CORPORATE RELOCATION SERVICE MARKET ANALYSIS

The Corporate Relocation Service Market size is expected to reach US$ 28.35 billion by 2030, from US$ 17.66 billion in 2023, at a CAGR of 7% during the forecast period. Corporate relocation services refer to end-to-end solutions offered by third-party vendors to assist in relocating employees domestically or internationally. It covers services such as home marketing assistance, household goods moving, visa processing, school search, cultural training and more. The growth in the corporate relocation market is driven by rising job transfers, increasing expatriate assignments and surge in immigration rates globally.

The Corporate Relocation Service Market is segmented by service type, organization size, end-use industry and relocation type. By service type, the employee relocation segment accounted for the largest market share in 2023. The growth in this segment is attributed to the rising number of job transfers and increasing expatriate workforce. 

Corporate Relocation Service Market Regional Insights

• North America is expected to be the largest market for Corporate Relocation Service Market during the forecast period, accounting for over 40.5% of the market share in 2023. The growth of the market in North America is attributed to the high number of corporate relocations and presence of major relocation service providers in the region.
• The Europe market is expected to be the second-largest market for Corporate Relocation Service Market, accounting for over 25.2% of the market share in 2023. The growth of the market in is attributed to the rising immigration and expatriate workforce in European countries. 
• The Asia Pacific market is expected to be the fastest-growing market for Corporate Relocation Service Market, with a CAGR of over 22.3% during the forecast period. The growth of the market in Asia Pacific is attributed to the expanding corporate sector and rapid economic growth in countries like China, India, and Singapore.

Figure 1. Corporate Relocation Service Market Share (%), by Region, 2023

Corporate Relocation Service Market Drivers

Rising Number of Expatriate Assignments

• The rising number of expatriate assignments is a major factor driving growth in the corporate relocation services market. As companies expand globally, they are sending more employees on overseas assignments. Sending an employee abroad involves significant logistical challenges including visa processing, finding suitable housing, shipping household goods, cultural training and more. This creates substantial demand for end-to-end relocation services to ensure smooth transfers and minimize disruption for employees.
• For instance, according to Finaccord, there were around 50 million expatriate workers worldwide in 2017. Further, Brookfield Global Relocation Services estimates that expatriate assignments are expected to increase by more than 50% in the next five years. With globalization, emerging markets are also attracting expatriates with foreign companies sending executives to expand operations. India, Singapore, China are popular destinations. The growing expatriate workforce globally is thus fueling the demand for specialized relocation services.

Surge in Immigration Rates

• The rising immigration rates globally is another major factor propelling the growth of the corporate relocation services industry. With countries easing visa norms to attract global talent, the number of immigrants moving for work opportunities is increasing significantly. For instance, countries like Canada, Australia, New Zealand, Singapore have favorable immigration policies, driving inbound mobility.
• Relocating to a new country involves language barriers, cultural adjustments, documentation, finding suitable housing and shipping of household goods. Employers need customized relocation support to ensure smooth onboarding and transfers for immigrants. This provides significant opportunities for relocation service providers. According to UN statistics, the number of international migrants globally reached 281 million in 2020, representing a growth of around 41% from 2000. The surging immigrant population worldwide is thus generating greater demand.

Rapid Urbanization and Infrastructural Development

• Rapid urbanization and massive investments in infrastructure globally has led to significant growth in construction and real estate sectors. As new economic and industrial hubs emerge, it has increased job mobility and transfers to these locations. Employees relocating to distant regions within the country has created substantial demand for domestic relocation services for transportation of household goods, home sale services, school searches and more.

Access to Data and Analytics

• The emerging trend of data analytics in relocation industry has provided valuable consumer and market insights to corporate relocation service providers. By leveraging data, companies are able to better understand client requirements and provide customized relocation solutions. Analytics further helps in measuring program ROI, tracking KPIs, identifying cost-saving opportunities and enhancing relocation program optimization.
• Service providers like Graebel are using big data and predictive analysis to develop personalized relocation timelines for transferees. Others are utilizing analytics to benchmark programs and demonstrate year-on-year improvements. The access to data and adoption of analytics by relocation firms is thus enhancing service delivery and enabling them to better address the mobility needs of corporate clients.

