Coworking Space Market Size, Share, Growth, and Global Industry Analysis, By Type (Flexible Managed Office & Serviced Office), By Application (Personal User, Small Scale Company, Large Scale Company & Others), Regional Insights, and Forecast To 2031

Updated On: 11 September 2023

COWORKING SPACE MARKET REPORT OVERVIEW

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The global coworking space market size is expected to be USD 28890 million in 2022 and is projected to touch USD 66024.12 million by 2031, at a CAGR of 9.6% during the forecast period.

Coworking spaces is a setting where workers of various firms share the same office space, which allows minimum cost and better convenience by the use of the same infrastructure, such as equipment, utilities and other such services. This type of setting is attractive to lone contractors, remote workers and other such individuals. Besides this, these spaces help employees by decreasing the feeling of social isolation they might experience while working remotely or travelling. Many of these spaces charge membership fees.

Coworking falls into two categories: those that are real estate based (all about selling furniture first) and the other is community centred (who focus on building community that happens to also include furniture). Firms target sole employed experts, remote performers, and small - medium establishments who want a space and are also searching for a community with a synergistic spirit.

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

The global COVID-19 pandemic has been unprecedented and staggering, with the coworking space market experiencing higher than anticipated demand across all regions compared to pre-pandemic levels. The spike in CAGR is attributable to the coworking space market growth and demand returning to pre-pandemic levels once the pandemic is over.

The market saw a share decrease during the COVID-19 pandemic, because these shared spaces are about employees coming together and working under the same roof with no offices to separate them. Thus, during the pandemic this could not continue to be so, therefore, this market saw a quick decline at the onset of the pandemic. Employees had to switch to working from home and these spaces were left unused. 

LATEST TRENDS

"Coworking Culture Will No Longer be Restrained to Just Cities"

At the start of COVID-19, multiple employees switched to the work from home situation, many of whom were positioned in the residential areas. But as time passed the workers began to experience various distractions as well as a feeling of loneliness began creeping in, thus restricting their capacity to prevail productivity and remain concentrated. So, coworking space companies decided that in 2022 the operators would broaden their services to residential areas and smaller towns so the employees have a tangible workplace to go to and connect with others, all the while still having the benefit of working close to their homes. Nevertheless, many of the office workers are in absolute need to find ways to better manage their work-life stability; therefore, in 2022 these spaces are to broaden their benefits to include child care assistance, fitness provisions and various other such benefits.

COWORKING SPACE MARKET SEGMENTATION

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• 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

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"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 Market Players Profiled

• 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.