The global flexible office industry size was valued at USD 34.75 billion in 2023. The industry is expected to expand to USD 96.77 billion by 2030 , exhibiting a CAGR of 15.76 % during the estimated period .
Flexible offices cater to a wide range of businesses, from freelancers to large corporations, offering workspace that can adapt to their remote and in-office needs. The trend to hire based on time of day rather than geography, and companies' willingness to cover the costs of remote workers, is expanding the potential customer base for flexible office providers and driving growth in the industry .
Fortune Business Insights™ provides this information in a research report titled, “ Flexible Office Industry , 2024-2030 . ”
Top companies in the flexible office industry :
- International Workspace Group (Switzerland)
- WeWork (US)
- Newmark (UK)
- Industrious Offices (USA)
- Village (Scotland)
- LiquidSpace (USA)
- Flex by JLL (USA)
- BHIVE WORKSPACE (INDIA)
- SmartWorks (India)
- Servcorp (Australia)
- Hubble (UK)
Intelligence source : https://www.fortunebusinessinsights.com/flexible-office-industry-108702
segmentation:
Dedicated space segment leads the industry with improved productivity
Based on type, the industry is divided into dedicated space, on-demand, and all access. The dedicated space segment holds a significant share in the industry . Dedicated workstations reduce visual and auditory disturbances for employees, leading to increased team productivity. This feature makes them an attractive option for businesses looking for an efficient working environment.
The BFSI segment is expected to dominate due to increased leasing activity
Based on industry vertical, the market is segmented into IT/ITES, BFSI, Retail & Consumer, and Others. The BFSI segment is expected to register the highest growth rate during the forecast period. The BFSI sector is witnessing significant leasing activity, with leading global and domestic companies securing lease for large office space. This indicates a strong desire for business expansion, thereby contributing to the growth of the BFSI segment.
Workforce changes will see large enterprise segments dominate the industry
Based on application segment, the industry is segmented into large enterprises, SMEs, and startups/freelancers. The large enterprises segment is likely to exhibit a high CAGR during the study period. Changes in work dynamics due to events such as COVID-19 have prompted large enterprises to build more suitable working environments. These environments increase employee engagement, thus increasing the demand for such products in large enterprises.
Based on region, the industry is segmented into Europe, North America, Asia Pacific, South America, and Middle East & Africa.
Report Coverage:
The Flexible Office industry research report provides an in-depth study of the industry with special emphasis on key factors such as the competitive landscape, services, major product types, etc. Additionally, the report provides valuable industry insights and highlights noteworthy industry trends.
Drivers and Restraints:
Growing popularity of small businesses and freelancers fuels industry expansion
The growing popularity of small businesses and freelancers, who are often on a budget, has led to a significant increase in demand for flexible office spaces. These spaces offer a cost-effective solution, allowing access to a professional working environment without the financial burden of a traditional office lease. This is attractive to start-ups and individuals looking to manage their expenses efficiently, further fuelling the growth of the flexible office industry.
However, the risk of data leakage or theft in shared co-working spaces may be a deterrent to their use, especially for companies that handle sensitive information.
Regional insights:
North America dominates industry as work patterns change
The North American flexible office industry share holds a prominent position in the industry. In the United States, especially in major cities such as Manhattan and San Francisco, changing working patterns have led to the adoption of flexible offices, leading to exceptional growth in the industry.
Government support and promotion of flexible workspace in Asian countries, exemplified by initiatives in Sydney and Japan, is a crucial factor driving growth in the Asia Pacific region.
Competitive Landscape:
Major participants are offering new services and amenities to retain customers.
The flexible office space industry is becoming increasingly competitive as competition between coworking spaces is on the rise . To differentiate themselves, companies are introducing new services and amenities such as health and wellness clubs, cafeterias, private offices, event spaces, etc. These additional features play a key role in both attracting new members and retaining existing ones.
Major industry developments:
July 2023: IWG opens two new workspaces in the UAE in response to the increasing adoption of hybrid working in the country. These co-working spaces cater to growing product demand and provide more flexible operational options for businesses and employees.
