Co-Working Space Market by Business Type (Conventional Coworking, Professional Coworking, and Others), by Business Model (Sub-Lease Model, Revenue Sharing Model, and Owner-Operator Model), and by End User (Independent Professionals, Startup Teams, and Small to Medium Sized Enterprises) – Global Opportunity Analysis and Industry Forecast 2022-2030

Market Definition:

The Co-Working Space Market size was valued at USD 6.89 billion in 2021 and is predicted to reach USD 24.00 billion by 2030 with a CAGR of 14.9% from 2022-2030.

The co-working space is a shared place that can accommodate employees of more than one company or set of independent individuals. It provides shared infrastructure to multiple people or groups at a much cheaper cost compared to traditional offices. Coworking spaces enhance the feeling of community, creativity, fun, flexibility, accessibility, and sustainability. Also, it offers a variety of amenities like meeting rooms, private offices, hot desk space, private cabin space and shared workstations in an open plan. In addition, they work on a flexible pay-as-you-go membership model which enables users to save a lot of additional costs by allowing the pay for what they use.

Moreover, coworking typically operates on a monthly club membership or subscription fee, which includes access to many additional facilities like cafeteria and others. With the rising cost of rents in tier 1 and tier 2 cities, many SMEs and entrepreneurs are choosing coworking spaces to gain access to better facilities at a cheaper cost.

Market Dynamics and Trends:

Increasing number of startups is driving the growth of co-working space market as they are opting for coworking spaces owing to increasing rent of private office spaces. For instance, according to a survey in 2020, nearly 1.4 million startups were founded in the third-quarter quarter of 2020, a 49% increase over the second quarter of 2020 and a 67% increase over the previous third-quarter startup high set in 2018.

Coworking spaces are not only helping to reduce the cost of rent but also additional utilities such as desk, high-speed Wi-Fi connection, coffee, meeting rooms, recreation zones and many others. Also, coworking spaces help startups in acquiring new talents from number of freelancers working together with them on a day-to-day basis, which in turn reduces the cost of recruitments. Thus, fueling the growth of the market.  Moreover, increasing investments in niche coworking spaces such as women only spaces, LGBTQ+ spaces, and other social groups are expected to provide lucrative opportunity as they are becoming popular to accommodate the growing diversity in SMEs such as on-premise childcare and other.

However, the low awareness regarding coworking spaces is hampering the growth of the market. This is attributed to huge misconception among many SMEs and startups from various industry vertical that coworking spaces is only for IT sector as they mainly work from their devices. According to a poll, just 20% of office workers attend a coworking space once a month, leaving a big portion of the population (80%) without general awareness regarding such spaces. In addition, coworking means sharing workspace with strangers, which in turn creates problem for many workers to adapt to unknown people and environment of the spaces.

Market Segmentations and Scope of the Study:

The co-working space market is segmented based on business type, business model, end user and geography. On the basis of business type, the market is divided into conventional coworking, professional coworking, and others. On the basis of business model, the market is categorized into sub-lease model, revenue sharing model, and owner-operator model. On the basis of end user, it is segmented into independent professionals, startup teams, and small to medium sized enterprises (SMEs). Geographic breakdown and analysis of each of the aforesaid segments includes regions comprising of North America, Europe, Asia-Pacific, and RoW.

Geographical Analysis:

North America region holds the lion share of co-working space market at present and is expected to continue dominating the market during the forecast period. This is due to the highest number coworking spaces in terms of size, with an average of 9,799 sq.ft. per space are available in this region. This huge demand for coworking space is fueled by growing adoption of flexible work practices, service offices and remote teams.

However, Asia-Pacific is expected to witness a steady rise in the co-working space market owing to increase in awareness related to the significant advantages of coworking space among the population in this region.

Competitive Landscape:

The co-working space market comprises of various market players such as Regus Group Companies, TechSpace Inc, Knotel Inc, SimplyWork, Talent Garden S P A, Premier Workspaces, KR Space, Convene, Servcorp Limited, Expensive, and Wework Management LLC. These market players are adopting various joint venture strategies and planning expansion of their businesses across various regions to maintain their dominance in the coworking space market.

For instance, in October 2020, Simpliwork had announced that they have taken up 250,000 square feet of office space in Pune, India on lease so, that they can cater the Saas and IT companies in the city. Also, in April 2021, Premier Workspaces had announced that they are planning to acquire 100 new distressed coworking offices.  The company would be able to do this by backing of their company investor that are holding multi-billion-dollar real estate.

KEY BENEFITS:

• The co-working space market report provides the quantitative analysis of the current market and estimations through 2022-2030 that assists in identifying the prevailing market opportunities to capitalize on.

• The study comprises a deep dive analysis of the co-working space market trend including the current and future trends for depicting the prevalent investment pockets in the market.

• The information related to key drivers, restraints and opportunities and their impact on the co-working space market is provided in the report.

• The competitive analysis of the market players along with their market share in the co-working space market

• The SWOT analysis and Porters Five Forces model is elaborated in the study.

• Value chain analysis in the market study provides a clear picture of the stakeholders’ roles.

KEY MARKET SEGMENTS:

By Business Type

• Open/Conventional Coworking Spaces

• Corporate/Professional Coworking Spaces

• Others

By Business Model

• Sub-lease Model

• Revenue Sharing Model

• Owner-Operator Model

By End User

• Independent Professionals

• Startup Teams

• Small to Medium Sized Enterprises (SMEs)

• Large Scale Corporations

By Geography

• North America

  • U.S.

  • Canada

  • Mexico

• Europe

  • UK

  • Germany

  • Italy

  • France

  • Netherland

  • Denmark

  • Finland

  • Norway

  • Sweden

  • Russia

  • Rest of Europe

• Asia-Pacific

  • China

  • India

  • Japan

  • Australia

  • South Korea

  • Singapore

  • Taiwan

  • Vietnam

  • Rest of Asia-Pacific

• Rest of World

  • Brazil

  • South Africa

  • Nigeria

  • Israel

  • KSA

  • Turkey

  • Remaining Countries

REPORT SCOPE AND SEGMENTATION: