Flexible Office Market Trends: Segmentation and Regional Forecast to 2030

ByOlivia Johnson

The global flexible office market size was valued at USD 34.75 billion in 2023. The market is anticipated to expand 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 market 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 Market, 2024-2030”.

Information Source: https://www.fortunebusinessinsights.com/flexible-office-market-108702

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.)

Segmentation:

Dedicated Spaces Segment Holds the Major share the Market Owing to its Privacy

By type, the market is divided into dedicated spaces, on demand, and all access. The dedicated spaces segment captures the major share of the market. 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 Market Owing to Expanding IT Industry

On the basis of industry, the market is segmented into IT/ITES, BFSI, retail & consumers, and others. The IT/ITES segment captured the largest share of the market 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 market 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 market 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 market 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 market insights but also brings to light key industry developments. Furthermore, it encompasses additional factors that have played a pivotal role in the market’s recent expansion.

Rising Commercial Real Estate Development to Propel Market 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 market growth.

However, the security incidents in co-working spaces can damage providers’ reputations and potentially lead to stricter compliance requirements, impeding flexible office market growth.

Regional Insights:

North America Captured the Key Share in the Market Due to Affordable and Varied Flexible Offices Spaces Options

The North America flexible office market share secured a key position in the market. 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 market 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 market expansion.

Competitive Landscape:

Leading Players are Introducing New Amenities to Attract and Retain Members

The market 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 markets.