Asia-Pacific Co-working Office Spaces Market - Growth, Trends, COVID-19 Impact, and Forecast (2022 - 2027)

The Asia-Pacific Co-working Office Space Market is Segmented by Type (Flexible Managed Office and Serviced Office), Application (Information Technology (IT and ITES), Legal Services, BFSI (Banking, Financial Services, and Insurance), Consulting, and Other Services), End User (Personal User, Small Scale Company, Large Scale Company, and Other End Users), Country (China, India, Japan, South Korea, Australia, and Rest of Asia-Pacific). The report offers market size and forecast in value (USD billion) for all the above segments.

Market Snapshot

Asia Pacific Co-Working Office Spaces Market Growth
Study Period: 2018-2027
Base Year: 2021
CAGR: >5.5 %

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Market Overview

The Asia-Pacific co-working office spaces market is expected to register a CAGR of more than 5.5% during the forecast period (2022-2027).

The COVID-19 pandemic had accelerated the growth of co-working spaces in the Asia-Pacific region, as traditional workspaces faced challenges during the crisis. Many enterprises moved toward co-working spaces due to the affordable prices and flexibility in working space. The co-working spaces also ensure a safe working environment.

The sector is driven by increasing demand from freelancers, small and medium-scale enterprises (SMEs), and start-ups. As the sector provides top facilities at affordable prices, large-scale enterprises also adopted co-working spaces. Also, the increasing number of start-ups with a high rate of investment flows is resulting in robust growth of the sector. Increasing digital nomads in countries like Indonesia and Thailand are also boosting the co-working spaces sector.

In 2021, Asia-Pacific led the co-working spaces market compared with other regions. Melbourne, Singapore, Hong Kong, and Mumbai are some of the major cities experiencing growth in flexible and co-working office centers.

Scope of the Report

Co-working is an arrangement in which workers of different companies share an office space, allowing cost savings and convenience using common infrastructures. The report offers a complete analysis of the Asia-Pacific co-working office space market, including market overview, market size estimation for key segments and emerging trends by segments, and market dynamics. The report also offers the impact of COVID-19 on the market.

The Asia-Pacific co-working office space market is segmented by type, application, end user, and country. The report offers market size and forecast in value (USD billion) for all the above segments.

By Type
Flexible Managed Office
Serviced Office
By Application
Information Technology (IT and ITES)
Legal Services
BFSI (Banking, Financial Services, and Insurance)
Consulting
Other Services
By End User
Personal User
Small Scale Company
Large Scale Company
Other End Users
By Country
China
India
Japan
South Korea
Australia
Rest of Asia-Pacific

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Key Market Trends

Co-working Spaces Experiencing Significant Growth

Co-working office spaces have been significantly growing over the years. The Asia-Pacific region is experiencing increasing demand for co-working spaces compared to other regions. Major flexible and co-working spaces doubled, and floor space increased by 150% between 2019 and 2021.

According to the Co-Working Index by CircleLoop, most co-working office spaces are available in some of the major cities like Hong Kong, New Delhi, Tokyo, Mumbai, and Melbourne. More than 774 co-working spaces were available in these cities in 2021. The governments are ardently boosting a start-up ecosystem, leading to the rising demand for co-working spaces.

In 2021, Hong Kong was the major location for the development of co-working spaces. More than 166 spaces are available in the city. Cities like Busan, Kuala Lumpur, and Hangzhou also provide affordable hot desking facilities.

Number of Co-Working Spaces in Major Cities

China and Japan Witnessing Significant Growth in the Sector

The co-working sector is experiencing significant growth in China and Japan, which is supported by the start-up boom and demand for greater flexibility among employees and companies. Co-working spaces are a cost-effective alternative to traditional offices. Most mainland Chinese landlords are likely to enter Hong Kong’s flexible working space, which is traditionally dominated by local and international investors, as it offers a low-risk entry point to the broader office market.

However, most freelancers, start-ups, and small and medium-scale enterprises (SMEs) are adopting co-working spaces in Japan. These spaces provide top features and facilities such as fast internet services, 24/7 access to office space, providing meeting rooms, and furnished and unfurnished spaces. In December 2021, the highest number of co-working spaces in Japan was recorded in the 23 wards of Tokyo, at 560, followed by Osaka City with 132 office spaces.

