Space As A Service Market Report
RA08561
Space as a Service Market by End-user (Small & Medium Enterprises, Freelancers, and Others) and Regional Analysis (North America, Europe, Asia-Pacific, and LAMEA): Global Opportunity Analysis and Industry Forecast, 2021–2028
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Global Space as a Service Market Analysis
The global space as a service market size is predicted to garner a revenue of $11,581.3 million in the 2021–2028 timeframe, growing from $8,437.6 million in 2020, at a CAGR of 4.2%.
Market Synopsis
Increase in the demand for co-working spaces and technology might drive the global space as a service market growth.
However, the lack of privacy and limited knowledge of space as a service among nations might restrain the market growth during the forecast period.
According to the regional analysis of the market, the Asia-Pacific space as a service market share is anticipated to grow at a CAGR of 4.6%, by generating a revenue of $3,201.1 million during the review period.
Space as a Service Market Overview
The real estate industry is experiencing significant structural changes owing to a practice known as space-as-a-service. SPaaS (Space-as-a-Service) is a paradigm shift in commercial real estate's approach to providing services and products to occupants, changing owners from rent collectors to service providers. Coworking, co-living, and even a retail concept called as brandboxing are all examples of the SPaaS business model, in which landlords essentially provide a package of services that enables renters to just use the space. This includes everything from internet connectivity to furniture and fixtures, as well as the people required to run their businesses.
Covid-19 Impact on Space as a Service Market
In March 2020, the World Health Organization declared COVID-19 as a pandemic, which resulted in restrictions on travel and disturbances in financial markets, as well as negatively impacted supply chains and production levels. The coronavirus pandemic has unleashed a series of unprecedented events affecting every industry. Space as a service market experienced a negative impact due to the shutdown of offices and increase of remote work culture. However, in the latter half from the covid-19 era, due to the ease of restrictions, space as a service market experienced a growth. Companies are restarting operations and adapting to the changing normal as they recover from the impact of coronavirus, which resulted in severe containment measures such as contactless working, social distancing, and the shutdown of commercial activity, all of which caused operational challenges. Therefore, it is anticipated that covid-19 has a moderate effect on SPaaS market.
Increase in Technology is Anticipated to Drive the Space as a Service Market Growth
SPaaS is the result of a series of technologically enabled structural developments in the commercial real estate industry. Technology is setting the way for major shifts in how organizations function, how people work and live, and where they do so. The exponential expansion of high-speed internet, ubiquitous usage of smartphones, proliferation of cloud computing & IoT devices, and acceptance of artificial intelligence & robots have all been key accelerators for this revolution. These technologies are reshaping the way we utilize and occupy space as a society and as a workforce.
To know more about global space as a service market trends, get in touch with our analysts here.
Lack of Privacy and Awareness of Space as a Service Might Restrict the Market Growth
If workers don't have their own office, finishing all of their job in a public location might be difficult, especially if they are working with confidential material or sensitive customer data. Competitors in the same building can listen in on team's brainstorming sessions or phone calls due to a lack of soundproofing and excessive use of glass and steal unique ideas. Leaking classified material can result in significant fines or litigation for a company. Moreover, these co-living and co-working spaces are only limited to few cities till date due to lack of awareness. These factors might restrain the growth of the market.
Increased Usage by Large and Small Organizations are Expected to Increase the Opportunities of Space as a Service Market Growth
The space as a service business model is being embraced by both large and small retailers. Fourpost & BrandBox, two PropTech startups, are disrupting the conventional retail concept by adjusting the co-working concept to retail through a concept known as "brandboxing," which allows online retailers to test and scale their products in local malls across the United States on flexible terms and all-inclusive set-ups. This season, Macerich, a self-managed Real Estate Investment Trust, is experimenting with the SPaaS concept in both the West Edmonton Mall and Mall of America.
To know more about global space as a service market opportunities, get in touch with our analysts here.
