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.
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Report Attribute | Details |
---|---|
No. of Pages | 238 |
Published | November 2022 |
Forecast Period | 2021 - 2031 |
Estimated Market Value ( USD
| USD 18195.1 Million |
Forecasted Market Value ( USD
| USD 70072 Million |
Compound Annual Growth Rate | 14.4% |
Regions Covered | Global |
Table of Contents
Executive Summary
Serviced Office Global Market Opportunities And Strategies To 2031 from the publisher provides the strategists; marketers and senior management with the critical information they need to assess the global serviced office market as it emerges from the COVID-19 shut down.
Reasons to Purchase
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Description:
Where is the largest and fastest growing market for serviced office? How does the market relate to the overall economy; demography and other similar markets? What forces will shape the market going forward? The serviced office market global report from the publisher answers all these questions and many more.
The report covers market characteristics; size and growth; segmentation; regional and country breakdowns; competitive landscape; market shares; trends and strategies for this market. It traces the market’s historic and forecast market growth by geography. It places the market within the context of the wider serviced office market; and compares it with other markets.
The report covers the following chapters:
- Introduction and Market Characteristics: Brief introduction to the segmentations covered in the market, defintions and explanations about the serviced office market
- Key Trends: Highlights the major trends shaping the global serviced office market. This section also highlights likely future developments in the market
- Global Market Size and Growth: Global historic (2016-2021) and forecast (2021-2026), and (2026-2031) market values, and drivers and restraints that support and control the growth of the market in the historic and forecast periods
- Regional Analysis: Historic (2016-2021) and forecast (2021-2026), and (2026-2031) market values and growth and market share comparison by region
- Market Segmentation: Contains the market values (2016-2031) and analysis for for segment by offering, by vertical and by space provider in the market
- Regional Market Size and Growth: Regional market size (2021), historic (2016-2021) and forecast (2021-2026), and (2026-2031) market values, and growth and market share comparison of countries within the region. This report includes information on all the regions Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa and major countries within each region
- Competitive Landscape: Details on the competitive landscape of the market, estimated market shares and company profiles of the leading players
- Key Mergers and Acquisitions: Information on recent mergers and acquisitions in the market covered in the report. This section gives key financial details of mergers and acquisitions, which have shaped the market in recent years
- Market Opportunities And Strategies: Describes market opportunities and strategies based on findings of the research, with information on growth opportunities across countries, segments and strategies to be followed in those markets
- Conclusions And Recommendations: Includes recommendations for serviced office providers in terms of product/service offerings, geographic expansion, marketing strategies and target groups
- Appendix: This section includes details on the NAICS codes covered, abbreviations and currencies codes used in this report
Scope:
Markets Covered:
- 1) By Offering: Private Offices; Virtual Offices; Others
- 2) By Vertical: IT And Telecommunications; Media And Entertainment; Financial Services; Professional Services; Other Verticals
- 3) By Space Provider: Big Brands; Independent
Companies Mentioned: WeWork Inc.; IWG plc; Servcorp; Compass Offices; Greendesk
Countries: China; Australia; India; Indonesia; Japan; South Korea; USA; Brazil; France; Germany; UK; Russia
Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
Time series: Five years historic and ten years forecast.
Data: Ratios of market size and growth to related markets; GDP proportions; expenditure per capita; serviced office indicators comparison.
Data segmentations: country and regional historic and forecast data; market share of competitors; market segments.
Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
Companies Mentioned
A selection of companies mentioned in this report includes:
- WeWork Inc.
- IWG plc
- Servcorp
- Compass Offices
- Greendesk
Methodology
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