North America coworking space market is expected to Reach USD 10.97 billion by 2030

The increasing number of startups and the introduction of blockchain technology in coworking spaces is driving the industry growth.

According to a new research report by Next Move Strategy Consulting, the global North America coworking space market size was valued at USD 5.34 billion in 2023, and is expected to reach USD 10.97 billion by 2030, with a CAGR of 10.3% during the forecast period, 2024–2030.

The burgeoning number of startups in North America significantly contributes to the expansion of coworking spaces across the region. North America, especially the U.S. and Canada, is renowned globally as a hub of innovation and entrepreneurship, with the U.S. hosting numerous startup ecosystems. This growth is fueled by factors such as access to abundant resources, supportive regulatory frameworks, and a culture that fosters risk-taking and innovation. In 2023, U.S. investors injected a substantial USD 170.6 billion into startups, highlighting the robust investment landscape that further propels the growth of new ventures. As startups flourish, the demand for flexible and cost-effective workspace solutions provided by coworking spaces rises, offering an environment conducive to collaboration, networking, and productivity, thus becoming integral to the dynamic entrepreneurial ecosystem in the region.

Moreover, the emergence of hybrid work arrangements is fueling the expansion of the coworking spaces market in North America. As more employees adopt hybrid approaches that blend remote and in-office work, there is a soaring demand for flexible and collaborative workspace solutions provided by coworking spaces. Employers are adapting by embracing people-centric work design, emphasizing flexibility, intentional collaboration, and empathetic management practices, all of which resonate with the needs of hybrid workers navigating a flexible work environment. A 2023 Gartner study underscores the prevalence of the hybrid work trend, particularly in the U.S., where 51% of knowledge workers have embraced hybrid work arrangements. This significant adoption translates into a combined 71% of the U.S. workforce engaging in fully remote or hybrid work by 2023, shaping the future of work in the region with coworking spaces playing a pivotal role.

Furthermore, as the demand for coworking spaces continues to rise, the need for efficient management and transparent operations becomes increasingly apparent. In response, blockchain technology emerges as a transformative force, offering numerous benefits that redefine the coworking landscape. Industry leader WeWork showcases blockchain integration by accepting select cryptocurrencies for payment, signaling a notable shift towards blockchain adoption. This technology streamlines various processes, from space bookings to billing, enhancing operational efficiency and trust within coworking ecosystems. Additionally, blockchain extends beyond operational improvements to optimize broader coworking-operator processes like procurement and membership agreements, establishing more secure, efficient, and cost-effective systems.

However, the lack of exclusivity poses a significant challenge to the growth of the coworking spaces market in North America. Unlike private offices offering dedicated spaces tailored to specific business needs, coworking spaces often provide memberships with unlimited access to communal workspaces for various types of companies. This lack of exclusivity can lead to overcrowded spaces and limited access to amenities such as meeting rooms. Moreover, the open nature of coworking spaces means individuals and businesses cannot guarantee working alongside like-minded professionals or within a community aligning with their goals and values, hampering their appeal.

On the other hand, a notable trend shaping the future of coworking spaces is the evolution towards Coworking-as-a-Service (CaaS), offering comprehensive service offerings beyond mere physical spaces. CaaS recognizes users' expectations for additional benefits tailored to their needs, going beyond flexible workspaces and desks to include perks like 24-hour keycard access, mentorship programs, and access to venture capital. Leveraging digital technology, CaaS streamlines operations, offering niche spaces tailored to specific communities, fostering mentorship opportunities, and reducing administrative burdens for users. Moreover, there's a growing emphasis on sustainability within CaaS offerings, aligning with the values of environmentally conscious users.

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According to the report, leading players operating in the North America coworking space market include International Workplace Group (IWG), WeWork Inc., Vast Coworking Group, Industrious LLC, Premier Workspaces, Convene, Workstyle Flexible Spaces, Expansive, Newmark Group, Inc., Serendipity Labs and others. 

Key Insights from the North America coworking space Market Report:

• The information related to key drivers, restraints, and opportunities and their impact on the North America coworking space market is provided in the report.

• The value chain analysis in the market study provides a clear picture of the role of each stakeholder.

• The market share of the players in the global North America coworking space market along with their competitive analysis are provided in the report.

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