Based on end-user, the space as a service market has been segmented into small & medium enterprises, freelancers, and others of which the small & medium enterprises sub-segment is projected to generate the maximum revenue during the forecast period. Download PDF Sample ReportSpace as a Service Market
By End-User
Source: Research Dive Analysis
The small & medium enterprises sub-segment is predicted to have a dominating market share in the global market and register a revenue of $5,278.7 million during the forecast period. The benefits of coworking spaces and the ongoing rise of start-ups in developing nations are driving this industry. One of the primary drivers of coworking space market development over the next few years, according to the study, is supporting government initiatives and regulations promoting small-scale firms.
Space as a Service Market
By RegionThe space as a service market was inspected across North America, Europe, Asia-Pacific, and LAMEA.
Source: Research Dive Analysis
The Market for Space as a Service in Asia-Pacific to be the Fastest Growing
Asia-Pacific is anticipated to be the fastest growing market during the forecast time period and reach $3,201.1 million by 2028, with a CAGR of 4.6%. The Asia-Pacific region plays a vital role in the real estate industry's future. It is responsible for nearly one-third of the world's population, and it comprises of several of the quickest growing economies. With the increase in the number of small businesses, the demand for space as a service is also gradually increasing in Asia-Pacific region. With the increase in the number of SMEs, combined with the SPaaS benefits, the region is expected to boost the growth of the space as a service market.
Competitive Scenario in the Global Space as a Service Market
Product launches and mergers & acquisitions are common strategies followed by major market players.
Source: Research Dive Analysis
Some of the leading space as a service market player are WeWork, 91springboard, Awfis, Common Ground, Innov8, Workbar LLC, Regus, Colive, MindSpace, and Industrious.
Porter’s Five Forces Analysis for the Global Space as a Service Market:
- Bargaining Power of Suppliers: SPaaS market contains average concentration of distributors & suppliers and high buyers. Therefore, the distributors & suppliers’ control is predicted to be reasonable, resulting in moderate bargaining power of dealers.
Thus, the bargaining power of the suppliers is considered to be moderate. - Bargaining Power of Buyers: Buyers might have low bargaining power, significantly because of moderate players functioning in the space as a service market.
Therefore, the bargaining power of the buyer is low. - Threat of New Entrants: Investment cost and government policies are moderate in this market.
Therefore, the threat of the new entrants is moderate. - Threat of Substitutes: There are fewer alternatives for space as a service.
Thus, the threat of substitutes is low. - Competitive Rivalry in the Market: The competitive rivalry among industry leaders is rather intense due to the continuous expansion and demand for the space as a service model.
Therefore, competitive rivalry in the market is high.
Aspect | Particulars |
Historical Market Estimations | 2019-2020 |
Base Year for Market Estimation | 2020 |
Forecast Timeline for Market Projection | 2021-2028 |
Geographical Scope | North America, Europe, Asia-Pacific, LAMEA |
Segmentation by End-User |
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Key Companies Profiled |
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Q1. What is the size of the global space as a service market?
A. The global SPaaS market was valued at $8,437.6 million in 2020, and is projected to reach $11,581.3 million by 2028, registering a CAGR of 4.2%.
Q2. Which are the major companies in the space as a service market?
A. WeWork, Regus, and Awfis are some of the key players in the global Space as a Service market.
Q3. Which region, among others, possesses greater investment opportunities in the near future?
A. The Asia-Pacific region possesses great investment opportunities for investors to witness the most promising growth in the future.
Q4. What will be the growth rate of the Asia-Pacific space as a service market?
A. Asia-Pacific space as a service market is anticipated to grow at 4.6% CAGR during the forecast period.
Q5. What are the strategies opted by the leading players in this market?
A. Technological development and strategic partnerships are the key strategies opted by the operating companies in this market.
