The global Home Office Spending Market size is set to reach USD 29,388.12 million in 2023 and is further predicted to expand at a remarkable CAGR of 17% to close on a valuation of USD 141,263.65 million by the end of 2033.
Key factors that may propel the market growth are:
Advanced IT Solutions for Cyber Attacks Subsequently Increase Home Office Spending Solution Consumption
In light of the current situation of social distancing, many businesses are prioritizing cloud computing services and giving remote access to company networks, as remote working has become the need of the hour.
Remote working solutions, on the other hand, increase the possible entry points for cybercriminals. Remotely controlled IT solutions harm security services in every way. To keep risks at bay and assure safety. Solution providers create and maintain a tailored risk management strategy.
Furthermore, as various economies throughout the world are only just recovering, remote IT services enable businesses to save hardware and software costs, eliminate technological errors, and lower maintenance costs. During the forecast period, all of these reasons are expected to propel the demand for home office spending across the world.
Cloud-based Models Gaining Popularity Due to Increasing Work Responsibilities
With the growing popularity of cloud email with artificial intelligence, cloud email solutions are increasingly being used by businesses across the world to manage their day-to-day responsibilities. To attract clients, several companies have begun deploying G-Suite with add-on artificial intelligence features to boost enterprise email delivery.
The G Suite, which includes artificial intelligence capabilities, includes workplace communication products such as hangouts and word processing docs that help boost efficiency while working. This is also expanding the home office spending solutions market.
Although companies in North America have embraced remote working practices, certain employees are still permitted to work from the office. As a result, they are embracing a hybrid workforce that includes both, employees who come to work and those who work remotely (permanent or temporary). These factors are influencing the growth curve of the North America home office spending market.
The study also found that numerous European organizations are feeling compelled to enhance their security barriers to facilitate effective remote working. This seismic shift may necessitate new ways of working, with companies of all sizes required to embrace the remote working trend.
As a result, the Europe home office spending market is expected to outperform North America by the end of the forecast period.
Many companies in East Asia have implemented remote working arrangements as a result of the COVID-19 shockwaves. While WFH or remote working arrangements may not be appropriate for all job categories, businesses are working hard to adapt and invent fresh solutions as quickly as possible.
Value USD 15,677.46 million USD 25,705.34 million USD 29,388.12 million USD 141,263.65 million 17%
| Attributes | Value |
|---|---|
| Home Office Spending Market Value (2018) | USD 15,677.46 million |
| Home Office Spending Market Value (2022) | USD 25,705.34 million |
| Home Office Spending Market Expected Value (2023) | USD 29,388.12 million |
| Home Office Spending Market Forecast Value (2033) | USD 141,263.65 million |
| Home Office Spending Market Expected CAGR (2023 to 2033) | 17% |
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The penetration of the internet and the emergence of the COVID-19 pandemic has led to robust growth rate for the market. While the historical CAGR for the market was 13.15%, the expected CAGR is 17%.
These home offices are used for a variety of purposes, including online research, students accessing material for school projects, and those who work from home, which invariably drives home office costs. With global acceptance of the WFH model, the market is expected to grow substantially during this period.
Employees, students, professionals, and entrepreneurs regularly utilize these for reading, writing, running desktops/laptops, attending online meetings & lectures, and storing files. All this is set to propel the market growth.
Demand for adaptable and multi-functional items might also drive the growth of the home office spending market, as they are portable and can easily fit into small areas. Growing change towards the WFH ideology is expected to further boost the home office spending market growth.
Home Office Spending Solution Consumption Stunted Due to Lack of IT Awareness
Cybercriminals are switching strategies and cashing in on people's worries about COVID-19. As a result, working from home has opened the door to new types of data theft. Employees who work from home have lower productivity due to a lack of technology infrastructure and inadequate cyber and data security, which poses a cyber-risk to enterprises.
Since the beginning of the COVID-19 crisis, one-quarter of all employees have seen an increase in fraudulent emails, spam, and phishing attempts in their workplace email.
Companies must prioritize preventative measures to address both, the loss of corporate data and intellectual property and the possibility of corporate fraud. The expanding cyber danger is exceeding most organizations’ ability to manage it effectively as economies become increasingly digital.
Personal information of employees, corporate data, consumer information, intellectual property, and critical infrastructure are all at risk. As a result, a lack of technology infrastructure and knowledge may have an adverse impact on home office spending solution sales.
| Region | North America |
|---|---|
| Country | United States |
| Expected CAGR (2023 to 2033) | 11.9% |
| Region | Europe |
|---|---|
| Country | Germany |
| Expected CAGR (2023 to 2033) | 13.35% |
| Region | Asia Pacific |
|---|---|
| Country | China |
| Expected CAGR (2023 to 2033) | 16.38% |
| Region | Asia Pacific |
|---|---|
| Country | Japan |
| Expected CAGR (2023 to 2033) | 19.59% |
| Region | Asia Pacific |
|---|---|
| Country | South Korea |
| Expected CAGR (2023 to 2033) | 22.77% |
Rapid Digitization & Increase in Remote Working Solutions Driving Sales of Home Office Spending Solutions
China may register exponential growth in global home office spending solution sales. This is due to the COVID-19 outbreak, which started in China. Several businesses have adopted the WFH trend, which has resulted in a plethora of opportunities for the home office spending industry.
Rapid digitization of workspaces in China is also fueling the need for remote working solutions within businesses. Demand for remote solutions has exploded in a variety of industries, posing potential growth prospects for home office spending equipment and solution providers. As a result, China's growing use of remote work is driving up demand for home office spending.
