Serviced Office Market Report 2025

The serviced office market size has grown rapidly in recent years. It will grow from $38.32 billion in 2024 to $45.08 billion in 2025 at a compound annual growth rate (CAGR) of 17.7%. The growth in the historic period can be attributed to 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.

The serviced office market size is expected to see rapid growth in the next few years. It will grow to $80.38 billion in 2029 at a compound annual growth rate (CAGR) of 15.6%. The growth in the forecast period can be attributed to increasing recovery of the workspace demand, growing tech sector and rising investments. Major trends in the forecast period 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.

The growth of serviced offices is increasingly driven by government support and funding for start-ups and SMEs. Serviced offices, fully equipped and available for rent, cater to the needs of businesses, especially start-ups and SMEs with limited funds and time for office construction. As per the World Bank, the global number of SMEs and start-ups ranges from 400 to 500 million, and this figure continues to rise, thanks to substantial government backing. The increased financial support from governments for these emerging enterprises has significantly fueled the demand for the serviced office market.

The increasing demand for work-from-home (WFH) arrangements is expected to propel the growth of the serviced office market. WFH is a modern employment model where employees perform their job responsibilities remotely, typically from home rather than in a traditional office. However, working from home can limit access to professional meeting spaces. Serviced offices provide well-equipped meeting rooms and conference facilities that remote workers can utilize when they need to meet clients or collaborate with colleagues. For example, in February 2023, data from the Office for National Statistics, a UK-based authority, indicated that from September 2022 to January 2023, 44% of workers reported engaging in home or hybrid working, while 56% traveled exclusively to work, with 28% in hybrid roles and 16% working entirely from home. Thus, the rising demand for work-from-home options is driving growth in the serviced office market.

Major companies in the serviced office market are concentrating on innovative solutions such as advanced digital workplace experience-as-a-service to offer businesses a seamless, efficient, and secure digital workplace that boosts collaboration and productivity in hybrid work settings. Advanced digital workplace experience-as-a-service refers to a comprehensive, cloud-based solution that combines technology, tools, and support services to improve employee productivity and collaboration in a secure and flexible environment. For example, in February 2024, HCL Technologies Limited, an India-based IT solutions company, launched FlexSpace 5G, aimed at enhancing efficiency and security for global businesses. This offering features end-to-end device lifecycle management, fast and reliable connectivity through Verizon’s 5G network, and support for hybrid work models, significantly enhancing collaboration and productivity while addressing data security concerns for remote workers.

Major companies in the serviced office market are creating new products, such as virtual workspaces, to cater to larger customer bases, increase sales, and boost revenue. A virtual workroom is a digital space where individuals or teams can collaborate, communicate, and complete work-related tasks without the need for a traditional office setting. For example, in October 2024, Zoom Video Communications Inc., a U.S.-based communications technology company, launched several new AI-driven features for its Zoom Workplace platform, including AI Companion 2.0, which serves as a personal assistant to help users manage their tasks more efficiently, and Zoom Tasks, designed to streamline collaboration by converting conversations into actionable items across different communication channels. These innovations are crucial as they enhance productivity and collaboration in hybrid work environments, addressing the increasing demand for efficient tools that support both remote and in-office work dynamics.

In March 2022, WeWork Inc., a U.S.-based workplace provider, acquired Common Desk for $22.9 million. This acquisition aims to bolster WeWork's position in the flexible workspace market while enhancing member experiences, driving profitability, and facilitating strategic growth in new markets. Common Desk is a U.S.-based coworking space network that provides office space, amenities, and events.

Major companies operating in the serviced office market include WeWork Inc, IWG plc, Servcorp, Compass Offices, Greendesk, JustCo, Davinci Virtual, Workbar, Orega Management Ltd, Instant Offices, Regus, Space Works, Innov8 - Vikhroli, Red Bricks, 91 Springboard - Yerwada, Spring House Coworking, IndiQube, The Executive Centre, ARCC, Bizspace, Flexspace, Workspace Group, The Office Group, Landmark Space Limited, NewFlex, WORKIN, City Space, Business Lab, Clockwork, Croissant, LiquidSpace, Serendipity Labs, Knotel, ShareDesk, Breather Inc, BeerOrCoffee, A4-Space, Nook, Nest, Our-Space, Letswork, WitWork, Office Freedom.

Asia-Pacific was the largest region in the serviced office market in 2024. North America was the second largest region in the global serviced office market share. The regions covered in the serviced office market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the serviced office market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Canada, Spain.

A serviced office is a fully furnished and well-equipped office space available for flexible use, situated in a building managed by the office provider. These offices offer fully furnished workspaces, along with building management services and additional facilities such as printers, communal break rooms, meeting rooms, and internet connections.

In the realm of serviced offices, the main types of offerings include private offices, virtual offices, and other flexible options. A private office is a fully enclosed space with a movable door designed to serve as a workplace for an individual. Various space providers, including major brands and independent entities, cater to a diverse range of industries such as IT and telecommunications, media and entertainment, retail, and consumer goods.

The serviced office market research report is one of a series of new reports that provides serviced office market statistics, including serviced office industry global market size, regional shares, competitors with a serviced office market share, detailed serviced office market segments, market trends and opportunities, and any further data you may need to thrive in the serviced office industry. This serviced office market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The serviced office market consists of revenues earned by entities by providing services such as dedicated receptionists, administrative support as well and facilities such as conference rooms, meeting rooms, air conditioning, and other utilities. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

This product will be delivered within 3-5 business days.