast period, along with further forecasts for the period 2026-2031. The report evaluates the market across each region and for the major economies within each region.

The global serviced office market reached a value of nearly $18,195.1 million in 2021, having increased at a compound annual growth rate (CAGR) of 4.2% since 2016. The market is expected to grow from $18,195.1 million 2021 to $36,347.2 million in 2026 at a rate of 14.8%. The market is then expected to grow at a CAGR of 14.0% from 2026 and reach $70,072.0 million in 2031.

Growth in the historic period resulted from a rise in demand for the professional services business, a rise in government initiatives, increasing demand for sustainable office spaces, economic growth in emerging markets and an increase in investments. Factors that negatively affected growth in the historic period were geopolitical tensions and the coronavirus pandemic.

Going forward, increasing recovery of the workspace demand, growing tech sector and rising investments will drive market growth. Factors that could hinder the growth of the serviced office market in the future include a lack of available space in some cities.

The serviced office market is segmented by offering into private offices, virtual offices, and others. The private offices market was the largest segment of the serviced office market by offering, accounting for 60.1% of the total market in 2021. The virtual offices market is expected to be the fastest-growing segment in serviced office market offering, going forward at a CAGR of 15.6% during 2021-2026 period.

The serviced office market is segmented by vertical into IT and telecommunications, media and entertainment, financial services, professional services and other verticals. The professional services market was the largest segment of the serviced office market by vertical accounting for 29.3% of the total market in 2021. The media and entertainment market is expected to be the fastest-growing segment in serviced office market by vertical, going forward at a CAGR of 15.9% during 2021-2026 period.

The serviced office market is segmented by space provider into big brands and independent. The independent was the largest segment of the serviced office market by space provider, accounting for 68.2% of the total market in 2021. The independent segment is expected to be the fastest-growing segment in serviced office market segmented by space provider, going forward at a CAGR of 15.3% during 2021-2026 period.

North America was the largest region in the serviced office market, accounting for 33.3% of the global market in 2021. It was followed by Western Europe, Asia-Pacific and the other regions. Going forward, the fastest growing regions in the serviced office market will be Asia-Pacific and South America, where growth will be at CAGRs of 17.2% and 15.9% respectively from 2021-2026.

The global serviced office market is moderately fragmented, with a large number of regional players operating in the market. The top ten competitors in the market made up to 27.93% of the total market in 2021. Major players in the market include WeWork Inc., IWG plc, Servcorp, Compass Offices, Greendesk, JustCo, Davinci Virtual, Workbar, Orega Management Ltd and Instant Offices.

The top opportunities in the serviced office market segmented by offering will arise in the private offices segment, which will gain $10,649.5 million of global annual sales by 2026. The top opportunities in the serviced office market segmented by vertical will arise in the professional services segment, which will gain $5,110.8 million of global annual sales by 2026. The top opportunities in the serviced office market segmented by space provider will arise in the independent segment, which will gain $12,884.8 million of global annual sales by 2026. The serviced office market will gain the most in the USA at $3,899.0 million.

Market-trend-based strategies for the serviced office market include adopting a flexible hybrid work model, implementing co-working spaces to save costs, deploying tech-enabled environments, focusing on repurposing and redesigning the office spaces and offering flexible and negotiable lease arrangements.

Player-adopted strategies in the serviced office market include focusing on revolutionizing the flexible workspace ecosystem through business expansions, focusing on collaborations and partnerships and expanding serviced offices network through opening new business centers.

To take advantage of the opportunities, the publisher recommends the serviced office companies to focus on hybrid work schedules, focus on offering co-working spaces, focus on providing tech-enabled environments, expand in emerging economies, focus on old office buildings, focus on flexible or deferred payment plans, focus on building long term contracts with offices and focus on corporate employees.