Increasing Adoption of Collaboration Tools Driving Demand for Home Office Spending
Currently, the United States market is predicted to account for the highest consumption of home office spending in North America and is expected to rise at a healthy CAGR over the projection period. Market growth is boosted by factors such as increased smart devices and high Internet adoption in the country.
Large firms, as well as small and medium businesses, are increasingly adopting unified communication and collaboration. The United States has built advanced infrastructure in areas such as cloud computing, digitization, virtual reality, and augmented reality, among others.
As a result of these factors, the United States is one of the leading countries in the sales of home office spending solutions.
| Segment | Deployment |
|---|---|
| Attributes | Cloud |
| CAGR % 2017 to 2022 | 11.58% |
| CAGR % 2023 to End of Forecast (2033) | 14% |
| Segment | Application |
|---|---|
| Attributes | Business Productivity |
| CAGR % 2017 to 2022 | 12.7% |
| CAGR % 2023 to End of Forecast (2033) | 15.10% |
Drastic Shift of Companies towards WFH Solutions Driving Consumption of Cloud-based Models
Cloud-based models may dominate the home office spending market in terms of deployment.
Many businesses have begun to use cloud communication solutions for video and web conferencing in recent years. Many companies operate from multiple locations, increasing the mobile workers.
As a result, they are implementing enhanced connection solutions to assist their staff in maintaining effective and real-time communication. This is expected to surge the growth rate of multiple cloud-based platforms and services market.
On the other hand, despite the easing of lockdown restrictions across continents, numerous businesses have continued to use WFH or remote working to reduce the risk of the virus spreading. For businesses wishing to make a long-term change to working from home, the cloud-based home office spending solutions market has all the answers
Cloud-based models, whether for data, apps, or processes, are proving to be a very fertile ground for WFH strategies. Multi-cloud solutions, in particular, may continue to be the preferred IT foundation for several businesses as they attempt to become more resilient in the face of digital disruption. As a result, the need for cloud-based models is growing rapidly.
Need for Business Productivity Driving Adoption of Home Office Spending Solutions
Among the various applications, the adoption of home office spending technologies may remain prominent for high business productivity.
When compared to people who work in offices, telecommuters work an average of 1.4 extra days each month. By 2030, the value of deploying home office expenditure solutions in business productivity may be the highest.
However, enterprise communication is also emerging as a significant application area for home office spending solutions and may account for 28% of the market share in 2023.
Malware such as viruses and Trojan horses has significantly increased its ability to infiltrate, control, and damage entire electronic information networks.
Cybercriminals frequently employ malware to gain control of devices or equipment to make money. This is done so that the machine may be used to carry out fraudulent transactions or criminal activities.
Due to the importance of data, information security has become a more viable option. As a result of the aforementioned causes, information security might hold 21.2% of the market share in 2023.
The start-ups operating in the market are developing a platform that provides the people-of-influence with the ability to share their thoughts and interact with others. All this might be taking place in a live video environment. They have developed software solutions that structure meetings around a timer, which allows the hosts to speak to one person at a time.
Panther: The start-up has been providing an all-in-one platform to employ and pay global teams. The company has been taking care of heavy lifting that is involved in international hiring, payroll, benefits, and compliance.
This may allow the companies to employ the best of talents across the globe. In May 2021, Panther raised USD 2.5 million in a funding round that was led by Tribe Capital, Eric Ries, and Carta Ventures.
The strategic collaborations mainly focus on improving the experience of organizations, thereby laying huge emphasis on data security. Through this, the customers can also migrate existing workloads, which may help in capacity expansion as well.
In January 2023, Red Hat and Oracle expanded collaboration to bring Red Hat enterprise Linux to Oracle Cloud Infrastructure.
Key developments in the market:
Dominant players in the market:
| Company | Description |
|---|---|
| Avaya | Avaya has always believed in giving a lot for business communications, whether onprem, cloud, or hybrid. More than 90,000 customers are trusting on the reliable communications provided by the company. Avaya has been providing operations in 190 countries, and is number one leader in contact center solutions. The company’s vision is to reimagine the way people and businesses engage and experience the world. The mission is to reimagine digital communications with innovation that defines the future of work and customer experience. |
| Amazon Web Services | Amazon Web Services is the world’s most comprehensive and broadly adopted cloud platform, offering over 200 fully featured services from data centers globally. Millions of customers, including start-ups, large enterprises, and leading government agencies are using AWS to reduce costs, become more agile, and innovate faster. Amazon Web Services has also been offering the widest variety of databases that are built for different types of applications so that the customer can choose right type of tool. |
| Cisco Systems Inc. | Cisco’s approach to quality can be condensed down to the phrase: ‘ensuring our customer success’. Cisco didn’t just use the internet but has always been building it. And while technology helps to connect the unconnected and inspires the world - that’s not where Cisco’s edge comes from. The company does not just dream, but also does it faster than ever before, in ways no one else can. Cisco has made a meaningful difference for its people, customers, and the world. They support each other and work together to create shared success that may benefit everyone. |
Other key players profiled: Microsoft, Google, Plantronics
North America and Europe are prominent regions in the market.
The market is set to reach USD 29,388.12 million in 2023.
The market captured a CAGR of 13.15% from 2018 to 2022.
Remote work settings are being transformed by technological breakthroughs like smart home offices and video conferencing.
The trend toward eco-friendly and sustainable home office equipment is shaping the market.
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Home Office Spending Market
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