Serviced Office Market Research Report By Product Type (Managed Office Space, Coworking Space, Virtual Office), By Size (Small Offices (Less than 500 sq ft), Medium Offices (500-2,000 sq ft), Large Offices (2,000 sq ft or more)), By Location (Central Business Districts, Suburbs, Other), By Customer Type (Startups and Small Businesses, Corporations, Freelancers and Solopreneurs), By Amenities (High-Speed Internet, Conference Rooms, Reception Services, 24/7 Access, Flexible Lease Terms) and By Regional (North America, Europe, South America,

Serviced Office Market Overview

The Serviced Office Market Size was estimated at 20.95 (USD Billion) in 2022. The Serviced Office Market Industry is expected to grow from 22.32(USD Billion) in 2023 to 39.35 (USD Billion) by 2032. The Serviced Office Market CAGR (growth rate) is expected to be around 6.51% during the forecast period (2024 - 2032).

Source Primary Research, Secondary Research, MRFR Database and Analyst Review

Key Serviced Office Market Trends Highlighted

The increased demand for more Serviced Office Market is mainly due to the remote and hybrid forms of working becoming popular. Along with this, the development of start-ups, small companies as well as independent professionals in search of such a place is also complementing the market. The role of technology in serviced offices is evident in the installation of smart building systems that are able to enhance the user experience and efficiency of service delivery.

In addition, the number of serviced office providers entering new countries and regions and developing solutions for particular markets presents an opportunity for growth. The increase in co-working spaces is an example of this traditional custom, which allows people to work under a membership-type agreement with the requirement to share office space. On the other hand, there is increased demand for so-called "office space on demand", meaning offices can be leased in units of time depending on each business' requirements.

Serviced Office Market Drivers

Growing Demand for Flexible Workspaces

Serviced offices are become more popular in recent years as the demand for flexible and hybrid work models is increasing. Serviced office providers offer various facilities and services, including fully equipped and furnished spaces, fast internet and administrative support. They provide firms with an opportunity to reduce their cost and optimize performance. As the number of companies using serviced offices is likely to rise in the near future, they will become even more widespread.

Expansion of  Business

One of the key factors contributing to the growth of the serviced office market is the expansion of  business. Multinational companies are moving to new markets and regions, and serviced offices provide them with the opportunity to establish their presence quickly and easily. Furthermore, serviced offices offer the needed flexibility and adaptability to quickly adjust the business scale according to differing market conditions. That is why, as the  economy becomes more interconnected, the present tendency will definitely align with the future one.

Technological Advancements

Technological advancements are also playing a role in the growth of the serviced office market. The adoption of cloud-based technologies and the increasing use of mobile devices are making it easier for businesses to work remotely and collaborate with colleagues from anywhere in the world. This is leading to a demand for serviced offices that offer state-of-the-art technology and infrastructure, such as high-speed internet, video conferencing facilities, and virtual reality meeting rooms.

Serviced Office Market Segment Insights

Serviced Office Market Product Type Insights  

The Serviced Office Market is segmented by Product Type into managed office space, coworking space, and virtual office. Managed Office Space is expected to grow at the highest CAGR, owing to its various services, such as fully furnished and equipped offices, administrative support, and IT infrastructure. Coworking Space is also projected to exhibit a significant CAGR over the forecast period due to the increased popularity of shared workspace and the rising number of startups and small businesses seeking affordable office solutions.

Virtual Office is estimated to account for a major portion of the market, as a professional business address and basic administrative services are deemed necessary by various businesses with no demand for a conventional office.The  Serviced Office Market segmentation is useful for gaining valuable insight into the market dynamics and growth potential of each product type. As a result, businesses have a strong sense of the competition and can spot areas for expansion. The data and statistics available for the market paint a detailed picture of the industry, and stakeholders can use this knowledge to make well-informed decisions and design effective plans.

Source Primary Research, Secondary Research, MRFR Database and Analyst Review

Serviced Office Market Size Insights  

The Serviced Office Market is segmented by size into small offices (less than 500 sq ft), medium offices (500-2,000 sq ft), and large offices (2,000 sq ft or more). The medium offices segment is expected to hold the largest market share in 2023, accounting for over 40% of the total market revenue. This is due to the increasing demand for flexible and cost-effective workspace solutions from small and medium-sized businesses. The large offices segment is also expected to witness significant growth over the forecast period as more large corporations opt for serviced offices to reduce their real estate costs and gain access to a wider range of amenities.The small offices segment is expected to grow at a steady pace, as it caters to the needs of startups and freelancers who require small and affordable workspaces.

Serviced Office Market Location Insights  

The Serviced Office Market is segmented by location into Central Business Districts (CBDs), Suburbs, and Others. Among these, CBDs held the largest market share in 2023 and are projected to continue dominating the market during the forecast period. The high demand for serviced offices in CBDs can be attributed to their prime locations, which offer excellent connectivity, accessibility, and proximity to amenities. In 2023, the  Serviced Office Market in CBDs was valued at 13.04 USD Billion and is expected to reach 20.07 USD Billion by 2032, growing at a CAGR of 6.0%.Suburbs represent the second-largest segment in the  Serviced Office Market.

