DUBLIN–(BUSINESS WIRE)–The “Global Serviced Office Market Report 2022 by Supply, Vertical, Space Provider” report has been added to from ResearchAndMarkets.com offer.
The global serviced office market is expected to grow from $27.83 billion in 2021 to $33.30 billion in 2022 at a compound annual growth rate (CAGR) of 19.7%.
The growth is primarily due to businesses resuming operations and adjusting to the new normal while recovering from the impact of COVID-19, which previously led to restrictive lockdown measures involving social distancing, remote work and the closure of business activities that have resulted in operational challenges.
The market is expected to reach $64.06 billion in 2026 with a CAGR of 17.8%.
The serviced office market consists of an offer of fully serviced offices or office buildings, managed by the supplier of offices and associated services.
Serviced offices come with certain services such as a dedicated receptionist, administrative support as well as facilities such as conference rooms, meeting rooms, air conditioning and other utilities. A serviced office is a furnished and fully equipped paid office space located in a building managed by the office and service provider.
The main types of serviced office offerings are private offices, virtual offices and others. A fully enclosed space with a movable door that provides a workplace for one person is called a private office. The various space providers include major independent brands and are used by various verticals such as IT & Telecom, Media & Entertainment, Retail, and Consumer Goods.
Governments increasingly support and finance start-ups and SMEs, which mainly contributes to the growth of serviced offices. The serviced office is a type of office that comes with everything needed for an office and is offered for rental. Start-ups and SMEs will not have much funds and time to build the office.
Therefore, most companies are moving into serviced offices or coworking spaces. According to the World Bank, there are 400 to 500 million SMEs, start-ups around the world, this number is increasing day by day thanks to the strong support from the government. Rising government support and funding for start-ups and SMEs has driven demand for the serviced office market.
The lack of available space in some cities has always been a major challenge in the serviced office market.
In recent years, the availability of large conventional spaces in well-developed countries has decreased and the land price in the desired locations has increased, which makes the service office provider company unable to afford buy and furnish the desks with the basic needs. The lack of large spaces can hurt the serviced office market.
Serviced offices are implementing the Internet of Things in their departments. A smart serviced desk came in most aspects as a serviced desk, except the smart serviced desk is equipped with sensors, interactive devices, etc.
For cost-conscious businesses, the smart serviced office provides management services with the use of technology. For example, an empty meeting room or a quiet area in the smart serviced office can be easily found using sensors. The IoT in the serviced office has many advantages. Smart serviced offices offer several benefits such as better time management, efficiency, reduced operational costs.
In January 2019, a Philippines-based flex office online marketplace steal space acquired space fast, for an undisclosed amount. Quickspace is a serviced office provider based in Hong Kong. The acquisition will help fly in space to expand the operation and accelerate the growth of flight space in Hong Kong.
Asia-Pacific was the largest region in the serviced office market in 2021. North America was the second largest region in the serviced office market. Regions covered in this report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
The countries covered in the serviced office market are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK and the United States.
The main players in the serviced office market are:
The office group
For more information on this report, visit https://www.researchandmarkets.com/r/l981xl