The global coworking spaces market is expected to decline from $9.27 billion in 2019 and to $8.24 billion in 2020 at a compound annual growth rate (CAGR) of -12.9%. The decline is mainly due to economic slowdown across countries owing to the COVID-19 outbreak and the measures to contain it. The market is then expected to recover and reach $11.52 billion in 2023 at CAGR of 11.8%. Europe was the largest region in the coworking spaces market in 2019.
The increase in the number of people working from home or remotely owing to COVID-19 lockdown limits the growth of the market. For instance, in March 2020, many companies working from home owing to COVID-19 pandemic, operators of coworking spaces have seen an almost 50% decline in footfalls. Furthermore, according to Business 2 Community publication in April 2020, the number of people working remotely has grown by 44% in the last five years, with 7 million people (3.4% of the population) were working remotely in the USA before the arrival of COVID-19. Nevertheless, the number of people working remotely is tremendously increased owing to the coronavirus outbreak over the last few months. Consequently, declining the revenues generated by the coworking spaces market during 2020.
The coworking spaces market is majorly determined by the increase in the number of start-ups globally. According to thegeniuswork.com publication in October 2019, the global startup economy was worth $ 3 trillion in 2019, with a rise of 20% from 2017 and 2018. Moreover, according to ENTRACKER magazine published in February 2019, the number of startups in India increased from 7,000 in 2008 to 50,000 in 2018, recording a growth of 7.14 times in a decade. The growth is backed by the expansion of internet space, exposure to the knowledge of entrepreneurship outside the boundaries of the country, and improved literacy rates. Besides, advanced manufacturing and robotics, agriculture technology and new food, blockchain, and artificial intelligence, big data, and analytics were the fastest growing startup sub-sectors globally. Therefore, the rise in the number of startups across various industries globally increased the demand for coworking spaces, driving the market during the forecast period.
The development of sustainable coworking spaces is a major trend shaping the coworking spaces market. Coworking spaces are implementing eco-friendly measures in the workplace to attract entrepreneurs concerned with environmental issues such as global warming. Sustainable practices adopted by the coworking space providers offer substantial benefits and are economically feasible. For instance, CoCoon in Hong Kong has a floor made of natural bamboo and uses non-toxic paints and LED lights. In addition to this, drought-resistant plants are part of the interior and exterior. Another such example is Green Spaces in Denver uses about 160 solar panels on the roofs of its offices. These allow significant cost savings at Green Spaces. Thus, sustainable coworking space is a key trend in the coworking spaces market.
In January 2019, a Los Angeles based workspace provider Cross Campus, announced the acquisition of San Diego's coworking space provider DeskHub, for an undisclosed amount. This acquisition helps the company to increase its footprints in San Diego and Scottsdale, AZ, providing an opportunity to broaden its services in the region. DeskHub is committed to creating a premier network for coworking workspaces across the USA.
Major players in the coworking spaces market are Wework, Regus Corporation (IWG PLC), Mix Pace, Knotel Inc., SimplyWork, District Cowork, Premier Workspaces, Kr Space, Convene, and Servcorp Limited.
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. It places the market within the context of the wider coworking spaces market, and compares it with other markets.
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, the influence of the COVID-19 virus and forecasting its growth.
Market segmentations break down 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.
Competitive landscape 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.
The coworking spaces market section of the report gives context. It compares the coworking spaces market with other segments of the coworking spaces market by size and growth, historic and forecast. It analyses GDP proportion, expenditure per capita, coworking spaces market indicators comparison.
Key Topics Covered
1. Executive Summary
2. Coworking Spaces Market Characteristics
3. Coworking Spaces Market Size And Growth 3.1. Global Coworking Spaces Market Historic Market, 2015-2019, $ Billion 3.1.1. Drivers Of The Market 3.1.2. Restraints On The Market 3.2. Global Coworking Spaces Market Forecast Market, 2019-2023F, 2025F, 2030F, $ Billion 3.2.1. Drivers Of The Market 3.2.2. Restraints On the Market
4. Coworking Spaces Market Segmentation 4.1. Global Coworking Spaces Market, Segmentation By Business Type, Historic and Forecast, 2015-2019, 2023F, 2025F, 2030F, $ Billion
Open/ Conventional Coworking Spaces
Corporate/ Professional Coworking Spaces
4.2. Global Coworking Spaces Market, Segmentation By End Use, Historic and Forecast, 2015-2019, 2023F, 2025F, 2030F, $ Billion
5. Coworking Spaces Market Regional And Country Analysis 5.1. Global Coworking Spaces Market, Split By Region, Historic and Forecast, 2015-2019, 2023F, 2025F, 2030F, $ Billion 5.2. Global Coworking Spaces Market, Split By Country, Historic and Forecast, 2015-2019, 2023F, 2025F, 2030F, $ Billion