PUBLISHER: The Business Research Company | PRODUCT CODE: 1807859
PUBLISHER: The Business Research Company | PRODUCT CODE: 1807859
Small office home office (SOHO) refers to a category of business or workplace characterized by its small size, typically having a limited number of employees, often just one or a few individuals. The office serves as a space for business-related tasks, including administrative duties, potential client meetings, communication, and fulfilling other professional obligations.
The main products of small office home offices are cloud services, managed services, network services, and security services. Cloud services are services provided over the internet, such as data storage, software applications, and computing power, allowing businesses to access and use resources remotely on a pay-as-you-go basis, it used in small businesses and home offices, and it used for retail, it and telecom, healthcare, manufacturing, education financial services: other end-users.
Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.
The sharp rise in U.S. tariffs and the ensuing trade tensions in spring 2025 are taking a toll on the professional services sector, especially within legal, consulting, architectural, and engineering fields. Increased duties on imported technology, software, office hardware, and digital infrastructure have pushed up operational costs for firms that rely on global systems and resources. Cross-border consulting engagements are experiencing delays and higher expenses due to elevated travel costs and limited access to international data and tools. Moreover, industries heavily impacted by tariffs such as manufacturing, construction, and logistics are reducing their reliance on outsourced services, dampening demand for professional support. In response, service providers are reassessing pricing models, strengthening ties with domestic vendors, and accelerating the adoption of AI and automation to maintain profitability and client satisfaction in an increasingly volatile environment.
The main products of small office home offices are cloud services, managed services, network services, and security services. Cloud services are services provided over the internet, such as data storage, software applications, and computing power, allowing businesses to access and use resources remotely on a pay-as-you-go basis, it used in small businesses and home offices, and it used for retail, it and telecom, healthcare, manufacturing, education financial services: other end-users.
The small office home office services market size has grown strongly in recent years. It will grow from $24.82 billion in 2024 to $26.85 billion in 2025 at a compound annual growth rate (CAGR) of 8.2%. The growth in the historic period can be attributed to internet connectivity, flexible work arrangements, increasing entrepreneurship, and small business growth, and urbanization and congestion.
The small office home office services market size is expected to see strong growth in the next few years. It will grow to $36.73 billion in 2029 at a compound annual growth rate (CAGR) of 8.1%. The growth in the forecast period can be attributed to Remote Collaboration Tools, Cloud Computing Adoption, Flexible Work Policies, E-Commerce Growth, and Government Support Programs. Major trends in the forecast period include hybrid work models, virtual events and conferences, 5G-enabled connectivity, cybersecurity innovation, sustainable home offices, edge computing for SOHO.
The forecast of 8.1% growth over the next five years reflects a slight reduction of 0.1% from the previous projection. This reduction is primarily due to the impact of tariffs between the US and other countries. Tariff escalations are likely to challenge U.S. remote workers by increasing expenses for cloud collaboration tools and ergonomic office equipment developed in Sweden and Japan, potentially reducing productivity while raising home office setup costs. The effect will also be felt more widely due to reciprocal tariffs and the negative effect on the global economy and trade due to increased trade tensions and restrictions.
The rise in the remote work culture is expected to propel the growth of the small home office market going forward. Remote work culture refers to the shift in organizational norms and practices that enable employees to perform job duties outside a traditional office setting, often from their homes or other remote locations. As more companies adopt flexible work arrangements, there is a growing demand for home office setups to accommodate remote work needs. Remote work culture uses small office home office (SOHO) setups to allow individuals to work efficiently and flexibly from their homes, fostering productivity, work-life balance, and cost-effectiveness. For instance, in February 2023, according to the Office for National Statistics (ONS), a UK-based government agency, 44% of UK workers were working in some form of remote capacity, 16% were full-time remote workers, and 28% were hybrid workers who split their time between office and home-based work. In contrast, in 2022, the number of people working remotely in the UK was 30% of the workforce. Therefore, the rise in remote work culture is driving the growth of the small office home office market.
Leading companies in the Small Office Home Office (SOHO) market are increasingly focused on creating a boundaryless work environment that supports flexibility and connectivity. This approach minimizes traditional barriers like physical offices, rigid hierarchies, and time constraints, enabling seamless collaboration and remote work adaptability. For example, in February 2024, Turing, a US-based company, introduced a comprehensive remote work guide aimed at helping businesses and employees navigate the boundaryless workspace. This approach allows individuals to work from preferred locations, supports cross-location communication, and helps organizations rapidly respond to evolving market demands, thereby boosting productivity and work-life balance in the SOHO market.
In January 2022, WeWork Inc., a US-based coworking space and related services provider, acquired Common Desk for an undisclosed amount. With the enhanced support from WeWork, Common Desk will utilize WeWork's ten years of experience in member services to enhance our members' expertise and use WeWork's impressive client list to expand WeWork's member base further. Common Desk is a US-based flexible workspace provider.
Major companies operating in the small office home office market are Netgear Inc, QNAP Systems Inc, Microsoft, STMicroelectronics, Western Digital Technologies Inc., ASUS, Synology, Apple, Cisco Systems Inc., Dell Technologies, Dropbox, Google LLC, HP Inc., Intuit Inc., Legalzoom, Mailchimp, Salesforce Inc., Logitech International S.A., Dropbox Inc., LogMeIn Inc., Netgear Inc., Seiko Epson Corporation, Mailchimp Inc., LegalZoom Inc., Synology Inc., QNAP Systems Inc
North America was the largest region in the small office home office market in 2024. The regions covered in the small office home office market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the small office home office market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The small office home office market includes revenues earned by entities by freelance services, consulting, virtual assistance, and digital marketing services. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
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.
Small Office Home Office Services Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on small office home office services market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for small office home office services ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The small office home office services market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.