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Office Relocation Services Market

Office Relocation Services Market

Office Relocation Services Market Analysis, By Service (Employee Relocation, Tech & Data Center Moves, Warehouse & Factory Removal, Trade Deliveries, Office Storage, Medical Facility & Lab Moves, Heavy Machinery Moves), By End-use Industry and By Period/Duration- Global Market Insights 2022 to 2032

Office Relocation Services Market
FACT7711MR
  • Sep-2022
  • List of Tables : 55
  • List of Figures : 94
  • 170 Pages
  • Consumer Goods

Office Relocation Services Market Outlook (2022-2032)

The global office relocation services market is worth US$ 10.6 billion in 2022 and is anticipated to expand steadily at a CAGR of 3.3% to reach US$ 14.6 billion by 2032.

Office relocation accounted for nearly 15% of the global relocation services market at the end of 2021 and is likely to maintain this share in the near future as well.

Report Attributes

Details

Office Relocation Services Market Size (2021A)

US$ 10.3 Billion

Estimated Market Value (2022E)

US$ 10.6 Billion

Forecasted Market Value (2032F)

US$ 14.6 Billion

Global Market Growth Rate (2022-2032)

3.3% CAGR

North America Market Share (2021)

42%

East Asia Market Growth Rate (2022-2032)

3.4% CAGR

United States Market Growth Rate (2022-2032)

3.6% CAGR

Market Share of Top 5 Companies

12%

Key Companies Profiled

  • Agarwal Packers and Movers Ltd.
  • AGS Group
  • Aires
  • Altair Global
  • AMJ Campbell
  • Asian Express International Movers Ltd.
  • Asian Tigers Group
  • AWGI LLC
  • Biddulphs International
  • Brytor International Moving
  • Anywhere Real Estate
  • Crown Workspace USA
  • FINK Mobility
  • Graebel Companies Inc.
  • Irishrelo
  • King Companie Usa
  • NIPPON EXPRESS' Moving Services
  • Santa Fe Relocation
  • SIRVA BGRS Worldwide, Inc.
  • Suddath Van Lines, Inc.
  • The Paxton Companies
  • UniGroup
  • XONEX Relocation LLC.
  • Mayflower

Interested to Procure The Data

Revenue Analysis of Office Relocation Services (2017-2021) Vs. Industry Projections (2022-2032)

“Market Benefitting from Government Focus on Job Creation & Economic Development”

Businesses, particularly start-ups, are actively looking for competitive advantages over rival organizations. The relocation of organizations to expand their business to capture a larger consumer base is a trending approach in this competitive market.

Governments across countries are reducing their tax rates to lure companies into relocating and creating jobs within the country, specifically IP management and other high-value functions. Thus, in places where commercial activities are located in these jurisdictions, overall effective tax rates might benefit from such incentives, thereby driving the demand for business relocation services.

Post-COVID there has been an increase in overall demand for relocation services. Office relocation has also become one of the key elements with the increasing remodeling and downsizing of office spaces.

Asia Pacific and North America are expected to witness a high number of start-ups and foreign company investments over the coming years. This expansion of companies will require the establishment of new offices and production facilities, thereby driving the demand for corporate relocation services.

Relocation service providers prevent loss of productivity by handling the overall responsibilities of moving offices. They are partnering with many organizations to offer safer & stress-free office resettlement. In low- and middle-income countries, governments have started taking initiatives regarding the reduction of tax rates and strict compliance. Government funding has been offered to small- and middle-size groups for expansion.

From 2017 to 2021, the global business relocation services market expanded at a CAGR of 3.1%. As per this latest industry analysis by Fact.MR, a market research and competitive intelligence provider, the market is projected to progress at 3.3% CAGR between 2022 and 2032.

Office relocation services market forecast by Fact.MR

Market share analysis of office relocation services based on service and. Under the service segment, employee relocation accounts for 41% market share.

Why is Demand for Office Relocation Services Expected to Remain Steady?

“Rising Globalization & Increasing Compliance Burden”

The variation in success rates between mature economies and emerging markets is propelling the pace of globalization in the business sector since companies are actively looking for capital, output, or markets in various regions across the world. This is driving the pool of internationally mobile employees to relocate for these opportunities.

Moreover, the introduction of complex compliance systems in various economies, particularly in G20 economies, to control behavior and discourage loss of tax revenue across borders is one of the major factors attributed to market growth. This is creating a large compliance burden for groups and resulting in the migration of businesses away from such jurisdictions.

“More Companies Moving to Remote / Hybrid Work Models”

COVID-19 had a major impact on the commercial relocation services market. Companies moved to remote work or hybrid work models since. Prominent companies such as Facebook, Dropbox, and Tripadvisor have implemented remote work models, whereas, other giants such as Apple & Google have adopted hybrid office models. Companies are hiring office relocation service providers to offer hands-on, end-to-end relocation support to employees. These service providers search for the right partners to move employees to their desired destinations.

For many organizations, hybrid or remote work is beneficial for the reduction of overhead costs. The absence of fully-operating offices has resulted in cutting down on expenses related to real estate, utilities, and supplies. Salaries for positions requiring remote work are mostly based on market rates in the city relocated to.

All these factors are anticipated to push the demand for office resettlement services across the world.

An Adaptive Approach to Modern-day Research Needs

What Do Office Relocation Service Providers Need to Keep in Mind?

“Legal & Tax Issues Associated With Relocations”

It is crucial to understand that different jurisdiction employment regulations are unlikely to be identical, whether relocating employees abroad or hiring new employees. Even in the EU, there may be limitations on the number of hours one can work, and employees may have more rights in some nations than in others. Additionally, in some member states, works councils can have a significant impact on business choices.

