Coworking Space Global Market Report 2024

A coworking space is an office environment shared by numerous individuals or businesses within the same premises, offered on a rental basis by property owners. It aims to provide a sense of community that might be lacking in virtual workplaces.

The primary categories of businesses in coworking spaces include open or conventional coworking spaces, corporate or professional coworking spaces, and others. Corporate/professional coworking spaces cater to tenants with a more corporate or professional focus. These spaces are generally more cost-effective than high-end locations, featuring a tranquil, personalized, and professional ambiance, softer lighting, and lower energy consumption compared to other types of spaces. Various users, including enterprises, freelancers, and others, make use of coworking spaces, which find applications in sectors such as finance, legal services, marketing, technology, real estate, consulting services, and more.

The coworking spaces market research report is one of a series of new reports from The Business Research Company that provides coworking spaces market statistics, including coworking spaces industry global market size, regional shares, competitors with a coworking spaces market share, detailed coworking spaces market segments, market trends and opportunities, and any further data you may need to thrive in the coworking spaces industry. This coworking spaces market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The coworking space market size has grown rapidly in recent years. It will grow from $19.05 billion in 2023 to $22.44 billion in 2024 at a compound annual growth rate (CAGR) of 17.8%. The growth observed in the historical period can be attributed to a cultural shift towards collaboration, the evolution of work culture, an entrepreneurial boom, urbanization trends, and market developments following the recession.

The coworking space market size is expected to see rapid growth in the next few years. It will grow to $40.4 billion in 2028 at a compound annual growth rate (CAGR) of 15.8%. The anticipated growth in the forecast period can be attributed to factors such as the adoption of hybrid work culture, global expansion, increased workforce mobility and remote work, corporate utilization, and the development of entrepreneurial ecosystems. Major trends expected during the forecast period encompass agile design and flexibility, the creation of industry-specific spaces, the implementation of flexible memberships and pricing models, the establishment of hybrid work environments, and a heightened emphasis on wellness and community.

The coworking spaces market is significantly influenced by the surge in the number of startups globally. The Global Startup Ecosystem Report 2021 by Startup Genome highlights the global startup economy's worth at $3.8 trillion, propelled by factors such as expanded internet access, increased entrepreneurship knowledge globally, and improved literacy rates. Startups in advanced manufacturing, robotics, agriculture technology, new food, blockchain, artificial intelligence, big data, and analytics have particularly contributed to the growth. This rise in startups across various industries globally has led to an increased demand for coworking spaces, consequently driving the market during the forecast period.

The growth of the coworking spaces market is expected to be fueled by the escalating demand for flexible office spaces. Flexible office spaces, designed to accommodate diverse work styles and needs, include coworking spaces that offer shared workspaces for individuals and businesses. A report from Vestian in September 2023 estimates a substantial increase in the flexible office space sector, growing from 53.4 million square feet to 81 million square feet by 2025, representing a remarkable 52 percent increase. The rising demand for flexible office spaces is a key driver propelling the growth of the coworking spaces market.

The market faces limitations due to the increasing number of people working from home or remotely, a trend accelerated by the COVID-19 lockdowns. A report from Apollo Technical in August 2023 estimates that approximately 26% of the American workforce will be working remotely through 2021, with 22% (36.2 million Americans) expected to work remotely by 2025. This shift towards remote work has impacted the revenues generated by the coworking spaces market during 2020.

A noteworthy trend in the coworking spaces market is the development of sustainable coworking spaces. Providers are implementing eco-friendly measures to attract environmentally conscious entrepreneurs, addressing concerns such as global warming. Examples include CoCoon in Hong Kong, with a floor made of natural bamboo, non-toxic paints, LED lights, and drought-resistant plants. Green Spaces in Denver uses solar panels, contributing to significant cost savings. The development of sustainable coworking spaces is a significant trend shaping the coworking spaces market.