Corporate Relocation Service Market Opportunities

Integration of AI and Machine Learning

• The integration of technologies like artificial intelligence and machine learning is expected to provide significant growth opportunities in the corporate relocation services market. AI and ML allow process automation, chatbots for customer service, predictive analytics and customization at scale.
• For instance, relocation firms can leverage ML to analyze past assignment data and create personalized relocation timelines adjusted to specific employee needs. Chatbots can handle basic queries allowing case managers to focus on complex concerns. AI can also match transferee preferences with suitable destinations, housing options and neighborhood amenities.
• Companies like MSI Global and Graebel have already startedPILOTing these technologies to improve their relocation service delivery. Wider adoption of AI and ML will enhance process efficiency, elevate user experience and help firms scale up operations cost-effectively.

Rising Demand for Virtual Relocation Solutions

• The COVID-19 pandemic has accelerated the adoption of digital solutions and created more demand for virtual support models in relocation services industry. Virtual home finding tours, video surveys for household goods, digital cultural training, and remote document processing are gaining significant popularity.
• Relocation firms are innovating with digital tools to enable remote service delivery and minimize in-person interactions, where possible, while maintaining service quality. For instance, companies like Aires and Santa Fe Group now offer interactive virtual house tours for transferees. Others provide video surveys to assess belongings to be transported. The scope for virtual relocation assistance is immense in the post-pandemic world.

Expansion in Emerging Markets

• Emerging economies like China, India, Indonesia, Brazil represent significant untapped opportunities for growth for corporate relocation service providers. Rapid urbanization, investments in transport and real estate, a growing services sector is resulting in rising domestic job mobility in these countries. Furthermore, expatriate assignments to emerging markets are also witnessing substantial growth. 
• Developing customized localized solutions suitable for the unique needs and culture of these countries presents an important opportunity for the relocation industry. Investments to build local capabilities and partnerships with regional providers can help global relocation firms expand their footprint and acquire new clients in high-potential emerging markets.

Offering Additional Value-Added Services

• Corporate relocation service providers have considerable scope for growth by expanding their range of service offerings to provide enhanced value. For instance, tying up with cross-cultural training partners can help firms offer additional cultural assimilation assistance to expatriates and immigrants.
• Providing destination-based services around school search, language training, securing documentations can be an attractive value addition. Partnering with mental health experts to provide counseling and emotional support during transfers also has potential. Offering supplemental services aligned to the relocation process allows firms to provide comprehensive assistance and charge premium pricing.

Corporate Relocation Service Market Trends

Adoption of Cloud-based Relocation Management Systems

• The corporate relocation industry is increasingly adopting cloud-based management platforms to enhance process efficiency, access and collaboration. Cloud-based systems allow all stakeholders – employers, transferees, case managers, suppliers – to access real-time information and track progress through a centralized dashboard.
• For instance, Equus Software offers a relocation management platform which integrates various modules like case management, surveys, expense reporting, and data analytics on the cloud. The anytime, anywhere access enhances transparency and allows quicker query resolution. Other benefits include reduced IT costs, flexible scalability, easy integration with other tools and minimal learning curve. More firms are thus shifting towards cloud-based relocation management systems.

Big Data and Analytics Driving Decisions

• Corporate relocation service providers are leveraging big data and analytics to gain insights that can inform strategic decisions and future investments. By tracking metrics across the relocation process, firms are able to identify pain points and enhance service delivery.
• Data also enables accurate policy benchmarking, program performance measurement and demonstration of year-on-year ROI improvements to clients. Analytics uncovers cost-saving opportunities and helps optimize overall program spend. For instance, AI-powered analytics by Equus identifies duplicate claims and exceptions. Data thus drives smarter decisions. According to Deloitte, 77% of relocation managers rely on analytics to optimize their programs.

Focus on Mental Wellbeing

• Traditionally concentration in relocations has centered around logistics but the industry is now increasingly focusing on transferee mental wellbeing. Relocations can be emotionally challenging for employees. Leaving friends and family, culture shock, language barriers, can significantly impact mental health.
• More relocation firms are partnering with psychologists, therapists and mental health coaches to provide counseling and emotional support when needed. Others offer access to meditation apps, mental health solutions to help transferees adjust better. Providing resources to help employees cope with anxiety and stress is critical for successful assignments. Thus, psychological and emotional wellness is gaining prominence.

