Coworking Spaces Market Growth [Latest 2024 Report]
Coworking Spaces Market Size, Share Global Research, 2024-2032

Coworking Spaces Market Share, Size, Trends, Industry Analysis Report, By Type (Corporate/Professional, Open/Conventional, Industry-specific, Others), By Application (SMEs, Large size enterprises, Freelancers, Others), By Vertical, By Region, And Segment Forecasts, 2024 - 2032

  • Published Date:Jan-2024
  • Pages: 115
  • Format: PDF
  • Report ID: PM4204
  • Base Year: 2023
  • Historical Data: 2019-2022

Report Outlook

The global coworking spaces market was valued at USD 10.44 billion in 2023 and is expected to grow at a CAGR of 14.6% during the forecast period.

Product innovations, technological advancements, and the introduction of regulatory policies have been detailed in the report to enable businesses to make more informed decisions. Furthermore, the impact of the COVID-19 pandemic on the coworking spaces market demand has been examined in the study. The report is a must-read for anyone looking to develop effective strategies and stay ahead of the curve. 

Growth is primarily due to technological advancements and the expansion of the freelance economy. The surge in coworking spaces is reshaping the landscape of the real estate sector, impacting stakeholders such as landlords, developers, and real estate brokers. Additionally, this trend is transforming how individuals engage and collaborate with each other in professional settings.

Coworking Spaces Market Size

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The increased competitiveness among tenants has led many to explore the coworking concept and business model as an attractive alternative to traditional office spaces. Coworking spaces offer a cost-effective and flexible solution, aligning with the evolving preferences and needs of modern businesses and professionals. As a result, the demand for coworking spaces is on the rise, driven by the appeal of collaborative environments, shared resources, and the adaptability they provide in a dynamic and changing work landscape.

The expansion of the coworking spaces is significantly influenced by the increasing population of freelancers and entrepreneurs. Coworking spaces thrive on fostering communication and connectivity among professionals. Operating in such spaces allows for connections with a diverse array of nearby businesses and investors, elevating the standard of membership plans and service offerings. The emphasis on effective collaboration and investment not only generates additional revenue but also adds value for members and opens avenues for new business opportunities.

Collaborative efforts within coworking spaces often serve as cost-effective strategies to enhance revenue. By encouraging teamwork and facilitating partnerships, coworking spaces create an environment where businesses can mutually benefit, leading to increased financial gains. This collaborative approach not only enhances the overall experience for members but also contributes to the sustainability and success of coworking spaces in the dynamic landscape of the modern workplace.

Industry Dynamics

Growth Drivers

Remote Work Trends

Coworking spaces have brought about a significant transformation in the traditional leasing and rental of office premises. Landlords and service providers are leveraging the coworking concept to offer a more attractive, flexible, and cost-effective alternative to conventional office spaces, especially in the increasingly competitive office space rental market. The surge in remote work, the flourishing startup culture, and a growing demand for flexible office solutions are contributing to the growth of the coworking market.

The accelerated adoption of remote work, particularly spurred by the COVID-19 pandemic, has propelled the expansion of the coworking space business. The increasing number of individuals working remotely or from home, coupled with the establishment of sustainable coworking spaces, serves as the primary drivers for the market's growth. This shift reflects the changing dynamics of the modern workforce, emphasizing the importance of flexibility, collaboration, and innovative office solutions.

Report Segmentation

The market is primarily segmented based on type, application, and vertical, and region.

By Type

By Application

By Vertical

By Region

  • Corporate /Professional
  • Open/ Conventional
  • Industry-specific
  • Others
  • SMEs
  • Large size enterprises
  • Freelancers
  • Others
  • BFSI
  • Professional Services
  • Information Technology
  • Real Estate
  • Recruitment
  • Healthcare
  • Government
  • Others
  • North America (U.S., Canada)
  • Europe (France, Germany, UK, Italy, Netherlands, Spain, Russia)
  • Asia Pacific (Japan, China, India, Malaysia, Indonesia. South Korea)
  • Latin America (Brazil, Mexico, Argentina)
  • Middle East & Africa (Saudi Arabia, UAE, Israel, South Africa)

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By Type Analysis

Corporate segment accounted for the largest market share in 2023

Corporate segment accounted for the largest share. It caters to the needs of professionals and established businesses by providing dedicated desks, private offices, well-equipped meeting rooms, high-quality furniture, advanced technology, and other amenities. It serves as an ideal choice for businesses requiring a structured work environment that emphasizes privacy and confidentiality. Such spaces are particularly well-suited for focus-driven settings, making them an excellent fit for entities like legal firms or financial consultants.

One of the primary benefits of business coworking spaces is heightened productivity. These collaborative workspaces foster a more creative and innovative environment compared to traditional workplaces, resulting in increased productivity. Employees in coworking spaces can access shared resources, including equipment and conference rooms, which may be less available in traditional office settings. The flexibility offered by coworking environments contributes to higher levels of employee satisfaction and retention.

