Flexible Workspace Market by Type (Co-working, Open Office, Hot Desks, Serviced Office, Manufacturing Space, Touchdown Space, Virtual Office, Hybrid Office Space and Others), by Ownership (Private and Shared), by Organization Size (Small and Medium Enterprises and Large Enterprises), by End-User (Automotive, BFSI, Real Estate, Retail, IT & Telecommunication, Education, Travel & Hospitality, Media & Entertainment, Manufacturing, and Others) - Global Opportunity Analysis and Industry Forecast 2022-2030

Market Definition

The global Flexible Workspace Market was valued at USD 7.20 billion in 2021 and is predicted to reach USD 35.50 billion by 2030 with a CAGR of 12.8% from 2022-2030.

Flexible workplace is also known as flexible office space or flexispace. It is associated with an office space that comes with several creative desk layouts designed to provide a dynamic workspace requiring limited set-up time and no set-up costs. These workspaces are fully-equipped with essential office equipment including desks, chairs, computers and internet to increase mobility and flexibility for the workers. It also provides employees with a variety of different places and ways to work incorporating traditional office with modern technology. Additionally, traditional offices used to have fixed and assigned desk positions, whereas in flexible office space the workers can choose the area of the office that best suits them depending upon their type of work. These workspaces are suitable for workers who do not have a permanent workplace.

Market Dynamics and Trends

The increasing demand for flexible workspace is rising due to higher demand for convenience and comfort in prime locations such as offices and auditoriums. Also, growing trend of remote working in companies across the world is expected to propel the growth of the flexible workspace market. For instance, a data published by OECD in September 2021, in some prominent countries such as Australia, France and the United Kingdom, there was 47% of employees teleworked in 2020. In Japan, the teleworking rate increased from 10% to 28% between December 2019 and May 2020.

Moreover, rise in the number of startups and the real estate industry along with the growing penetration of high-speed internet across urban cities in developed and developing countries are further expected to drive the growth of flexible workspace market during the forecast period. However, lack of personal space & routine, distractions and difficulty in administration are the factors that are expected to restrain the growth of the market during the forecast period. On the contrary, the integration of modern and advanced technology with flexible workstations by inclusion of individual phone booths & pods, in-room video conferencing system, and rental equipment are expected to create ample growth opportunities for the global industry in the upcoming years.

Market Segmentations and Scope of the Study

The flexible workspace market size has been segmented based on type, ownership, organization size, end-user and geography. Based on type, the market is classified into co-working, open office, hot desks, serviced office, manufacturing space, touchdown space, virtual office, hybrid office space and others. Based on ownership, the market is categorized into private and shared. Based on organization size, the market is segmented into small and medium enterprises and large enterprises. Based on end-user, the market is divided into automotive, BFSI, real estate, retail, IT & telecommunication, education, travel & hospitality, media & entertainment, manufacturing, and others. The geography breakdown and analysis of each of the aforesaid segments includes regions comprising of North America, Europe, Asia-Pacific, and RoW.

Geographical Analysis

North America region holds the lion’s share of flexible workspace market at present and is expected to boost the market growth during the forecast period. This is attributed to factors such as growing trends of space-as-a-service along with the rising costs of commercial spaces in major metropolitan cities in this region. For instance, in February 2022, TriNet announced partnership with WeWork, a leading flexible space provider to become the company’s professional employer organization partner (PEO) in the U.S. This partnership had allowed to purchase full-service HR solutions from TriNet. It provides TriNet employees with the option to purchase WeWork all access memberships at a discounted rate.

Also, the availability of flexible as well as cost-effective workspaces in startups by the local players across the region further boost the demand for flexible workspace market. For instance, in March 2022, WeWork announced the expansion of its WeWork growth campus program nationally and committing an additional USD 35 million in space for startups and nonprofits in four cities such as Boston, Chicago, Los Angeles and Washington D.C. It offers all growth campus members mentorship, networking opportunities and educational programming.

On the other hand, Asia Pacific is expected to show a steady rise in the flexible workspace market share due to increasing number of small businesses and freelancers along with the rise in workspace providers in this region. For instance, in October 2021, Compass Offices launched 4 projects in Sheung Wan due to the increased demand for flexible office space in Hong Kong. These expansions had presented the market with close to 55,000 square feet of flexible office space in prime business districts of Hong Kong. Also, rising adoption of flexible workspaces in developed countries such as India, China, and Australia are expected to boost the demand for the market in this region. For instance, in April 2022, The Work Project (TWP) announced that it had managed 46,268 sq ft of flexible workspace in an upcoming commercial building in Sydney, Australia.

Competitive Landscape

The flexible workspace industry comprises of various market players such as WeWork, Impact Hub, Regus (IWG), Industrious Office, Serendipity Labs, Premier Workspaces, Expansive Workspace, Convene, Venture X, and CommonGrounds Workplace. These market players are adopting various strategies such as product launches and contract winnings across various regions to maintain their dominance in the global market.

For instance, in January 2022, 91Springboard partnered with Google for Startups (GfS) to launch 'Startup Sprint' a virtual program that provides an opportunity to various startups and entrepreneurs across India to expand their business online by helping them to learn modern digital business tools. The goal of this initiative was to help startups adapt to a transformed world. Moreover, in September 2020, IWG Plc. signed its franchise deal with Adams Group. The company had expanded its service throughout Northern Queensland with 10 new commercial spaces for organizations. The company had also expanded their flexible workspace among local businesses and entrepreneurs.

Key Benefits

• The flexible workspace market report provides the quantitative analysis of the current market and estimations from 2022 to 2030. This analysis assists in identifying the prevailing market opportunities to capitalize on.

• The study comprises of an extensive analysis of the market trends including the current and future trends for depicting the prevalent investment pockets in the market.

• The information related to key drivers, restraints, and opportunities and their impact on the market is provided in the report.

• The competitive analysis of the market players along with their market share in the flexible workspace market is mentioned.

• The SWOT analysis and Porters Five Force’s model are elaborated in the study.

• The value chain analysis in the market study provides a clear picture of the stakeholders’ roles.

Flexible Workspace Market Key Segments

By Type

• Co-working

• Open Office

• Hot Desks

• Serviced Office

• Manufacturing Space

• Touchdown Space

• Virtual Office

• Hybrid Office Space

• Others 

By Ownership

• Private

• Shared 

By Organization Size

• Small and Medium Enterprises

• Large Enterprises

By End User

• Automotive

• BFSI

• Real Estate

• Retail

• IT & Telecommunication

• Education

• Travel & Hospitality

• Media & Entertainment

• Manufacturing

• Others

By Geography

• North America    

  • The U.S.

  • Canada

  • Mexico

• Europe    

  • The U.K.

  • Germany

  • France

  • Italy

  • Spain

  • Denmark

  • Netherlands

  • Finland

  • Sweden

  • Norway

  • Russia

  • Rest of Europe

• Asia-Pacific    

  • China

  • Japan

  • India

  • South Korea

  • Australia

  • Indonesia

  • Singapore

  • Taiwan

  • Thailand

  • Rest of Asia-Pacific

• Rest of World    

  • Latin America

  • Middle East

  • Africa

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