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

The Co-working Office Space Market is Segmented by End User (Personal User, Small-scale Company, Large-scale Company, and Other End Users), 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) and Geography (Asia-Pacific, North America, Europe, Middle-East and Africa, and South America). The report offers market size and forecast in value (USD billion) for all the above segments.

Market Snapshot

Co Working Office Space Market Size
Study Period: 2018-2027
Base Year: 2021
Fastest Growing Market: Asia-Pacific
Largest Market: North America
CAGR: >10 %

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Market Overview

The co-working office space market is expected to record a CAGR of over 10% during the forecast period.

Due to the COVID-19 pandemic, many organizations have chosen to work from home. Therefore, there was a huge drop in the number of walk-ins to the office during the pandemic. However, office space demand is increasing steadily, showing huge potential for growth in the market.

Currently, North America dominates the co-working space market. This trend is projected to continue during the forecast period as the region has the most co-working spaces in terms of size, with an average of 9,799 sq. ft per space. The increased acceptance of flexible work methods, service offices, and remote teams fuel this massive demand for co-working spaces. However, due to increased knowledge of the substantial benefits of co-working spaces among the population, Asia-Pacific is anticipated to see a steady rise in the co-working space market.

Scope of the Report

A co-working office space is an arrangement in which workers of different companies share an office space, allowing cost savings and convenience through the use of common infrastructures, such as equipment, utilities, reception and custodial services, and, in some cases, refreshments and parcel acceptance services.

The co-working office space market is segmented by end user, type, application, and geography.

The report offers market size and forecast in value (USD billion) for all the above segments.

By End User
Personal User
Small-scale Company
Large-scale Company
Other End Users
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 Geography
North America
United States
Canada
Mexico
Rest of North America
Europe
Spain
United Kingdom
Germany
France
Italy
Rest of Europe
Asia-Pacific
China
Japan
India
Australia
Rest of Asia-Pacific
South America
Brazil
Argentina
Rest of South America
Middle-East and Africa
United Arab Emirates
Saudi Arabia
South Africa
Rest of Middle-East and Africa

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Key Market Trends

Rise in Start-ups Driving the Market

The co-working office space market is majorly determined by the increasing number of start-ups globally. For instance, according to a survey in 2020, nearly 1.4 million start-ups were founded in the third quarter of 2020, a 49% increase over the second quarter of 2020.

The COVID-19 pandemic boosted the number of start-ups, as the number of new companies worldwide significantly surpassed the projections in 2020. Such a surge in entrepreneurship is attributed to workers who were laid off and started their own businesses.

As of 2021, the United States is the leading country by the number of start-ups (71,153), followed by India, with 13,125 start-ups, and the United Kingdom, with 6,220 start-ups.

Co-working spaces are not only helping reduce the cost of rent but additional utilities such as desks, high-speed Wi-Fi connection, coffee, meeting rooms, and recreation zones. Also, co-working spaces help start-ups in acquiring new talents from a number of freelancers daily, thus reducing the cost of recruitment.

Co Working Office Space Market Analysis

The Growing Trend of Remote Working to Provide More Opportunities

Working from home is not a new trend. It has been around for quite some time. However, due to the COVID-19 pandemic, many organizations were forced to transition to remote work. These businesses can continue operating even if there is a crisis.

Remote work has increased significantly in recent years. From 3-5 days a week, about 20-25% of the workforce could work remotely. Many businesses have recognized the advantages of remote work and are moving toward a more flexible work environment. Some companies planned to adopt a more permanent remote-working model, while others planned to adopt hybrid models.

According to estimates, the number of co-working spaces worldwide may expand from 20,000 in 2020 to 40,000 in 2024. There are currently several well-known co-working spaces in Phoenix, Denver, and Nashville. These spaces will increase in the future.

As a result, more companies are investing in co-working spaces, allowing people to reap the benefits of remote work while reducing the drawbacks as co-working spaces provide more flexibility, higher employee productivity, and technology, allowing high connectivity for workers.

Co Working Office Space Market Forecast

Competitive Landscape

The market is relatively fragmented, with the presence of a large number of players, including Impact Hub, Regus, WeWork, and Surf Office. Fragmentation in the market is expected to increase with new companies and start-ups entering the space actively to reap the benefits of economies of scale. The existing companies are gearing up to meet future needs, and many companies are entering the market for further opportunities.

Recent Developments

December 2021: WeWork (a commercial real estate company) announced a strategic partnership with Vertis (data science talent and location platform). This partnership aims to use data to help members overcome some of the most difficult workplace-related challenges they face today, such as determining where specific talent pools are growing in target markets and the impact of employee commute times on productivity.