Open segment will grow rapidly. Open co-working spaces create a flexible environment that facilitates networking among diverse professionals, freelancers, entrepreneurs, and small businesses. These workspaces typically feature open floor plans with shared workstations or tables, often adjacent to lounges or cafeterias. Traditional office owners are increasingly integrating coworking spaces into their developments through partnerships with established coworking space providers or by establishing their own brands in the market.

By Application Analysis

Large enterprises segment held the significant market share in 2023

Large enterprises segment held the significant market share. Large enterprises leverage the flexibility and scalability offered by coworking spaces instead of investing in dedicated office spaces. Decentralized workplace strategies are gaining popularity, allowing companies to ensure convenient commuting for employees rather than relying on a single, large central headquarters. Users have the flexibility to choose workplace options that easily adapt to evolving business needs, enabling them to quickly respond to changing market dynamics.

SMEs segment is expected to gain substantial growth rate. The emergence of coworking spaces aligns with the entry of millennials into the workforce. Individuals starting their businesses, launching startups, and consolidating smaller enterprises sought a suitable and cost-effective workspace for collaboration, teamwork, and operations. Coworking spaces offer the flexibility needed by these entities. Renting shared workplaces allows employees to utilize desk space for the duration that suits their needs, providing flexibility, while businesses benefit from cost savings compared to traditional commercial leases.

By Vertical Analysis

IT technology segment will grow with substantial growth rate

IT technology segment will grow rapidly. Coworking spaces market offer IT firms the flexibility to scale their operations according to their requirements. These spaces facilitate the easy expansion or contraction of office space as project scopes and team sizes evolve, making them well-suited for IT firms with dynamic and changing needs. Additionally, coworking spaces present a cost-effective solution by enabling IT firms to share facility and amenity costs, including conference rooms, high-speed internet, and common areas, with other businesses. This cost-sharing approach helps reduce overhead expenses, allowing IT firms to allocate more resources to their core business activities.

Regional Insights

North America dominated the global market in 2023

North America dominated the global market. The region boasts the largest coworking spaces, averaging 9,799 square feet per site. The increasing adoption of flexible work practices, serviced offices, and remote teams is fueling substantial demand for coworking spaces. Giants in the coworking industry, such as WeWork and Regus, collectively manage an extensive 23 million square feet. This growth is not only propelled by freelancers and startups seeking informal coworking environments but also by larger enterprises aiming to expand their businesses in a controlled and cost-effective manner.

The Asia Pacific will grow with substantial pace. Cities in the region, including Hong Kong, Sydney, Singapore, & Tokyo, have emerged as key hubs for coworking spaces. The rise of startups and SMEs in India is contributing to the demand for coworking spaces. As investments in startups increase and the population of independent freelancers and part-time workers grows, India has positioned itself as an evolving market for coworking spaces.

Key Market Players & Competitive Insights

Some of the major players operating in the global market include:

  • Impact Hub GmbH
  • IWG
  • justgroup
  • Newmark Group, Inc.,
  • Servecorp
  • Techspace Group Ltd.
  • The Executive Centre
  • The Great Room,
  • The Work Project Management Pte Ltd.,
  • WeWork,

Recent Developments

  • In March 2023, The Great Room, a high-end coworking space with a focus on hospitality, has inaugurated its 6th coworking venue in Singapore, situated at the South Bridge. In response to the increasing demand for hybrid work-spaces.
  • In November 2022, Knotel, a company under the ownership of Newmark, has entered into a long-term lease agreement for 23,700 square feet at Ofizzina, an office condominium project located in Coral Gables, Florida. The intention is for Knotel to occupy three complete stories within the sixteen-story tower situated at 1200 Ponce De Leon Boulevard.

Coworking Spaces Market Report Scope

Report Attributes

Details

Market size value in 2024

USD 11.94 billion

Revenue forecast in 2032

USD 35.45 billion

CAGR

14.6% from 2024 – 2032

Base year

2023

Historical data

2019 – 2022

Forecast period

2024 – 2032

Quantitative units

Revenue in USD million/billion and CAGR from 2024 to 2032

Segments covered

By Type, By Application, By Vertical, By Region

Regional scope

North America, Europe, Asia Pacific, Latin America; Middle East & Africa

Customization

Report customization as per your requirements with respect to countries, region and segmentation.

Explore the market dynamics of the 2024 Coworking Spaces Market share, size, and revenue growth rate, meticulously examined in the insightful reports crafted by Polaris Market Rersearch Industry Reports. The analysis of Coworking Spaces Market extends to a comprehensive market forecast up to 2032, coupled with a retrospective examination. Avail yourself of a complimentary PDF download to sample this in-depth industry analysis.

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FAQ's

The global coworking spaces market size is expected to reach USD 35.45 billion by 2032

Impact Hub, IWG, justgroup, Newmark Group are the top market players in the market.

North America region contribute notably towards the global Coworking Spaces Market.

The global coworking spaces market is expected to grow at a CAGR of 14.6% during the forecast period.

Type, application, and vertical, and region are the key segments in the Coworking Spaces Market.