COWORKING SPACE MARKET REPORT OVERVIEW

The size of the worldwide coworking space market was estimated at USD 7 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 3.3% to reach USD 9 billion by 2032.

Coworking spaces are places where employees from different companies share office space, allowing for lower costs and greater convenience by sharing utilities, equipment, and other services. Remote workers, independent contractors, and other such people are drawn to this kind of environment. In addition, these areas benefit workers by reducing the sense of social isolation they may feel when working from home or on the road. A lot of these areas require a membership fee.

Coworking spaces can be classified as either real estate-based, which focuses on selling furniture first, or community-centered, which focuses on creating a community that also includes furniture. Businesses target independent contractors, remote workers, and small- to medium-sized businesses that are looking for a place to call home and a community with a collaborative attitude.

COVID-19 Impact: Coworking Spaces Market Experienced A Sudden Shut Down

Due to the unusual and startling global COVID-19 epidemic, demand for coworking spaces has exceeded expectations in every region when compared to pre-pandemic levels. The coworking space market's expansion and demand going back to pre-pandemic levels after the pandemic is finished are the reasons for the CAGR jump.

Because these shared spaces are about people coming together and working under one roof without offices to divide them, the market suffered a decline in share during the COVID-19 pandemic. This could not continue to be the case during the pandemic, and as a result, this market experienced a rapid fall at the start of the pandemic. These areas remained unoccupied as workers were forced to transition to working from home. 

LATEST TRENDS

Coworking Culture Will No Longer be Restrained to Just Cities

Many employees, many of whom were stationed in residential areas, made the switch to work from home at the beginning of COVID-19. However, as time went on, the employees started to encounter a number of distractions and a sense of isolation that limited their ability to be productive and focused. In order to give their employees a physical workplace to visit and network with others while still having the convenience of working near their homes, coworking space operators planned to expand their services to residential regions and smaller towns in 2022. In 2022, however, these spaces will expand their perks to include child care support, fitness facilities, and other benefits because many office workers are desperate to discover ways to better manage their work-life balance.

 COWORKING SPACE MARKET SEGMENTATION

• By Type

Based on type, the market is divided into Flexible Managed Office & Serviced Office

• By Application

Based on application, the market is distributed into Personal User, Small Scale Company, Large Scale Company & Others

DRIVING FACTORS

Partnership Between Real Estate Players and Open Space Providers For Better Services

 With the increasing fame of these open spaces; real estate corporations have begun showing engrossment in this sector. Several of the older contenders are contributing to the coworking space market growth in larger cities where enterprises can choose for the whole space and just change the interiors to match their taste. Many of the real estate players are collaborating with open space contributors. With credited names and best of the services, patrons are also taking advantage of this brilliant chance.

Considerable Acquisition By Start-Ups to Drive the Market

In recent times, there has been a steady increase for open spaces among start-up firms and the self-employed. Malleable rent choices, top infrastructure quality, community network occasions and advanced satisfaction are few of the primary elements that start-ups and the self-employed go for these spaces. Individual now can get ‘Uber cool’ office spaces at reasonable rates which is an ideal mixture of mini funding’s and palpable welfare that help them increase and occupy their prosperity in engaging the correct resources and growth.

RESTRAINING FACTORS

Open Spaces Lead to Disturbances Causing Lack of Productivity

A large majority of employees prefer to work in silence to get their job done but in case of open spaces this is not really possible. In an open space environment there are always some forms of distractions such as conversations, phones ringing, or even loud keypad typing. Thus, in these instances employees who are more productive in a quiet setting struggle to concentrate and might even experience low productivity. Restricting noise in open spaces can be a challenge but the organisation could reduce the distractions by funding noise eliminating headphones or even occupying offices that provide quiet spaces.

COWORKING SPACE MARKET REGIONAL INSIGHTS

North America to take the lead in Global Market

Coworking space market share will be dominated by North America followed by Asia pacific as the fastest growing. Even though decline was seen during the pandemic, by 2022 onwards there will be a sharp increase in the number. This is due to the result of the latest demand from organisation clientele continuous seizing to broaden into new up and coming locations.

KEY INDUSTRY PLAYERS

Technical Developments Help Key Players to Sustain Market Position

The foremost contenders of this coworking space market are paying close attention to the technical developments in order to expand regulations. The long term growth of this market can be taken by persisting the ongoing development advancement and the monetary strength to participate in the leading policies.

List Of Top Coworking Space Companies

• WeWork (U.S.)
• Regus Corporation (IWG Plc) (Switzerland)
• Knotel Inc. (U.S.)
• Make office (U.S.)
• Convene (U.S.)

REPORT COVERAGE

This report covers what coworking space is all about, how the COVID-19 pandemic had a negative impact on these shared working spaces. The latest trends in the market, the driving factors and the restraining factors which affect the coworking space market. The industry leaders and what all they are doing to stay at topof their game.