The global Virtual Office market size is projected to reach approximately $125.5 billion by 2030, at a CAGR of 20.6% from 2022 to 2030. Virtual offices are a subset of the flexible workspace industry, which provides organizations with a variety of services, space, and technology without the large upfront costs of purchasing or leasing traditional office space. As technology has advanced, virtual office services have expanded to incorporate a diverse spectrum of personnel, physical space, digital storage, and communication services. Customers pay contract fees for these services, which can be purchased individually, as part of a bundle, or as a membership subscription. The expanding relevance of digital systems, and the requirement to complete knowledge-intensive professions, have increased employee demand to work from home or a desired location. Businesses have been able to make greater use of their office space, saving staff travel time, and boosting employee happiness, all of which have increased job efficiency and production.
COVID-19 Impact Analysis
COVID-19 has forced businesses to adopt new working techniques, and they must now reframe their work and the role of workplaces in ensuring that people have safe, productive, and happy jobs and lives. Earlier to the global reality of a locked-down society, such overvaluation of virtual office services could have been justified because the virtual office was still a specialized industry in the corporate environment. This year, as a result of the COVID-19, a growing number of businesses have begun to operate remotely. In the pre-pandemic age, it didn’t make sense for small businesses to negotiate a pricey lease for office space when they could collaborate as a team remotely. Some may argue that a residence business owner foregoes some of the advantages of having a physical location. Employers and employees can continue to take advantage of these benefits and adjust their use to the needs of the organization by using a virtual office.
The market is being driven by consumer preferences shifting toward mixed working, ease of operations, low cost, and reduced infrastructure requirements, and even rising government support will create an opportunity to grow the market.
Ø Consumer preferences shifting toward mixed working
The rise of ‘Great Resignation’ among those affected by the COVID-19 epidemic, along with a high incidence of pay stagnation, encouraged the adoption of hybrid working. To keep their existing job, people chose flexible remote work possibilities. Organizational leaders are choosing to restructure their businesses to accommodate hybrid work. Furthermore, the growing number of full-time remote workers, as digital nomadism, had accelerated the development of virtual offices. Furthermore, as a result of the easing of the pandemic restriction, new businesses are opting to reduce face-to-face meetings by COVID-19 office norms, resulting in a rise in demand for virtual meeting rooms. These factors are expected to boost virtual office services and propel the virtual office market ahead.
- High dependence on the internet
However, the total usage of the internet for work is a significant barrier. Interruptions in internet access could lead the entire organization to shut down, wasting time and money. The increasing desire for human contact for training and evaluating employee performance is a major hindrance to the expansion of the Global Virtual Office Market.
- Rising government support
Governments are increasingly fostering and funding start-ups and small businesses, boosting the expansion of the virtual office sector. A serviced office is a type of office that is available for rent and comes with everything a company requires. Small enterprises and startups may not have a lot of money or time to build an office. As a result, the vast majority of businesses have chosen virtual offices. Increased government financing and funds for start-ups and SMEs are fueling the demand for virtual offices.
Based on the Type, the Virtual Office market is segmented based on Cloud-Based, Web-Based, and Others. The Cloud-Based category dominated the market. SD-WAN, a cloud-based product, is ideal for businesses that are transitioning to or extending their distributed workforce. Virtual Office gives IT teams network access, management, and visibility into the work-at-home area, and also remote workers a network security experience that is as close to being on the corporate WAN as feasible.
Based on the Service, the Virtual Office market is segmented based on Teleconferencing, Videoconferencing, Team Apps, Remote Working Access, Cloud Storage, and Others. The remote working access segment is expected to account for the large market share in the virtual office market because of the increasing trend towards a more flexible way of working, including the use of virtual offices, as well as a growing number of telecommuters and small companies, who choose virtual offices as a cheaper and more cost-effective solution.
Based on End-Users, the global Virtual Office market has been divided into Freelancers, Start-ups, ITES Services, Government Organizations, Large Organizations, Others. The market share for Large Organizations was the highest. For larger or existing companies, a virtual office provides the opportunity to try new markets. Companies that want to expand into new markets might test their ideas in a virtual office without risking financial loss. A virtual office eliminates the need for an expensive long-term lease in a strange place. Companies that need to reduce traditional office space can use a virtual office to manage productivity and change directions.
