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India Co-working ofice Spaces Market is expected to grow at a CAGR of more than 7% during the forecast period.
In terms of yearly growth in 2021, out of the largest markets , India is the fastest growing, followed by United States and Canada.
The COVID-19 pandemic accelerated the growth of co-working spaces in the country, as traditional workspaces faced challaenges during the crisis. Many entterprises moved towards co-working spaces because of affordable prices, and flexibility in working space, also the co-working spaces ensures to provide safety working environment.
The sector is driven by increasing demand from freelancers, Small and Medium scale Enterprises (SMEs), Startups. Because the sector provides top facilities in affordable prices, in addition,
Large Scale Enterprises are also adopting Co-working spaces after realising the benefits offered by the Sector, also the increasing number of Startups with high rate of investment flows resulting in robust growth of the sector.
Bengaluru accounted for the highest share of leasing by flexi ooperators, followd by Mumbai, adnd Delhi-NCR. Demand for Coworking office spaces in Indis first led by start ups, before MNCs and large enterprises too the plunge by taking up space in Coworking Office Spaces.
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. India Co-working Office Spaces Market is segmented By Type (Flexible Managed Office, Serviced Office), By Application (Information Technology (IT and ITES), Legal services, BFSI (Banking, Financial services, and Insurance), By End user (Personal Use, Small Scale Company, Large Scale Company, Others), By Key Cities (bangalore, Mumbai, hyderabad).The report offers market size and forecasts for the Indian Co-working Office Spaces Market in value (USD Billion) for all the above segments.
|Flexible Managed Office|
|Information Technology (IT and ITES)|
|BFSI (Banking, Financial Services, and Insurance)|
|By End User|
|Small Scale Company|
|Large Scale Company|
|By Key Cities|
Key Market Trends
Cost Optimization is driving the significant growth in the sector
In India, Coworking spaces are mostly preferred by startups for cost-effectiveness. Users only pay for what they use and rent; nothing extra. there are no hassles and spending on infrastructure maintenance and repair which conventional offices include. Since startups function on limited capital initially, lower costs of functioning works in their favor.
In a regularly changing economic environment, companies that are not bound by long-term lease contracts with tough terms will be in a better position. The Coworking Spaces, offers flexible tariffs with the ability to combine service packages like choose exactly what suits users needs. In case users need to reduce or, on the contrary, increase the project team, for example, if companies entererd a period of rapid growth and needed more employees, using Coworking spaces can always do it.
So, the companies bottom lines are a key factor driving demand for coworking space. And, the bottom lines is that coworking offers a 12-72 percent cost reduction compared to traditional office space, based on locations around the country.
The cost for traditional office space quickly add up. In addition to lease payments, costs for traditional office space include utilities, internet and tech support and maintenance. On the flip side, utilities, internet and tech support and maintenance are all typically included in coworking memberships. Businesses of all sizes have caught on to the cost savings of shared workspace.
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Increasing Number of Startups and Freelancers in the Country
The Coworking ecosystems which was initially the go to option for startups and freelancers has now become a prerequisite for SMEs. The biggest chunk of 10.3 million seats out of the total 12-16 million potential seats is ascrined to large companies. There is an qual divide of 1.5 million each amongst freelancers and SMEs.
Small and Medium Enterprises have been growing rapidly with over 63 million SMEs in the country currently rising at an average rate of 10%. SMEs contribute to 45% of india's manufacturing output and add to more than 28% of India's GDP. The current MSME employee base of 128 mn is expected to grow to 170mn by Current Year 2022. With renewed economic reforms by the government comprising of streamlining of labour laws. Ensuring digital integrations & creating SME/MSME friendly policies, the SME segment cannot be overlooked by the business ecosystem in India any longer.
The smallest lot is formed by startups, at 100,000 seats. With a substantial shift from traditional offices to flexible workspaces attaining widespread acceptance, more and more SMEs are embracing coworking due to cost efficiency, flexibility, tech integrations, superior infrastructure, enhanced productivity, plug and play solutions and networking opportunities. Thus, allowing them to concentrate on their fundamental business minus the hassle of managing real estate.
India Co-working Office Spaces Market is fragmented with global and local players existing in the coworking spaces market. Also, many more are enteering the market to fullfill the rapid demand for casual environment offices. The companies iin India Co-working Office Space Market are involved several growth and expansion strategies, such as strategic partnerships, mergers, and acquisitions to gain a competitive advantage. Some of the key players in the market include 91 Springboard, awfis, wework, innov8, Redbricks, Mumbai Co-working are among the others.
March 22,2022: WeWork India, the flexible workspace provider had partnered with StrongHer ventures to launch 'Arise', a program designed to unlock opportuities for India's Women Entrepreneurs. The association will be jointly led by WeWork labs, the global incubation ana acceleration arm of WeWork, and StrongHer Ventures, the first woman focused VC in India and Globally. Arise brings together the benefits of StrongHer Venture's extensive investment expertisse and investor network, coupled with WeWork Lab's global acceleration platform.
Jan 5, 2022: 91Springboard. india's pioneering coworking community, partners with Google fos Startups (GfS) to launch ' startup Sprint' - a virtual program that provides an opportunity to various startups and entrepreneurs across India to scale up and expand theri business online by helping them learn modern digital business tools. The goal of this initiative is to help startups adopt to a transformed world, with more people spending time online and the growth of the digital economy.
Dec 21,2021: Awfis, an indian company that offers Co-working spaces to startups and Freelancers joined hands with Property developer Prestige group to add 12 centers spread across 5 lakh square feet to its portfolio with an investment of Rs 110 Crore. The companies will invest equally to set up these centers, which will open in the next six months.
Table of Contents
1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS AND DYNAMICS
4.1 Current Market Scenario
4.2 Technology Trends
4.3 Industry Value Chain Analysis
4.4 Government Regulations and Initiatives
4.5 Insights on Co-working Startups in India
4.6 Market Dynamics
4.6.1 Market Drivers
4.6.2 Market Restraints
4.6.3 Market Opportunities
4.7 Porter's Five Forces Analysis
4.8 Impact of COVID - 19 On the Market
5. MARKET SEGMENTATION
5.1 By Type
5.1.1 Flexible Managed Office
5.1.2 Serviced Office
5.2.1 Information Technology (IT and ITES)
5.2.2 Legal Services
5.2.3 BFSI (Banking, Financial Services, and Insurance)
5.2.5 Other Services
5.3 By End User
5.3.1 Persnal User
5.3.2 Small Scale Company
5.3.3 Large Scale Company
5.4 By Key Cities
6. Competitive Land Scape
*List Not Exhaustive
6.1 Overview (Market Concentration Analysis and Major Players)
6.2 Company Profiles
6.2.1 Mumbai Coworking
6.2.2 We Work-BKC
6.2.4 91 springboard
6.2.5 Spring House Coworking
6.2.6 Indi Qube
6.2.8 Awfis CBD
7. FUTURE OF THE MARKET
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Frequently Asked Questions
What is the study period of this market?
The India Co-working Office Spaces market market is studied from 2018 - 2027.
What is the growth rate of India Co-working Office Spaces market?
The India Co-working Office Spaces market is growing at a CAGR of >7% over the next 5 years.
Who are the key players in India Co-working Office Spaces market?
91 Springboard, Wework, The Hive, Awfis, Mumbai Coworking are the major companies operating in India Co-working Office Spaces market.