1.Research Methodology
1.1.Desk Research
1.2.Real time insights and validation
1.3.Forecast model
1.4.Assumptions and forecast parameters
1.4.1.Assumptions
1.4.2.Forecast parameters
1.5.Data sources
1.5.1.Primary
1.5.2.Secondary
2.Executive Summary
2.1.360° summary
2.2.By end-user trends
2.3.By enterprise size trends
2.4.By distribution channel trends
3.Market overview
3.1.Market segmentation & definitions
3.2.Key takeaways
3.2.1.Top investment pockets
3.2.2.Top winning strategies
3.3.Porter’s five forces analysis
3.3.1.Bargaining power of consumers
3.3.2.Bargaining power of suppliers
3.3.3.Threat of new entrants
3.3.4.Threat of substitutes
3.3.5.Competitive rivalry in the market
3.4.Market dynamics
3.4.1.Drivers
3.4.2.Restraints
3.4.3.Opportunities
3.5.Technology landscape
3.6.Regulatory landscape
3.7.Patent landscape
3.8.Pricing overview
3.8.1.by end-user
3.8.2.by enterprise size
3.8.3.By distribution channel
3.9.Market value chain analysis
3.9.1.Stress point analysis
3.9.2.Raw material analysis
3.9.3.Manufacturing process
3.9.4.Distribution channel analysis
3.9.5.Operating vendors
3.9.5.1.Raw material suppliers
3.9.5.2.Product manufacturers
3.9.5.3.Product distributors
3.10.Strategic overview
4.Space as a Service Market, by end-user
4.1.Small & Medium Enterprises
4.1.1.Market size and forecast, by region, 2020-2028
4.1.2.Comparative market share analysis, 2020 & 2028
4.2.Freelancers
4.2.1.Market size and forecast, by region, 2020-2028
4.2.2.Comparative market share analysis, 2020 & 2028
4.3.Others
4.3.1.Market size and forecast, by region, 2020-2028
4.3.2.Comparative market share analysis, 2020 & 2028
5.Space as a Service Market, by Region
5.1.North America
5.1.1.Market size and forecast, by end-user, 2020-2028
5.1.2.Market size and forecast, by country, 2020-2028
5.1.3.Comparative market share analysis, 2020 & 2028
5.1.4.U.S.
5.1.4.1.Market size and forecast, by end-user, 2020-2028
5.1.4.2.Market size and forecast, by country, 2020-2028
5.1.4.3.Comparative market share analysis, 2020 & 2028
5.1.5.Canada
5.1.5.1.Market size and forecast, by end-user, 2020-2028
5.1.5.2.Market size and forecast, by country, 2020-2028
5.1.5.3.Comparative market share analysis, 2020 & 2028
5.1.6.Mexico
5.1.6.1.Market size and forecast, by end-user, 2020-2028
5.1.6.2.Market size and forecast, by country, 2020-2028
5.1.6.3.Comparative market share analysis, 2020 & 2028
5.2.Europe
5.2.1.Market size and forecast, by end-user, 2020-2028
5.2.2.Market size and forecast, by country, 2020-2028
5.2.3.Comparative market share analysis, 2020 & 2028
5.2.4.Germany
5.2.4.1.Market size and forecast, by end-user, 2020-2028
5.2.4.2.Market size and forecast, by country, 2020-2028
5.2.4.3.Comparative market share analysis, 2020 & 2028
5.2.5.UK
5.2.5.1.Market size and forecast, by end-user, 2020-2028
5.2.5.2.Market size and forecast, by country, 2020-2028
5.2.5.3.Comparative market share analysis, 2020 & 2028
5.2.6.France
5.2.6.1.Market size and forecast, by end-user, 2020-2028
5.2.6.2.Market size and forecast, by country, 2020-2028
5.2.6.3.Comparative market share analysis, 2020 & 2028
5.2.7.Italy
5.2.7.1.Market size and forecast, by end-user, 2020-2028
5.2.7.2.Market size and forecast, by country, 2020-2028
5.2.7.3.Comparative market share analysis, 2020 & 2028
5.2.8.Spain
5.2.8.1.Market size and forecast, by end-user, 2020-2028
5.2.8.2.Market size and forecast, by country, 2020-2028
5.2.8.3.Comparative market share analysis, 2020 & 2028
5.2.9.Rest of Europe
5.2.9.1.Market size and forecast, by end-user, 2020-2028
5.2.9.2.Market size and forecast, by country, 2020-2028
5.2.9.3.Comparative market share analysis, 2020 & 2028
5.3.Asia-Pacific
5.3.1.Market size and forecast, by end-user, 2020-2028
5.3.2.Market size and forecast, by country, 2020-2028
5.3.3.Comparative market share analysis, 2020 & 2028
5.3.4.China
5.3.4.1.Market size and forecast, by end-user, 2020-2028
5.3.4.2.Market size and forecast, by country, 2020-2028
5.3.4.3.Comparative market share analysis, 2020 & 2028
