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Global Flexible Space Market By Type (Flexible Office Space (Office Type, Room Service, & End-Use Vertical), By Flexible Warehouse Space (Business Model, Component, Infrastructure, Function & Warehouse Type)), and By Region (North America, Europe, Asia-Pacific, Latin America, and The Middle East & Africa)-Global Forecast to 2028
Flexible Space Market Overveiw
The global Flexible Space market is estimated to reach USD 98.72 billion by 2030, expected to grow at a compound annual growth rate (CAGR) of 8.03% from 2022 to 2030 and it was valued at USD 47.81 billion in 2022.
The market’s expansion can be ascribed to increased demand for gig workers worldwide, fueled by the rising number of start-ups and a growing desire among businesses to expand their operations outside their local geographies. In addition, the industry’s rapid expansion is due to increased demand from entrepreneurs, start-ups, and freelancers focused on convenience, price, flexibility, and growth since a firm with less than 50 employees can save up to 25%-30% in renting expenses. The millennial population, combined with the expanding start-up culture, has created a worldwide demand for low-cost, flexible coworking spaces, further anticipated to fuel the global market significantly during the forecast 2022-2028. Moreover, rising trends in space-as-a-service business models and the expanding e-commerce industry are expected to boost market growth during the forecast period.
What is Flexible Space?
All space operated by third-party flexible office operators, including traditional serviced offices and coworking space, is called flexible space. Flexible space can be open-plan, including closed offices, floors, and even buildings. Specialized operators, individual landlords, or joint ventures can manage it. Flexible workspaces can be scaled up or down. Flexible work locations can be found across an office, or the entire company might benefit from a flexible space design.
Growth Drivers
Rising Coworking Spaces
The business idea of “space-as-a-service” is fast gaining traction. Nearly every important statistic, such as the number of new leases, seats, dedicated square area, and growth rate, shows coworking is rising. The rise of remote workers, job decentralization, and the predominance of start-up and small business cultures contribute to the market’s expansion. Additionally, companies resumed operations and adapted to the new normal while recovering from the COVID-19 impact, which had previously resulted in restrictive containment measures such as social distancing, remote working, and the cessation of commercial activities, all of which created operational issues. At a CAGR of 16.7%, the coworking space market is estimated to reach USD 29.96 billion in 2026. Furthermore, because coworking tends to be concentrated in major metros, the flexible workspace proportion of office inventory is considerably lower in secondary markets. Although it has a small market share in the real estate business, the flexible workspace sector is rapidly expanding over the forecasted period.
Increasing deals for coworking spaces across the globe
The coworking and serviced office industries have exploded in popularity in recent years. For example, coworking and serviced office operators leased roughly 182,000 m² of space in central London in 2018, 12% greater than in 2017. The city (40% of deals for flexible office space in m² in 2018), the West End (28%), and the Midtown (17%) have all received a lot of attention. Additionally, tenants are looking for a workspace that allows them to be flexible with their lease while saving money. Shortening lease terms, increasing incentives, or acting as ‘service providers rather than ‘space providers are all possibilities.
Furthermore, coworking originally struggled in France but has proven to significantly boost the commercial real estate sector, with 28 deals totaling 118,000 m² in 2018, up 19% from 2017. Domestic and foreign corporations have already invested heavily in the Paris market. Despite this, supply remains extremely concentrated. Thus, the rising deal for coworking space globally is estimated to fuel the global flexible space market.
Pre Covid-19 Impact on Global Flexible Space Market
The rapid construction of IT parks and commercial zones has increased the number of corporate offices, resulting in a demand for contemporary office furniture worldwide. Organizations also created informal office areas to improve colleague communications, collaborative environments, and social connections. As a result of this trend, office furniture makers have begun to produce intelligently designed furniture, which significantly impacted the market.
COVID-19 Impact on the Global Flexible Space Market
The COVID-19 pandemic has negatively impacted the market across the globe. Employees and employers prefer work-from-home options and flexible working hours due to the COVID-19 pandemic. People want to work remotely for various reasons, including the ability to work from anywhere and spend more time with their families. Because of these factors, 90% of employees would recommend working remotely to a friend, stifling market expansion.
Post Covid-19 Impact on Global Flexible Space Market
Following the pandemic, dynamic variables, such as increased office leasing activity worldwide and favorable global GDP growth, are projected to drive worldwide market expansion. Furthermore, innovative and functional office furniture development and availability enhance the office furniture market, which is expected to boost the worldwide flexible space market.
By Type Segmental Analysis
Based on the type, the market is categorized into Flexible Office Space and Flexible Warehouse Space. In addition, the Flexible Office Space segment is further bifurcated into Office Type, Room Service, and End-Use Vertical. Moreover, the Flexible Warehouse Space segment is classified into Business Model, Component, Infrastructure, and Function and Warehouse Type. Due to the propelling coworking space market, the Flexible Office Space segment is expected to sign the market over the projection period by 2028. For the last several years, the worldwide coworking space market has been steadily growing and is likely to continue to do so. Another factor projected to boost the market’s growth in the region is an increase in start-ups and corporate expansions.
