The global flexible office market size was valued at USD 30.72 billion in 2022 and is projected to grow from USD 34.75 billion in 2023 to USD 96.77 billion by 2030, exhibiting a CAGR of 15.76% over the forecast period.
Flexible offices provide adaptable workspaces for remote and in-office needs, catering to a wide range of businesses, from freelancers to large corporations. The shift toward hiring based on time zones rather than geography and the willingness of companies to cover these expenses for remote employees have expanded the potential client base for flexible office providers, promoting market growth.
Fortune Business Insights™ provides this information in its research report, titled “Flexible Office Market, 2023-2030”.
List of Key Players Mentioned in the Report:
- 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.)
Dedicated Spaces Segment Leads the Market Owing to Enhanced Productivity
As per type, the market is divided into dedicated spaces, on demand, and all access. The dedicated spaces segment holds the key share of the market. Dedicated workstations help employees reduce visual and auditory distractions, leading to increased team productivity. This feature is making them an attractive choice for businesses seeking efficient work environments.
BFSI Segment is Slated to Dominate Due to Significant Leasing Activity
Based on the industry, the market is segmented into IT/ITES, BFSI, retail & consumers, and others. The BFSI segment is poised to register highest growth rate during the forecast period. The BFSI sector is experiencing substantial leasing activity, with major global and domestic firms securing significant office space leases. This indicates a strong commitment to expanding their operations, which contributes to the growth of the BFSI segment.
Large enterprise Segment to Rule the Market owing to Changing Work Dynamics
Based on the application segment, the market is segmented into large enterprise, SMEs, and start-up/freelancers. Large enterprise segment is likely to exhibit a high CAGR during the study period. The changing work dynamics due to events such as COVID-19 have driven large enterprises to create more suitable work environments. These environments boost employee engagement, which leads to a higher demand for such products in large enterprises.
In terms of region, the market is categorized into Europe, North America, the Asia Pacific, South America, and the Middle East & Africa.
The market research report on flexible offices provides an in-depth examination of the market, with a particular emphasis on critical components including the competitive landscape, services, and leading product types. Additionally, the report provides valuable market insights and highlights noteworthy industry developments.
Drivers and Restraints:
Rising Popularity of Small Businesses and Freelancers to Propel Market Expansion
The rising popularity of small businesses and freelancers, often operating with budget constraints, has significantly increased the demand for flexible office spaces. These spaces offer cost-effective solutions, granting access to professional work environments without the financial burdens of traditional office leases. This appeals to startups and individuals seeking to manage expenses efficiently, further driving flexible office market growth.
However, the perceived risk of data breaches or theft in shared co-working spaces can deter businesses, particularly those dealing with sensitive information,
North America Dominated the Market Due to Changing Work Styles
The North America flexible office market share held a prominent position in the market. The adoption of flexible office arrangements in the U.S., especially in major cities such as Manhattan and San Francisco, is driven by changing working styles, which has led to exceptional market growth.
Government backing and promotion of flexible workspaces in Asian countries, exemplified by initiatives in Sydney and Japan, are pivotal factors driving the Asia pacific region growth.
Key Participants are Offering New Services and Amenities to Retain their customers
Competition is heating up in the flexible office space market, driven by the escalating rivalry among coworking spaces. To distinguish themselves, businesses are rolling out new services and amenities such as health and wellness clubs, cafeterias, private offices, and event spaces. These additions play a crucial role in both attracting fresh members and retaining existing ones.
Key Industry Development:
- July 2023: IWG had opened two new workspaces in the UAE, responding to the country’s increasing adoption of hybrid working. These coworking spaces met the growing demand for product, offering businesses and employees more flexible operating options.