Office Pods Market Size, Share & Industry Analysis, By Product Type (Office Phone Booths, Meeting Pods, Work Pods, Nap Pods, and Others), By Capacity/Size (Single Person Pod, 2 Person Pods, 3-4 Person Pods, and Larger Pods), By Category (Economy, Premium, and Luxury), and Regional Forecast, 2024-2032

The global office pods market size was valued at USD 0.46 billion in 2023. The market is projected to grow from USD 0.51 billion in 2024 to USD 1.12 billion by 2032, exhibiting a CAGR of 10.30% over the forecast period.

Office pods, also known as privacy pods and acoustic pods, are self-contained moveable structures and modular workspaces designed to provide privacy and focus for employees within open or shared office environments. These products are typically soundproof and equipped with various features, including power outlets, ventilation, and furniture. Various prominent players are operating in the market, including Framery OY, Mikomax Smart Office, SnapCab, Zenbooth, Persy Booths, and others.

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MARKET DYNAMICS

Market Drivers

Increasing Office Spaces Worldwide to Drive Market Growth

Companies prioritize expanding their infrastructure, including offices, to support their business activities and operations. Rapid urbanization and economic growth also trigger demand for commercial spaces, such as offices. These factors have resulted in the opening of new office spaces across countries. Moreover, as the demand for well-planned workspaces, including privacy areas for phone calls and meetings, increases to fulfill the evolving needs of businesses, the addition of amenities, such as pods will increase in offices in the future. This will significantly drive the global office pods market growth. For instance, according to an office market report released in July 2024 by the Property Council of Australia, an Australia-based government office emphasizing the country’s property industry, the office space demand in non-CBD (Central Business District) and CBD areas was positive.

Cost-Efficiency of Office Pods to Increase their Adoption and Fuel Market Growth

Meeting and conference rooms are essential in offices for communication, conferences, and collaborations; however, constructing them can be costly. Office pods assist companies in reducing this cost as they are pre-fabricated, which is more economical and time-saving than the traditional construction methods. Moreover, they are easy and convenient to set up. As a result, the product’s cost efficiency makes it a suitable investment for companies and fuels its demand. According to Framery and CBRE, the cost of developing meeting rooms in the U.S. offices is nearly 55% more (on average) than that of Framery pods.

Market Restraint

Health Concerns & Limited Capacity to Impede Product Adoption

Office pods offer various benefits to the company; however, they also have disadvantages that can negatively influence their adoption. Installing pods in offices requires careful planning to ensure that they don’t disturb the workflow. Moreover, office pods' health and safety hazards can further affect their sales in the coming years. The product can release Volatile Organic Compounds (VOCs), which cause respiratory problems and aggravate allergies. These health issues associated with the product have led several companies to avoid installing them.

Global Office Pods Market Trends

Increasing Demand for Smart & Eco-Friendly Office Pods to Provide Market Growth Opportunities

The rapidly growing sustainability trend and adoption of eco-friendly products at offices across countries will provide growth opportunities for the global market. Office pods reduce construction waste and include energy-efficient features and eco-friendly materials. As a result, they create a greener workspace and promote a cleaner environment, which will trigger their demand across the world. Moreover, office pods for home are becoming popular due to the rising work-from-home culture and to give employees privacy while working. Furthermore, offices worldwide are increasingly demanding smart products that enhance the overall work experience through design and technology. These pods can also assist in saving costs and improving the workers' wellbeing and productivity. As companies emphasize developing modern workspaces, the demand for smart products with upgraded technology will also increase rapidly.

Impact of COVID-19

The COVID-19 pandemic significantly impacted the market owing to travel restrictions and lockdowns imposed by governments across the world in 2020. Most offices worldwide were shut down and employees were working from home. Moreover, the pandemic disrupted manufacturing and supply chains, leading to production delays due to raw material shortages, factory shutdowns, and transportation disruptions. Furthermore, with social distancing regulations in place and increased health concerns, the demand for office pods with air purification, touchless technology, and easy-to-clean surfaces proliferated globally.

SEGMENTATION ANALYSIS

By Product Type

Increasing Number of Offices Worldwide to Boost Demand for Meeting Pods

The global market is segmented into office phone booths, meeting pods, work pods, nap pods, and others, based on product type.

The meeting pods segment dominated the market in 2023 owing to its widespread availability and the increasing number of new offices, especially open plan offices. Meetings are essential for business growth as they help keep track of the processes and enable effective collaborations, clear communications, taking feedback, and making decisions. In this respect, companies are focusing more on growth and expansion, which will propel the demand for meeting pods.

The work pods segment is expected to grow steadily throughout the forecast period due to the companies’ increasing efforts to improve employees’ focus and boost overall productivity. Moreover, businesses are seeking advanced solutions to enhance productivity and employee wellbeing, thereby boosting the demand for work pods in the coming years.

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By Capacity/Size

Increasing Adoption of Open Offices to Fuel Growth of 3-4 Person Pods

The global market is segmented into single-person pods, 2-person pods, 3-4 person pods, and larger pods, based on capacity/size.

The 3-4 person pods segment dominated the market in 2023 owing to the increasing adoption of an open office format that enhances flexibility and does not result in a noisy environment. Moreover, three-to-four-person office pods allow the users to communicate efficiently by blocking external noise, thus fueling the segment’s growth.

