The global employee relocation management market is forecast to grow by 3-4 per cent until 2021, according to a report by procurement intelligence company Beroe Inc. This means the current $31.5bn worldwide market is expected to reach $33.5bn by next year.
Beroe said the increase is being driven by a growing number of assignments in the US, Western Europe, Australia, Singapore, Japan, India and China, which are boosting demand for relocation services. IT and consulting assignments are on the rise, while the growth in Fortune 500 company operations in developing economies has increased outsourcing of relocation services to global providers.
The company says the most influential trends in the market are: technology – such as relocation management software support; an increase in the number of female assignees; use of data analytics; outsourcing; and consecutive assignments.
According to Beroe, ongoing challenges for the employee relocation management market include compliance, difficulty with service delivery channels, costs of international assignments, and tiered policies.
The report states that North America is the world’s largest market – currently worth $15.6bn – and is growing at 2-3 per cent annually, while Asia-Pacific is the fastest growing region, at 7–8 per cent.
Beroe says ‘high market maturity’ regions include the US, UK, Australia and Western Europe; ‘medium market maturity’ regions include Brazil, China and Singapore; while ‘low market maturity’ covers North Korea, Vietnam, Indonesia, African countries, Chile, Colombia and Peru.
North Carolina-based Beroe works with more than 10,000 companies worldwide, including 400 of the Fortune 500 companies.