January 2021: Venture X (a revolutionary designed office space) announced the opening of its newest location, Venture X Denver-Five Points, in Denver, Colorado. This 14,500-sq.-ft workspace, located in the Lydian building at 2590 Welton Street, Ste. 200, is the second Venture X location in Denver and a women-owned franchise location. Melanie Williams and Kim Corniel, Venture X franchisees, recently purchased this space, previously known as Craft Coworking.

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

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS AND INSIGHTS

    1. 4.1 Market Overview

    2. 4.2 Market Dynamics

      1. 4.2.1 Drivers

      2. 4.2.2 Restraints

      3. 4.2.3 Opportunities

    3. 4.3 Value Chain/Supply Chain Analysis

    4. 4.4 Industry Attractiveness - Porter's Five Forces Analysis

    5. 4.5 Current Economic and Co-working Office Space Market Scenario

    6. 4.6 Technological Innovations in the Co-working Office Space Market

    7. 4.7 Impact of Government Regulations and Initiatives on the Industry

    8. 4.8 Impact of Remote Working on Space Demand

    9. 4.9 Insights into Co-working Office Space Construction Costs

    10. 4.10 Insights into Key Co-working Office Space Industry Metrics (Supply, Rentals, Prices, Occupancy/Vacancy (%))

    11. 4.11 Insights into Rents, Leasing, and Rental Yields in the Co-working Office Space Segment

    12. 4.12 Insights into Key Trends on Rental and Leasing

    13. 4.13 Impact of COVID-19 on the Market

  5. 5. MARKET SEGMENTATION

    1. 5.1 By End User

      1. 5.1.1 Personal User

      2. 5.1.2 Small-scale Company

      3. 5.1.3 Large-scale Company

      4. 5.1.4 Other End Users

    2. 5.2 By Type

      1. 5.2.1 Flexible Managed Office

      2. 5.2.2 Serviced Office

    3. 5.3 By Application

      1. 5.3.1 Information Technology (IT and ITES)

      2. 5.3.2 Legal Services

      3. 5.3.3 BFSI (Banking, Financial Services, and Insurance)

      4. 5.3.4 Consulting

      5. 5.3.5 Other Services

    4. 5.4 By Geography

      1. 5.4.1 North America

        1. 5.4.1.1 United States

        2. 5.4.1.2 Canada

        3. 5.4.1.3 Mexico

        4. 5.4.1.4 Rest of North America

      2. 5.4.2 Europe

        1. 5.4.2.1 Spain

        2. 5.4.2.2 United Kingdom

        3. 5.4.2.3 Germany

        4. 5.4.2.4 France

        5. 5.4.2.5 Italy

        6. 5.4.2.6 Rest of Europe

      3. 5.4.3 Asia-Pacific

        1. 5.4.3.1 China

        2. 5.4.3.2 Japan

        3. 5.4.3.3 India

        4. 5.4.3.4 Australia

        5. 5.4.3.5 Rest of Asia-Pacific

      4. 5.4.4 South America

        1. 5.4.4.1 Brazil

        2. 5.4.4.2 Argentina

        3. 5.4.4.3 Rest of South America

      5. 5.4.5 Middle-East and Africa

        1. 5.4.5.1 United Arab Emirates

        2. 5.4.5.2 Saudi Arabia

        3. 5.4.5.3 South Africa

        4. 5.4.5.4 Rest of Middle-East and Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Market Concentration

    2. 6.2 Company Profiles

      1. 6.2.1 Impact Hub

      2. 6.2.2 Regus

      3. 6.2.3 WeWork

      4. 6.2.4 Surf Office

      5. 6.2.5 Workplace One

      6. 6.2.6 B. Amsterdam

      7. 6.2.7 Hacker Lab

      8. 6.2.8 Punspace

      9. 6.2.9 Betahaus

      10. 6.2.10 Co+Hoots

      11. 6.2.11 The Factory*

    3. *List Not Exhaustive
  7. 7. FUTURE OF THE MARKET

  8. 8. DISCLAIMER

  9. 9. APPENDIX

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Frequently Asked Questions

The Co-Working Office Space Market market is studied from 2018 - 2027.

The Co-Working Office Space Market is growing at a CAGR of >10% over the next 5 years.

Asia-Pacific is growing at the highest CAGR over 2021- 2026.

North America holds highest share in 2021.

Impact Hub, Regus, WeWork, Surf Office, Workplace One are the major companies operating in Co-Working Office Space Market.

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