5.3.5.Japan
5.3.5.1.Market size and forecast, by end-user, 2020-2028
5.3.5.2.Market size and forecast, by country, 2020-2028
5.3.5.3.Comparative market share analysis, 2020 & 2028
5.3.6.India
5.3.6.1.Market size and forecast, by end-user, 2020-2028
5.3.6.2.Market size and forecast, by country, 2020-2028
5.3.6.3.Comparative market share analysis, 2020 & 2028
5.3.7.South Korea
5.3.7.1.Market size and forecast, by end-user, 2020-2028
5.3.7.2.Market size and forecast, by country, 2020-2028
5.3.7.3.Comparative market share analysis, 2020 & 2028
5.3.8.Australia
5.3.8.1.Market size and forecast, by end-user, 2020-2028
5.3.8.2.Market size and forecast, by country, 2020-2028
5.3.9.Rest of Asia Pacific
5.3.9.1.Market size and forecast, by end-user, 2020-2028
5.3.9.2.Market size and forecast, by country, 2020-2028
5.3.9.3.Comparative market share analysis, 2020 & 2028
5.4.LAMEA
5.4.1.Market size and forecast, by end-user, 2020-2028
5.4.2.Market size and forecast, by country, 2020-2028
5.4.3.Comparative market share analysis, 2020 & 2028
5.4.4.Latin America
5.4.4.1.Market size and forecast, by end-user, 2020-2028
5.4.4.2.Market size and forecast, by country, 2020-2028
5.4.4.3.Comparative market share analysis, 2020 & 2028
5.4.5.Middle East
5.4.5.1.Market size and forecast, by end-user, 2020-2028
5.4.5.2.Market size and forecast, by country, 2020-2028
5.4.5.3.Comparative market share analysis, 2020 & 2028
5.4.6.Africa
5.4.6.1.Market size and forecast, by end-user, 2020-2028
5.4.6.2.Market size and forecast, by country, 2020-2028
5.4.6.3.Comparative market share analysis, 2020 & 2028
6.Company profiles
6.1.WeWork
6.1.1.Business overview
6.1.2.Financial performance
6.1.3.Product portfolio
6.1.4.Recent strategic moves & developments
6.1.5.SWOT analysis
6.2.Regus
6.2.1.Business overview
6.2.2.Financial performance
6.2.3.Product portfolio
6.2.4.Recent strategic moves & developments
6.2.5.SWOT analysis
6.3.91SpringBoard
6.3.1.Business overview
6.3.2.Financial performance
6.3.3.Product portfolio
6.3.4.Recent strategic moves & developments
6.3.5.SWOT analysis
6.4.Awfis
6.4.1.Business overview
6.4.2.Financial performance
6.4.3.Product portfolio
6.4.4.Recent strategic moves & developments
6.4.5.SWOT analysis
6.5.Common Ground
6.5.1.Business overview
6.5.2.Financial performance
6.5.3.Product portfolio
6.5.4.Recent strategic moves & developments
6.5.5.SWOT analysis
6.6.Innov8
6.6.1.Business overview
6.6.2.Financial performance
6.6.3.Product portfolio
6.6.4.Recent strategic moves & developments
6.6.5.SWOT analysis
6.7.Workbar LLC
6.7.1.Business overview
6.7.2.Financial performance
6.7.3.Product portfolio
6.7.4.Recent strategic moves & developments
6.7.5.SWOT analysis
6.8.CoLive
6.8.1.Business overview
6.8.2.Financial performance
6.8.3.Product portfolio
6.8.4.Recent strategic moves & developments
6.8.5.SWOT analysis
6.9.Mindspace
6.9.1.Business overview
6.9.2.Financial performance
6.9.3.Product portfolio
6.9.4.Recent strategic moves & developments
6.9.5.SWOT analysis
6.10.Industrious
6.10.1.Business overview
6.10.2.Financial performance
6.10.3.Product portfolio
6.10.4.Recent strategic moves & developments
6.10.5.SWOT analysis
Space as a service or SPaaS is the change in the real estate’s model from asset ownership to providing products & services to occupants and changing owners from service providers to rent collectors. SPaaS is a model that enables a change in management’s beliefs about the use and design of real estate to one that enhances experiences and productivity within a company’s real estate portfolio. Some of the examples of SPaaS business model are co-living, co-working, and even a retail concept called as brandboxing, in which landlords basically provide a package of services that allow renters to use the space. The exponential expansion of ubiquitous usage of smartphones, high-speed internet, proliferation of IoT devices & cloud computing, and the acceptance of robots & artificial intelligence have all been key accelerators for space as a service market growth.