The growing popularity of suburban areas due to their lower costs, improved work-life balance, and availability of modern facilities is driving the demand for serviced offices in these locations. In 2023, the market in suburbs was valued at 7.87 USD Billion and is projected to reach 12.82 USD Billion by 2032, exhibiting a CAGR of 6.6%. The "Other" segment includes non-CBD and non-suburban areas. This segment is expected to witness steady growth over the forecast period, owing to the increasing demand for serviced offices in emerging business hubs and satellite towns.In 2023, the market in this segment was valued at 1.41 USD Billion and is projected to reach 2.46 USD Billion by 2032, growing at a CAGR of 6.7%.

Serviced Office Market Customer Type Insights  

The Serviced Office Market is segmented into Startups and Small Businesses, Corporations, Freelancers and Solopreneurs based on customer type. Among these, Corporations held the largest market share in 2023, accounting for over 60% of the  Serviced Office Market revenue. The high concentration of corporations in metropolitan areas and their need for flexible and scalable office solutions drive this segment's growth. Startups and Small Businesses are expected to exhibit the highest CAGR during the forecast period, owing to the increasing number of startups and the growing trend of remote work and flexible work arrangements.Freelancers and Solopreneurs are also expected to contribute to market growth as they seek professional and collaborative workspaces to enhance their productivity and credibility.

Serviced Office Market Amenities Insights

The amenities segment plays a crucial role in driving the growth of the  Serviced Office Market. High-speed Internet has become indispensable, with businesses relying on reliable connectivity for seamless operations. Conference Rooms are in high demand for meetings, presentations, and video conferencing. Reception Services offer a professional and welcoming environment for clients and visitors. 24/7 Access allows businesses to operate flexibly, while Flexible Lease Terms provide convenience and adaptability to meet changing business needs.In 2023, the  Serviced Office Market revenue from amenities was valued at USD 6.35 billion, and it is projected to reach USD 10.23 billion by 2032, exhibiting a CAGR of 6.2%. This growth is attributed to the increasing demand for flexible and cost-effective workspace solutions.

Serviced Office Market Regional Insights  

The Serviced Office Market is segmented into North America, Europe, APAC, South America, and MEA. Among these regions, APAC is expected to hold a significant market share in the coming years due to the increasing demand for flexible workspaces in emerging economies like India and China. Europe is another major market for serviced offices, with a strong presence of multinational companies and a growing trend towards remote and hybrid work models. North America is a mature market with a high penetration of serviced offices, particularly in major cities like New York, London, and Tokyo. South America and MEA are relatively smaller markets but are expected to witness steady growth in the coming years as businesses in these regions adopt flexible workspace solutions.

Source Primary Research, Secondary Research, MRFR Database and Analyst Review

Serviced Office Market Key Players And Competitive Insights

 Major players in the Serviced Office Market industry are increasingly focusing on expanding their  footprint through strategic partnerships, acquisitions, and joint ventures. Leading Serviced Office Market players are investing heavily in technology and innovation to enhance their offerings and cater to the evolving needs of their clients. The Serviced Office Market industry is characterized by a highly competitive landscape, with numerous established and emerging players vying for market share. Key players are adopting various strategies, such as product differentiation, strategic alliances, and geographical expansion, to gain a competitive edge.IWG, a leading  provider of flexible workspace solutions, has a strong presence in the Serviced Office Market industry.

The company operates a network of over 3,300 locations in more than 120 countries. IWG offers a range of flexible workspace solutions, including private offices, coworking spaces, and virtual offices. The company's focus on innovation and customer service has contributed to its strong position in the market.Another major player in the Serviced Office Market industry is Regus, which is part of the IWG group. Regus offers a range of flexible workspace solutions, including private offices, coworking spaces, and meeting rooms. The company has a  network of over 3,000 locations in more than 120 countries. Regus's focus on providing high-quality workspace solutions and its commitment to customer satisfaction has made it a leading player in the industry.

Key Companies in the Serviced Office Market Include

• Regus


• WeWork


• The Executive Centre


• Premier Business Centers


• Serendipity Labs


• Dexus


• IWG


• CBRE


• Bouygues Immobilier


• The Instant Group


• Office Evolution


• Spaces


• Knotel


• Capitaland


• Compass Offices

Serviced Office Market Industry Developments

The Serviced Office Market is projected to reach a valuation of USD 39.35 billion by 2032, exhibiting a CAGR of 6.51% from 2024 to 2032. The growing demand for flexible and cost-effective workspace solutions, coupled with the rise of remote work and the adoption of hybrid work models, is driving market growth. Key players in the market include IWG, Regus, and WeWork, who are expanding their presence ly and offering a range of services to cater to the evolving needs of businesses. Technological advancements, such as the integration of smart building technologies and virtual reality, are also shaping the market landscape, enhancing the user experience and efficiency of serviced offices.

Serviced Office Market Segmentation Insights

Serviced Office Market Product Type Outlook

• Managed Office Space


• Coworking Space


• Virtual Office

Serviced Office Market Size Outlook

• Small Offices (Less than 500 sq ft)


• Medium Offices (500-2,000 sq ft)


• Large Offices (2,000 sq ft or more)

Serviced Office Market Location Outlook

• Central Business Districts


• Suburbs


• Other

Serviced Office Market Customer Type Outlook

• Startups and Small Businesses


• Corporations


• Freelancers and Solopreneurs

Serviced Office Market Amenities Outlook

• High-Speed Internet


• Conference Rooms


• Reception Services


• 24/7 Access


• Flexible Lease Terms

Serviced Office Market Regional Outlook

• North America


• Europe


• South America


• Asia-Pacific


• Middle East and Africa