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The coworking spaces market is estimated to decline at a CAGR of 11.23% between 2022 and 2027. The size of the market is forecast to increase by USD 14,124.67 million. The growth of the market depends on serval factors, including the advantages of coworking spaces, supportive government programs and policies promoting small-scale businesses, and the constant growth of start-ups in developing countries.
This report extensively covers market segmentation by end-user (enterprises and SMEs and freelancers and start-ups), type (conventional coworking spaces, professional coworking spaces, and others), and geography (APAC, Europe, North America, South America, and Middle East and Africa) and geography APAC, Europe, North America, South America, and Middle East and Africa. It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The reports categorize the global coworking spaces market as a part of the global diversified support services market within the global commercial services and supplies market. The global diversified support services market covers companies primarily providing labor-oriented support services to businesses and governments. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
The advantages of coworking spaces are notably driving the market growth, although factors such as limited space and availability of limited equipment may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key Coworking Spaces Market Driver
The advantages of coworking spaces are notably driving market growth. Coworking space is getting a lot of visibility with the rise in entrepreneurship. Coworking spaces hold multiple business operations; therefore, several entrepreneurs with different ideas work under a single roof. For any new or first-time entrepreneur, it becomes easy to get ideas from experienced entrepreneurs, to navigate through the complexities of starting a new venture. Coworking spaces offer an energetic, dynamic, and motivating environment as well as social support, which helps start-ups, SMEs, and individual entrepreneurs grow.
Coworking spaces help in lowering the real estate cost of a company and offer flexibility in procuring and managing spaces. It offers collaborative learning environments, which enable people from diverse backgrounds to work together in a common space. Therefore, such benefits of coworking spaces can substantially propel the growth of the market during the forecast period.
Significant Coworking Spaces Market Trend
The growing inclination of coworking spaces toward technology-driven management is the primary trend in the market. The adoption of technology is constantly growing across coworking spaces globally. Therefore, coworking space operators are diverting their expenses toward technology-driven management solutions, such as coworking space management software, visitor management systems, appointment scheduling software, and resource management systems.
The operators of coworking spaces are embracing the Internet of Things (IoT) landscape to make their businesses and infrastructure smart. The adoption of IoT-enabled key cards, Wiegand cards, proximity cards, and magnetic stripe cards are growing in coworking spaces globally. Hence, these factors will enhance the growth of the market during the forecast period.
Major Coworking Spaces Market Challenge
Limited space and availability of limited equipment is the major challenge hampering the growth of the market. Limited space in coworking spaces creates a hindrance to requirements like privacy, creativity and innovative ideas, and one-on-one discussions. The lack of privacy in such spaces leads to employee dissatisfaction and unproductivity. Furthermore, meetings and video calls become difficult in such limited spaces, owing to the presence of background noise.
Other than limited space, insufficient equipment is another major challenge faced by workers at coworking spaces. In some business needs, multiple monitors and phones are a prerequisite. However, coworking spaces offer limited equipment. Therefore, it becomes difficult for workers to reach their daily work targets with the limited availability of the equipment. Therefore, such challenges could impede the growth of the market during the forecast period.
Key Coworking Spaces Market Customer Landscape
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Coworking Spaces Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
betahaus GmbH - The company offers coworking spaces which include 36 private offices, 4 event spaces, and a rooftop terrace. Under this segment, the company offers event space, private offices, and co-working space.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth of the enterprises and SMEs segment will be significant during the forecast period. Coworking spaces have emerged as an effective workplace strategy for a growing number of enterprises and SMEs. Small-scale businesses are exploring flexible workspace environments to support their expansion and accommodate their increasingly diverse workforce. Higher flexibility offered by coworking spaces than traditional office leases is driving the growth of the market in this segment. SMEs play a vital role in the development of a country and accounts for most business worldwide.
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The enterprises and SMEs segment were valued at USD 5,771.32 million in 2017 and continued to grow until 2021. The development of SMEs is becoming essential for the government of various countries around the world, as the demand for employment is expected to grow significantly by 2030. Coworking spaces are gaining traction among global enterprises and SMEs. In 2022, over 2.8 million people were working in around 28,000 coworking spaces located globally. Such factors will drive the growth of SMEs, which will subsequently propel the demand for coworking spaces during the forecast period.
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APAC is estimated to contribute 37% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The demand for coworking spaces has witnessed significant growth in the region in the last few years, which is supported by the emergence of start-up ecosystems, the rising demand for flexible workspaces from employees and corporates, and advances in technologies, such as data analytics and cloud computing, allowing the people to work from anywhere, at any time. Furthermore, coworking spaces are cost-effective alternatives of traditional offices, which has been one of the major driving forces for their growth in the region. In APAC, Hong Kong, Sydney, Singapore, Melbourne, Tokyo, and Shanghai are the major gateway cities with the maximum concentration of coworking spaces. The constant increase in the number of start-ups and SMEs in the region will propel the demand for coworking spaces during the forecast period.
The outbreak of COVID-19 led to a significant plunge in the growth of the market in the region. However, in 2021, the success of vaccination campaigns across the region, as well as an increase in investment in MSMEs, led to the reopening of workstations across APAC. As a result of these factors, the demand for coworking spaces is likely to increase across companies for seamless business operations, propelling the focused market forward throughout APAC during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. The market has been segmented by End-user (Enterprises and SMEs and Freelancers and start-ups), Type (Conventional coworking spaces, Professional coworking spaces, and Others), and Geography (APAC, Europe, North America, South America, and Middle East and Africa).
Coworking Spaces Market Scope |
|
Report Coverage |
Details |
Page number |
157 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Decelerate at a CAGR of 11.23% |
Market growth 2023-2027 |
USD 14,124.67 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
14.05 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 37% |
Key countries |
US, India, UK, Germany, and Spain |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
betahaus GmbH, Blink Roppongi LLC, Boxer Property, CIC, Convene, Expansive, Firmspace LP, Greendesk LLC, Impact Hub GmbH, Industrious, Knotel Inc., MESH cowork LLC, Regus Group Companies, Servcorp Ltd., Spaces Holding BV, Synergy Office Spaces, The District Coworking and Flex Office, Unicorn Workspaces GmbH, United Franchise Group, and WeWork Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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