In 2021, more than 20% of the tenants of co-working spaces in China were from the computer network industry, as co-working spaces attract young and budding companies. Most of the spaces are occupied by internet, digital services, and media industries since entry barriers are very low for such industries.

Industry Wise Tenants Distribution in Co-working Spaces

Competitive Landscape

The Asia-Pacific co-working office spaces market is fragmented, with the presence of global and local players. Many new players are entering the market to meet the rapid demand for casual environment offices. The companies in the market are involved in several growth and expansion strategies, such as partnerships, mergers, and acquisitions, to gain a competitive advantage. Some of the key players in the market include JustCo, WeWork Management LLC, Spaces, and Hive Worldwide Ltd.

Recent Developments

August 2021, WeWork (a leading provider of flexible shared workspaces for technology start-ups and services for other enterprises) is offering subsidized workspaces to Australian start-ups through a new community initiative to boost the tech sector post pandemic. These spaces will be available in Sydney, Melbourne, Brisbane, and Perth.

July 2021, Singapore-based FinTech start-up Volopay announced a strategic partnership with WeWork (a leading provider of flexible shared workspaces for technology start-ups and services for other enterprises). This partnership offers an integrated business spend management solution in Singapore and Australia.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Deliverables

    2. 1.2 Study Assumptions

    3. 1.3 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

    1. 2.1 Analysis Methodology

    2. 2.2 Research Phases

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS AND DYNAMICS

    1. 4.1 Current Market Scenario

    2. 4.2 Technological Trends

    3. 4.3 Industry Value Chain Analysis

    4. 4.4 Government Regulations and Initiatives

    5. 4.5 Insights on Co-working Start-ups in Asia-Pacific

    6. 4.6 Market Dynamics

      1. 4.6.1 Market Drivers

      2. 4.6.2 Market Restraints

      3. 4.6.3 Market Opportunities

    7. 4.7 Porter's Five Forces Analysis

    8. 4.8 Impact of COVID-19 on the Market

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Type

      1. 5.1.1 Flexible Managed Office

      2. 5.1.2 Serviced Office

    2. 5.2 By Application

      1. 5.2.1 Information Technology (IT and ITES)

      2. 5.2.2 Legal Services

      3. 5.2.3 BFSI (Banking, Financial Services, and Insurance)

      4. 5.2.4 Consulting

      5. 5.2.5 Other Services

    3. 5.3 By End User

      1. 5.3.1 Personal User

      2. 5.3.2 Small Scale Company

      3. 5.3.3 Large Scale Company

      4. 5.3.4 Other End Users

    4. 5.4 By Country

      1. 5.4.1 China

      2. 5.4.2 India

      3. 5.4.3 Japan

      4. 5.4.4 South Korea

      5. 5.4.5 Australia

      6. 5.4.6 Rest of Asia-Pacific

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Overview (Market Concentration Analysis and Major Player)

    2. 6.2 Company Profiles

      1. 6.2.1 the Hive Worldwide Ltd

      2. 6.2.2 WeWork Management LLC

      3. 6.2.3 Spaces

      4. 6.2.4 JustCo

      5. 6.2.5 Servcorp

      6. 6.2.6 Compass Offices

      7. 6.2.7 The Work Project Management Pte Ltd

      8. 6.2.8 GARAGE SOCIETY

      9. 6.2.9 THE GREAT ROOM

      10. 6.2.10 IWG

      11. 6.2.11 WOTSO Limited

      12. 6.2.12 The Executive Centre*

    3. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

  8. 8. APPENDIX

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Frequently Asked Questions

The Asia Pacific Co-Working Office Spaces Market market is studied from 2018 - 2027.

The Asia Pacific Co-Working Office Spaces Market is growing at a CAGR of >5.5% over the next 5 years.

WeWork Management LLC, Spaces, JustCo, Servcorp, Hive Worldwide Ltd are the major companies operating in Asia Pacific Co-Working Office Spaces Market.

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