Self-service and Relocation Apps

• Advances in technology are enabling greater self-service options and relocation mobile apps for transferees. Apps provide guidance, real-time tracking of shipments, document uploads, expense reporting and chat support during relocations.
• For instance, Plus Relocation offers an app for employees which integrates tasks, reminders, chatbots for FAQs and document storage to simplify relocating.Similarly, Graebel’s self-service portal allows employees to independently track and execute various relocation tasks. The convenience of mobile access is resulting in growing popularity of self-service tools among tech-savvy employees.

Corporate Relocation Service Market Restraints

High Costs and Budget Constraints 

• The costs associated with comprehensive relocation services act as the major barrier to higher adoption. Services such as home marketing and sale, temporary housing, spouse career assistance involve steep charges. Long-distance international relocations can cost upwards of $1 million per employee. Many companies are also constrained by limited mobility budgets.
• The high costs often lead corporates to limit service scope only to essential logistics support. Mandating transferees to handle certain aspects independently is also a technique employed to reduce program costs. Self-funding and capping reimbursements are other methods companies utilize to control overall spend. The high costs involved hence remain the key limiting factor.

Disruption from COVID-19

• The COVID-19 pandemic resulted in severe disruptions for corporate relocation programs from 2020 to early 2022. Widespread lockdowns, border restrictions, quarantines, and health concerns fundamentally impacted global mobility. According to a FIDI report, there was an 80% drop in international relocations in 2020. Domestic volumes also declined by 20-25% in 2020.
• New COVID waves continue to create uncertainty. Travel restrictions changing frequently affect expatriate transfers timings. Delayed visas and complex protocols pose challenges. Health risks also make employees reluctant to relocate to certain destinations. While conditions are improving gradually, COVID-19 disruptions have been a major restraining factor for the relocation services industry.

Figure 2. Global Corporate Relocation Service Market Share (%), By Service Type, 2023

Recent Developments

New product launches

• In March 2022, Graebel Companies launched a streamlined bid management system to simplify the relocation bidding process for clients. The new system is expected to reduce cycle times and improve relocation program optimization.
• In January 2021, Santa Fe Group launched a virtual home finding program to enable remote home searches for relocating employees. The program provides interactive video tours and uses AI to match employee preferences.
• In June 2020, Cartus introduced a real-time tracking mobile app called CartusOnTheMove to enable employees to track their shipments during relocations. The app provides visibility and reduces anxiety during relocations.

Acquisition and partnerships

• In October 2022, Crown Worldwide acquired France-based relocation provider, AIX Mobilité to expand its global footprint in Europe. The acquisition enhanced Crown's service capabilities in France.
• In June 2021, Santa Fe Group acquired China-based relocation provider Cambridge Relocation Services to expand its presence in Asia Pacific market.
• In March 2020, Graebel Companies partnered with employee experience platform Perkbox to integrate wellbeing perks into its relocation offerings. The partnership aims to reduce stress during relocations.

Top companies in Corporate Relocation Service Market

• Graebel Companies
• SIRVA
• Relocation Management Company (RMC)
• Crown Worldwide
• Santa Fe Group
• FIDI Global Alliance
• MSI Global Talent Solutions
• Cartus  
• Atlas Van Lines
• Allied Van Lines
• NorthAmerican Van Lines
• Arpin Van Lines
• Wheaton World Wide Moving
• United Van Lines
• Mayflower Transit
• Bekins
• Beltmann Relocation Group
• Corrigan Moving Systems
• Clark & Reid
• Eclipse Relocation

*Definition:  The corporate relocation service market refers to the industry catering to end-to-end employee relocation needs of organizations globally. Corporate relocation services include household goods moving, home sale assistance, visa processing, cultural training, school search, temporary housing, home finding and other support services to relocate employees domestically or internationally. The market has key players offering customized relocation solutions to corporate clients across industry verticals. With rising immigrant workforce and job transfers, the market is driven by the growing need for seamless relocation logistics across regions.