Renegotiating contracts with current suppliers and clients may be necessary if corporate operations are moved abroad. It will be necessary to take into account the applicable law governing these contracts, and where different, to agree to the current contracts with clients and suppliers.

The full migration of listed entities may give rise to numerous legal and listing requirements and can hamper the demand growth for business relocation services.

The costs associated with relocating a function or asset outside a jurisdiction must be factored into the relocation costs as part of any restructuring process. There will often be an exit tax payment for most nations. However, with careful planning, it is possible to reduce or postpone the exit price. There is also the claim that these fees are discriminatory and in violation of EU legislation, including the freedom of establishment and free movement of capital, when relocating within the EU.

Any restructure that modifies the flow of goods, services, or other payments needs to be carefully considered. To make sure that the resulting structure will not result in additional taxes, royalties, interest, and dividend flows need to be simulated. The cost of reorganization must account for indirect tax leakage (especially sales taxes and tariffs) where there is a physical transfer of products or services.

Country-wise Insights

Will Rising Start-ups and Reduction of Tax Rates Aid U.S. Market Growth?

The United States corporate relocation services market is estimated to reach US$ 5.2 billion by 2032.

Many start-ups are springing up in the United States, which is a major factor driving the growth of the U.S. office resettlement market. Start-ups seek expansion, and after standardized growth, look for the procurement of new office spaces that are convenient for the employees.

  • According to a study by the Census Bureau’s Business Formation Statistics, in the United States, around 5.4 million applications were filed in 2021 to form new businesses. This was an increase of 53% from 2019 when it was 1.9 million.

Favorable government norms related to reducing tax rates to promote companies to relocate and create jobs within the economy are expected to stimulate the growth of the market in the country.

Why is the Asia Pacific Business Relocation Services Market Highly Fragmented?

With several developed and developing economies in the Asia Pacific region, many foreign companies are putting their investments in the region. Easy availability of raw materials, low-cost labor, and high growth in many economies are factors driving foreign companies to invest in the region.

This is boosting the demand for new office spaces, warehouses, factories, heavy machinery, and other related material, which is creating strong demand for business relocation services in the region.

Category-wise Insights

Why are Employee Relocation Services in High Demand?

For many employees, getting a promotion results in moving to a different office or location. Also, while getting a new role, an employee may need to relocate to another city. As a result, both employers and employees hire relocation services to efficiently relocate from one place to another.

  • According to a study by Worldwide ERC, the number of single relocating employees is trending worldwide, with motive of personal career development (67%), compensation (10%), spirit of adventure (5%), and others (18%).

Overall, the employee relocation services segment is expected to be worth US$ 5.9 billion by 2032.

What is Leading the Technology Sector to Dominate This Market?

Office relocation services in the technology sector help in eliminating excessive costs incurred on transportation, loss of working hours, and money spent on the packaging of material. Companies efficiently deliver technological equipment to the destination and are seen as an optimum solution for office relocation purposes.

The ongoing COVID-19 crisis is expected to be one of the major factors contributing to the demand growth for relocation services in the technology sector as a result of surging remote and hybrid working culture trends.

The technology end-use sector accounts for a share of 23% of the global business relocation services market.

Competitive Landscape

Prominent commercial relocation service providers are Agarwal Packers and Movers Ltd., AGS Group, Aires, Altair Global, AMJ Campbell, Asian Express International Movers Ltd., Asian Tigers Group, AWGI LLC, Biddulphs International, Brytor International Moving, Anywhere Real Estate, Crown Workspace USA, FINK Mobility, Graebel Companies Inc., Irishrelo, King Companie USA, NIPPON EXPRESS' Moving Services, Santa Fe Relocation, SIRVA, BGRS Worldwide, Inc., Suddath Van Lines, Inc., The Paxton Companies, UniGroup, XONEX Relocation LLC., and Mayflower.

The global business relocation services market is fragmented and competitive with the presence of several domestic and international market players.

  • In July 2017, Nigerian start-up Relocate introduced the Provide Home and Corporate Relocation Service. The organization aims to provide services for office & home moving in & out of Lagos metropolis.
  • In May 2022, SIRVA and BGRS announced a merger to create a new company offering household goods & business relocation services.
  • In November 2020, Gerson Relocation Ltd. announced the acquisition of the business and assets of Dijkshoorn Euromovers B.V., which provides moving services in the Netherlands. This acquisition is aimed towards the expansion of the company’s footprint in the European region.

Fact.MR has provided detailed information about office relocation service providers positioned across regions, sales growth, and product offering expansion, in the recently published report.

Segmentation of Office Relocation Service Industry Survey

  • By Service :

    • Employee Relocation
    • Tech & Data center Moves
    • Warehouse and Factory Removal
    • Trade Deliveries
    • Office Storage
    • Medical Facility & Lab Moves
    • Heavy Machinery Moves
  • By Period/Duration :

    • Long-term Basis
    • Short-term/Assignment Basis
  • By End-use Industry :

    • Educational Institutes
    • Service/Media
    • Discrete Manufacturing
    • Government
    • Consumer Goods
    • Technology
    • Finance
    • Oil & Gas
    • Pharma
  • By Region :

    • North America
    • Latin America
    • Europe
    • East Asia
    • South Asia & Oceania
    • MEA

- FAQs -

The global office relocation services market is valued at US$ 10.6 billion.
Over the last four years, revenue from office relocation services increased at a 3.1% CAGR.
Valuation of the global office relocation services market is anticipated to reach US$ 14.6 billion by 2032.
North America accounts for 42% share of the global market.
Around 41% market share is held by employee relocation services.

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