Office Buildings Global Market Opportunities and Strategies to 2033

This report describes and explains the office buildings market and covers 2018-2023, termed the historic period, and 2023-2028, 2033F termed the forecast period. The report evaluates the market across each region and for the major economies within each region.

The global office buildings market reached a value of nearly $580.89 billion in 2023, having grown at a compound annual growth rate (CAGR) of 1.92% since 2018. The market is expected to grow from $580.89 billion in 2023 to $643.49 billion in 2028 at a rate of 2.07%. The market is then expected to grow at a CAGR of 2.21% from 2028 and reach $717.87 billion in 2033.

Growth in the historic period resulted from emerging markets growth of developing countries, rise in construction of green buildings, increasing demand for flexible workspaces. Factors that negatively affected growth in the historic period were software piracy and security challenges.

Going forward, increasing population density and urbanization, steady expansion of the automotive industry, increase in the working population, increasing investments in commercial construction and rise in demand for office spaces will drive the market growth. Factor that could hinder the growth of the office buildings market in the future include conversion of high-vacancy commercial buildings for residential use and lack of skilled workers.

The office buildings market is segmented by building type into smart buildings and traditional buildings. The traditional buildings market was the largest segment of the office buildings market segmented by building type, accounting for 72.2% or $419.58 billion of the total in 2023. Going forward, the smart buildings segment is expected to be the fastest growing segment in the office buildings market segmented by building type, at a CAGR of 3.40% during 2023-2028.

The office buildings market is segmented by construction type into new construction and renovation. The new construction market was the largest segment of the office buildings market segmented by construction type, accounting for 66.3% or $385.41 billion of the total in 2023. Going forward, the renovation segment is expected to be the fastest growing segment in the office buildings market segmented by construction type, at a CAGR of 2.39% during 2023-2028.

The office buildings market is segmented by application into owned and rental. The rental market was the largest segment of the office buildings market segmented by application, accounting for 69% or $400.9 billion of the total in 2023. Going forward, the rental segment is expected to be the fastest growing segment in the office buildings market segmented by application, at a CAGR of 2.17% during 2023-2028.

The office buildings market is segmented by end-user into private and public. The private market was the largest segment of the office buildings market segmented by end-user, accounting for 71.8% or $417.21 billion of the total in 2023. Going forward, the private segment is expected to be the fastest growing segment in the office buildings market segmented by end-user, at a CAGR of 2.24% during 2023-2028.

Asia Pacific was the largest region in the office buildings market, accounting for 40.7% or $236.5 billion of the total in 2023. It was followed by North America, Western Europe and then the other regions. Going forward, the fastest-growing regions in the office buildings market will be Africa and Asia Pacific where growth will be at CAGRs of 8.3% and 2.3% respectively. These will be followed by South America and North America where the markets are expected to grow at CAGRs of 2% and 1.8% respectively.

The global office buildings market is fairly fragmented, with a large number of small players operating in the market. The top ten competitors in the market made up to 6.06% of the total market in 2022. China State Construction Engineering Co. Ltd. was the largest competitor with a 2.89% share of the market, followed by Mitsui Fudosan Co. Ltd. with 0.86%, Lennar Corporation with 0.59%, CBRE Group Inc. with 0.58%, Bouygues SA with 0.50%, IWG Plc. with 0.18%, China Railway Construction Corporation Limited with 0.16%, Jacobs Engineering Group with 0.13%, Kiewit Building Group with 0.09% and Jones Lang LaSalle Inc. with 0.08%.

The top opportunities in the office buildings market segmented by building type will arise in traditional buildings segment, which will gain $33.3 billion of global annual sales by 2028. The top opportunities in the office buildings market segmented by construction type will arise in the new construction segment, which will gain $39.1 billion of global annual sales by 2028. The top opportunities in the office buildings market segmented by application will arise in the rental segment, which will gain $45.5 billion of global annual sales by 2028. The top opportunities in the office buildings market segmented by end-user will arise in the private segment, which will gain $48.9 billion of global annual sales by 2028. The office buildings market size will gain the most in China at $10.6 billion.

Market-trend-based strategies for the office buildings market include focusing on using digital twin technology to create intelligent, interconnected building environments that leverage data and analytics to enhance efficiency, focusing on the development of new office buildings with contemporary features and amenities, to cater to the growing demand, focusing on partnerships and collaborations for greener office buildings, to promote environmentally friendly practices in office building creation, operation and administration, focusing on sustainability, to meet their carbon net zero goals and the needs of new generations of workers.

Player-adopted strategies in the office buildings market include focus on expanding business through new product developments and focus on strategic partnerships to develop their construction expertise.

To take advantage of the opportunities, the analyst recommends the office buildings companies to focus on digital twin technology implementation, focus on contemporary office building development, focus on sustainable office solutions, focus on smart buildings segment, focus on renovation segment, expand in emerging markets, continue to focus on developed markets, focus on green partnerships for sustainable office buildings, provide competitively priced offerings, participate in trade shows and events, continue to use B2B promotions, focus on private market segment, and focus on the increasing working populations.