Evolving Corporate Landscape Coupled with Focus on Minimizing Overhead Costs to Accelerate Demand
Due to the evolving nature of the corporate landscape over the past decade, flexible workspaces have gained noteworthy popularity. Moreover, the remote working trend shifted gears in the forward direction in recent years due to which, the demand for flexible workspaces witnessed considerable growth– a factor that is expected to accelerate the global flexible workspace market during the forecast period. Furthermore, due to the increasing penetration of high-speed Internet across urban cities in developed as well as developing regions, the possibility of operating from a flexible workspace has turned into reality.
The surge in the number of open floor plan office spaces, along with the entry of a number of co-working workspaces has played an imperative role in shaping the overall growth of the global flexible workspace market. The flourishing startup culture in several pockets of the world is another major factor that is likely to augment the growth of the global flexible workspace market in the upcoming decade. Market players operating in the current flexible workspace market are increasingly focusing on finding a balance between rising prices of real estate and growing influence of technology to gain an advantage in the current market landscape.
At the back of these factors, the global flexible workspace market is expected to reach US$ 31.5 Bn mark by the end of 2030.
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Growing Awareness Pertaining to Flexible Workspaces to Bolster Market Growth
The commercial real estate segment has witnessed considerable developments over the past decade, as flexible offices and co-working spaces continue to garner popularity worldwide. The growing awareness regarding flexible workspaces continues to play a key role in bolstering the growth of the global flexible workspace market. The onset of flexible workspace continues to transform the corporate sphere– a trend that is likely to gain further momentum during the assessment period. In addition, traditional lease system and increasing capital and resources required for furnishing, IT, and electrical are some of the other factors playing a pivotal role in fueling the adoption of flexible workspaces worldwide.
Moreover, the analysts at Transparency Market Research are of the opinion that the growing collaboration between flexible workplace players and landlords is expected to influence the growth of the global flexible workspace market during the assessment period. As more number of companies continue to emphasize on enhancing productivity and overall employee experience, the adoption of flexible workspaces is likely to witness growth at a steady pace worldwide.
The adoption of flexible workspaces continues to grow across companies that are increasingly focusing on implementing remote working policies.
Demand to Rise amid COVID-19 Pandemic
The onset of the novel COVID-19 pandemic is expected to play a significant role in the expansion of the global flexible workspace market, particularly in 2022. Moreover, increasing concerns among employees related to maintenance of hygiene in public offices and working with other individuals in close proximity are expected to hinder the demand for flexible workspaces in 2022. Although the flexible workspace market is anticipated to grow at an impressive pace in the upcoming years, the market growth is expected to remain sluggish in 2022 due to the ongoing COVID-19 crisis. Market players are expected to focus on increasing awareness regarding safety, market their flexible workspace as a safe and reliable work place infrastructure, and focus on gaining the trust of their customers to gain a competitive edge in the COVID-19 and post-COVID-19 era.
Furthermore, market players are likely to provide private cubicles and optimum security to their employees to gain a competitive in the current market landscape.
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Flexible Workspace Market: Overview
- According to Transparency Market Research’s latest research report on the global flexible workspace market for the historical period 2018–2019 and the forecast period 2022–2030, usage of latest infrastructural capabilities in flexible workplaces or corporate houses by enterprises, and increasing awareness about flexible workspaces among enterprises are factors expected to boost the global flexible workspace market during the forecast period
- In terms of revenue, the global flexible workspace market was valued at over US$ 6.3 Bn in 2019 and is expected to expand at a CAGR of ~16% from 2022 to 2030, reaching US$ 31.5 Bn by the end of the forecast period
Increase in Demand for Premium Infrastructure in Flexible Workplaces or Corporate Houses
- Demand for premium commercial workplaces among enterprises is increasing due to smart office designs, network and communication channels, and prime location office spaces, which helps boost mobility and flexibility of a company
- Demand for flexible workplaces is increasing in developing countries due to rising number of small & medium size startups and expansion of major companies at the global level. Real-estate solution providers are offering premium design offices with advanced technology office equipment and devices, and offer support services to enhance customer experience.
- Companies providing services are also collaborating with commercial infrastructure owners to provide corporate houses in prime locations, which is also estimated to fuel the demand for flexible workspaces during the forecast period
- On the other hand, data security issues and high operational cost in flexible workspace services are projected to have a negative impact on the global flexible workspace market during the forecast period
- Increase in co-working and flexible workspace outsourced services among enterprises also fuels threats related to data security due to the number of enterprises working under the same office premises and lack of measures to ensure data security
- Rise in operational cost of flexible workspaces also hampers the revenue of companies in this sector. Companies are facing high operational cost for each employee, which reduces revenues against investments in office premises and infrastructural services. Flexible workspaces and co-working services also lead to cultural clash of companies, as several companies use the same office space at the same time. Large companies own office premises instead of flexible office services to maintain their work culture. Therefore, data security issues and high operational cost in flexible workspace services are expected to restrain the flexible workspace market.
Flexible Workspace Market: Competition Landscape
- Detailed profiles of providers of flexible workspaces have been provided in the report to evaluate their financials, key product offerings, recent developments, and strategies
- Key players operating in the global flexible workspace market include
- BE Offices Limited
- Bizspace Limited
- Fora Space Ltd.
- IWG plc.
- OfficeRnD Ltd
- Servcorp Limited
- The Great Room Offices
- The Working Capito
- Victory Offices Limited.
- WeWork Companies Inc.
- WOTSO Limited
Flexible Workspace Market: Key Developments
- Key providers of flexible workspace, such as IWG plc, Servcorp Limited, Space&Co, WeWork Companies Inc., and Bizspace Limited are focusing on premium office design and cost-effective flexible workspaces to attract more customers. Some other key developments in the global flexible workspace market are highlighted below:
- In September 2022, IWG plc. signed its first Australian franchise deal by partnering with Adams Group. The company is expanding its service area in Northern Queensland with 10 new commercial spaces for enterprises.
- In August 2019, WeWork Companies Inc. announced the acquisition of Spacious, a New York-based startup providing co-working services to enterprises
- In February 2018, WeWork Companies Inc. announced the acquisition of Waltz, a building access and security management startup. The company is expanding its service area by acquiring other co-working space providing companies.
- In February 2018, BE Offices Limited announced the acquisition of Headspace Group, a newly launched co-working space providing company. The company is expanding its service area by acquiring other co-working space providing companies.
- In the global flexible workspace market report, we have discussed individual strategies, followed by company profiles of providers of flexible workspace services. The ‘Competition Landscape’ section has been included in the report to provide readers with a dashboard view and company market share analysis of key players operating in the global flexible workspace market.