Office Buildings Global Market Report 2024

The office buildings market size has grown marginally in recent years. It will grow from $580.89 billion in 2023 to $591.8 billion in 2024 at a compound annual growth rate (CAGR) of 1.9%. The growth observed in the historical period can be attributed to factors such as economic growth and business expansion, urbanization and the development of commercial centers, corporate relocation and consolidation, the evolution of workplace culture, and the influence of government policies and zoning regulations.

The office buildings market size is expected to see steady growth in the next few years. It will grow to $643.49 billion in 2028 at a compound annual growth rate (CAGR) of 2.1%. The anticipated growth in the forecast period can be attributed to factors such as the adoption of sustainability and green building practices, the rise of remote work and flexible office spaces, increased technological integration for efficiency, the development of mixed-use properties, and a focus on corporate wellness and employee experience. Prominent trends in this period encompass a heightened emphasis on employee experience, the incorporation of biophilic design elements, the integration of contactless technologies, the use of agile and adaptable office furniture, and efforts toward retrofitting for energy efficiency.

The growth of the office buildings market is anticipated to be propelled by the demand from expanding companies. Business expansion involves an organization's efforts to widen its operations and increase revenue. As organizations grow, there is an increased need for additional office space to accommodate new employees complementing the expanded operations. A study conducted in October 2022 on 500 UK-based SMEs by Airwallex revealed that in 2023, 70% of businesses plan to expand into foreign markets. Out of these, 64% will focus on Europe and North America, while 34% are gearing up to expand into the Middle East, Latin America, Africa, and Asia-Pacific. Consequently, the demand from expanding companies is a significant driver of the office buildings market's growth.

The growth of the office buildings market is also expected to be driven by the increasing demand for flexible workspace. Flexible workspace refers to an office environment that offers various workspaces and services on a flexible basis, catering to diverse work styles and preferences. The rise of remote work and flexible arrangements has led to a heightened demand for office spaces that can adapt to these evolving needs. For example, WeWork India, a co-working company, leased 3.62 lakh square feet of office space in Bengaluru in October 2022 as part of its expansion strategy. This move aligns with WeWork India's broader strategy to meet the changing needs of India's workforce as it transitions to a hybrid working model. Thus, the increasing demand for flexible workspace is a driving force in the office buildings market.

A key trend gaining popularity in the office buildings market is the emphasis on sustainability and energy-efficient offices. Major companies in the sector are focusing on sustainable practices to align with carbon net-zero goals and meet the expectations of the new generation of workers. In March 2023, Adobe completed its sustainable office in San Jose, California, utilizing renewable energy sources such as solar and wind power, special glass for insulation, and a robust recycling system. The commitment to sustainability reflects a growing trend in the industry.

Major companies in the office buildings sector are leveraging digital twin technology for the development of office buildings. Digital twin technology involves creating a virtual replica of physical objects, systems, or processes for real-time monitoring, analysis, and optimization. Microsoft Corporation, for instance, launched a smart building complex in October 2023 that showcases its Azure Digital Twins service. This service allows customers to digitally model their physical spaces and integrate real-time location data. The smart building complex is equipped with IoT sensors for occupancy detection, integrating data on movements, meeting schedules, and desk assignments to enhance efficiency.

In April 2022, Cianbro Corp., a construction company, acquired R. C. Stevens Construction Company for an undisclosed amount. This strategic acquisition enables both companies to establish a permanent presence in the Southeast and creates new growth opportunities. R. C. Stevens Construction Company, based in Florida, specializes in the construction of office buildings.

Major companies operating in the office buildings market report are Kiewit Building Group Inc., Toll Brothers Inc., CBRE Group Inc., Bouygues S.A., Jacobs Solutions Inc., China Railway Construction Corporation Limited, Power Construction Corp., China State Construction Engineering Co. Ltd., Jones Lang LaSalle Inc., Colliers International India Property Services Pvt. Ltd., Skanska AB, Gilbane Building Company, Holcim Ltd., The Korte Company, W.G. Yates & Sons Construction Co., Cushman & Wakefield plc, Newmark Knight Frank, Transwestern Development Company, Marcus & Millichap Inc., HFF Inc., Eastdil Secured International Ltd., Savills plc, Avison Young Inc., New American International, Kidder Mathews Inc., Lee & Associates Commercial Real Estate Services., CollabNet Inc., Berkshire Hathaway HomeServices, Keller Williams Realty Inc., Century 21 Department Stores LLC, Coldwell Banker Real Estate LLC, RE/MAX LLC, Sotheby's International Realty LLC, Simon Property Group plc, Kilroy Realty Corp., Realty Income Corporation, Prologis Inc., Alexandria Real Estate Equities Inc., Boston Properties Inc., Vornado Realty Trust.

Europe was the largest region in the office buildings market in 2023. Asia-Pacific is expected to be the fastest-growing region in the office buildings market report during the forecast period. The regions covered in the office buildings market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the office buildings market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Office buildings are broadly categorized into smart buildings and traditional buildings. Smart buildings, or smart facilities, leverage information and communications technology systems, services, and technologies to optimize facility performance. The construction types, including new construction and renovation, find application in various ownership models such as owned and rental, catering to both private and public end users.

The office buildings market research report is one of a series of new reports that provides office buildings market statistics, including office buildings industry global market size, regional shares, competitors with an office buildings market share, detailed office buildings market segments, market trends, and opportunities, and any further data you may need to thrive in the office buildings industry. This office buildings market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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