Major companies in the coworking spaces market are concentrating on the development of innovative products, such as one-stop platforms for remote working, to offer reliable services to their customers. A remote working one-stop platform serves as a unified solution, providing all the necessary tools and resources for remote workers to enhance productivity and success. For example, in February 2021, Awfis, an Indian-based coworking space provider, introduced Awfis@Home. This platform is designed to facilitate a seamless and efficient transition to remote work for both organizations and individuals. Awfis@Home offers a comprehensive approach with its three key components, a@h Tech-enablement, a@h Toolkit, and a@h Assessment Tool. These features enable users to work productively from home, replicating an office environment while maintaining the flexibility to work efficiently.

In January 2022, WeWork Inc., a US-based coworking space provider offering both physical and virtual spaces, acquired Common Desk for an undisclosed amount. This acquisition is a strategic move for WeWork Inc. towards achieving cost-efficient and strategic growth. Common Desk is known for creating experiential coworking and office spaces with flexible memberships catering to various professionals across the USA.

Major companies operating in the coworking space market report are District Cowork Inc., WeWork Companies Inc., IWG PLC, Ucommune International Ltd., KR Space Information Technology Co. Ltd., Tishman Speyer Properties L.P., Knotel Inc., Servcorp Limited, Selina Hospitality PLC, Convene Inc., CommonGrounds Workspace Solutions Inc., Wing Soulcycle LLC, Green Desk LLC, Industrious Office Management Inc., Serendipity Labs Inc., DragonPass International Limited, Mindspace Ltd., NeueHouse LLC, Intelligent Office Franchise Corp., Novel Coworking LLC, Premier Business Centers LLC, Office Evolution LLC, TechSpace Holding Co. Inc., Bond Collective LLC, The Urban Hive Inc., Studio Holdings Ltd., Urban Station S.A., Venture X Global LLC, Coworker.com LLC, MakeOffices LLC, Spaces Management LLC, The Farm SoHo LLC, SOMAcentral Inc., Mixpace Co. Ltd., Beijing SimplyWork Co. Ltd., The Yard Creative Workspace LLC, Impact Hub Global Association

Asia-Pacific was the largest region in the coworking space market in 2023. North America was the second largest region in the global coworking space market. The regions covered in the coworking space market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the coworking space market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain

The coworking spaces market consists of revenues earned by entities that provide coworking space on rent or lease. Unsuch as traditional office rental, the cost of renting coworking workspaces usually covers the use of related services/equipment such as office chairs and desks, internet/Wi-Fi connection, hardware, software, and others. The industry includes businesses that offer non-residential structures with amenities and facilities on a flexible rental basis. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

Coworking Space Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.

This report focuses on coworking space market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.

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Where is the largest and fastest growing market for coworking space ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The coworking space market global report from the Business Research Company answers all these questions and many more.

The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.

• The market characteristics section of the report defines and explains the market.
• The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
• The forecasts are made after considering the major factors currently impacting the market. These include:

The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.

The impact of higher inflation in many countries and the resulting spike in interest rates.

The continued but declining impact of covid 19 on supply chains and consumption patterns.

• Market segmentations break down the market into sub markets.
• The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth. It covers the growth trajectory of COVID-19 for all regions, key developed countries and major emerging markets.
• The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
• The trends and strategies section analyses the shape of the market as it emerges from the crisis and suggests how companies can grow as the market recovers.

Scope

Markets Covered:

• 1) By Business Type: Open/ Conventional Coworking Spaces; Corporate/ Professional Coworking Spaces; Other Business Types
• 2) By User: Enterprises; Freelancer; Other Users
• 3) By End Use: Finance; Legal Services; Marketing; Technology; Real Estate; Consulting Services; Other End Uses
• Companies Mentioned: District Cowork Inc.; WeWork Companies Inc.; IWG plc; Ucommune International Ltd.; KR Space Information Technology Co. Ltd.
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Russia; South Korea; UK; USA; Canada; Italy; Spain
• Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
• Time series: Five years historic and ten years forecast.
• Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
• Data segmentations: country and regional historic and forecast data, market share of competitors, market segments.
• Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
• Delivery format: PDF, Word and Excel Data Dashboard.