Major players in the serviced office market are WeWork Companies, Servcorp, Regus, IWG Plc., Bizspace Ltd, Alley, Croissant, Davinci Virtual, and Green desk.
The Global Serviced Office Market is expected to decline from USD 30.06 billion in 2019 to USD 27.95 billion in 2020 at a compound annual growth rate (CAGR) of -7.02%. The decline is mainly due to the COVID-19 outbreak and the measures to contain. Government across the world mandated work-from-home for most of the organizations, while some which cannot work from home are shut down temporarily. The market is then expected to recover and reach USD 57.58 billion in 2023 at CAGR of 27.24%.
The serviced office market consists of offering of fully equipped office or office building, managed by the office provider and related services. Serviced office are provided with some services like dedicated receptionist, administrative support as well and facilities like conference rooms, meeting rooms, air conditioning and other utilities. A serviced office is a furnished and fully-equipped pay-as-you-use office space, located in a building managed by the office and services provider.
Europe was the largest region in the serviced office market in 2019. Asia-Pacific expected to be the fastest growing regions in the forecast period.
In January 2019, A Philippines based flexible offices space online marketplace fly space acquired quick space, for an undisclosed amount. Quick space is a Hong Kong based serviced office provider. The acquisition will help fly space to expand the operation and accelerate fly space growth in Hong Kong.
The serviced office market covered in this report is segmented by offering into private offices, virtual offices, others. It is also segmented by vertical into IT and telecommunications, media and entertainment, retail and consumer goods and by space provider into big brands, independent.
Lack of available space in some cities has always been a major challenge in the serviced office market. In recent years, availability of large conventional spaces in well-developed countries has been decreasing and land rate in desired locations is increasing due to which the service office provider firm is not able to afford to buy and supply the offices with the basic needs. Lack of large spaces can harm the serviced office market.
The serviced offices are implementing the internet of things into their services. A smart serviced office same in most of the aspects as a serviced office except that smart serviced office is equipped with sensors, interactive devices, etc. For companies that are concerned about costs, the smart serviced office provides management services with the use of technology. For instance, an empty meeting room or a quiet area within the smart serviced office can be found easily using sensors. There are many advantages with IoT in the serviced office. Smart serviced offices offer several advantages such as improved time management, efficiency, reduced operational cost.
Governments are increasingly supporting and funding start-ups and SMEs which is primarily contributing to the growth of serviced offices. The serviced office is a type of office which is supplied with each and everything needed for an office and it is offered on rent. Start-ups and SMEs will not have many funds, and time to build the office. Therefore, most of the firms move in Serviced offices or co-working spaces. According to the World Bank, there are 400-500 million SMEs, startups across the globe, the number is increasing day by day due to extensive support by the government. Increased Government support and funds for startups and SMEs boosted the demand for the serviced office market.
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Ankur Gupta, Head Marketing & Communications