COVID-19 Impact on Space as a Service Market
The outbreak of COVID-19 across the globe has moderately impacted the global space as a service market growth. The global market suffered due to the closure of offices and the emergence of remote work culture in many parts of the world. Besides, disturbances in financial markets and restrictions on travel have negatively impacted the market growth during the pandemic period.
However, due to the ease of restrictions in the latter half from the COVID-19 pandemic, space as a service market experienced a progressive growth. This is mainly because businesses and companies are adjusting to the changing normal and restarting operations as they are slowly recovering from the impact of coronavirus. All these factors are moderately impacting the growth of the space as a service market during the pandemic period.
Space as a Service Market Trends and Developments
The companies operating in the global industry are adopting several growth strategies and business tactics such as partnerships, collaboration, business expansion, and product launches to obtain a leading position in the global industry, which is predicted to drive the global space as a service market growth in the upcoming years.
For instance, in April 2021, WeWork India, providing safe and inspiring co-working spaces in India, raised INR 200 crores in debt and equity from investors. The company hasn’t disclosed the names of the two investors. The aim of the company is to expand its business and become profitable in the coming future and explore the potential of flexible workspaces in the coming future.
In October 2021, Mindspace, the global flex office provider, expanded its array of on-demand office solutions with the new Daily Office. The company first launched Mindpass Multi and Mindpass Daily to offer casual access to its shared office spaces. Mindspace launced Daily Office as a response to the increase in demand from teams seeking an office solution for collaborative purposes. Daily Office allows teams of up to 4 people to collaborate on a day-to-day basis in a private office.
In December 2021, Smartworks, the leading provider of enterprise-focused managed office space, announced the launch of ‘Smartworks Technology Services,’ its new venture that aims to launch a Building Operating Platform & Workspace Management SaaS product, which is targeted at organizations and landlords globally, and centered on experience models and new workplace management.
Forecast Analysis of Global Market
The global space as a service market is projected to witness an exponential growth over the forecast period, owing to the growing usage of space as a service model by large as well as small organizations around the world. Conversely, the lack of awareness and privacy related with space as a service is expected to hamper the market growth in the projected timeframe.
The rising demand for co-working spaces and continuous technologically advanced structural developments in the commercial real estate industry worldwide are the significant factors and space as a service market trends estimated to bolster the growth of the global market in the coming future. According to a latest report published by Research Dive, the global space as a service market is expected to garner $11,581.3 million during the forecast period (2021-2028). Regionally, the Asia-Pacific market is estimated to witness fastest growth by 2028, owing to the major role of Asia-Pacific region in the real estate industry’s future as it is responsible for about one-third of the total population across the globe. Besides, the demand for space as a service is increasing owing to the surge in the number of small businesses in the Asia-Pacific region.
The key players functioning in the global market include
- WeWork
- Awfis
- 91springboard
- Common Ground
- Workbar LLC
- Innov8
- Regus
- MindSpace
- Colive
- Industrious.
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