The 2-person pods segment is expected to grow significantly in the coming years. The increasing use of pods for confidential discussions throughout offices will drive the segment’s expansion. Furthermore, the product is expected to become an essential addition to workspaces to boost productivity, comfort, and privacy.

By Category

Extensive Product Availability to Favor Expansion of Premium Segment

The market is segmented into economy, premium, and luxury, based on category.

The premium segment dominated the market in 2023 due to the extensive product availability. Premium office pods are of better quality and cost more than economy office pods. Moreover, the multiple features of premium pods enhance work productivity, increasing their adoption across offices worldwide.

The economy segment is expected to grow significantly throughout the forecast period. Small-scale businesses and startups with a limited budget typically prefer economy office pods. Moreover, the opening of new startups and small-size companies worldwide will boost the segment’s growth in the future.

Global Office Pods Market Regional Outlook

Geographically, the global market is segmented into North America, Europe, Asia Pacific, and the rest of the world.

Asia Pacific

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Asia Pacific dominated the market in 2023. The rising number of working individuals across countries, including China, India, Japan, and South Korea, will propel the market growth. According to the National Bureau of Statistics of China, a government agency, over 470.32 million employed individuals worked in urban areas across China in 2023. Moreover, increasing health awareness among individuals and companies and growing health concerns, including mental fatigue, chronic back pain, and musculoskeletal issues, will boost the product’s demand across the region.

Europe

Europe is expected to grow significantly throughout the forecast period. Growing demand for flexible workspaces and rising focus on employee health & well-being across the region will drive the market’s growth. Moreover, an increasing number of working individuals across countries, including the Netherlands, the U.K., Germany, Switzerland, and Sweden, will boost the product’s demand. According to the European Union, a government agency, the employment rate in Europe was 75.3% in 2023.

North America

North America is expected to grow significantly throughout the forecast period. The presence of various multinational companies and increasing number of new corporate spaces across the U.S. and Canada will drive the market’s growth. Moreover, the rising popularity of co-working spaces and growing awareness regarding employee health & well-being across the region will boost the product’s demand.

The U.S. is the most prominent country in the region owing to the presence of multinational companies and growing number of corporate employees. Furthermore, the increasing absenteeism rate in companies due to rising noise levels, lack of privacy, and distracted focus will increase the product demand nationwide. According to the U.S. Bureau of Labor Statistics, a government agency, the total absenteeism rate in the U.S. was 3.1%.

Rest of the World

Product demand in the rest of the world markets is forecast to witness positive growth in the future. The rising popularity of co-working spaces owing to increasing hybrid work across countries, including the UAE and Saudi Arabia will fuel the market’s growth. Moreover, surging office rent rates across the UAE, South Africa, and Saudi Arabia owing to the influx of new foreign businesses will boost the popularity of co-working spaces. The increasing number of working individuals and growing number of startups across Brazil and Argentina will also propel the demand for office pods, thereby offering cost-saving options for startups and small & medium companies.

COMPETITIVE LANDSCAPE

Key Industry Players:

Prominent Players to Focus On New Launches to Diversify Their Portfolios

Intense competitive rivalry characterizes the global market. Prominent international market players are leveraging their strong brand loyalty and presence to stay ahead of the competition. Several major companies are focusing on launching new products with innovative features, including occupancy sensors, power access, frosted glass doors, adjustable LED lights, motion sensor ventilation, and IoT connection, to diversify their portfolios and boost product sales.

Major Players in the Office Pods Market

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Framery OY, Mikomax Smart Office, Steelcase, SnapCab, and Persy Booths are the prominent players in the market. The global market is fragmented, with the top 5 players accounting for around 44% of the market share.

List of Key Office Pods Companies Profiled:

• Allied Modular Building Systems (U.S.)


• Framery Oy (Finland)


• Hecor Co., Ltd (China)


• Mikomax Smart Office (Poland)


• Niveeta Corporation (India)


• Persy Booths (Germany)


• ROOM (U.S.)


• SnapCab (U.S.)


• Steel Case (U.S.)


• Zenbooth (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• September 2024: Herman Miller, a U.S.-based office furniture company, launched its new range of ergonomic office pods, Bay Work Pod. According to the company, the new product features a fan cover, dimmable lights, an occupancy sensor, power access, and a frosted glass door.


• March 2024: Hushoffice, a U.K.-based office furniture company, introduced its new collection, Class A HushFree acoustic pods designed for workspaces. According to the company, the product is available in three sizes: small (one individual), medium (four individuals), and large (six individuals).


• September 2023: Clear Design, a U.S.-based office furniture company, unveiled its COVE Office Pod collection. According to the company, the new product line is available in three privacy styles: the 2-person Pod, Room Pod, and Phone Booth.


• May 2022: SnapCab, a U.S.-based quiet space & elevator interiors company, launched its new dedicated video-conferencing single-person pod, The Link.


• February 2021: Framery, a Finland-based pods and booths company, introduced its new connected phone booth for workplaces, Framery One. According to the company, the new product features a digital ecosystem and 4G technology for video conference calls.

Investment Analysis and Opportunities

The market report provides a comprehensive investment analysis and opportunities to provide investors and business leaders with actionable insights. It also highlights potential investment opportunities, including new product launches, increasing production capacity, strengthening retail presence, technological advancements, and geographic expansions.

REPORT COVERAGE

The report analyzes the market in depth and highlights crucial aspects, such as prominent companies, types, applications, and distribution channels. Besides this, it also provides insights into the global market trends and highlights significant industry developments.

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Report Scope & Segmentation