The global flexible office industry size was valued at USD 30.72 billion in 2022. The industry is anticipated to expand from USD 34.75 billion in 2023 to 96.77 billion by 2030, exhibiting a CAGR of 15.76% over the estimated period.
Large enterprises utilize flexible offices for satellite locations and specialized project areas, aligning with changing business demands and industry expansion. The shift in priorities among workers toward factors such as space design, health & wellness activities, and flexibility, as highlighted by the CBRE report, has increased the demand for such solutions.
Fortune Business Insights™ provides this information in its research report, titled “Flexible Office Industry, 2023-2030”.
Top Companies Covered in the Flexible Office Industry:
- International Workspace Group (Switzerland)
- WeWork (U.S.)
- Newmark (U.K.)
- Industrious Office (U.S.)
- Desana (Scotland)
- LiquidSpace (U.S.)
- Flex by JLL (U.S.)
- BHIVE Workspace (India)
- SmartWorks (India)
- ServCorp (Australia)
- Hubble (U.K.)
Information Source: https://www.fortunebusinessinsights.com/flexible-office-industry-108702
Segmentation:
Dedicated Spaces Segment Holds the Major share the industry Owing to its Privacy
By type, the industry is divided into dedicated spaces, on demand, and all access. The dedicated spaces segment captures the major share of the industry. Dedicated spaces provide a unique blend of privacy akin to traditional offices while offering opportunities for networking and collaboration found in co-working spaces. This duality makes them a popular choice among freelancers, startups, and small and medium-sized businesses, driving their increasing demand.
IT/ITES segment Dominated the industry Owing to Expanding IT Industry
On the basis of industry, the industry is segmented into IT/ITES, BFSI, retail & consumers, and others. The IT/ITES segment captured the largest share of the industry in 2022. The IT/ITES segment benefits from the rapid expansion of the global IT industry. With an increasing number of IT companies in developed and developing countries, the demand for office spaces by these firms drives the growth of this segment.
Large enterprise Segment to Dominate Due to Cost-Efficiency
Based on the application segment, the industry is segmented into large enterprise, SMEs, and start-up/freelancers. Large enterprise segment is poised to exhibit a high CAGR over the projected timeframe. Large corporations that opt for flexible office spaces enjoy cost-efficiency since they avoid the substantial capital costs associated with traditional office spaces. This financial benefit has made the real estate industry a significant part of the operational decisions in large enterprises, further supporting the growth of the segment.
In terms of region, the industry is categorized into Europe, North America, the Asia Pacific, South America, and the Middle East & Africa.
Report Coverage:
In the report, a detailed analysis of the industry takes center stage, with a special focus on essential elements such as the competitive landscape, services, and prominent product types. The report not only offers valuable industry insights but also brings to light key industry developments. Furthermore, it encompasses additional factors that have played a pivotal role in the industry's recent expansion.
Rising Commercial Real Estate Development to Propel industry Growth
Ongoing development and expansion of commercial real estate properties, including various office configurations, provide a broader array of workspace options, accommodating the needs of businesses seeking flexibility. This expansion has led to an increased overall supply of office space, contributing to industry growth.
However, the security incidents in co-working spaces can damage providers' reputations and potentially lead to stricter compliance requirements, impeding flexible office industry growth.
Regional Insights:
North America Captured the Key Share in the industry Due to Affordable and Varied Flexible Offices Spaces Options
The North America flexible office industry share secured a key position in the industry. The increasing availability of affordable and diverse flexible office spaces, from co-working to hybrid models, meets the demand for work flexibility in the U.S. and Canada, supporting industry growth.
In Asia Pacific, the increasing number of startups and freelancers in countries such as India has significantly boosted demand for co-working spaces, contributing to industry expansion.
Competitive Landscape:
Leading Players are Introducing New Amenities to Attract and Retain Members
The industry is experiencing intensified competition as coworking spaces compete to outperform their peers. To set themselves apart, operators are introducing an array of new services and amenities, encompassing cafeterias, private offices, event spaces, and health and wellness clubs. These innovations are pivotal in their efforts to both draw in new members and keep existing ones engaged in this highly competitive landscape.
Key Industry Development:
January 2022: WeWork had acquired Common Desk, a U.S.-based co-working and office space provider. This strategic move enabled both brands to expand their flexible office space offerings across global industrys.