Furthermore, the flexible space market is predicted to develop in response to rising demand for office leasing and employment and the global expansion of multinational corporations.
By Region Segmental Analysis
The Region segment is bifurcated into North America, Europe, Asia-Pacific, South America, and The Middle East & Africa. North America is estimated to have the biggest market share during the forecasted period by 2028. This is due to increased commercial space demand from enterprises in the region’s secondary and tertiary cities. Enterprises are deciding to expand their businesses to secondary and tertiary cities, expected to drive the market substantially, owing to rising commercial property prices in key metropolitan areas across the region and the expanding demand to reduce employee commuting time.
Competitors Analysis
The Companies WeWork Companies LLC, Cubework, Jones Lang LaSalle, Deskpass Corporation, LiquidSpace Inc., Davinci Virtual LLC, JustCo Management Pte. Ltd., Colliers International Property Consultants Inc., Ware2Go Inc., Techspace, and Other Prominent Players in the Flexible Space Market.
Key Stakeholders
- Market research and consulting firms
- Industry associations
- Global Flexible Space manufacturing firm
- Local Governments
- Regulatory bodies
- Suppliers
- Retailers
Recent Developments
- In April 2021, WeWork Companies LLC announced a partnership with Ampa Group, one of Israel’s largest real estate companies. WeWork would be able to grow its activities in Israel due to the agreement.
- In November 2020, Jones Lang LaSalle, IP, Inc. signed a Vested agreement with bp to improve its workplaces worldwide. JLL has been affiliated with bp for over a decade, and the agreement will allow JLL to satisfy the latter’s Net Zero Carbon objectives.
Scope of the Report
| Report Attribute | Details |
|---|---|
| Market size value in 2021 | USD 28334.81 Million |
| The revenue forecast in 2028 | USD 48461.74 Million |
| Growth Rate | CAGR of 8.03% from 2022 to 2028. |
| Historical data | 2018 – 2021 |
| Base Year | 2021 |
| Forecast period | 2022 – 2028 |
| Region covered | North America, Europe, Asia-Pacific, South America, and Middle East & Africa |
| Key companies Profiled | The Companies WeWork Companies LLC, Cubework, Jones Lang LaSalle, Deskpass Corporation, LiquidSpace Inc., Davinci Virtual LLC, JustCo Management Pte. Ltd., Colliers International Property Consultants Inc., Ware2Go Inc., Techspace, and Other Prominent Players in the Flexible Space Market. |
Market Modelling
By Type
- Flexible Office Space
- Office Type
- Room Service
- End-Use Vertical
- Flexible Warehouse Space
- Business Model
- Component
- Infrastructure
- Function and Warehouse Type
By Region
- North America
- Europe
- Asia-Pacific
- South America
- The Middle East & Africa
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Report Content
- Research Strategic Development
- Market Modelling
- Product Analysis
- Market Trend and Economic Factors Analysis
- Market Segmental Analysis
- Geographical Mapping
- Country Wise Segregation
- Research Methodology
- Secondary Research
- Primary Research
- Data Triangulation
- Historical Data
- Identification of Segment
- Market Size Calculating
- Research Objective
- Executive Summary
- Market Insights
- Economic Factor Analysis
- Drivers
- Trends
- Opportunities
- Challenges
- Technological Innovation
- Competitors & Product Analysis
- Regulatory Framework for Flexible Space
- Company market share analysis, 2021
- Porter’s Five forces analysis
- New Investment Analysis
- PESTEL Analysis
- Impact of COVID-19 on Global Flexible Space Market
- Pre COVID-19 Impact on Global Flexible Space Market
- COVID-19 Impact on Global Flexible Space Market
- Post COVID-19 Impact on Global Flexible Space Market
- Economic Impact Study on Global Flexible Space Market
- Economic Factor Analysis
- Global Flexible Space Market Overview
- Global Market Size & Forecast, 2017-2028
- Demand
- By Value (USD Million)
- Consumption
- By Volume (Million Units)
- Market Share & Forecast, 2017-2028
- By Type
- Flexible Office Space
- Office Type
- Room Service
- End-Use Vertical
- Flexible Warehouse Space
- Business Model
- Component
- Infrastructure
- Function and Warehouse Type
- Flexible Office Space
- By Region
- North America
- Europe
- Asia Pacific
- South America
- Middle East & Africa
- By Type
- Demand
- Global Market Size & Forecast, 2017-2028
- North America Flexible Space Market Overview
- North America Flexible Space Market Size & Forecast, 2017-2028
- Demand