Global Virtual Office Market Share, by Segmentation
The global Virtual Office market has been segmented into four regions: North America, Europe, Asia-Pacific, and the Rest of the World. North America is expected to be the market leader in the adoption of Virtual Offices, followed by Europe and the Asia-Pacific region.
North America Market
The global Virtual Office market will be dominated by North America due to a large number of multinational corporations and businesses that have their headquarters there and the main factors affecting the outlook of the market include factors such as the growth of business outsourcing and increased demand for cloud-based services. Virtual office facilities are growing rapidly in the U.S and Canada, but few businesses use these sites to their full advantage. There are many benefits to choosing a virtual office, such as greater flexibility and lower overhead costs.
In the global Virtual Office market, Asia Pacific is predicted to develop at the fastest rate. Asia, The flexible office market in the Asia Pacific will reach new heights as more people become aware of the benefits of implementing an efficient workspace flexibility strategy, such as increased real estate returns, lower occupancy costs, and the retention of high-performing employees. Employees in countries such as Indonesia, India, and South Korea are more productive when they work from home or remote locations. Furthermore, the recent emergence of a large number of co-working units and flexible working spaces in countries such as Australia is likely to considerably contribute to Asia Pacific flexible office market growth throughout the forecast period.
The market comprises tier-1, tier-2, and local players. The tier-1 and tier-2 players have reached across the globe with diverse product portfolios. Companies such as Regus Group, VirtualOffice, WorkSocial, and CISCO dominate the global Virtual Office market due to strategic developments and diversified regional presence. The players are adopting various strategies, such as expansion, product launches, and partnerships, to strengthen their market position and capture a large customer base.
- Young Living Essential
- Regus Group
- OBC Suisse
- DDS Conferencing and Catering
- Intelligent Office
- i2Office Ltd
- METRO OFFICES
- CARR Workplaces
- Expansive Workplace
Scope of the Report
Global Virtual Office Market, by Type
Global Virtual Office Market, by Services
- Team Apps
- Remote Working Access
- Cloud Storage
Global Virtual Office Market, by End-User
- ITES Services
- Government Organizations
- Large Organizations
Global Virtual Office Market, by Region
- North America
- Rest of Europe
- Asia Pacific
- South Korea
- Rest of Asia Pacific
- Rest of the World
|Market Size||2030: $ 125.5 Billion|
|CAGR||20.6% CAGR (2022-2030)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Key Segmentations||Type, Service, End-User|
|Geographies Covered||North America, Europe, Asia-Pacific, Latin America, Middle East, Africa|
|Key Vendors||Young Living Essential, ASEA, Regus Group, VirtualOffice, WorkSocial, CISCO, Ecos, OBC Suisse, DDS Conferencing and Catering, MEET/N/WORK, Intelligent Office, i2Office Ltd, METRO OFFICES, CLOUDVO, CARR Workplaces, Expansive Workplace, THINKSPACE|
|Key Market Opportunities||Rising government support|
|Key Market Drivers||Consumer preferences shifting toward mixed working|
REPORT CONTENT BRIEF:
- High-level analysis of the current and future Virtual Office market trends and opportunities
- Detailed analysis of current market drivers, restraining factors, and opportunities in the future
- Virtual Office market historical market size for the year 2020, and forecast from 2021 to 2030
- Virtual Office market share analysis at each product level
- Competitor analysis with a detailed insight into its product segment, financial strength, and strategies adopted.
- Identifies key strategies adopted including product launches and developments, mergers and acquisitions, joint ventures, collaborations, and partnerships as well as funding taken and investment done, among others.
- To identify and understand the various factors involved in the global Virtual Office market affected by the pandemic
- To provide a detailed insight into the major companies operating in the market. The profiling will include the financial health of the company past 2-3 years with segmental and regional revenue breakup, product offering, recent developments, SWOT analysis, and key strategies.
Virtual Office Market FAQs
- What is the study period of this market?
- The study period of global Virtual Office market is 2020 – 2030
- What is the growth rate of global Virtual Office market?
- The global Virtual Office market is growing at a CAGR of ~ 6% over the next 7 years
- Which region has highest growth rate in global Virtual Office market?
- Asia Pacific is expected to register the highest CAGR during 2022 – 2030
- Which region has the largest share in global Virtual Office market?
- North America holds the largest share in 2021
- Who are the key players in global Virtual Office market?
- Regus Group, VirtualOffice, WorkSocial, CISCO are the major companies operating in the global Virtual Office market.
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- What is the study period of this market?