Global Space as a Service Market to Generate $14,017.90 Million by 2031, Owing to Increased Demand for Flexible Workspaces

Space-as-a-service refers to provisioning of space i.e., real estate for office spaces in the form of a service. Thus, space-as-a-service changes the characteristic of real estate from asset ownership model to a service. This is different from buying real estate or renting an office space as space-as-a-service entails paying for the real estate only when the user wants to make use of the space for a limited timeframe or temporary basis. Space-as-a-service has become extremely popular in contemporary corporate culture as it saves the company from investing in real estate.

Forecast Analysis of the Space as a Service Market

In recent years, there has been an increase in the demand for flexible workspaces which is expected to be the primary growth driver of the global space as a service market in the forecast years. Along with this, a surge in the demand for space-as-a-service from small and medium enterprises is expected to push the market further. Also, changing workforce dynamics, technological advancements, and a growing demand for cost-effective office solutions is predicted to offer numerous investment and growth opportunities to the market in the analysis timeframe. However, lack of customization and limited availability may restrain the growth of the space as a service market in the forecast period.

Regionally, the space as a service market in the North America region is expected to be the most dominant by 2031. Surging demand for flexible and adaptable workspace solutions across the whole region is anticipated to become the main growth driver of the market in the forecast period.

According to the report published by Research Dive, the global space as a service market is expected to gather a revenue of $14,017.90 million by 2031 and grow at 5.1% CAGR in the 2022-2031 timeframe. Some prominent market players include WeWork, Innov8, Colive, 91springboard, Workbar LLC, MindSpace, Awfis, Regus, Industrious, Common Ground, and many others.

Covid-19 Impact on the Market

The outbreak of the Covid-19 pandemic has had a massive negative effect on almost all industries and businesses across the world. The space as a service market faced a moderate impact of the pandemic. As most offices were shut down due to the pandemic, there was an overall reduction in the demand for space as a service model. At the same time, however, the pandemic offered numerous opportunities for the space-as-a-service industry to adapt to the changing office and work environment.

Space as a Service Market Developments

The significant companies operating in the industry are adopting numerous growth strategies & business tactics such as partnerships, collaborations, mergers & acquisitions, and launches to maintain a robust position in the overall market, thus helping the space as a service market to flourish. For instance:

• In February 2020, biproxi, a commercial real estate platform developer, announced the acquisition of OfficeSpace.com, a workplace management software developer. This acquisition is anticipated to help biproxi to cater to the demands of various corporate entities in a much holistic way.
   
• In January 2022, WeWork, a workspace solutions provider, announced the acquisition of Common Desk, a coworking and office space rentals company. This acquisition is predicted to expand the market share of WeWork tremendously in the coming period.
   
• In June 2022, Space Matrix, a Singapore-based office design firm, announced the acquisition of Pursuite, a leading e-commerce platform. This acquisition, as per Space Matrix, is being done to address the growing demands for flexible workspaces and the acquisition will help the company to expand its operations globally in the coming period.