The Impact of the Top 3 Strategic Imperatives on the Workplace Management Industry

Innovative Business Models

Why

• The stagnant growth experienced by companies across industries necessitates adopting innovative business models to widen product penetration and explore untapped market opportunities.
• High inflation will be a tailwind for increasing prices and revenue but also pressure costs and margins.

Frost Perspective

• Vendors in building technology, construction management, PropTech, and smart home devices are aiming to maximize their revenues from software and services by adopting flexible, advanced, and subscription-based models.

• These models, including anything-as-a-service (XaaS), help alleviate the financial burden on customers, minimizing capital costs and investments required.

Disruptive Technologies

Why

• Workspaces around the world are increasingly embracing digitalization and digital solutions driven by artificial intelligence (AI), machine learning (ML), the Internet of Things (IoT), cloud computing, and advanced computing technologies as part of their future of work strategies.
• Solution providers and system integrators offering software solutions and connected systems and products have observed encouraging growth.

Frost Perspective

• Advanced analytics and AI are crucial for optimizing buildings and workplaces in an evolving work environment. It is essential to address the increasing demands of a smart workplace, enhancing the employee experience.

• This change is driving the development of new technologies, which organizations increasingly adopt to reduce their workplace’s operating costs and support sustainability agendas.

Transformative Megatrends

Why

• Changes in technology, labor force, and workplaces, including future of work strategies, impact building technologies, customer bases, value propositions, and solutions’ needs. These changes prompt innovation in technologies, service solutions, and business models.
• Pressing issues, including climate change, resource crunch, and carbon emissions, are pushing industry stakeholders to embrace new Megatrends and implement strategic initiatives.

Frost Perspective

• Leading market participants are realigning their focus to support growth through leveraging key Megatrends, including digitalization, decarbonization, energy transition, demographic change, and more.
• Market participants should create value by innovating with their customers’ technological journeys, sustainability goals, and business productivity in mind.

Scope of Analysis

• Market Sizing
• Market sizing has been based on Frost & Sullivan’s market estimates, growth estimates, and segmentation of existing data, secondary research, and information from interviews from 2022 to 2024.
• Primary Research
• The study uses a structured discussion guide to interview major enterprises with an Asia-Pacific presence that provide physical, software, and service solutions.
• Secondary Research
• Frost & Sullivan’s internal and market databases, industry reports and literature, trade journals, web-based materials, annual reports, and other sources formed the source of secondary research.

Scope

Workplace Management

Workplace management encompasses the comprehensive approach organizations adopt to oversee different aspects within a work setting. This includes personnel, tasks, resources, and facilities. Implementing workplace management strategies aims to enhance the efficiency, productivity, and cost-effectiveness of the workplace or office. The analysis segments workplace management into 3 main service types: physical solutions, software solutions, and service solutions.

Physical Solutions

The physical solutions offer flexible workspace, which business organizations or individuals lease for shorter periods than traditional offices.

Software Solutions

The software solutions offer space management (monitoring, tracking, and managing the physical space inventory of your organization), a facility management (FM) system (maintaining company assets such as property, buildings, equipment, and other elements of operation), and occupancy management (real-time tracking and management of how people use physical space).

Service Solutions

The service solutions offer workplace consultancy (providing advisory services enhancing the efficiency and productivity of the existing workplace).

Segmentation

Workplace Management

• Physical Solution:

  • Flexible Workspace

    • An optimal blend of comfort, utility, collaboration, and convenience
    • Potential cost savings through shared resources
    • Various types include coworking spaces, hotdesk offices, hybrid workspaces, and virtual offices
    •  
  • Software Solution:
  • FM System
    • Systematic approach to ensure the functionality, comfort, safety, and efficiency of business operations
    •  
  • Space Management
    • Management of physical spaces to align with broader goals for productivity, sustainability, profitability, and well-being
    • Occupancy Management
    • The tracking, analyzing, and optimizing of the space within the building
    • Entails an understanding of how people use the physical workspace and leveraging that data to make informed decisions
  • Service Solution:
  • Workplace Consultancy
    • Delivers actionable steps for the improvement of the office;
    • Reduces office overheads, increases productivity, improves staff engagement

Competitive Environment

Key Competitors

• WeWork
• IWG
• The Hive
• JustCo
• The Great Room
• The Executive Centre
• The Work Project
• Servcorp
• Compass Offices
• Fastive
• Smartworks
• The Commons
• Hub Australia
• Cowrks
• Dreamplex
• The Working Capitol
• Skedda
• Acall
• OfficeRnD
• Spacewell
• MRI Software
• Accruent
• FM: Systems
• Planon
• VLogic Systems
• Eptura
• Vemco Group
• CBRE
• QuickFMS
• SIERRA ODC Private Limited
• Facilio
• IBM Tririga
• Tigerinx
• HashMicro
• FacTech
• TOPdesk
• Axonator
• Chetu
• Piqotech Software Solutions Private Limited
• Blaze Automation
• Avigilon
• Green Koncepts
• JLL
• Adapt Intelligence
• Knight Frank
• Savills
• Veldhoen Company
• RPS Group
• Cundall
• Colliers
• Foster + Partners
• Advanced Workplace Associates (AWA)