- By Value (USD Million)
- Consumption
- By Volume (Million Units)
- North America Flexible Space Market Share & Forecast, 2017-2028
- By Type
- Flexible Office Space
- Office Type
- Room Service
- End-Use Vertical
- Flexible Warehouse Space
- Business Model
- Component
- Infrastructure
- Function and Warehouse Type
- Flexible Office Space
- By Country
- US
- Canada
- Mexico
- By Type
- Demand
- North America Flexible Space Market Size & Forecast, 2017-2028
- Europe Flexible Space Market Overview
- Europe Flexible Space Market Size & Forecast, 2017-2028
- Demand
- By Value (USD Million)
- Consumption
- By Volume (Million Units)
- Europe Flexible Space Market Share & Forecast, 2017-2028
- By Type
- Flexible Office Space
- Office Type
- Room Service
- End-Use Vertical
- Flexible Warehouse Space
- Business Model
- Component
- Infrastructure
- Function and Warehouse Type
- Flexible Office Space
- By Country
- Germany
- UK
- France
- Italy
- Spain
- Rest of Europe
- By Type
- Demand
- Europe Flexible Space Market Size & Forecast, 2017-2028
- Asia Pacific Flexible Space Market Overview
- Asia Pacific Flexible Space Market Size & Forecast, 2017-2028
- Demand
- By Value (USD Million)
- Consumption
- By Volume (Million Units)
- Asia Pacific Flexible Space Market Share & Forecast, 2017-2028
- By Type
- Flexible Office Space
- Office Type
- Room Service
- End-Use Vertical
- Flexible Warehouse Space
- Business Model
- Component
- Infrastructure
- Function and Warehouse Type
- Flexible Office Space
- By Country
- China
- India
- Japan
- Australia
- Rest of Asia Pacific
- By Type
- Demand
- Asia Pacific Flexible Space Market Size & Forecast, 2017-2028
- South America Flexible Space Market Overview
- South America Flexible Space Market Size & Forecast, 2017-2028
- Demand
- By Value (USD Million)
- Consumption
- By Volume (Million Units)
- South America Flexible Space Market Share & Forecast, 2017-2028
- By Type
- Flexible Office Space
- Office Type
- Room Service
- End-Use Vertical
- Flexible Warehouse Space
- Business Model
- Component
- Infrastructure
- Function and Warehouse Type
- Flexible Office Space
- By Country
- Brazil
- Argentina
- Rest of South America
- By Type
- Demand
- South America Flexible Space Market Size & Forecast, 2017-2028
- The Middle East & Africa Flexible Space Market Overview
- The Middle East & Africa Flexible Space Market Size & Forecast, 2017-2028
- Demand
- By Value (USD Million)
- Consumption
- By Volume (Million Units)
- The Middle East & Africa Flexible Space Market Share & Forecast, 2017-2028
- By Type
- Flexible Office Space
- Office Type
- Room Service
- End-Use Vertical
- Flexible Warehouse Space
- Business Model
- Component
- Infrastructure
- Function and Warehouse Type
- Flexible Office Space
- By Country
- Saudi Arabia
- UAE
- South Africa
- Rest of the Middle East & Africa
- By Type
- Demand
- The Middle East & Africa Flexible Space Market Size & Forecast, 2017-2028
- Competitor Analysis
- Company Description
- Financial Analysis
- Key Products
- Key Management Personnel
- Contact Address
- SWOT Analysis
- Company Profile
- WeWork Companies LLC
- Cubework
- Jones Lang LaSalle
- Deskpass Corporation
- LiquidSpace Inc.
- Davinci Virtual LLC
- JustCo Management Pte. Ltd.
- Colliers International Property Consultants Inc.
- Ware2Go Inc.
- Techspace
- Other Prominent Players
Frequently Asked Questions (FAQ):
All space operated by third-party flexible office operators, including traditional serviced offices and coworking space, is called flexible space. Flexible space can be open-plan, but it can also include closed offices, floors, and even buildings. Specialized operators, individual landlords, or joint ventures can manage it.
The global Flexible Space market is estimated to reach USD 98.72 billion by 2030, expected to grow at a compound annual growth rate (CAGR) of 8.03% from 2022 to 2030 and it was valued at USD 47.81 billion in 2022.
The market’s expansion can be ascribed to an increase in demand for gig workers among companies worldwide, fueled by the rising number of start-ups and a growing desire among businesses to expand their operations outside their local geographies.
North America is expected to have the largest share in the global Flexible Space Market.
The Companies WeWork Companies LLC, Cubework, Jones Lang LaSalle, Deskpass Corporation, LiquidSpace Inc., Davinci Virtual LLC, JustCo Management Pte. Ltd., Colliers International Property Consultants Inc., Ware2Go Inc., Techspace, and Other Prominent Players in the Flexible Space Market.
