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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Related Reports:-
Global
Serviced Office Market 2019 by Company, Regions, Type and Application, Forecast
to 2024
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Ankur Gupta, Head Marketing &
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